Tenancy Fraud Policy
Part of our Tenancy Management Framework - Level 2 policy approval.
1. Introduction
1.1. Social housing is a valuable national asset that provides security and stability to people in housing need. Residents who benefit from social housing have an obligation to act within the terms of their tenancy agreements and will be subject to severe penalties should they commit fraud. We are committed to providing housing for people in genuine housing need. We have a duty to make best use of resources, ensuring our housing stock is properly managed and as such are committed to tackling Tenancy Fraud.
1.2. This policy outlines our approach to tackling Tenancy Fraud across all of our housing stock. It also ensures that we comply with the Regulator of Social Housing Regulatory Framework in relation to Tenancy Fraud. This states that “registered providers shall publish clear and accessible policies which outline their approach to tenancy management, including interventions to sustain tenancies and prevent unnecessary evictions, and tackling Tenancy Fraud.”
1.3. Tenancy Fraud is the occupation of a social housing unit by a person or persons who are not entitled to live there. For the purpose of this policy, Tenancy Fraud falls into six categories:-
- Unlawful subletting – this is where a resident lets out their housing association home without the knowledge or permission of their landlord. Subletting of a social housing property is a criminal offence, contrary to The Prevention of Social Housing Fraud Act 2013 (PoSHFA)
- Obtaining housing by deception – this is where a person(s) obtains a tenancy via the local authority or housing association by giving false information in their application for housing.
- False Right to Buy/Right to Acquire – where a tenant gives false information in a Right to buy or Right to Acquire application.
- Tenancy succession by deception – this is where a resident dies and someone who is not eligible tries to succeed the tenancy.
- Key selling – this is where the legal resident is paid a one off payment to pass on their keys.
- Abandonment – this is when a tenant stops living in their home and leaves it, but does not inform the landlord and does not legally end the tenancy agreement.
2. Policy Statement
2.1. We have a zero tolerance approach to Tenancy Fraud. We will implement appropriate measures to tackle any instances of fraud quickly and effectively and where we have suspicions of Tenancy Fraud we will act on them.
2.2. We will focus on preventing Tenancy Fraud from occurring by using a range of tools (including but not limited to identity verification, financial history and property ownership documentation.)
2.3. All reports of suspected Tenancy Fraud will be investigated in accordance with current legislation (including the Data Protection Act 2018 and Human Rights Act 1998) and the relevant Fairhive policies.
2.4. We will work in conjunction with external agencies to detect and prevent Tenancy Fraud (including but not limited to local authorities, Department for Work and Pensions, the National Anti-Fraud Network and Bucks / Herts and Oxfordshire Tenancy Fraud Forum).
2.5. Where a case of suspected Tenancy Fraud is investigated, the evidence will be collated and reviewed to assess whether an allegation of Tenancy Fraud can be substantiated. As part of our investigation, we may undertake unannounced visits to determine who is living at the property and to gather further evidence. These visits may be carried out in unison with investigators from Bucks Council.
2.6. We will take legal action where sufficient evidence has been gathered and it is proportionate and in our best interests to do so. Where legal action to recover possession of the property is successful, court costs will be sought against the Defendant. We may also seek Unlawful Profit Orders against Defendants where appropriate and proportionate to do so.
2.7. We will (where appropriate) support statutory agencies (i.e. local authorities / Police) if they pursue action against our tenants / occupiers of our properties.
2.8. Where properties are recovered from fraudulent use, we will either re-let in line with the relevant lettings procedure or re-sell in line with regulatory requirements in the case of shared ownership properties.
2.9. We will seek to provide, where appropriate, support and assistance to victims of Tenancy Fraud i.e. unauthorised occupants who may be impacted by cases of Tenancy Fraud.
2.10. We will regularly participate in the National Fraud Initiative (NFI). The NFI is an exercise that matches electronic data within and between all public and some private sector bodies to prevent and detect fraud.
3. Preventative Measures
3.1. We will implement a range of preventative measures in support of our objective to reduce the risk of Tenancy Fraud. These will include as a minimum:
3.2. Photographic proof of identification will be required from all prospective tenants and shared owners. Prospective tenants will be asked to supply a passport sized photograph. Photographic identification will be verified during both the applications process and ‘sign up’ stage with new residents, by our Lettings Team. The photo ID will be stored digitally on our housing management system. Photo ID is also verified during the Occupancy Check process, which is covered in the Occupancy Check Procedure.
3.3. Occupancy checks will be carried out at least once every five years. We will conduct unannounced occupancy checks on households, where we suspect that Tenancy Fraud may be occurring, to check that the tenants and residents of our homes are the intended occupants. The Neighbourhood Team Leaders carry out a review each month of a sample of occupancy checks to ensure that the procedure is being adhered to.
3.4. All new tenants will receive a new tenancy visit within the first eight weeks of their tenancy and an eight month tenancy visit to validate the tenancy. We will verify the photo ID to ensure that the property is being occupied only by those that should be living there. These visits will also involve ensuring that the tenant has moved in to the property and that there are no issues in terms of tenancy breaches or the tenancy not being sustained. Help and guidance will be provided where that is not the case. At the eight month visit the tenant(s) will also be informed if the starter/assured shorthold tenancy (where appropriate) is likely to be extended due to concerns about the tenancy or whether it is expected that it will convert to an assured tenancy.
3.5. If the tenancy cannot be validated and/or there are clear tenancy breaches (or potential breaches) then these will be investigated with the appropriate, necessary and proportionate action being taken as a result.
3.6. We will regularly undertake publicity campaigns to raise awareness of Tenancy Fraud and our approach as well as highlighting successes.
3.7. Regular training and updates on legislation and practice will be provided to key staff.
3.8. We will share information with local authorities and other agencies for the purpose of detecting and investigating suspected fraud, and where necessary, take the necessary legal action. This will be carried out in accordance with current legislation and our own policies.
4. Raising and Reporting Concerns
4.1. All residents, stakeholders and employees are encouraged to report any suspicions of Tenancy Fraud. We will treat all reports confidentially. We will ensure that the reporting framework is accessible so that any concerns can be reported to us via email, via our website or by telephone.
4.2. We will ensure a confidential whistleblowing policy is in place that clearly identifies how such issues should be raised and allows individuals to report concerns without fear of harassment or victimisation. This will be reviewed periodically and will be available for download from our website and intranet, as appropriate.
4.3. Employees, customers, contractors and members of the public can report their concerns by utilising the whistleblowing procedure. In addition, reports of suspected Tenancy Fraud can be made via the online reporting form.
4.4. If anyone in contact with us has reason to suspect a fraud is being committed then they must not investigate it themselves but should immediately highlight their concern via the whistleblowing process. Again, if Tenancy Fraud is suspected then this can be reported through the online reporting form.
5. Monitoring and Outcomes
5.1. The Housing Services Manager is responsible for the implementation and monitoring of this policy.
5.2. The Housing Services Manager is responsible for ensuring known detected frauds or attempted frauds and their associated losses are entered into the Fraud Register in order that they can be reported to the Audit & Risk Committee and the regulator in a timely manner.
5.3. The success of this policy will be determined by the reduction of inconsistent data matches as a result of our participation in the NFI and by regular reporting of outcomes to the Audit & Risk Committee.
5.4. We will report to our Audit & Risk Committee, at each of their meetings, the impact of this policy incorporating:
- Total number of reports received.
- Source of the reports.
- Types of tenancy fraud reported.
- Number of cases resulting in no further action and why.
- Number of cases resulting in a formal investigation.
- The number of cases investigated and the outcomes of those cases.
5.5. We will review this policy on a three year cycle, when a business need arises or due to legislative changes.
6. Impacts
Resident/Staff Implications -
The Residents’ Forum have been consulted during the preparation of this policy. The policy has also been peer reviewed by the Principal Fraud Investigator at Bucks Council.
Training and updates will be regularly provided to key staff.
Equality, Diversity & Inclusion -
We will ensure that this policy is widely available at our offices and on our website. The policy can be made available in large print, braille, on audio tape upon request. Translations into other languages will be available.
This policy will be applied to all residents in line with our Equality and Diversity Policy.
Value for Money -
Tackling Tenancy Fraud will enable the effective recovery of properties that are unlawfully occupied, therefore maximising appropriate use of the limited housing stock.
Efficient administration and partnership working will ensure cases are dealt with efficiently and effectively.
One of the policies key aims is to act swiftly and decisively when we become aware of possible instances of Tenancy Fraud, additionally by working with our partners we will ensure no duplication of work/process is adopted.
We will always seek to recover fraudulently used properties without resorting to court action but, where it is necessary to do so, we will seek to recover our properties through the courts.
We will also seek to recover all costs associated with recovering fraudulently used properties via the court process. In addition, where appropriate and proportionate to do so, we will seek to obtain Unlawful Profit Orders to recover any profit made by Defendant(s) from this fraudulent practice.
Data Protection -
All due care is taken to protect data held by us and in particular, we ensure we keep all resident data secure and meet with data protection requirements.
Accountability -
This policy has been revised following consultation with the Residents’ Forum.
Quality -
We look to ensure that our residents are safe in their homes by supporting the provision of well-maintained homes which are in line with legislative and regulatory requirements.
When things go wrong -
Procedural documentation will include an avenue of appeal for resident if appropriate.
7. Related legislation and other documents:
Law of Property Act 1925
Human Rights Act 1998
Data Protection Act 2018
Bribery Act 2010
Fraud Act 2016
Equality Act 2010
Prevention of Social Housing Fraud Act 2013
The Prevention of Social Housing Fraud (Power to Require Information) (England) Regulations 2014
Housing Act 1985 as amended
Housing Act 1988 as amended
Money Laundering Regulations 2017
Forgery & Counterfeiting Act 1981
Localism Act 2011
Anti-Fraud & Corruption Policy
Tenancy Agreement
Confidential Reporting Policy (Whistleblowing)
Tenancy Fraud Procedure
| Author | Andrea Loomes |
| Job title | Neighbourhood Team Lead |
| Date approved | September 2023 |
| Review due date | September 2026 |
