Tenancy Fraud Policy

1. Purpose

1.1. This policy sets out mhs homes approach to tenancy fraud and the actions that should be taken when this is identified.

1.2. We are committed to making the best use of our properties, ensuring that they are occupied in accordance with contracts/tenancy agreement, the law and regulatory frameworks. We recognise that tackling fraud is an effective way to achieve this.

1.3. mhs homes are committed to taking action in suspected fraud cases and using the powers available to us.

2. Definitions

Unlawful subletting – this is where a tenant lets out their home without the knowledge or permission of their landlord. Detection in this area is difficult as the original tenant often continues to pay the rent for the property directly to their landlord, whilst charging the person they are subletting to a much higher rate.

Obtaining housing by deception – this is where a person(s) obtains a tenancy via the local authority or housing association by giving false information in their application for housing, for example not declaring that they are renting another council or housing association property or by giving false information about who lives with them or submitting false information to purchase a home under the right to buy scheme.

Tenancy succession by deception – this is where a tenant dies and someone who is not eligible tries to succeed the tenancy.

Key selling – this is where the legal tenant is paid a one-off payment to pass on their keys. Tenancy fraud may prevent an eligible household in need of accommodation from being housed.

3. Who does this affect?

3.1 This policy applies to customers of all tenures living in a home owned or managed by mhs homes, including general needs, sheltered housing and market rent. It also applies to customers in shared ownership properties. If necessary, we may take legal action under the terms of the tenancy/lease and other relevant legislation available to us.

3.2 The term ‘we’ and ‘our’ relates to all concerned unless otherwise stated.

3.3 Properties managed by mhs homes on behalf of Clarion Housing Association and Heart of Medway Housing Association.

4. Legislation and regulation

Government legislation has an impact on how we implement our Tenancy Fraud policy. Listed below are the key Acts that cover our work.

  • Law of Property Act 1925

  • Prevention of Social Housing Fraud Act 2013

  • Housing Act 1985 as amended

  • Housing Act 1988 as amended

  • UK General Data Protection Regulation (UK GDPR), the Data Protection Act 2018 and Data Use and Access Act.

The above documents are available on this website www.legislation.gov.uk

Heart of Medway homes are also governed by the Regulator of Social Housing

5. Policy Statement

To ensure effective detection and prevention of fraud we will;

Respond to cases of suspected tenancy fraud and cases where fraud is identified.

To provide information to mhs residents and stakeholders of the organisation’s approach to tackling tenancy fraud.

To provide guidance to staff on the actions to prevent, detect and take action against suspected tenancy fraud.

5.1 Proactive measures

We will take the following proactive measure to deter fraud;

a) mhs will request photographic proof of identification from all prospective tenants and shared owners.

b) As part of the offer of a new tenancy, customers will be required to complete a household information sheet of all occupants that will be living at the property. This will be crossed checked against the original housing register application.

c) mhs homes will undertake further checks where concerns are identified about the validity of the customers claim to a home. They may include:

- Checks against the electoral register

- Checks against National Anti-Fraud Network

- Checking local authority records

mhs homes will also take part in the bi-annual data matching exercise administered by the Cabinet Office.

5.2 Detection

We will carry out an initial investigation on all reports of tenancy fraud. Part of our initial checks may include an unscheduled home visit to verify occupants. Each year MHS also conduct a number of scheduled Home Plan visits, and during these we will check that residents of our homes are the intended occupants. For Heart of Medway housing stock all reports of suspected tenancy fraud will be dealt with in accordance with the Prevention of Social Housing Fraud Act 2013.

Where a case of Fraud is suspected, we will carry out further investigation. These investigations are carried out by our Neighbourhood and Tenancy Sustainment teams.

5.3 Suspected tenancy fraud

Where a case of suspected tenancy fraud is investigated, the evidence collated will be reviewed to assess whether an allegation of tenancy fraud can be substantiated. Investigation will include a check to see if there has been fraudulent use of any car parking space or garage assigned to the tenancy

Where it is believed that evidence has been obtained to support a case of tenancy fraud, the resident will be notified, and they will be requested to provide an explanation regarding the use of their home. If the evidence that they provide does not counter the evidence collated, legal action to recover possession of the property will be undertaken. Where legal action to recover possession of a property is successful, court costs will be sought against the MHS tenant or shared owner.

5.4 Recovered properties

  • Properties recovered from fraudulent use will be re-let in line with MHS’s Lettings Policy in the case of general needs housing and private rented properties.

  • Resold in line with regulatory requirements, in the case of shared ownership housing.

5.5 Approach to unauthorised occupants

Our approach to unauthorised occupants, in terms of both advice and assistance offered to them, will be determined by the individual circumstances.

We aim to ensure that each property is let to and occupied by the person(s) to whom we have allocated it. We will verify the identity and circumstances of prospective residents.

Where checks and reports identify high risk tenancy fraud mhs homes will provide evidence-based cases for Court with the objective of recovering possession of the property.

Our tenancy agreements include clauses relating to transferring tenancies, subletting, and absence from the home, succession and mutual exchanges. We provide guidance and information to tenants about their rights and responsibilities in relation to these and other clauses.

We will visit new starter tenants, who are living in one of our properties for the first time at least twice a year in the first year of the tenancy. Check the members of the household against the paperwork when the property was let and update the system with any changes.

We maintain up to date policies and procedures on a range of tenancy matters that can give rise to tenancy fraud, including lettings, succession, assignment, mutual exchange and right to buy.

We will take steps to ensure that our properties continue to be occupied by the person(s) to whom we have allocated them in accordance with the relevant tenancy agreement for the duration of the tenancy.

We will publicise our approach to tenancy fraud and raise awareness of the issue. We will encourage residents to let us know if they suspect tenancy fraud. All reports of tenancy fraud will be dealt with in the strictest confidence.

We will work with local authorities and other organisations, take part in regional or countywide tenancy fraud forums and share data for the purposes of preventing fraud and/or reducing crime.

When visiting a customer’s home, visits may include looking in each room, and checking for signs of occupancy.

Using credit reference/data exchange agencies to check household members, establishing residency and to trace individuals where there is evidence to suggest they may be living elsewhere or committing fraudulent activity.

Staff may request to check utility bills or check meters to see if utilities are being used.

Sub tenants unaware of their status may be asked to give evidence against the tenant.

We may request information from other agencies such as the police through the appropriate information sharing channels.

6. Confidentiality

All personal data processed in connection with the prevention, detection and investigation of fraud will be handled confidentially and in accordance with the UK General Data Protection Regulation (UK GDPR), the Data Protection Act 2018, and other applicable data protection legislation.

Information will be accessed and used only by authorised staff where it is necessary and proportionate to do so for fraud‑related purposes, and appropriate technical and organisational measures will be in place to safeguard personal data.

Personal data is processed lawfully under Article 6 UK GDPR, primarily where processing is necessary to comply with a legal obligation and/or to perform a public task or exercise official authority in relation to the prevention and detection of tenancy fraud. Where appropriate, processing may also be carried out under the organisation’s legitimate interests, provided those interests are not overridden by the rights and freedoms of individuals. The use of consent is not appropriate in the context of fraud prevention and investigation, as seeking consent would undermine the effectiveness of these activities.

Some fraud prevention and investigation activities may involve more intrusive forms of processing, including unnotified visits, verification checks and data matching. Such activities will be undertaken only where they are necessary and proportionate to the level of fraud risk identified, and in a manner that seeks to minimise unnecessary intrusion into individuals’ private lives.

Where required, data protection impact assessments (DPIAs) will be carried out for fraud‑related processing activities in line with the organisation’s data protection governance arrangements, and processing activities will be recorded in accordance with UK GDPR accountability requirements.

Where fraud work involves the processing of special category personal data, such as information relating to health, disability or other protected characteristics, this will be carried out in accordance with Article 9 UK GDPR and the relevant conditions set out in Schedule 1 of the Data Protection Act 2018, including conditions relating to the prevention or detection of unlawful acts and safeguarding. Where criminal offence data is processed, this will be handled in accordance with Article 10 UK GDPR and the Data Protection Act 2018, supported by an appropriate policy document maintained in accordance with statutory requirements, and subject to strict access controls.

Information may be shared with third parties, such as law enforcement agencies, government departments, regulators or other relevant organisations, where this is lawful, necessary and proportionate for the purposes of preventing or detecting fraud or complying with legal obligations. Any such sharing will be subject to appropriate safeguards, including data‑sharing arrangements where required, and the principles of data minimisation and security. Data shared for fraud‑related purposes will not be used for unrelated purposes unless a separate lawful basis applies. Full details of information sharing are set out in the organisation’s customer privacy notice.

Individuals’ data protection rights under the UK GDPR are respected. However, certain rights may be restricted where permitted under the Data Protection Act 2018, where the exercise of those rights would be likely to prejudice the prevention, detection or investigation of fraud. Any such restriction will be applied lawfully, proportionately and on a case‑by‑case basis.

Personal data relating to fraud will be retained only for as long as necessary for the purposes for which it was collected, in line with the Records Management and Lifecycle Policy, including shorter retention periods where allegations are not substantiated, after which it will be securely disposed of.

7. Equality Statement

This policy applies to customers of all tenures living in a home owned or managed by mhs homes. mhs homes wants to make sure that no person receives less favourable treatment from the organisation on the grounds of age, disability, gender reassignment, marriage, civil partnership, pregnancy, religion or belief, race, sex or sexual orientation.

This policy will be reviewed in three years’ time or earlier if required by legislation, new significant guidance or in response to specific incidents.

8. Monitoring and Reporting

Monitoring of cases of tenancy fraud will be undertaken and reports will be made as follows:

  • Annually to mhs homes Board

  • Annually to mhs Audit Committee

  • Annually to the Regulator