Acting on fraud
Katrina Robinson looks at the implications of new legislation on tenancy fraud and the work of the Tenancy Fraud Forum
The Prevention Of Social Housing Fraud Act 2013 became law in Wales in November 2013.
The Act was brought about by Richard Harrington MP via a private member’s bill in the Westminster parliament as he recognised the significant problems caused to housing waiting lists by those who sublet their social homes. Those who knowingly or unwittingly become sub-tenants rarely have a social need for such housing.
Amongst other things, the Act now makes subletting a criminal offence (with some minor exemptions linked to violence in the home) punishable by a fine or up to two years imprisonment. In addition, the Magistrates’ Courts and Civil Courts can order the tenant to pay to their social landlord the profits they have made from the subletting, or are assumed to have made (so in other words if you have no evidence of the actual rent paid, then you can use the value of a private letting in the area).
Of great benefit to housing associations is the provision that brings assured tenants into line with secure tenants; if the property is no longer their only or principal home, tenants will lose their security of tenure and that cannot be regained even if they move back in. That means, of course, that it can be significantly easier to get a possession order in the county courts.
The regulations to give more powers in the investigation of subletting cases should be in force later this year. When those are in force, local authorities will have more powers to compel certain bodies to provide
information to aid in the investigation, for example, utility and satellite TV companies, mobile phone providers and such like. it’s not uncommon for a tenant to say they are not subletting but their friend has been staying for a few weeks, though why would the friend have the gas bill and telephone bill in their name?! With partnership working, local authorities will be able to make those enquiries on behalf of housing associations and ALMOs.
The Tenancy Fraud Forum was launched at the DCLG in London in April 2012. The Forum is not for profit and is entirely free for members and exists to bring together all social landlords across England, Wales, Scotland and Northern Ireland to identify and combat tenancy fraud.
Those working within tenancy fraud realised that many people across the UK were carrying out great work in the area and had really good ideas and practices; the Forum was established to share that information and support practitioners.
We consider tenancy fraud to be:
• Subletting (even if to a family member and not for profit)
• Abandonment
• Key selling
• Misrepresentation to get a home in the first place or be transferred to a larger one
• False succession claims
• Right to Buy/Right to Acquire Fraud
• Shared ownership fraud.
The Forum has assisted in the setting up of 18 regional groups, where social landlords in those areas meet and work proactively with each other. Most members
of regional groups now investigate cases together and carry out data sharing which also often highlights benefit and passport fraud as well.
The Forum assists members with:
• Data sharing
• Investigation techniques
• Creating and supporting regional groups
• Advice on tricky cases
• Policy creation
• Tenancy audit advice
• and a host of other things!
Two of our regional groups started a tenancy fraud amnesty and as a result of the information they shared, they inspired many more social landlords to do the same. The results were impressive with hundreds of properties being returned and more tip- offs reported.
One of our members reduced its waiting list by 18.5 per cent as a direct result of regaining possession from properties that had been illegally sublet. Another of our members obtained possession of 83 properties over a two-year period that they calculated would have cost them in the region of £12 million to build.
We would be very pleased to welcome our colleagues from Wales onto the Forum and to come and see you to help you set up regional groups.
Katrina Robinson is chair of the Tenancy Fraud Forum. For further information see www.tenancyfraudforum.org.uk or email info@tenancyfraudforum.org.uk