Newham Council's fraud team has successfully recovered eight properties and prevented ten 'Right to Buy' applications, as well as one housing application and one succession application, through civil court actions. These recoveries have resulted in notional savings of £0.336 million.
The recovered properties can now be used for onward allocation to the council's most vulnerable residents, potentially easing pressure on housing waiting lists. The team is currently investigating 173 housing cases, with 27 awaiting civil court hearings for property possession and five cases with the legal team for potential criminal prosecution.
The Audit and Governance Committee received this update during their meeting on Thursday, 30 July 2026. The Counter Fraud Team's quarterly progress report for the first quarter of 2026/27, alongside their annual report for 2025/26, detailed these successes.
The report highlighted that the majority of unlawfully sublet properties recovered had been sublet for over five years. The fraud types associated with these recoveries include housing fraud, such as unlawful subletting, and Council Tax investigations that identified underpaid tax due to discounts being removed or applied inappropriately. Proceeds of Crime Act (POCA) proceedings were also initiated following a prosecution for non-compliance with an enforcement notice and breach of conditions notice relating to a residential property, specifically concerning the unauthorised rental of an outbuilding and an unlawful loft conversion occupied by tenants.
Council Tax investigations are initiated based on data indicating potential incorrect application of discounts or exemptions. POCA proceedings are pursued following a criminal conviction related to property misuse. The team recovers properties through civil court actions and prevents applications like 'Right to Buy', housing applications, and succession applications.
Nick Sharp, Head of Fraud, presented the update, noting the team's zero-tolerance approach to fraud. This approach is supported by mandated anti-corruption training for all staff and members, and a strengthened whistleblowing policy. The council intends to roll out mandatory fraud and corruption training for all staff in 2026/27, covering understanding fraud, money laundering suspicions, anti-bribery, and whistleblowing. The team also works to prevent fraud by strengthening the internal control environment.
More details on the committee's discussions can be found in the Public reports pack for the meeting on 30 July 2026: Public reports pack 30th Jul 2026 19.00 Audit and Governance Committee.