Housing fraud down by almost a quarter

The estimated number of housing fraud cases in the UK has fallen by almost a quarter in the last year, according to new figures from financial experts.

The 2019 CIPFA Fraud and Corruption Tracker (CFaCT) report reveals that local authorities identified and/or prevented 3,632 instances of housing fraud in 2018/19.

The new figures represent a 23% drop from the previous year (2017/18), when there was a total of 4,733 estimated housing fraud cases.

According to the new figures, there were 652 estimated cases of fraud last year involving the Right to Buy scheme, 826 which involved illegal subletting and the remaining 2,154 involved other forms of fraud.

The report adds there has been a ‘steady downward trend’ in the number of housing and tenancy-related frauds over the last few years.

‘This trend likely indicates successful efforts by local authorities to tackle housing fraud and remove illegally-sublet properties from the system,’ the report states.

The report also reveals that local authorities identified and/or prevented a total of 71,000 cases of council tax fraud in 2018/19, a sharp increase from 57,894 cases in 2017/18.

Valued at £30.6 million, this included 44,051 cases of Single Person Discount (SPD) fraud and 8,973 cases of Council Tax Reduction (CTR) fraud.

However, this year’s report also showed that the estimated loss to councils from business rate fraud decreased to £8 million from £10 million the previous year.

Overall, business rate fraud represented only 2% of the total number of fraud cases detected or prevented in 2018/19.

‘Fraud continues to be a critical issue for local authorities. Many councils have worked diligently to implement new counter-fraud strategies, and the figures tell us those efforts are working,’ said CIPFA chief executive, Rob Whiteman.

‘The unlawful diversion of funds away from local authorities only adds further stress on vastly underfunded public services. The sector is moving in the right direction, but only a greater focus on collaboration and preventative measures will help create long-lasting change.’

Photo Credit – iAmMrRob (Pixabay)