Housing Minister Grant Shapps launched a new national crackdown on tenancy cheats who unlawfully sublet their council or housing association properties and deny homes to people who really need them.
At least 50,000 social homes in England are being unlawfully occupied. Providing the equivalent number of new social homes would cost more than £5 billion. It is estimated that the number of unlawfully occupied properties ranges from one in 100 in some parts of the country to more than one in 20 social homes in some inner London boroughs.
Tenancy cheats live elsewhere, but can earn thousands of pounds a year charging higher rents for their social homes. If caught, these cheats lose their tenancy and can lose their right to a social home in future.
Those living in these homes may not know about the fraud, but fewer than 5% of those evicted once their landlord's fraud is detected subsequently apply to the council as homeless. They often find alternative accommodation in the private rented sector.
The Minister announced that the 51 councils doing the most to tackle this menace will receive a share of £19 million to bolster their efforts - which can include dedicated housing officers to investigate allegations, and tenancy audits to ensure the lawful tenants are living in the property.
He outlined how he is looking to back all councils across the country with a dedicated national action team, based at the Chartered Institute of Housing, which will be available to offer practical support and advice to local authorities looking to tackle tenancy fraud in their area.
The Minister also said he is looking to lower the cost of using the services of credit reference agencies to help identify potential cheats. The Government is working with the National Fraud Authority to develop standard contracts for councils to agree with credit reference agencies, at standard prices, to lower the costs of using their services.
