Landlords Warned To Prepare For Rise In Tenant Fraud

The events of the past 18 months have dealt a devastating socio-economic impact on private renters in the UK, with an estimated 840,000 building up arrears as a result of covid. Compounding this is the softening of eviction regulations and virtually no consequences for fraudulent rental applications - fuelling a rise in tenant fraud. Rising unemployment and affordability amongst renters are also impacting the number of fraudulent applications. According to tenant due diligence and guarantee firm, Homeppl, there was a 71% increase in the number of fraudulent applications between the second half of 2020 and the first half of 2021 meaning that one in 50 rental applications are now fraudulent, rising to one in 20 in London. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/landlords-warned-to-prepare-for-rise-in-tenant-fraud.html

Council Homes Are Taken Back

Illegal subletting and not using a house as a main home were among the ways residents were found to be flouting tenancy rules. Sandwell council launched more than 200 fraud investigations during the past year and recovered a total of 115 properties. Deputy council leader Councillor Steve Eling said the authority was determined to catch cheats but it was a growing problem. “With the increasing shortage of affordable housing and the changes in right to buy legislation, tenancy fraud is becoming even more lucrative to some greedy people pocketing lots of money,” he said. The other ways people were caught misusing properties included not filling out home applications correctly. Some properties were also recovered after they were found abandoned. Read more on the Express & Star website.

66 Per Cent of Consumers Believe Illegal Claiming Of Housing Benefit Is a Big Problem

As a new Conservative government takes charge, tenancy fraud is highlighted as a big problem across the UK with the illegal claiming of housing benefit seen as the biggest problem of all, according to latest findings from Callcredit Information Group. It has been estimated that tenancy fraud currently costs councils across the UK £1.8 billion each year. The research looked into what types of housing fraud were seen as the biggest problem by the public and if the money could be recovered what councils should spend it on.  Respondents across all age groups and regions prioritised affordable housing as the area to spend recovered money, indicating a united view that more needs to be done to solve the housing crisis. Read more on the Callcredit website.

£Millions in Right to Buy Fraud Uncovered By Council

Barnet Council has uncovered nearly £12 million in right to buy, tenancy and benefit fraud in a 12-month period. The London borough's anti-fraud team recovered 63 illegally sublet council properties after successful investigations and a tenancy fraud amnesty held late last year. The recovery of each property is calculated as being worth £150,000 – the equivalent average cost of building a new social housing unit. The team has also prevented 11 instances of people attempting to take advantage of the right to buy scheme when they were not entitled to.  Read more on 24dash.

Government Closes Net On Tenancy Cheats

Kris Hopkins has warned tenancy fraudsters that the net is closing in on those who con taxpayers out of money and deny hard-working families the opportunity to live in a council home. New measures will enable councils to access information about people suspected of tenancy fraud from banks, building societies, utility and telecommunication companies, which could be essential in identifying and prosecuting cheats and freeing up homes for the families that deserve them. Across England it is estimated that 98,000 social homes are being unlawfully occupied, with those tenancy cheats sub-letting living off the profits elsewhere. In some inner London boroughs cases of social housing fraud are as high 1 in 20 properties. This could be costing taxpayers as much as £1.8 billion a year. Read more on the GovUK website.

Forum Comes Together To Battle Tenancy Fraud

A new forum has been established to fight social housing tenancy fraud in Somerset. With over 16,000 people on the housing register in the region, those falsely claiming a property or renting it unlawfully are making it even harder for families in need to find a home. The Somerset Tenancy Fraud Forum will meet on a quarterly basis to discuss case studies, best practice, understand new legislation and initiatives, and support one another. It is hoped the public will now get behind a campaign launched by the forum, and understand the importance in working together to combat fraud, which costs every adult in the UK £1,460 a year. Read more on 24dash.

'Tenancy Fraud Means Prison' ALMO Warns Residents

A housing provider has warned its residents that committing tenancy fraud could lead to a prison sentence. Nottingham City Homes has made the warning as it invests in extra staff training and introduces a new city-wide drive to tackle the issue.  In the past six months, NCH has investigated 40 cases of tenancy fraud – some of which are still on-going - and has reclaimed eight properties from people who gained a tenancy by false representation.  Now the ALMO has given scammers an amnesty till December to leave the properties they are fraudulently living in and hand back the keys - and no further action will be taken. Read more on 24dash.

'Not Enough Being Done' As Tenancy Fraud Rises By 70%

A credit reference company has warned that much more needs to be done to combat tenancy fraud as new figures reveal that the number of detected cases of the crime increased by 70% in 2012. Using data obtained from councils under the Freedom of Information Act, Callcredit Information Group's (CIG) research builds on a report it published last year that showed 90% of all tenancy frauds went undetected in 2011. The cost across councils and housing associations to the public purse has now risen to an estimated £1.8 billion a year, up from £1bn in 2012. Read more on 24dash.

Councils Need More Powers to Tackle Tenancy Fraud

In May, housing tenancy fraud will become a criminal offence, carrying a two-year prison sentence and a £50,000 fine.  The most recent estimates suggest that up to 98,000 homes are being let to people who either lied about their circumstances to jump the queue or are sub-letting their council house and pocketing the profits. But how much will the new legislation actually help councils to crack down on this abhorrent behaviour?  Restricted access to data held by utility companies, building societies, lettings agents and organisations like the TV Licensing Authority makes it difficult for council fraud teams to identify fraud or prioritise cases to have the maximum impact. Without the legal tools to request information, councils must rely on tenancy inspections and tip-offs from neighbours. Unfortunately, the new legislation on housing tenancy fraud doesn't include the necessary regulations to make data sharing mandatory. Read more on the Guardian website.