Fraud prevention officers in Northumberland stopped more than 90 fraudulent purchases of social housing in the last financial year, saving the council and housing providers almost £3 million.
Rise in Attempted Fraud
The figure represents a sharp rise on previous years after the Government significantly lowered the maximum discount available to residents. In total, 92 purchases were cancelled, with 60 of the properties belonging to Northumberland County Council itself. The remaining 32 belonged to the county's private social housing providers Karbon, Bernicia and Gentoo.
Council Praises Team's Work
Speaking at Wednesday's meeting of the council's audit and standards committee, cabinet member for finance Coun Nick Oliver praised the team's work. He said: "Millions are saved by the work the team does. They have done huge work around Right to Buy, where we have seen a rise in attempted fraud."
He added: "You are not only stopping fraud, you're keeping a house in public ownership which can remain let to tenants who have need."
Total Savings and Other Fraud
In total, the team saved the council £4.5 million in the last financial year. Just under £3 million came from Right to Buy purchases being cancelled, while more than £1 million came from fraudulent social housing tenants being evicted or having housing offers refused or withdrawn. A further £365,000 was recovered from various forms of fraud around council tax.
Right to Buy Requirements
Residents wishing to buy their home through Right to Buy must be a tenant of the property for at least three years and the property must be their main home. Common types of fraud include overstating the length of the tenancy to claim higher discounts.
Surge in Applications
Corporate fraud manager Amy Hodgson said: "This year was very much the year of Right to Buy. The changes in the discounts announced in November 2024 created a huge surge in applicants wanting to purchase the property before losing out on these massive discounts."
She added: "That impact really hit us in the beginning of March through to April."
