The London Borough Fraud Investigators Group (LBFIG), along with the Tenancy Fraud Forum (TFF) and the G15 group of Housing Associations, working in partnership, recently commissioned a report on the scale of tenancy fraud across London Boroughs with housing stock, and the G15 group of London Housing Associations with more than 1,000 units in stock. Funding for the report was provided by the Counter Fraud Professional Awards Body.
This report identified a number of interesting findings and demonstrates that there is still far more to do to tackle this fraud risk across London, and nationally. The scale of homelessness in London is fast becoming endemic. London’s social housing waiting lists have reached a 10 year high with over 336,000 households, and the cost to the taxpayer reaching tens of millions of pounds in temporary accommodation costs – when social housing stock continues to be abused by some for personal and financial gain.
There is more that can be done to tackle this fraud risk, funding from central Government to social housing providers to tackle tenancy fraud would allow providers to enhance their approach to tackling social housing tenancy fraud, identifying fraud and recovering tenancies from fraudsters. This would help to reduce the pressure on temporary accommodation, whilst providing affordable and secure housing for those in our communities that need it most.
A summary of the report’s findings can be found below.
Background
This is the first comparative report on the scale of housing tenancy fraud and the work undertaken by both London Boroughs and Registered Social Providers since the last Protecting the Public Purse (PPP) report in 2014, after which time the Audit Commission closed, ending with it with its PPP reports on the scale of fraud in local Government. A voluntary survey across London Boroughs and Housing Associations from the G15 group was completed which has provided the basis for this report
In summary:
87% of London Boroughs with housing stock completed the survey.
2% of Registered Social Providers completed the survey.
London boroughs that participated in the survey reported that they detected 1,028 tenancy frauds in 2023/24, a fall of 43% from 2013/14.
Every London borough participating in the 2023/24 survey recovered properties from tenancy fraudsters, an average of 41 homes per borough.
Despite the low response levels, respondents reported 415 tenancy frauds detected in 2023/24 by participating Registered Social Providers.
The national average saving to the English public purse is £42,000 per home recovered from a fraudster over the average length of a tenancy fraud (as at March 2020). Using the same methodology just for London (costs updated as at October 2024) that saving is now at least £66,000 per home.
research found that more than 1,000 London social homes are advertised each year through online short-term holiday letting platforms, when temporary accommodation costs have soared to £4m a day in the capital.
Report Recommendations:
Adopt £66,000 per recovered home from a tenancy fraudster in London when assessing the cost benefit value of using specialist fraud investigators.
All London social housing providers making a clear public commitment to tackle tenancy fraud.
Housing association participation in the London Hub or regional/local equivalent data matching service.
The Regulator of Social Housing (RSH) to provide leadership in the fight against tenancy fraud.
The RSH to provide a common definition of tenancy fraud for all social housing providers to adopt.
The RSH should annually collect and publish information on tenancy fraud detection by both local authorities and housing associations.
The RSH should focus improvement activities on those large housing associations detecting little or no tenancy fraud.
All social housing providers to ensure public suspicions of tenancy fraud are easily reported on their websites.
Housing associations should include tenancy fraud on their risk register.
Provide tenancy fraud awareness training for Housing Management and staff best placed to identify tenancy fraud.
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