Social Housing Fraud Allegation Shows Weakness of Council Checks

Published on: 27 Sep, 2024
Updated on: 29 Sep, 2024

GBC has a dedicated webpage for reporting suspected tenancy fraud

By Martin Giles

A claim from a former landlord has revealed that Guildford Borough Council relies on applicants being honest when they apply to be registered for social housing and that local authority checks are inadequate.

If fraudulent applications are successful, others on Guildford’s housing list, currently comprising 2,377 applicants, have to wait longer.

The former landlord, who does not wish her name to be published, told The Dragon that she had reported suspicions about a former lodger of hers who, she said, had obtained a council property in Guildford Borough even though she had her own property in her native Poland.

GBC’s published “Housing Allocation Scheme” makes it clear that social housing is not for those who already own properties in this country or abroad.

Extract from GBC’s Housing Allocation Scheme

In support of the allegation the former landlord showed a text message, said to be from her former tenant, sent from Poland in November 2021. Part of the message read: “I am renting my flat in Poland.”

On her return she told her landlord that she had set up a bank account in Poland into which the rent received from her property there would be paid.

Subsequently, the Polish national is said to have been given a council flat here.

The former landlord said she reported her suspicions to GBC via its online “Suspected tenancy fraud” form but two months later had had no response.

She has subsequently alerted the council leader Julia McShane (Lib Dem, Westborough), also the lead councillor for housing, by email.

The Dragon asked GBC what checks are carried out to see if an applicant owns a property here or abroad.

A spokesperson for GBC responded: “Anybody wishing to join the housing register has to apply online. We have a self-service system which relies on the customer to be honest with their answers and upload the required documents to complete their applications.

“There is also a signed declaration at the end stating that they have been truthful in their answers.”

Checks against land registry and council tax records, if carried out, are likely to reveal those who already have properties within the UK but checking ownership of properties abroad is far more difficult, or even impossible, which is why the council says it relies on the applicant’s honesty.

The council spokesperson continued: “Once the application is complete, it moves forward to be assessed.

“When officers assess applications, certain factors will prompt a deeper dive. These applications are then passed onto the fraud team at Reigate and Banstead Council for further investigation. Things prompting further investigation include:

Multiple bank accounts
Bank statements with different addresses
Reluctance to provide documents
Unable to evidence local connection
No record of current or former addresses
Self-employed with no evidence of tax return
Discrepancies from previous housing applications.

“A number of internal checks are also completed, including:

Verification with council tax
Verification with the electoral roll
Land registry check
Employment check
Deep dive into bank statements looking for further bank accounts, saving or unusual transactions.

“If the officer is not satisfied with the results of these checks, the case will be discussed and a referral may be made to Reigate & Banstead.”