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Thousands Of Council Tenants Guilty Of £2Bn Fraud After Illegally Subletting Their Homes

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http://www.dailymail.co.uk/news/article-2036383/Sub-letting-tenants-guilty-fraud.html

Thousands of people in social housing are committing fraud by sub-letting their property, research has suggested.

The racket is estimated to be far greater than official figures indicate and the cost to the taxpayer is said to be worth about £2billion a year.

Researchers for information services company Experian estimated almost 160,000 homes were being fraudulently sub-let in the UK - or three per cent of the nation's five million social properties..

So does 3% fraud show how easy or hard it is to commit this type of fraud?

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I know a guy doing this. Lives with his girlfriend and lets out his free place.

Its in SK5 so the neighbours are probably at it too, and not likely to tell the "feds" about it.

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I know a guy doing this. Lives with his girlfriend and lets out his free place.

Its in SK5 so the neighbours are probably at it too, and not likely to tell the "feds" about it.

Someone should tell them...today :blink:

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A student friend of my wife sub rents a room in a council flat for £90 per week. The Colombian landlord lives elsewhere. 2 bed flat with living room as 3rd bedroom has 3 students living there. It's rife.

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A student friend of my wife sub rents a room in a council flat for £90 per week. The Colombian landlord lives elsewhere. 2 bed flat with living room as 3rd bedroom has 3 students living there. It's rife.

..you couldn't make it up....'Columbian landlord'....we are a weak and sick nation ..a laughing stock to the rest of humanity.... :rolleyes:

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Someone should tell them...today :blink:

This chap is in and out of probation, and shrewd at avoiding the authorities. His big mouth will be his downfall yet again though.

How would you prove an informal sublet? Video evidence? Checking how often they are in? I don't think the local authority cares because firstly SK5 is a 'deprived' area that gets nothing but sympathy and support, and secondly as housing benefit comes directly from central government so the LA doesn't care about HB fraud.

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£2billion, another conservative figure.

The way to sort this mess out is simply to end all social housing. Just sell the lot off to the highest bidder. When stuff gets charged at market rates, there is no opportunity to steal in this way. All council houses and housing association stuff should just go.

Boy do we need to replace all of our crooked benefits with a citizens income.

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And its quite often those that have payed the least (if anything) into the tax pot, over the years and generations, that are most willing to steal it.

......because they are 'lifetime career leeches'............in the name of God....grass em up....typically the 'absent illegal landlord' will live with his 'girlfriend', a single parent receiving every benefit under the sun, whilst aided by the landlord to enjoy a lifestyle beyond many tax and national insurance paying drones.

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This is the problem with society, everyone is at 'it' ie defrauding the taxpayer and the taxpayer is becoming a smaller pot as the boomers retire and jobs are off shored, even the state misleads the electorate about employment rising, they just dont tell you it part time jobs rising which dont cover the bills.

The state is like this chap.

comical_ali.jpg

MP's tell voters "do as I say not as I do" as we see with Lord Hannigfield for example, getting let out early yet still you have MP's expenses that wont go away.

The State is too big and fat to react and move quickly enough so its going to get fun! :lol::lol::lol:

Unfortunately you're correct.

However, I would say it should have been blindingly obvious that this would be an 'unintended consequence' of 'free' council houses.

Surely, so easy to predict a 5 year old could have done it?

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Some people can legally sublet their homes with permission. I'd imagine this a more of a problem down south where they us the QE£ in day to day transactions, where the price of everything is inflated.

Yes, the problem will only exist when the rental cost charged to the original tenant is way below the market rate. If it were at the market rate, and they sublet it, then they wouldnt do so at a profit. That might not fulfill the social housing criteria that a lot bang on about, but as far as I am concerned as a taxpayer, it would mean I wasnt being ripped off.

The only way to ensure that council houses obtain the market rate for their value for the taxpayer, as they should, is to sell the whole lot off to the highest bidder.

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How hard can it be to cross check with the electoral register who lives where. If someone cannot register to vote because of landlord pressure, we have an even bigger issue.

The simplest way would be to allow anyone reporting their landlord to take over the tenancy themselves.

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OP's thread entitled. 'Thousands Of Council Tenants Guilty Of £2Bn Fraud After Illegally Subletting Their Homes'

I pronounce thee guilty! No trial. Off to the gallows!

Glad we cleared that one up. :lol:

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......because they are 'lifetime career leeches'............in the name of God....grass em up....typically the 'absent illegal landlord' will live with his 'girlfriend', a single parent receiving every benefit under the sun, whilst aided by the landlord to enjoy a lifestyle beyond many tax and national insurance paying drones.

Or because they are very new to our "tax pot".

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How hard can it be to cross check with the electoral register who lives where. If someone cannot register to vote because of landlord pressure, we have an even bigger issue.

The simplest way would be to allow anyone reporting their landlord to take over the tenancy themselves.

thod,

Nice rule, took me about 2 seconds to work out how to game it.

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How hard can it be to cross check with the electoral register who lives where. If someone cannot register to vote because of landlord pressure, we have an even bigger issue.

The simplest way would be to allow anyone reporting their landlord to take over the tenancy themselves.

Are you confusing council tax databases with the electoral roll? One is compulsory and the other optional. Even the tax one can be avoided, esp by the types of people involved here.

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Absolutely disgusting that this subletting is allowed to continue. There should be checks and balances to ensure that the right tenants are living in these homes.

The simplest way would be to allow anyone reporting their landlord to take over the tenancy themselves.

Simple enough but very unfair on those already on the housing register.

What is the punishment for those illegally subletting? :unsure:

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Absolutely disgusting that this subletting is allowed to continue. There should be checks and balances to ensure that the right tenants are living in these homes.

I don't really want to pay for another army of local government inspectors (and pay for their index-linked, final salary pensions) to do this.

So easy to game in any case and therefore virtually impossible to check..

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What is the punishment for those illegally subletting? :unsure:

This isn't the point. There is verly little chance of getting caught, which is the issue.

I have no idea what the penalty is for being a menace on my bicycle, and I don't care because there is no enforcement. Same thing with these subletters.

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This isn't the point. There is verly little chance of getting caught, which is the issue.

I have no idea what the penalty is for being a menace on my bicycle, and I don't care because there is no enforcement. Same thing with these subletters.

The problem is far deeper than this. Even tenants who are not subletting are getting a free bung at the taxpayers expense, where they pay a rent well below what the market would charge them. It was the taxpayer who took the risk building these places, and therefore the taxpayer should reap the reward. Instead tenants are getting that reward despite not taking the risk.

Multiply Frank Dobson and his poxy £65 a week rent or whatever it was for a 3/4 million pound property, and times that by all the social housing out there. That is the real cost to the taxpayer and it is a total scandal.

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How hard can it be to cross check with the electoral register who lives where.

That is what they've just done. :)

Experian, who did the figures for this article, have the full electoral roll. (They are a credit reference agency so they legally get your data even if you 'opt out') They also have all the applications for credit that they check - nice names and addresses associated with an address. Great data for the purpose.

On the other hand they and other credit reference agencies, will from time to time appear in the press because they've approved credit for your cat, goldfish, 2 month old child, dead aunt etc. Sometimes because people have misunderstood the forms and mistakenly registered their 2 month old to vote.

They'll sometimes feature in tabloid articles about people refused credit because they've been confused with somebody of a similar/same name at a similare /same address. Such confusions are less common in 'normal' streets and more common in streets where there is a rapid turnover of residants (or in tenement blocks where address matching is a lot harder.)

The thing is - its a lot harder to name and address match than you think. Nobody, but nobody, can do it anywhere near perfectly.

So this is an estimate of the numbers involved. Checking it properly requires a lot more work.

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Absolutely disgusting that this subletting is allowed to continue. There should be checks and balances to ensure that the right tenants are living in these homes.

Simple enough but very unfair on those already on the housing register.

What is the punishment for those illegally subletting? :unsure:

They get fined and they lose their council homes

I see cases get reported in the local paper every so often, which is how i know

The council's probably try their best but they are a bit understaffed

I expect most of the prosecutions come from the neighbour's grassing them up over some petty feud

TBH this would be a sensible thing to outsource to the private sector who could invest a bit in IT to make the whole search process a bit more intelligent

Its probably only worth doing in SE and a few other major metrolpolitan areas as well

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This chap is in and out of probation, and shrewd at avoiding the authorities. His big mouth will be his downfall yet again though.

How would you prove an informal sublet? Video evidence? Checking how often they are in? I don't think the local authority cares because firstly SK5 is a 'deprived' area that gets nothing but sympathy and support, and secondly as housing benefit comes directly from central government so the LA doesn't care about HB fraud.

The usual way is by finding where the tenant really does live. Most people are very traceable.

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