City residents who report the unlawful sub-letting of social housing are set to receive a reward as part of a national 'bounty scheme' announced today.

Plymouth City Council will receive £30,000 from the Government to cover the cost of introducing the scheme.

Some of the money will be used to appoint a dedicated social housing fraud project worker. Extra Government funding will be available to pay rewards of £500 for information leading to the recovery of a property which has been fraudulently sub-let.

Estimates vary but it’s believed that up to four per cent of social housing is unlawfully sub-let in some parts of the country.

If just one per cent of Plymouth’s social housing stock of 20,000 homes were fraudulently sub-let that would mean 200 homes taken out of circulation.

Cabinet Member for Planning, Strategic Housing and Economic Development Councillor Ted Fry said: "Social housing is a hugely valuable asset and the demand for it always far exceeds the supply.

" It’s vital that we do everything in our power to ensure that these homes are available to those who most need them and that they are not used by fraudsters for financial gain.”

In future anyone who suspects a property has been unlawfully sub-let can report it using a special hotline (similar to the existing benefits cheats hotline).

In some cases, obtaining a home from a social landlord fraudulently is a criminal offence. The Council has brought successful prosecutions in the past and is currently taking legal action against someone accused of committing this type of fraud.

"Each new unit of social housing costs the taxpayer about £100,000 so if this crackdown frees up just a small number of homes then that will represent a very good return on investment,” said Councillor Fry.

The Council will work closely with local housing associations to implement the new scheme and will be taking steps to ensure that any innocent victims living in unlawfully let homes are treated fairly.

Besides this type of fraud depleting the city’s social housing stock, research shows that crime and anti social behaviour are often associated with unlawful sub-lets.

Anyone who suspects a housing association home is being unlawfully occupied is urged to call the Council hotline 01752 305496.

Further information is available on the council's social housing fraud page.

Plymouth City Council, 1 December 2009