Tenancy Fraud Policy

1.0 POLICY PURPOSE

1.1 This policy aims to: 

• Prevent acts of tenancy fraud and build trust in the housing allocation and tenancy management process.
• Detect where tenancy fraud is being carried out by raising awareness amongst One Manchester colleagues, customers and partners.
• Clearly set out how One Manchester will deal with suspected cases of tenancy fraud.
• Ensure there is a consistent and proportionate response to all cases of tenancy fraud.
• Prevent the misuse of housing stock and allocations system by using robust, effective and timely housing management processes. 

2. POLICY SCOPE

2.1 The Policy applies to all One Manchester tenants.

2.2 This Policy covers all tenures of housing offered by One Manchester including the letting of social, shared ownership, market rent properties, affordable rent tenancies, rent to buy and the assignment of tenancies by mutual exchange or succession.

2.3 This Policy also applies to Right to Buy and Right to Acquire applications.

2.4 This policy only covers suspected fraud by our customers, not by colleagues.

3. RELEVANT LEGISLATION & REGULATION

3.1 The Prevention of Social Housing Fraud Act 2013 (PoSHFA). Section 2 makes it an offence to sub-let or part with possession of the whole or part of a tenanted property. Section 7 allows Local authorities to obtain and provide information and interview tenants under caution. These sections do not cover shared owners.

• The Fraud Act 2006. Section 2 deals with false representations and section 3 with failure to disclose information under a legal duty to disclose. Section 2 is of particular relevance to shared owners
• Forgery and Counterfeiting Act 1981
• Proceeds of Crime Act 2002. Section 6 allows a court to make a confiscation or compensation order if a shared owner is convicted of an offence e.g. of false representations Immigration Act 2014 and 2016
• Housing Act 1988 - Ground 17 is the assured tenancy fraud possession ground which states ”The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by
  • The tenant, or
  • a a person acting at the tenant's instigation”. Ground 12 is the breach of tenancy ground.
• Housing Act 1996
• Regulator of Social Housing Governance and Viability Standard
• Regulator of Social Housing Tenancy Standard updated 01 04 2024 which requires us “to take action to prevent and tackle tenancy fraud”

POLICY STATEMENT

4.1 One Manchester is committed to ensuring its homes are occupied by those they have been let to and who are entitled to live in them. We will work in partnership with the local authority and make use of their powers under PoSHFA to provide us with information and disclosure. 

4.2 If we have evidence of tenancy fraud we will take the most appropriate action considering the type and extent of fraud. This includes:

• Seeking possession on the fraud ground 17 where applicable and also ground 12 (breach of tenancy) in order to evict those who are illegally occupying or sub-letting.
• recovering any profits that have been made from subletting the home through for example, unlawful profit orders against tenants.
• supporting the relevant authorities to prosecute those who have obtained a tenancy by fraud or sublet our homes when they do not have the right to do so.
• Applying for injunctions to prevent sub-letting of the whole or part of a property (available against both tenants and leaseholders depending on the terms of their leases)

4.3 One Manchester considers tenancy fraud to include:

• Subletting the whole of a tenanted property (whether for profit or not) or a leasehold or shared ownership property where the lease prohibits it including through Air BNB, estate agents or other third party agencies.
• Sub-letting part of the property where it is prohibited under the tenancy agreement or lease requires the tenant to ask for permission first.
• Permanently moving out of the property and allowing members of the tenant’s family to live in it without notifying us or seeking our permission
• Misrepresentation by a customer (or a person on their behalf even if the customer doesn’t know) which induces us to offer a property.
• Selling the keys to a property including if mutually exchanging.
• Assignment to a person who is not entitled and without the permission of One Manchester.
• False applications that result in a succession of tenancy following the death of the tenant.
• Making an application for Right to Acquire or Right to Buy with false and or misleading information.
• Providing false information in applications to become a shared owner.

5 COMMITMENTS

5.1 One Manchester will investigate all forms of tenancy fraud reported by staff, customers, contractors and external agencies. Our commitments are to: 

• publicise tenancy fraud in our communications with customers
• act promptly when investigating all allegations of suspected tenancy fraud.
• train colleagues to identify potential tenancy fraud.
• keep complainants informed and their identity confidential.
• support complainants and witnesses if there is a need to go to court.
• work with partners to help detect and prevent tenancy fraud
• work with the local authority and ask them to use its specific powers under sections 2 and 4 of PoSHFA to carry out interviews under caution and obtain information e.g. from banks and utility providers which we cannot access directly.
• support vulnerable victims of tenancy fraud e.g. innocent sub-tenants and sign-post them to appropriate agencies.

6. PREVENTING TENANCY FRAUD

6.1 To reduce the risk of tenancy fraud One Manchester will verify the identity and occupation history of all prospective tenant(s) if they have:

• Accepted an offer of accommodation from us through the local authority nomination scheme (Manchester Moves)
• Made an application directly for accommodation from us.
• Been offered accommodation through our internal transfer scheme.
• Made an application for the Right to Buy or Right to Acquire.
• Requested to assign their tenancy.
• Requested to succeed a tenancy.
• Been party to a mutual exchange application.
• Applied to qualify for a shared ownership lease purchase

6.2 To verify the identity of the tenants and household members we will:

• Hold photographs of tenants on customer records.
• Check that identification provided are valid and authentic .
• Keep copies of identification provided at sign up on file.
• Seek to periodically monitor continued residency of and additions to household members.
• Part of the verification process may include a credit check. This will focus on:
  • Confirming the customers identity.
  • Confirming the occupation history.
  • Confirming if the customer has any property interests.

6.3 To pro-actively manage the risk of tenancy fraud One Manchester will: 

• Carry out individual and neighbourhood wide tenancy audits
• Carry out intelligence based tenancy audits using internal and external data
• Conduct publicity campaigns to encourage reporting of tenancy fraud
• Compare customer data with external organisations to detect tenancy fraud

7. DATA GOVERNANCE

7.1 One Manchester will share (give and receive) relevant information with third parties for the purposes of preventing, investigating and tackling tenancy fraud.

7.2 We will ensure that any data whether received or shared by One Manchester from or with third parties will be done so in accordance with our privacy notice and in accordance with the principles of GDPR. 

7.3 One Manchester may also share information: 

• to meet its legal obligations.
• in connection with legal proceedings or where instructed to do so by a court order.
• to protect the vital interests of an individual.

7.4 When we investigate individual tenancies for potential fraud we may use data held by a credit reference agency or other external organisation

8. AWARENESS

8.1 One Manchester recognises the role of those who live in the communities in which it operates and other partners in the prevention and detection of tenancy fraud. One Manchester will encourage customers and others to report suspected tenancy fraud. (anonymously if preferred) in the following ways:

• In person
• By telephone
• Email
• Online reporting via the One Manchester website

8.2 Colleagues have a major part to play in the prevention and detection of tenancy fraud. Training will be provided to employees most likely to encounter tenancy fraud. Awareness of tenancy fraud will be promoted within the business.

8.3 One Manchester will publicise fraud awareness information. This publicity will include One Manchester’s commitment to tackling tenancy fraud and taking possession action if necessary and examples of tenancy fraud where action has been taken and a successful outcome achieved.

9. RESPONDING TO REPORTS AND INVESTIGATIONS

9.1 Suspicious tenancy activity must be reported to Head of Neighbourhoods for investigation. The investigation may include and is not limited to: •

• Desktop review of relevant documents
• Searches for public information about the individual(s) concerned
• Visits to the property to confirm occupancy
• Obtaining statements from relevant parties including sub- tenants.

9.2 One Manchester will involve the appropriate authorities to assist in an investigation.

10. EQUALITY IMPACT ASSESSMENT

10.1 An initial Equality Impact Assessment has been undertaken. The EQIA highlighted that any investigation resulting from this policy should be completed by staff who are well trained to understand how to interact with people from protected characteristic groups, and considered that investigating staff have the necessary support required to conduct their investigation and that any materials to be shared are made accessible accordingly to anyone involved in investigation the process.

11. MONITORING AND REVIEW

11.1 Compliance with this policy shall be monitored by Head of Neighbourhoods. 

11.2 This Policy shall be reviewed every 3 years. 

11.3 The Head of Neighbourhoods will be responsible for initiating a review of this policy.

12. CONTACT PERSON 

12.1 The Head of Neighbourhoods has the responsibility for the effective delivery of this policy.

13. ASSOCIATED POLICIES, LAW AND DOCUMENTS

13.1 Internal Documents: 

• Anti bribery, Fraud and Corruption Policy
• Tenancy Policy
• Data Protection Policy
• Privacy Notice
• Allocations Policy

13.2 Legislation: 

• The Prevention of Social Housing Fraud Act 2013 (PoSHFA)
• The Fraud Act 2006
• Forgery and Counterfeiting Act 1981
• Immigration Act 2014 and 2016
• Housing Act 1988
• Housing Act 1996
• Regulator of Social Housing Governance and Viability Standard
• Regulator of Social Housing Tenancy Standard