Subletting in some London boroughs 'as high as 10% of tenancies'

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Subletting in some London boroughs is as high as 10 per cent of tenancies according to credit experts Experian who has launched a new UK-wide data sharing initiative to target fraudsters.

Experian Public Sector - which has worked with more than 30 social housing providers - has detected potential fraud in six per cent of tenancies. Extrapolated out across the UK, this is equal to one in 16 social homes at a cost to tax payers of over £2 billion.

However, it says in "premium locations" such as London some local authorities are suffering rates as high as nine or ten per cent.

Experian claims its new service will cross-match the tenancy, waiting and temporary accommodation lists of housing providers to look for evidence of the same tenant or co-occupant being resident in another provider’s housing. Under the new initiative, Experian will issue alerts that will help providers expedite their investigations and prioritise high risk fraud cases.

The London Borough of Hammersmith & Fulham has endorsed its latest fraud prevention initiative.

Councillor Andrew Johnson, cabinet member for housing at Hammersmith & Fulham, said: “We will be supporting this important initiative. Analysis of our own tenancy lists has detected a significant level of fraud, with unlawful subletting evident in as many as one in twenty homes. But this is only part of the picture and we believe much more can be achieved nationally through a joint approach with other UK social housing providers."

Nick Mothershaw, director of identity and fraud at Experian UK and Ireland, said: “Our experience of how fraudsters operate suggests multiple tenancy fraud is more widespread than previously thought and until we have conducted proper analysis across all providers, the full scale of it will remain unknown and continue unchecked.”

Housing minister Grant Shapps has published plans to clampdown on social housing tenants illegally subletting their homes in a bid to free up properties for families on the waiting list.

Under the proposals, tenants could face up to two years in prison and a £50,000 fine if the case goes to the Crown court. Currently those found guilty face no greater penalty than losing their tenancy.