Find out what tenancy fraud is and how to report it.
Millions of pounds are lost each year due to housing fraud.
People who use properties fraudulently take them away from those in genuine and urgent need of somewhere to live.
There are several types of tenancy misuse and fraud.
This is when a tenant says they are living in a property let to them but instead lets all or part of it to someone else without the landlord's consent. They may have left a family member there, or may have found a private tenant of their own who may not realise they are living in a social housing property.
Additionally, the new person at the property may be paying much higher rent than the tenant had to pay, allowing the tenant to make an unlawful profit.
This is when the tenant vacates the property and hands the keys to someone else in return for money, a favour, or in return for money owed or goods received. Once the keys have changed hands, it is classed as unauthorised occupation.
This can happen when a tenant claims that the council property is their only or main home but instead uses it as a second property and lives there only rarely or not at all.
This action selfishly deprives others of using of the property and will only increase the housing waiting list.
A property can be succeeded or assigned to an immediate family member in the event of the tenant moving out or passing away. The family member must have been living in the property for 12 months before the tenant’s death to qualify.
Fraudsters may abuse this system by claiming to be in occupation when they were not to gain the property for themselves.
This is when the tenant gives false information or withholds information to obtain the tenancy. By doing so an individual could climb the housing register and falsely acquire a property, and therefore deprive others in more urgent need.
Council tenants and some social housing tenants may qualify to buy their property under the Right to Buy scheme. They will receive a discount on the sale price, depending on how many years they have been a tenant. If they are subletting the property without permission or abandoning the property when they do this, their application would be fraudulent.
This is when a property is exchanged for another council or social property without the landlord’s permission. Often, exchanges are made for a one-off payment with individuals making a fraudulent financial profit from social housing.
Tenancy fraud is a criminal offence and could result in a prosecution. Anyone convicted of housing fraud may receive substantial fines, a custodial sentence and a criminal record.
Fraudsters found to be abusing the housing system can be struck off the housing register, losing their entitlement to social housing in the future. Investigators have powers to obtain information to determine if fraud is taking place and housing providers can seek legal orders to recover profits made by those who sublet.
More information on tenancy fraud can be found on the Government website.
Veritau is a public sector organisation that investigates fraud on our behalf.
You can report suspected fraud to Veritau. Give as many details as you can in your email.
Email Veritau at counter.fraud@veritau.co.uk.