Responding to a Housing Fraud Investigation
If you have received a letter from the council about subletting, or you believe the council is investigating whether you still live in your social housing property, the steps you take now matter more than almost anything that follows. A housing fraud investigation can lead to the loss of your home, a claim for tens or even hundreds of thousands of pounds, and in some cases criminal prosecution. The good news is that with the right advice taken early, many of these cases are resolved quietly and favourably. This guide explains what a housing fraud investigation is, why you may have been contacted, and exactly what you should — and should not — do next.
What is a housing fraud investigation?
A housing fraud investigation occurs when a council or other social landlord suspects that the tenant named on the tenancy agreement is not occupying the property, or has sublet it to someone else. These cases turn on whether the property remains the tenant’s main and principal home, and councils now have wide powers to gather evidence before they make any contact.
Why has the council contacted you?
The council will only send these letters if they already suspect that the tenant is not living in the property. That suspicion is based on evidence — and at this early stage the tenant has no way of knowing what that evidence is.
Investigations often begin with a letter from the council asking the tenant to attend an interview under caution. Sometimes it is a more informal request to confirm residence and attend the housing office for a discussion. It is also worth knowing that a Right to Buy application is usually passed straight to the council’s fraud department, which then carries out stringent residence checks.
What you should do immediately
The single most important thing to do if you are under investigation is to seek specialist legal advice. Acting early gives you the best possible chance of a good outcome.
Moss & Co have avoided prosecution in many cases by negotiating directly with the council. We have recently settled cases with no prosecution, no civil proceedings, no interview under caution, and no compensation or costs payable — outcomes that are far harder to achieve once a tenant has already responded to the council on their own.
What you should not do
Very few people know the right way to respond to these letters, and the tenant’s first steps are crucial to how the case develops. If you are being investigated for housing fraud, you should not:
- Telephone the council to discuss the matter;
- Send an email or letter objecting to the allegation or requesting more information;
- Complain that you are being victimised; or
- Ignore the request.
The reason is simple: at this stage you have no idea how much evidence the council holds, or what that evidence shows. As a result you may make statements that are easily shown to be false by evidence the council already has, or give them additional information that harms your case. The council is not obliged to tell you what they know until that evidence is put to you in an interview under caution.
How housing fraud investigations typically progress
Council investigations of housing fraud usually follow a clear pattern:
- Suspicion is raised. The council receives information, or detects circumstances, suggesting the property is not occupied by the named tenant or is occupied by someone else. This can come from neighbours’ allegations, routine occupation checks by housing officers, or the stringent checks carried out when a tenant applies for the Right to Buy.
- Evidence is gathered. The council fraud team build their case using the many databases and sources available to them. Their investigatory powers are extensive: they can request information from the tenant’s bank, gas, electricity and water suppliers, council tax records, Land Registry, parking apps and mobile phone records. The council will often have been collecting evidence for more than six months before requesting an interview under caution.
- An interview under caution is requested. How the case then develops depends on the evidence and the council’s objectives. Some councils simply want their property back to reduce waiting lists and homelessness; others also wish to prosecute, or to obtain possession through the courts so they can claim compensation or an unlawful profit order. An investigation ends in one of three ways: a charge, the return of the property, or no further action.
The legal risks if you ignore the investigation
You should not panic — but you must not ignore a request to attend an interview. If you do, the matter can be reported to the police, which could result in a search warrant, arrest and interview at a police station. The council can also issue criminal or civil proceedings without an interview at all.
The financial risks are significant. Under the Prevention of Social Housing Fraud Act 2013, a tenant found to have unlawfully let their home can be ordered to pay all the profit they have made. The Act has been in force for over thirteen years, so for a long-term tenancy this can be a very large sum. In criminal proceedings the council can also claim compensation for the loss of use of the property to house the homeless — we have seen compensation claims of more than £100,000.
How specialist legal representation makes a difference
Specialist representation at an early stage makes a real difference to the outcome of many investigations, because these cases involve complicated evidence and difficult law. Instructing solicitors who are experts in both housing and criminal law matters because:
- Disclosure. A solicitor can obtain disclosure of the evidence in order to advise you properly on how to proceed. The council will usually agree to disclose to solicitors, because without knowing the case a solicitor is bound to advise a no-comment interview.
- Representation at interview. A solicitor can attend the interview with you, where a range of options is available — a prepared statement, declining to answer questions, and making representations on your behalf before and after the interview as needed.
- Confidential advice. You can explain the full circumstances in the privacy of the solicitor’s office and receive frank advice on the strength of the evidence and your prospects of successfully defending the case.
- Early negotiation. Before any interview takes place, a solicitor can negotiate with investigators on a “without prejudice” basis to see whether the case can be resolved without an interview at all. This is especially useful where there is a clear explanation for any absence — such as a family bereavement abroad — or where you no longer wish to keep the tenancy. Because the communication is “without prejudice”, it cannot be used in any later case. Settling at this stage will normally include an agreement that no criminal or civil proceedings will follow, which means no compensation or unlawful profit orders can be made.
- The right legal tests. One of the central issues is usually whether the property is the tenant’s main or principal home. The legal tests and the precedent cases are complex, and expert advice is essential.
These cases involve complicated evidence and difficult law, so taking advice promptly is the key to the best outcome. If you are being investigated, call our expert housing fraud team immediately on 020 8986 8336. We will take your initial details and explain our affordable fixed fees. You can also use the contact form, and view our fees here.
Frequently asked questions
What happens if I ignore a council fraud investigation letter?
The investigation will proceed anyway, and there is a danger you may be arrested.
Can I be evicted just because I am being investigated?
No. An investigation by itself is not a ground for eviction. However, the landlord may have grounds to apply for possession based on the evidence they hold.
Do I have to attend an interview under caution?
The council itself cannot compel you to attend, as it has no powers of arrest. However, refusing an interview carries the consequences set out above, including the risk of police involvement.
Can the council prosecute me for subletting?
Yes. You can be prosecuted for subletting under the Prevention of Social Housing Fraud Act 2013 and the Fraud Act.
How long does a housing fraud investigation take?
We resolve many cases within four to eight weeks. Where a charge is brought, a case in the Magistrates’ or County Court can last between six and twelve months. Cases in the Crown Court can take over two years, depending on plea.