Hackney Council Recovers Over 1,100 Properties Through Tenancy Fraud Investigations
Hackney Council's Audit and Anti-Fraud Service has successfully recovered more than 1,100 properties since 2011 that were being misused fraudulently. This initiative not only addresses housing shortages but also ensures fair allocation for those who have followed the correct procedures.
During a Hackney Council Audit Committee meeting on Thursday, 29 October 2026, Michael Sheffield, Corporate Head of Audit, Anti-Fraud & Risk Management, presented the Audit & Anti-Fraud Progress Report. He highlighted four recent examples of tenancy fraud investigations that resulted in properties being returned to the council.
Sheffield stated that the recovery of over 1,100 properties due to fraudulent misuse demonstrated significant value for money. An officer explained that the value is demonstrated by picturing 1,100 properties and the sort of housing estate that would be and consider that that was delivered by a team of four or five people at different times.
This is particularly significant considering the cost of temporary accommodation, which can exceed £17,000 per year per household. An officer added that recovered properties are made available to applicants on the waiting list, and that this list includes 3,770 households in temporary accommodation. This highlights the broader social impact of ensuring fair housing allocation and reducing the burden on temporary accommodation.
One case involved a sole tenant of a one-bedroom property who had moved to Northern England and owned a three-bedroom house since 2009. Investigations revealed that 21 people had been linked to the Hackney address since 2009, with a sub-tenant attempting to change the tenancy to a joint one based on false claims of cohabitation. The estimated cost to the council from this single fraud was £289,000 over 17 years, implicitly quantifying the financial value of recovery.
Another investigation uncovered a tenant who had moved to Turkey in 2021. A sub-tenant had subsequently moved into the property and made representations to the council claiming to be the tenant's partner, attempting to legitimise their occupancy despite rent arrears and a reported gas leak. This property was recovered following court action in September.
A third example detailed a tenancy awarded in 2008 to a single adult who had owned property in the Midlands at the time of their homelessness application, which was not declared. This tenancy had been sublet to multiple individuals since 2008, with the original tenant receiving over £17,000 in rent over a 15-month period, significantly more than their own Hackney rent of less than £9,000.
Finally, a tenant of a two-bedroom council property since 2000 was found to have purchased three properties between 2016 and 2018, residing in one and renting out the other two. A sub-tenant was also discovered living at the Hackney address and paying rent to the tenant, despite claiming to be a relative. The tenant voluntarily returned the Hackney tenancy as soon as they became aware of our investigation.
An officer noted that these examples were not the most extreme cases but represented significant abuse of the system. An officer stressed that a coordinated effort across different teams is needed to tackle this effectively. An officer explained that a whole-system approach
is needed, which relies on investigation, housing officers, and legal capacity to pursue court action. The team has achieved significant value for money. An officer highlighted a backlog of 200 cases.
More information on the Audit Committee's work can be found in the Public reports pack and Minutes of Previous Meeting.