Legal News
Right-to-buy fraud increases across London (27 July 2015)
Date: 27/07/2015
The first Protecting the Public Purse report published on Friday (24/07/15) has raised concerns about the level of right-to-buy fraud across London.
Right-to-buy fraud investigators uncovered 300 cases in 2014, involving properties worth more than a total of £26 million.
Investigators say the figures are more than double the number of right-to-buy fraud cases uncovered in 2013.
The coalition government increased right-to-buy discounts to help more people afford to buy their council home.
However, at least 3% of right-to-buy applications in London are thought to be fraudulent, the report says.
It has also been suggested that housing association tenants should have the right to buy their homes, prompting a backlash from housing providers who would have to replenish housing stock if right-to-buy were extended to housing association tenants.
The report reveals that more than 1,600 people lost their council homes because of fraud, including around 1,000 tenants caught attempting to profit by illegally subletting their council home.
The reports says that across the 33 London boroughs, the value of fraud in 2014 -2015 rose by 46% compared with 2013-2014, from £49.9m to £73m, even though investigators uncovered a total of 2,000 fewer fraud cases.
Fraud investigators also uncovered a total of 432 cases of migrants making false claims for welfare and housing benefits, with the estimated cost of this type of fraud being in excess of £7 million to the taxpayer.
Some migrants are classed as NRPF – having “no recourse to public funds”.
However, cases have been uncovered in which migrants use children who are not their own, to pretend to be a family in need for the purposes of claiming benefits.
The report says that as well as housing fraud, this is “one of the most significant types of fraud detected by London boroughs”.
Investigators anticipate more cases will come to light as more areas in London are targeted by fraud investigators.
Chairman of the Fraud Advisory Panel, David Kirk, said that the government’s spending cuts had led to London councils having to “do more with less”.
“Reducing fraud is one way in which local authorities can make real savings, protect taxpayers’ money and local services and help those who are genuinely in need,” said Mr Kirk.
Duncan Lewis Housing Solicitors
Duncan Lewis housing solicitors can advise private sector rental tenants and social housing tenants on a wide range of housing matters, including local authority housing, housing benefits and right-to-buy.
Duncan Lewis is also a leading firm of Legal Aid housing solicitors also able to advise on:
• Disrepair of rented property
• Housing possession
• Landlord & Tenant disputes
• Nuisance neighbours
• Tenancy agreements
• Unlawful eviction.
For expert legal advice on housing law, contact Duncan Lewis housing solicitors on 020 7923 4020.