Have a question?
033 3772 0409

Legal News

Sandwell Council saves millions by tackling housing and tenancy fraud (5 September 2016)

Date: 05/09/2016
Duncan Lewis, Legal News Solicitors, Sandwell Council saves millions by tackling housing and tenancy fraud

Sandwell Council in the West Midlands is stepping up its fight against tenancy and Right to Buy fraud, after it found that investigations by its counter-fraud team have saved the council millions of pounds.

In the council’s annual counter-fraud report for 2015-2016 – which highlights the council’s achievements in preventing and detecting council housing-related fraud – potential savings are estimated to be in excess of £38.4 million.

The council says the biggest saving came from the team’s work, which led to the withdrawal of 428 Right to Buy applications – nearly two-thirds of the 693 total received in 2015-2016.

This follows the introduction of anti-money laundering forms issued to all Right to Buy applicants, which put the onus on buyers having to prove where the funds to buy the property are coming from.

Based on calculations provided by the Cabinet Office, the potential savings to the council of the sales not going through – taking into account the loss of property from the council’s housing stock, the discount allowed to the buyer and the loss of rental income – are an estimated £65,000 per property, or £27,820,000 in total.

A further three Right to Buy applications which appeared fraudulent were refused, saving the council a further £195,000.

Sandwell Council leader Councillor Steve Eling said:

“Tenancy fraud and Right to Buy fraud is extremely lucrative because of the value of properties in today’s market and the two are very often linked – a tenancy fraud becomes a Right to Buy fraud.

“We are now far more robust with our Right to Buy processes – during the year 2015-2016, we received just under 700 Right to Buy applications.

“After anti-money laundering forms were sent to applicants, nearly two-thirds of those applications were not pursued any further.

“It’s also important to remember that every tenancy and Right to Buy fraud removes a property from the council’s housing stock and deprives a genuine tenant of a home.”

Another success includes identifying 833 cases where the Council Tax Single Person Discount was no longer payable, increasing council tax revenue by £201,000.

The counter-fraud team also investigated various cases of fraud in the other areas, such as claims for benefits, council tax, supported accommodation, personal budgets/direct payments, blue badges and insurance.

Duncan Lewis Property and Housing Solicitors

Duncan Lewis property and housing solicitors can advise on a wide range of housing law, including Right to Buy, Housing Benefit, and housing or tenancy fraud.

There are Duncan Lewis offices across the UK and our property lawyers and housing team are also able to advise on:

• Debt management for homeowners
• Disrepair of rented property
• Housing possession
• Landlords’ obligations
• Landlord and tenant disputes
• Lease extensions
• Local Authority housing
• Mortgage repossession
• Notice to quit
• Nuisance neighbours
• Right to Rent checks
• Tenancy agreements
• Unlawful eviction.

For expert legal advice on housing law, call Duncan Lewis property and housing solicitors on 0333 772 0409.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.