Tackling Social Housing Tenancy Fraud in Northern Ireland

As many as 2,400 properties in Northern Ireland’s social housing sector could be occupied fraudulently according to a report by Kieran Donnelly, the Comptroller and Auditor General (C&AG).

Mr Donnelly said “public funded housing occupied by individuals not entitled to be there is illegal, immoral and unacceptable. Such fraudulent activity deprives

those families most in need of a decent home. It also creates additional cost for the taxpayer in providing additional new build and temporary accommodation.”

There are around 40,000 families on the Common Waiting List at any one time with around 20,000 each year being assessed as in housing stress i.e. to be in the most need, for reasons of health, intimidation, insecurity of tenure and housing conditions. Of these, around 3,000 families are placed into temporary accommodation. In 2012 the annual cost of this was in excess of £10 million.

Mr Donnelly added “that tackling tenancy fraud in a proactive manner and bringing existing social housing units back into use is a cost effective way of addressing a significant housing shortfall in Northern Ireland”.

The report recommends that the Department for Social Development, the Housing Executive and Housing Associations adopt and apply the best practice that has been developed in GB to tackle this type of fraud. This includes raising awareness amongst tenants and housing staff, introducing reporting hotlines, employing dedicated tenancy

fraud investigators and the use of data matching including use of credit reference agencies.

Key Findings

  • Social housing is a scarce resource in Northern Ireland with demand far exceeding supply.
  • Since 2008 the NIHE has spent over £40 million providing temporary accommodation. This is provided in several different forms including hostels, private rented, leased and bed and breakfasts.
  • Best practice in tackling tenancy fraud has developed considerably in GB in recent years.
  • ·Public bodies in Northern Ireland are not sufficiently proactive in tackling housing tenancy fraud. Dedicated tenancy fraud strategies, advocating a proactive counter fraud approach, are either embryonic or not in place across local social housing providers. Recovery of properties is essentially reactive, relying on tip offs and the vigilance of local housing staff. The Housing Executive and local Housing Associations recovered over 360 properties in 2011-12. Most of these relate to non-occupation of the property with the registered tenant living elsewhere.
  • The Department, Housing Executive and the Northern Ireland Federation of Housing Associations agree that much more could be done.

Notes

  1. Housing tenancy fraud is the use of social housing by someone who is not entitled to it.  This can take several forms including giving false information in a housing application, abandoning a property and living elsewhere and also subletting for profit.
  2. In GB the National Fraud Authority estimate the cost to the public purse of tenancy fraud is at least £1.8 billion a year. The Audit Commission estimates that between 4% and 6% in London and 2% per cent of social housing elsewhere is fraudulently occupied. Applying this estimate to Northern Ireland the number of fraudulently occupied properties could be as high as 2,400.
  3. The cost of a three bedroom social new build house in 2011-12 was £89,100 per the N.I. Housing Executive.
  4. The Department for Social Development has overall control and responsibility for preparing and directing social housing policy in Northern Ireland. The Department works closely with the Northern Ireland Housing Executive and registered Housing Associations in implementing social housing policies and also has regulatory powers over the NIHE and registered Housing Associations. There are over 123,000 social housing properties in Northern Ireland with 89,000 managed by the NIHE and 34,000 managed by around 30 registered Housing Associations.