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| Illegal landlords subletting social housing | Illegal landlords subletting social housing |
| (about 2 hours later) | |
| By Hannah Barnes Jonathon Maitland show, BBC Radio 5 Live Experts estimate 5% of social housing properties in inner city areas could be being unlawfully sublet. John does not think he is doing anything wrong by living in social housing to which he is not entitled. | By Hannah Barnes Jonathon Maitland show, BBC Radio 5 Live Experts estimate 5% of social housing properties in inner city areas could be being unlawfully sublet. John does not think he is doing anything wrong by living in social housing to which he is not entitled. |
| "The place was going empty. It's not the crime of the century." | "The place was going empty. It's not the crime of the century." |
| John is one of thousands of people living in unlawfully sublet social housing across the UK. | John is one of thousands of people living in unlawfully sublet social housing across the UK. |
| He saves more than £500 a month by renting a one-bed housing association flat from a friend and insists that he cannot afford to pay market rates. | He saves more than £500 a month by renting a one-bed housing association flat from a friend and insists that he cannot afford to pay market rates. |
| Just this week the National Housing Federation predicted that the waiting list for social housing would top two million by 2011. Does John not feel guilty? | Just this week the National Housing Federation predicted that the waiting list for social housing would top two million by 2011. Does John not feel guilty? |
| "On a selfish level, I haven't got anywhere to live either," he said, "And I justify it by that." | "On a selfish level, I haven't got anywhere to live either," he said, "And I justify it by that." |
| "It's not the ideal or the best situation but that's how it is. It's not something I just did and thought, 'Sod people who were in a more desperate situation than me.' But I was in a desperate situation myself." | "It's not the ideal or the best situation but that's how it is. It's not something I just did and thought, 'Sod people who were in a more desperate situation than me.' But I was in a desperate situation myself." |
| Market rents | Market rents |
| No-one is making a profit from John's arrangement. He just ensures that the rent and council tax is paid each month, while his friend is living abroad with a girlfriend. | No-one is making a profit from John's arrangement. He just ensures that the rent and council tax is paid each month, while his friend is living abroad with a girlfriend. |
| He's carried on something of a vendetta against me and has forced me into the position where I have to move Neil | He's carried on something of a vendetta against me and has forced me into the position where I have to move Neil |
| But not everyone is like John. Many others - from illegal immigrants to wealthy young professionals - are unwittingly renting social housing property, thinking the landlord rightfully owns it. | But not everyone is like John. Many others - from illegal immigrants to wealthy young professionals - are unwittingly renting social housing property, thinking the landlord rightfully owns it. |
| In these cases the landlords are often making huge amounts of cash from subletting their property at market rates. | In these cases the landlords are often making huge amounts of cash from subletting their property at market rates. |
| In some inner city areas people can make more than £12,000 a year from subletting - money rarely declared to the Inland Revenue. | In some inner city areas people can make more than £12,000 a year from subletting - money rarely declared to the Inland Revenue. |
| The money will sometimes subsidise a more lavish lifestyle, while the person lives elsewhere with a partner or family. In some cases, it is even used to pay off a mortgage on another property. | The money will sometimes subsidise a more lavish lifestyle, while the person lives elsewhere with a partner or family. In some cases, it is even used to pay off a mortgage on another property. |
| It's hard to know how extensive a problem this is. | It's hard to know how extensive a problem this is. |
| The National Fraud Initiative (NFI) - a data-matching operation that takes place every two years and which can highlight cases where someone appears to have more than one council home - flagged up only 75 properties, all of them in England, in 2006-7. | |
| Huge impact | Huge impact |
| But these figures could be just the tip of the iceberg. A Freedom Of Information request to London councils alone showed they had recovered more than 560 properties from illegal tenants in the last year. | But these figures could be just the tip of the iceberg. A Freedom Of Information request to London councils alone showed they had recovered more than 560 properties from illegal tenants in the last year. |
| The NFI, carried out by the National Audit Commission and which also covers Wales and Scotland, cannot highlight those cases where someone might be registered to only one council house address but is actually living with a friend or relative and using his or her council property to make a profit. | The NFI, carried out by the National Audit Commission and which also covers Wales and Scotland, cannot highlight those cases where someone might be registered to only one council house address but is actually living with a friend or relative and using his or her council property to make a profit. |
| And only 49 of the several thousand housing associations in the UK took part in the exercise. | And only 49 of the several thousand housing associations in the UK took part in the exercise. |
| Experts say illegal subletting doesn't seem to be a problem in Wales or Scotland - but say there is evidence of unlawful subletting, albeit it on a smaller scale, going on in south-west England, the Midlands and Northern Ireland. | Experts say illegal subletting doesn't seem to be a problem in Wales or Scotland - but say there is evidence of unlawful subletting, albeit it on a smaller scale, going on in south-west England, the Midlands and Northern Ireland. |
| Unlawful sub-letting can have a huge impact on people living nearby. | Unlawful sub-letting can have a huge impact on people living nearby. |
| Neil is having to move house after blowing the whistle on a neighbourNeil has been harassed and threatened for years after blowing the whistle on his neighbour who was subletting. | Neil is having to move house after blowing the whistle on a neighbourNeil has been harassed and threatened for years after blowing the whistle on his neighbour who was subletting. |
| The fact only came to light after the unauthorised tenant started behaving anti-socially. | The fact only came to light after the unauthorised tenant started behaving anti-socially. |
| Neil was forced to take time off work and even needed medication from his doctor. | Neil was forced to take time off work and even needed medication from his doctor. |
| "Things got really ugly," he says. "The tenant made it his express intention to make my life a misery. | "Things got really ugly," he says. "The tenant made it his express intention to make my life a misery. |
| "He's carried on something of a vendetta against me and has forced me into the position where I have to move." | "He's carried on something of a vendetta against me and has forced me into the position where I have to move." |
| He says the council did not take the allegations seriously. "Social housing is not a right, it's a privilege and if you abuse that privilege you really ought to lose it, particularly when it's in such a cynical and blatant way," he argues. | He says the council did not take the allegations seriously. "Social housing is not a right, it's a privilege and if you abuse that privilege you really ought to lose it, particularly when it's in such a cynical and blatant way," he argues. |
| "We're talking about fraud essentially: people stealing from the council, depriving them of resources that they could spend on other people." | "We're talking about fraud essentially: people stealing from the council, depriving them of resources that they could spend on other people." |
| And there are plenty of people waiting to be housed. There are more than 70,000 people currently in desperate need. They are being housed in temporary accommodation like bed and breakfasts. More than two thirds of them are in London. | And there are plenty of people waiting to be housed. There are more than 70,000 people currently in desperate need. They are being housed in temporary accommodation like bed and breakfasts. More than two thirds of them are in London. |
| Investigators | Investigators |
| But some local councils are taking the problem seriously. | But some local councils are taking the problem seriously. |
| Southwark, in London, has a dedicated team of housing investigators specially trained to interview suspected tenancy fraudsters and find evidence using various data. Between them they recover more than 100 properties per year, saving hundreds of thousands of pounds. | Southwark, in London, has a dedicated team of housing investigators specially trained to interview suspected tenancy fraudsters and find evidence using various data. Between them they recover more than 100 properties per year, saving hundreds of thousands of pounds. |
| It is thought 2 million people could be on English housing waiting lists by 2011The Audit Commission argues that every recovered property from unlawful occupancy saves a local authority or housing association £75,000. | It is thought 2 million people could be on English housing waiting lists by 2011The Audit Commission argues that every recovered property from unlawful occupancy saves a local authority or housing association £75,000. |
| This is includes the cost of putting people up in temporary accommodation and money paid in housing benefit. On top of this, there is the expense of building new homes. | This is includes the cost of putting people up in temporary accommodation and money paid in housing benefit. On top of this, there is the expense of building new homes. |
| Experts estimate that 5% of social housing properties in inner city areas could be being unlawfully sublet. | Experts estimate that 5% of social housing properties in inner city areas could be being unlawfully sublet. |
| With a stock of more than 750,000 in the capital alone, a huge amount of money is at stake. | With a stock of more than 750,000 in the capital alone, a huge amount of money is at stake. |
| But Jonathon Toy, who overseas the housing investigation team at Southwark, insists it is important not to think solely in monetary terms. | But Jonathon Toy, who overseas the housing investigation team at Southwark, insists it is important not to think solely in monetary terms. |
| Families in need | Families in need |
| "The actual cost to a family who have been waiting on the housing list for years, looking for somewhere to live, often with pressures on them and their children is immense," he said. | "The actual cost to a family who have been waiting on the housing list for years, looking for somewhere to live, often with pressures on them and their children is immense," he said. |
| "I don't think we can ever overestimate how important that is. Freeing up local housing for people who are in need is absolutely at the heart of what we're trying to do as a responsible social landlord." | "I don't think we can ever overestimate how important that is. Freeing up local housing for people who are in need is absolutely at the heart of what we're trying to do as a responsible social landlord." |
| This story will be broadcast on the Jonathan Maitland show on BBC Radio 5 Live on Sunday 22 March 2009 at 1900 GMT. Download the free podcast. | This story will be broadcast on the Jonathan Maitland show on BBC Radio 5 Live on Sunday 22 March 2009 at 1900 GMT. Download the free podcast. |