0:00:03 > 0:00:05I'm Michelle Ackerley.
0:00:05 > 0:00:07My parents both grew up on council estates
0:00:07 > 0:00:10and as a family, we understand the difference
0:00:10 > 0:00:12social housing can make to people's lives.
0:00:15 > 0:00:17But across the UK, there's a chronic shortage
0:00:17 > 0:00:20of council and housing association homes.
0:00:21 > 0:00:23I know so many friends and so many people
0:00:23 > 0:00:26that just literally don't have anywhere to live.
0:00:26 > 0:00:30Adding to the crisis, some tenants are abusing the system,
0:00:30 > 0:00:34holding on to properties they no longer need, or even worse -
0:00:34 > 0:00:38unlawfully subletting them and coining in a small fortune.
0:00:38 > 0:00:40Subletting social housing is wrong.
0:00:40 > 0:00:43It's wrong. It's illegal and it's wrong.
0:00:43 > 0:00:46So, every day, we'll be with the housing investigators
0:00:46 > 0:00:49as they crack down on those rogue tenants...
0:00:49 > 0:00:51- County Court bailiffs! - DRILL WHIRS
0:00:51 > 0:00:53..reclaim properties...
0:00:53 > 0:00:54Anybody in?
0:00:54 > 0:00:58..and give them to families in genuine need.
0:00:58 > 0:00:59All of those keys are yours.
0:01:00 > 0:01:03Aw, don't cos you'll start me off again.
0:01:04 > 0:01:07This is Council House Crackdown.
0:01:07 > 0:01:10Our reporter, property expert Luke Doonan,
0:01:10 > 0:01:14also grew up on a council estate, and for the last six months,
0:01:14 > 0:01:18he's been working alongside dedicated housing investigators
0:01:18 > 0:01:19who will stop at nothing
0:01:19 > 0:01:23to track down every single tenant who's abusing the system.
0:01:24 > 0:01:26Today, the woman who unlawfully sublet
0:01:26 > 0:01:30her two-bedroom flat in a £10,000 fraud
0:01:30 > 0:01:32while she was in France.
0:01:32 > 0:01:34This property was subletted.
0:01:34 > 0:01:37- You could have been in this property years ago.- That makes me angry.
0:01:37 > 0:01:41We follow housing officers on the hunt for tenancy cheats.
0:01:41 > 0:01:42We're from Circle Housing
0:01:42 > 0:01:44and we're just here to do a tenancy audit.
0:01:44 > 0:01:46Would you mind opening the door?
0:01:46 > 0:01:49And we go to a flat in trendy East London
0:01:49 > 0:01:53where an unlawful subletter was operating from an unlikely base -
0:01:53 > 0:01:54behind bars.
0:01:54 > 0:01:58- "Tell- BLEEP- he has to move out as he has not paid me a penny."
0:01:58 > 0:01:59- Wow.- Yeah.
0:02:00 > 0:02:03Estimates suggest that at least 98,000
0:02:03 > 0:02:06social housing properties in the UK
0:02:06 > 0:02:09are occupied by someone who shouldn't be there.
0:02:09 > 0:02:12It's difficult to be absolutely certain
0:02:12 > 0:02:13about the full scale of the problem,
0:02:13 > 0:02:16but with social housing in short supply,
0:02:16 > 0:02:20tenancy fraud is without doubt a major issue.
0:02:20 > 0:02:22All over the UK,
0:02:22 > 0:02:25housing officers are pounding the streets and knocking on doors.
0:02:25 > 0:02:28They're relying on a steady stream of tip-offs
0:02:28 > 0:02:30from neighbours and others in the community
0:02:30 > 0:02:33to help them flush out new leads on tenancy cheats.
0:02:36 > 0:02:39It was one such eagle-eyed member of the community
0:02:39 > 0:02:41that helped to lift the lid on our first case.
0:02:42 > 0:02:46It concerns a woman who sublet her flat in South London
0:02:46 > 0:02:51and made more than £10,000 while she was living in France,
0:02:51 > 0:02:53Marie-Laure Badai.
0:02:54 > 0:02:57The story came to light back in January 2015
0:02:57 > 0:03:01with a report of a leak at one of the flats on this estate.
0:03:02 > 0:03:05Luke is meeting up with Stefan Tavernier-Gustave,
0:03:05 > 0:03:07who's been the housing officer responsible
0:03:07 > 0:03:10for the Roupell Park council estate in Lambeth, South London,
0:03:10 > 0:03:12for the last 12 years.
0:03:12 > 0:03:16There's not much that goes on here that Stefan doesn't know about.
0:03:16 > 0:03:20I'm a generic housing officer/youth coordinator.
0:03:20 > 0:03:23The generic housing officer consists of dealing with leaseholders,
0:03:23 > 0:03:27dealing with tenants, leaseholders and service charges,
0:03:27 > 0:03:30rent arrears, normal allocations, which is home swaps.
0:03:30 > 0:03:32Sounds like you're the go-to guy on the estate
0:03:32 > 0:03:34for any kind of problems across the board, really.
0:03:34 > 0:03:38Well, yeah, you could say that. Yeah, I'm the front line of staff,
0:03:38 > 0:03:41so, yeah, they will come to me for any issues they may have
0:03:41 > 0:03:43in terms of their housing management, really.
0:03:43 > 0:03:44So, yeah, it is quite...
0:03:44 > 0:03:47It's challenging for 140 units for one person, really, yeah.
0:03:47 > 0:03:49- I bet. That's a lot.- Yeah.
0:03:50 > 0:03:53It was Stefan being in the right place at the right time
0:03:53 > 0:03:57that led to the discovery of a huge tenancy fraud on his estate.
0:03:58 > 0:04:01And Marie-Laure Badai was the woman at the centre of it.
0:04:02 > 0:04:05Early last year, there was a water leak
0:04:05 > 0:04:08from Miss Badai's property into the flat below.
0:04:08 > 0:04:10In January, we had a leak reported
0:04:10 > 0:04:13at one of our properties in this block.
0:04:13 > 0:04:16Initially, the plumber went up there to the property,
0:04:16 > 0:04:17felt there was something odd,
0:04:17 > 0:04:20so, initially, first point of contact would be me
0:04:20 > 0:04:22to go up to the property
0:04:22 > 0:04:24and establish what is actually going on at that point.
0:04:24 > 0:04:26I'm used to everybody in this estate.
0:04:26 > 0:04:28I'm quite familiar by faces.
0:04:28 > 0:04:30Not necessarily by names,
0:04:30 > 0:04:32but by faces, I definitely can identify them.
0:04:32 > 0:04:35So, you had an idea of who your tenant is,
0:04:35 > 0:04:38- who should have been at the property.- Absolutely, yeah.
0:04:39 > 0:04:43And this is the property where the water leak was coming from.
0:04:43 > 0:04:46So, this is the property that I attended.
0:04:46 > 0:04:49We were expecting to find a middle-aged woman with two children.
0:04:49 > 0:04:52She's been living here for over four years now.
0:04:52 > 0:04:56During that time, Stefan hadn't seen any problems.
0:04:56 > 0:04:58The only interaction we had with her
0:04:58 > 0:05:00is when she actually came into the office
0:05:00 > 0:05:03to report any housing management or any repairs she had,
0:05:03 > 0:05:04but it was quite sporadic.
0:05:04 > 0:05:09She was a fairly nice lady, very well spoken, very polite.
0:05:09 > 0:05:11But when Stefan went to investigate the leak,
0:05:11 > 0:05:13it wasn't the tenant who opened the door.
0:05:13 > 0:05:16It was a woman Stefan had never seen before.
0:05:16 > 0:05:19I saw a much younger lady.
0:05:19 > 0:05:21She was quite surprised to see me
0:05:21 > 0:05:23and I was really quite surprised to see her.
0:05:23 > 0:05:24And she said, well,
0:05:24 > 0:05:29her landlord said that she was going to be able to stay here.
0:05:29 > 0:05:32So, for me, that rang alarm bells,
0:05:32 > 0:05:35so I was like, "OK, well, she's not the landlord -
0:05:35 > 0:05:37"she's a tenant, and we're the landlord -
0:05:37 > 0:05:40"so we need to be asking you a bit more questions about that."
0:05:40 > 0:05:43She told Stefan that she and her sister
0:05:43 > 0:05:45were sharing a room in the flat
0:05:45 > 0:05:47and there was someone else renting the other room.
0:05:47 > 0:05:52In all, they were paying £1,200 a month to Miss Badai.
0:05:52 > 0:05:57So, you hadn't had any reports about subletting or anything suspicious?
0:05:57 > 0:06:00No, Luke, we never had any reports from anybody in this block
0:06:00 > 0:06:03or any residents around the block about any subletting,
0:06:03 > 0:06:05so we were none the wiser
0:06:05 > 0:06:07until the report of the leak, really, to be honest.
0:06:07 > 0:06:10For once, a leak proved actually really positive for you guys.
0:06:10 > 0:06:13Absolutely. It gives us a little doorway, to be honest.
0:06:13 > 0:06:14- It did indeed.- Yeah.
0:06:16 > 0:06:19With the legitimate tenant nowhere to be found,
0:06:19 > 0:06:21Stefan passed the information on to
0:06:21 > 0:06:24Lambeth housing fraud investigator Pam Esiso.
0:06:24 > 0:06:26Pam is part of a team that, last year,
0:06:26 > 0:06:29recovered 93 social housing properties
0:06:29 > 0:06:35and uncovered tenancy fraud valued at £1.6 million.
0:06:35 > 0:06:39Pam immediately got on the case and went to the flat.
0:06:39 > 0:06:42She interviewed a male subtenant at the address,
0:06:42 > 0:06:46who told her he had found the flat advertised on the internet.
0:06:46 > 0:06:49They felt that it had gone through the normal channels,
0:06:49 > 0:06:53gone through Gumtree, got the advert from Gumtree,
0:06:53 > 0:06:57called up the person and were shown the property
0:06:57 > 0:07:03and just rented a property, so they feel a bit hard done by.
0:07:03 > 0:07:06The official tenant, on the other hand, was anything but.
0:07:06 > 0:07:09She was paying only £500 a month to the council
0:07:09 > 0:07:13and receiving around £1,200 from the subtenants.
0:07:13 > 0:07:17Our tenant was making nearly £700 every month
0:07:17 > 0:07:19from subletting the property.
0:07:20 > 0:07:22Based on those figures,
0:07:22 > 0:07:25the tenant could have already pocketed more than £10,000
0:07:25 > 0:07:28in unlawful profits.
0:07:28 > 0:07:31Pam's investigation has to be meticulous
0:07:31 > 0:07:34so that the case is watertight if and when it has to go to court.
0:07:34 > 0:07:38We're always very careful when carrying out our investigations
0:07:38 > 0:07:41because one wrong move could potentially harm a case.
0:07:41 > 0:07:44We have to look through the case notes,
0:07:44 > 0:07:48almost like looking for a needle in a haystack.
0:07:49 > 0:07:53Back in the office, Pam started looking into Badai's background.
0:07:55 > 0:07:57The Prevention Of Social Housing Fraud Act,
0:07:57 > 0:08:00which was introduced in 2013,
0:08:00 > 0:08:04allows housing officials access to personal documents.
0:08:04 > 0:08:06The Prevention Of Social Housing Fraud Act
0:08:06 > 0:08:08has made it slightly easier
0:08:08 > 0:08:11for us to get more information about tenants,
0:08:11 > 0:08:14to be able to build a profile of where they've been,
0:08:14 > 0:08:17what they've been doing, how they spend their money.
0:08:17 > 0:08:20In this case, Pam wanted to crosscheck
0:08:20 > 0:08:23what the tenant was spending with where she was supposed to be living.
0:08:25 > 0:08:29The first thing I did was to carry out initial background checks.
0:08:29 > 0:08:32This is a copy of the credit search.
0:08:32 > 0:08:37This evidence helps highlight who lives in a property and who doesn't.
0:08:37 > 0:08:39So, for people living in a property,
0:08:39 > 0:08:43I would expect active credits in the property.
0:08:43 > 0:08:45Things like their bank statements,
0:08:45 > 0:08:48utility bills, like your gas and electricity,
0:08:48 > 0:08:50phone bills, TV licence.
0:08:50 > 0:08:53In this case, we hardly have anything on her,
0:08:53 > 0:08:56which kind of points to the fact that she's not in the property.
0:08:56 > 0:09:00Pam was confident the official tenant Miss Badai
0:09:00 > 0:09:03was not living in the property, but was subletting.
0:09:03 > 0:09:07But she still didn't know where Miss Badai was.
0:09:07 > 0:09:10If you have your bank account and you have your cards
0:09:10 > 0:09:12and you're in the UK, you spend on a daily basis.
0:09:12 > 0:09:15You can go to Sainsbury's, you can go to,
0:09:15 > 0:09:19you know, maybe the cinema, just shop around.
0:09:19 > 0:09:22It leaves footprints for you.
0:09:22 > 0:09:26But if you're abroad and you're just kind of exchanging money
0:09:26 > 0:09:29or just withdrawing, that reflects as well.
0:09:29 > 0:09:33The information suggested the tenant was actually living abroad.
0:09:35 > 0:09:37I requested for bank statements
0:09:37 > 0:09:40under the Prevention Of Social Housing Fraud
0:09:40 > 0:09:44and the bank statements came back and sure enough, going back to 2008,
0:09:44 > 0:09:47I was able to see activities on the bank account
0:09:47 > 0:09:53were such that I believed that she was living outside the country.
0:09:53 > 0:09:56Pam decided to check whether the tenant's children
0:09:56 > 0:09:57attended school in the UK.
0:09:59 > 0:10:04Close as we had to them being recorded in a school was in 2006
0:10:04 > 0:10:08when one of them was just registered briefly
0:10:08 > 0:10:10but never actually attended the school,
0:10:10 > 0:10:16so that, again, looks like she probably never had
0:10:16 > 0:10:21the intention of schooling the kids here in the UK.
0:10:21 > 0:10:24Later, we'll find out what happens
0:10:24 > 0:10:28when Pam discovers the official tenant living in France.
0:10:31 > 0:10:33It's wrong to sublet a council property.
0:10:33 > 0:10:35First of all, you're making money illegally.
0:10:35 > 0:10:37Secondly, you're taking the opportunity
0:10:37 > 0:10:39of someone that needs that place.
0:10:39 > 0:10:42Subletting in that way is pretty disgusting.
0:10:42 > 0:10:46I mean, you're gaining from a system
0:10:46 > 0:10:49that's been put into place to help people.
0:10:49 > 0:10:52I think people who are using it as an income
0:10:52 > 0:10:56is a bit socially wrong because the whole point of it is
0:10:56 > 0:10:58for people who are less fortunate to have a house.
0:10:58 > 0:11:02And I think if they're stopping people who need housing
0:11:02 > 0:11:08for their own profit is wrong and should not be allowed.
0:11:08 > 0:11:11Obviously, the people who are subletting their flat
0:11:11 > 0:11:12that was given to them by the council
0:11:12 > 0:11:14don't really need it, obviously.
0:11:14 > 0:11:16If they're doing that, they don't need it,
0:11:16 > 0:11:19and so therefore the council needs to do something about it urgently.
0:11:20 > 0:11:24Councils and housing associations are acutely aware
0:11:24 > 0:11:28of the easy profits to be had from unlawful subletting.
0:11:28 > 0:11:30Many have set up hotlines for tip-offs
0:11:30 > 0:11:33from whistle-blowing neighbours.
0:11:33 > 0:11:35And one housing association -
0:11:35 > 0:11:37Havering in East London -
0:11:37 > 0:11:38even went so far as to offer
0:11:38 > 0:11:41a £500 reward for information
0:11:41 > 0:11:43leading to a successful
0:11:43 > 0:11:44fraud investigation.
0:11:45 > 0:11:48A tip-off alerted council investigators
0:11:48 > 0:11:51that a woman in Barnet was subletting her two-bedroom flat
0:11:51 > 0:11:52to her daughter.
0:11:54 > 0:11:56She had moved to Clacton-on-Sea to run a pub
0:11:56 > 0:12:00while her daughter stayed on in her social housing flat.
0:12:01 > 0:12:03The tenant was ordered
0:12:03 > 0:12:04to return the keys
0:12:04 > 0:12:07and pay costs of over £2,000.
0:12:07 > 0:12:09The flat in Barnet was re-let
0:12:09 > 0:12:11to a family from the housing list.
0:12:16 > 0:12:18In the war against social housing cheats,
0:12:18 > 0:12:20any information helps.
0:12:20 > 0:12:22Sometimes, a tip-off from a neighbour
0:12:22 > 0:12:24or a watchful eye from a caretaker
0:12:24 > 0:12:26can be the beginning of an investigation
0:12:26 > 0:12:29which returns a home to a person in need.
0:12:31 > 0:12:34Sometimes, those tip-offs lead nowhere,
0:12:34 > 0:12:37but they all need following up, as in this next case.
0:12:39 > 0:12:41Primrose Hill - home to the stars
0:12:41 > 0:12:44and one of the most fashionable and expensive
0:12:44 > 0:12:46residential areas in London.
0:12:48 > 0:12:52But nestled in these upmarket streets and surrounding area,
0:12:52 > 0:12:56there are more than 1,000 social housing properties.
0:12:56 > 0:12:58Meet fraud investigator Sherene Horne.
0:12:58 > 0:13:02Sherene works for housing association Circle Housing
0:13:02 > 0:13:04and Primrose Hill is her patch.
0:13:04 > 0:13:08It's Sherene's job to make sure tenants aren't cheating the system
0:13:08 > 0:13:12by subletting their properties and making a mint in the process.
0:13:12 > 0:13:15Primrose Hill is a very sought-after area.
0:13:15 > 0:13:18We have quite a lot of famous people living in the area,
0:13:18 > 0:13:19some famous landmarks
0:13:19 > 0:13:23and people can make quite a lot of money from rental incomes.
0:13:23 > 0:13:25And with London property prices soaring,
0:13:25 > 0:13:28there's a huge difference between social housing rents
0:13:28 > 0:13:30and the private sector.
0:13:30 > 0:13:34On a social rent, it's roughly about £145 a week for a one-bed flat,
0:13:34 > 0:13:36but on the private market,
0:13:36 > 0:13:39it would be about £375 to £400 a week.
0:13:39 > 0:13:42Sherene has a whole network of people
0:13:42 > 0:13:45that help her keep an eye on the properties she's responsible for,
0:13:45 > 0:13:48from caretakers to other tenants.
0:13:48 > 0:13:52If they notice something's not right, they tell Sherene,
0:13:52 > 0:13:55and that's her cue to look into the tenancies.
0:13:55 > 0:13:58Tip-offs that we receive from neighbouring residents
0:13:58 > 0:14:01and the community are very important
0:14:01 > 0:14:03because without those, we don't know what's going on.
0:14:03 > 0:14:06Let's say, for example, the tip-offs that I've received today,
0:14:06 > 0:14:08I wouldn't have had a clue
0:14:08 > 0:14:10that there was possibly subletting going on at the property
0:14:10 > 0:14:14without an anonymous tip-off from...I don't know who
0:14:14 > 0:14:16cos it's anonymous.
0:14:16 > 0:14:18So, we'll do a bit of investigation there,
0:14:18 > 0:14:20do some door knocking.
0:14:20 > 0:14:23Sherene's found there's no substitute for hitting the streets,
0:14:23 > 0:14:26visiting properties and tenants unannounced.
0:14:26 > 0:14:29We don't know what we're going to find when we knock the doors.
0:14:29 > 0:14:32We could find the subtenants.
0:14:32 > 0:14:34You know, on occasion, we've found the resident being there,
0:14:34 > 0:14:37so that's always a good thing because then we're able to prove
0:14:37 > 0:14:40that, actually, the resident is residing at the property
0:14:40 > 0:14:42and we can close the case.
0:14:42 > 0:14:44Um, but quite often, we find the subtenant's there
0:14:44 > 0:14:47and unfortunately, a lot of the times,
0:14:47 > 0:14:48we don't even get an answer.
0:14:48 > 0:14:52So, hopefully, today, we'll be lucky and somebody will be there.
0:14:52 > 0:14:56Sherene relies not just on tip-offs, but on people like Karen,
0:14:56 > 0:14:59the caretaker responsible for these properties.
0:14:59 > 0:15:03Karen is Sherene's eyes and ears on the ground.
0:15:03 > 0:15:06Been a caretaker 35 years here at Primrose Hill.
0:15:06 > 0:15:08Really enjoy the job,
0:15:08 > 0:15:11but, lately, it's becoming quite tiresome
0:15:11 > 0:15:14trying to find out who's the tenant of what flat
0:15:14 > 0:15:15and who's not the tenant.
0:15:15 > 0:15:18We're finding a lot of people subletting.
0:15:18 > 0:15:21Karen's been a caretaker in this street for a very, very long time.
0:15:21 > 0:15:26She knows the majority of residents, so she knows the comings and goings.
0:15:26 > 0:15:28If there's anything strange happening,
0:15:28 > 0:15:30she will always pick that up and let me know.
0:15:30 > 0:15:32And today is one of those times.
0:15:32 > 0:15:34She's heard that, in one of the properties,
0:15:34 > 0:15:36instead of the official tenant,
0:15:36 > 0:15:38there have been several people coming and going.
0:15:38 > 0:15:43- Well, the tenant that was meant to be in- BLEEP...- Yeah.
0:15:43 > 0:15:46- ..is not the tenant that was known to the property.- Right.
0:15:46 > 0:15:49- There was a couple in there...- OK.
0:15:49 > 0:15:51..and now there's just all different people.
0:15:51 > 0:15:53- And sometimes, there's no-one there at all.- OK.
0:15:53 > 0:15:55And you've mentioned the curtains.
0:15:55 > 0:15:58- What did you notice about the curtains?- They're never open.- OK.
0:15:58 > 0:16:01Sherene and Karen are always on the lookout for clues
0:16:01 > 0:16:05which might indicate a property is being unlawfully sublet.
0:16:05 > 0:16:08Where you've got communal areas, it's always good to check
0:16:08 > 0:16:10what names are on the post to specific flats
0:16:10 > 0:16:11cos that can give you an idea
0:16:11 > 0:16:14as to whether a subtenant is in the property,
0:16:14 > 0:16:16so that can give good evidence.
0:16:16 > 0:16:20- No, there's none for- BLEEP, - so it looks like the person's...
0:16:20 > 0:16:21- Someone's in.- ..taken it up.
0:16:23 > 0:16:25Time to see if anyone's home.
0:16:25 > 0:16:27SHE KNOCKS ON DOOR
0:16:29 > 0:16:33- DOG BARKS - That's the dog upstairs.- OK.
0:16:33 > 0:16:36SHE KNOCKS ON DOOR Karen is also concerned
0:16:36 > 0:16:39contractors and decorators who need to work on the place
0:16:39 > 0:16:41haven't been able to contact the tenant either.
0:16:41 > 0:16:45They had trouble when they were doing the decorating, you know.
0:16:45 > 0:16:47- All the specs to get new windows... - Getting access.
0:16:47 > 0:16:50- Could not get access for love nor money.- OK.
0:16:50 > 0:16:52They were ringing the mobile and someone said,
0:16:52 > 0:16:54"Oh, we can't get anybody there yet."
0:16:54 > 0:16:56That's a classic case of the contractors...
0:16:56 > 0:16:58- Tenant not being there. - ..not able to get access.
0:16:58 > 0:17:00They can't do a gas check in there to do the boiler.
0:17:02 > 0:17:06Every rented property in the UK has to have a gas check every year
0:17:06 > 0:17:08carried out by a qualified engineer.
0:17:08 > 0:17:10It's a legal requirement,
0:17:10 > 0:17:14so Sherene will be able to use that visit to check inside the flat.
0:17:14 > 0:17:17So, what I'll do, then, is I will attend with the gas engineer
0:17:17 > 0:17:19when we do get the appointment
0:17:19 > 0:17:21and I'll carry out some system checks
0:17:21 > 0:17:23to see if the resident's linked to another address.
0:17:23 > 0:17:26And I'll also see who's on the electoral roll
0:17:26 > 0:17:29and who's registered to pay council tax.
0:17:30 > 0:17:32So, the door knock didn't seem to yield results.
0:17:32 > 0:17:35It could be that there's no problem in that property
0:17:35 > 0:17:37and all is well, but as Sherene was leaving,
0:17:37 > 0:17:42a neighbour told her there were definitely new people in the flat.
0:17:42 > 0:17:45There was no answer at the door to that property,
0:17:45 > 0:17:46but on our way out of the building,
0:17:46 > 0:17:49we did manage to bump into a neighbouring resident
0:17:49 > 0:17:50who did confirm that, actually,
0:17:50 > 0:17:53there's a different set of people in the property,
0:17:53 > 0:17:55so that was really useful information
0:17:55 > 0:17:59and means that I will definitely be investigating further.
0:17:59 > 0:18:02Sherene's next tip-off is from Karen herself.
0:18:02 > 0:18:04Neighbours say that they haven't seen
0:18:04 > 0:18:06the official tenant for some time
0:18:06 > 0:18:08and there appear to have been other people living there.
0:18:08 > 0:18:12- Two concerns - the tenant has not been there for years.- Right.
0:18:12 > 0:18:15- There's been numerous tenants in there.- Mm-hm.
0:18:15 > 0:18:18- I knew of two Eastern European tenants...- Mm-hm.
0:18:18 > 0:18:21- ..cos I thought he'd left and given up the flat...- Yeah.
0:18:21 > 0:18:22..and I found out he hadn't.
0:18:22 > 0:18:24And then some of the tenants in there were saying
0:18:24 > 0:18:26there was numerous other tenants.
0:18:26 > 0:18:29The man who appears to be living at the property now
0:18:29 > 0:18:33has come to Karen's attention because of a problem with his car.
0:18:33 > 0:18:34The one we've got here now,
0:18:34 > 0:18:36he's had issues with parking his car at the back,
0:18:36 > 0:18:38- which isn't our property.- OK.
0:18:38 > 0:18:40That's how it's come to light that this guy is staying there.
0:18:40 > 0:18:42Do you think we'll have any luck this morning?
0:18:42 > 0:18:45- Well, his car's there, so...- OK, well, let's go and have a look.
0:18:45 > 0:18:48He'll not open the door. He'll look through the keyhole.
0:18:48 > 0:18:51- All right.- We can only but try. - Yeah, so, let's give it a shot.
0:18:51 > 0:18:55With the suspected subtenant's car parked outside,
0:18:55 > 0:18:57it looks like someone's going to be in.
0:18:58 > 0:19:00Let's give it a knock.
0:19:06 > 0:19:09I can hear running water in there,
0:19:09 > 0:19:11so we know there's somebody in there. There's movement.
0:19:17 > 0:19:20So, somebody's just come to the peephole now.
0:19:24 > 0:19:26Erm...
0:19:27 > 0:19:31Hello? Circle 33. Would you mind opening the door?
0:19:31 > 0:19:35A female voice inside says the official tenant is not at home
0:19:35 > 0:19:38and Sherene should come back to do her tenancy audit later.
0:19:38 > 0:19:40Yeah? OK.
0:19:40 > 0:19:43They're not going to open the door or give any information,
0:19:43 > 0:19:46so we'll just have to continue with our investigation.
0:19:46 > 0:19:48So, that's another tenancy for Sherene to follow up
0:19:48 > 0:19:52back at the office, but it's worth her while pursuing every tip-off
0:19:52 > 0:19:56because there are so many people on the housing waiting list.
0:19:56 > 0:19:59Subletting is a big problem in this area,
0:19:59 > 0:20:01and in every area, really,
0:20:01 > 0:20:05and I think because we're getting such a large demand
0:20:05 > 0:20:07for social housing,
0:20:07 > 0:20:10there's people that are cheating the system, which is so frustrating.
0:20:10 > 0:20:13You know, that genuine people that have been on lists for years
0:20:13 > 0:20:16are just hitting their head against a brick wall.
0:20:16 > 0:20:18They're getting nowhere. No flats.
0:20:18 > 0:20:20You know, half of them end up in hostels
0:20:20 > 0:20:22and it's just, I think, very unfair.
0:20:22 > 0:20:26- So, I do all my checks...- Yeah. - ..check to see who's in the property
0:20:26 > 0:20:28and let you know who's supposed to be there
0:20:28 > 0:20:30- and you can keep an eye on things. - I will do.- OK.
0:20:30 > 0:20:33- I'll see you when I see you. - Yeah, take care.
0:20:33 > 0:20:34- Bye.- Bye, darling. Take care.
0:20:34 > 0:20:37Sometimes, the door knocks may not appear successful,
0:20:37 > 0:20:39but if somebody's there, even if they don't open the door,
0:20:39 > 0:20:41they know that we're onto them.
0:20:41 > 0:20:43And it's not good for our residents
0:20:43 > 0:20:45to know that properties are being used fraudulently
0:20:45 > 0:20:46and nothing's being done,
0:20:46 > 0:20:50so we have to be actively taking action
0:20:50 > 0:20:52against fraudulent tenancies.
0:20:56 > 0:20:59Two months and many hours of investigations later,
0:20:59 > 0:21:03Sherene has updates on the tip-offs she followed up in Primrose Hill.
0:21:05 > 0:21:08The first flat she visited turned out to be all above board
0:21:08 > 0:21:11and the official tenant is still living there.
0:21:12 > 0:21:14But the second property visit,
0:21:14 > 0:21:16where Sherene did get to speak to somebody inside,
0:21:16 > 0:21:18has proved fruitful.
0:21:20 > 0:21:22Following the audit that we carried out in Primrose Hill
0:21:22 > 0:21:25where a young lady actually answered the door,
0:21:25 > 0:21:28the tenant actually contacted us because he was infuriated
0:21:28 > 0:21:30that we had actually gone round to his property,
0:21:30 > 0:21:33wanted to know why we were there and all the rest of it.
0:21:33 > 0:21:36Sherene brought the official tenant into the office.
0:21:36 > 0:21:38I invited him in for an interview.
0:21:38 > 0:21:40During the interview, I said, "Can we go back to the property?"
0:21:40 > 0:21:43He agreed. He and his mother rushed off to the property.
0:21:43 > 0:21:47They got there slightly ahead of myself and my colleague.
0:21:47 > 0:21:49Sherene's investigative antennae were raised
0:21:49 > 0:21:52as she was looking around the flat.
0:21:52 > 0:21:54While my colleague was speaking with him,
0:21:54 > 0:21:56I noticed there were a lot of clothes
0:21:56 > 0:21:58neatly folded up throughout the property.
0:21:58 > 0:22:02Something inside of me just said, "Pick up a pair of those jeans."
0:22:02 > 0:22:03And when I picked up the jeans,
0:22:03 > 0:22:07they were for somebody 5'5", and he's 6'5",
0:22:07 > 0:22:09and all items of clothing in the property
0:22:09 > 0:22:13were for somebody significantly smaller than him.
0:22:13 > 0:22:16So, when I asked him, you know, "Whose clothes are these?"
0:22:16 > 0:22:17he then started to say,
0:22:17 > 0:22:20oh, his cousin stays here, his friend stays here.
0:22:20 > 0:22:23Then his mum told us that, sometimes, he stays with her,
0:22:23 > 0:22:27sometimes, he stays at his children's mother's property,
0:22:27 > 0:22:31but, in fact, he told us that he didn't have any children.
0:22:31 > 0:22:34His story did not stand up to scrutiny.
0:22:34 > 0:22:37Not only that, but the tenant was in considerable rent arrears,
0:22:37 > 0:22:40so now Sherene is seeking a possession order.
0:22:40 > 0:22:43Now we're going to take possession of the property
0:22:43 > 0:22:45because it's clear that he's not living there, basically.
0:22:45 > 0:22:46Bang to rights.
0:22:50 > 0:22:52You've been given a council house for a reason -
0:22:52 > 0:22:54because you're on benefits or can't work
0:22:54 > 0:22:56or can't support yourselves.
0:22:56 > 0:23:00I think that it's outrageous that you are making a quick buck off it.
0:23:00 > 0:23:01Something needs to be done about it.
0:23:01 > 0:23:05I mean, I wouldn't envy the person who has to do the job,
0:23:05 > 0:23:06but if there is...
0:23:07 > 0:23:11If someone is in a place where they can sublet,
0:23:11 > 0:23:12it means that they don't need the place.
0:23:14 > 0:23:17I think there should be a lot more done to crack down on it
0:23:17 > 0:23:19because there is so many people in dire need of it.
0:23:19 > 0:23:23It's not fair, you know, to be making money on the side,
0:23:23 > 0:23:24you know, if you don't need that property.
0:23:24 > 0:23:27I disagree with a tenant subletting their home
0:23:27 > 0:23:29and they've moved on to another apartment
0:23:29 > 0:23:34cos then they're putting people at a disadvantage,
0:23:34 > 0:23:38people who really need a council flat, such as my sister.
0:23:38 > 0:23:41She's been in temporary accommodation for so long,
0:23:41 > 0:23:44in one room, and she's got two little kids with her.
0:23:44 > 0:23:47And she could be benefiting from a home that,
0:23:47 > 0:23:50if it's empty and left to people who are in need of it.
0:23:51 > 0:23:53In Brighton, a man secured a council property
0:23:53 > 0:23:57after claiming to have a four-year-old son.
0:23:57 > 0:24:00A number of years later, a contractor alerted the council
0:24:00 > 0:24:04to the fact that he hadn't seen the occupant for two years,
0:24:04 > 0:24:05rather a steady stream
0:24:05 > 0:24:07of what he believed were students.
0:24:07 > 0:24:11Checks revealed that the tenant had not only been receiving payments
0:24:11 > 0:24:16into his bank account marked rent from various sources since 2012,
0:24:16 > 0:24:20but also that he didn't, in fact, have a four-year-old son.
0:24:20 > 0:24:24He had made a profit of over £3,000 through illegal subletting
0:24:24 > 0:24:28and in 2014, he was found guilty of social housing fraud
0:24:28 > 0:24:30by Brighton magistrates.
0:24:30 > 0:24:33He was ordered to pay £5,600
0:24:33 > 0:24:35in fines and costs.
0:24:38 > 0:24:41Next, investigators reclaim a property
0:24:41 > 0:24:44at the centre of an unlawful subletting operation
0:24:44 > 0:24:47being masterminded from behind bars.
0:24:48 > 0:24:51The man responsible was Michael Hollingsworth,
0:24:51 > 0:24:54a convicted criminal serving a jail sentence
0:24:54 > 0:24:56and at the same time, unlawfully subletting
0:24:56 > 0:24:59this housing association one-bedroom flat
0:24:59 > 0:25:04in East London's trendy Brick Lane for £900 a month.
0:25:04 > 0:25:08Luke joins investigators at housing association One Housing
0:25:08 > 0:25:12as they prepare to reclaim the flat, but the case isn't straightforward.
0:25:12 > 0:25:16There's an innocent subtenant now facing the loss of her home.
0:25:16 > 0:25:20Investigator Graham Littlewood is preparing for an eviction.
0:25:20 > 0:25:22What we've got this morning is an eviction
0:25:22 > 0:25:24at one of our tenant... Mr Hollingsworth's property.
0:25:24 > 0:25:26We believe he is currently subletting the property
0:25:26 > 0:25:29and that there's a subtenant still living there.
0:25:29 > 0:25:31The case originally came to Graham's attention
0:25:31 > 0:25:33when he got a phone call from another tenant
0:25:33 > 0:25:35saying they'd seen someone moving in.
0:25:35 > 0:25:37A tenant anonymously calls up
0:25:37 > 0:25:40and said that he had bumped into a couple who were moving in.
0:25:40 > 0:25:42They turned up with suitcases
0:25:42 > 0:25:44and they mentioned to him that their fob didn't work
0:25:44 > 0:25:46and they asked where they could get another fob.
0:25:46 > 0:25:48Graham found that, according to their files,
0:25:48 > 0:25:51no-one had moved into that flat recently.
0:25:51 > 0:25:53In fact, they had a long-standing tenant there.
0:25:53 > 0:25:55First, I went and looked on our system.
0:25:55 > 0:25:58I could see that we haven't let that property out recently,
0:25:58 > 0:26:01so, obviously, straightaway, there's a big, red flag there.
0:26:01 > 0:26:03So, Graham began an investigation
0:26:03 > 0:26:06to find out if anyone other than the official tenant
0:26:06 > 0:26:08was listed at the property.
0:26:08 > 0:26:11We ran some basic credit checks to see if the tenant had any credit,
0:26:11 > 0:26:13to see if we could find anyone else
0:26:13 > 0:26:15showing up with credit at the address.
0:26:15 > 0:26:18That didn't...that didn't work. We went to utility companies.
0:26:18 > 0:26:22Again, it was Mr Hollingsworth was the tenant's name
0:26:22 > 0:26:24on all the utility bills.
0:26:25 > 0:26:27The checks revealed nothing untoward.
0:26:27 > 0:26:29All the bills linked to the tenant's flat were,
0:26:29 > 0:26:32as you would expect, in the tenant's name.
0:26:33 > 0:26:35But then a letter came into Graham's possession.
0:26:35 > 0:26:38It was written to someone else in the block
0:26:38 > 0:26:40and it was from the official tenant,
0:26:40 > 0:26:43who was 160 miles away in Manchester Prison.
0:26:44 > 0:26:46Another tenant in the block,
0:26:46 > 0:26:48he'd been written to by Mr Hollingsworth from prison,
0:26:48 > 0:26:49in actual fact.
0:26:49 > 0:26:51And that's the first time that you find out
0:26:51 > 0:26:56- that your legal tenant, as it were, is in prison?- Yeah.
0:26:56 > 0:26:57This is the letter.
0:26:57 > 0:26:59What our tenant had said was that he wanted some help
0:26:59 > 0:27:01with removing his belongings
0:27:01 > 0:27:04and he asked his neighbour if he could help trace his subtenant
0:27:04 > 0:27:07because he hadn't paid him much rent for a while.
0:27:07 > 0:27:12- "Tell- BLEEP- he has to move out as soon as possible, please,
0:27:12 > 0:27:14"as he has not paid me a penny."
0:27:14 > 0:27:16So, he's blatantly admitting here
0:27:16 > 0:27:19that he's got someone living in the property that he's not
0:27:19 > 0:27:21because he's obviously in prison
0:27:21 > 0:27:23- and he's getting some kind of money from them.- Yeah.
0:27:23 > 0:27:25That's pretty clear, isn't it, that he's...?
0:27:25 > 0:27:27Yeah, yeah, as far as we're concerned,
0:27:27 > 0:27:30- it's really good evidence that the property has been sublet.- OK.
0:27:32 > 0:27:34A tenant who's in prison
0:27:34 > 0:27:37may be able to keep their social housing tenancy
0:27:37 > 0:27:39if they can pay their rent while inside.
0:27:39 > 0:27:42If the sentence is several years long,
0:27:42 > 0:27:46the council or housing association may want to reallocate the property.
0:27:47 > 0:27:49But the social housing authority
0:27:49 > 0:27:50must be notified
0:27:50 > 0:27:52of the change in circumstances.
0:27:53 > 0:27:57So, next, Graham sent a fraud investigator to visit the property.
0:27:57 > 0:28:00Our fraud investigator went round and tried to do some more visits
0:28:00 > 0:28:05- and was successful in speaking to a person living in the property.- OK.
0:28:05 > 0:28:06Obtained a statement from them
0:28:06 > 0:28:09saying that they were doing so with our tenant's consent.
0:28:09 > 0:28:11So, straightaway, that's really good evidence.
0:28:11 > 0:28:13So, the subtenant was living there
0:28:13 > 0:28:15in the full knowledge of the official tenant,
0:28:15 > 0:28:20and if that wasn't enough, the flat had been advertised online.
0:28:20 > 0:28:24This was done online for a popular online advertisement website.
0:28:24 > 0:28:26And this is that ad.
0:28:26 > 0:28:28Just to read part of the ad, it says...
0:28:36 > 0:28:38Sounds like a dream apartment, really, doesn't it,
0:28:38 > 0:28:40in that location?
0:28:40 > 0:28:41This is interesting.
0:28:41 > 0:28:45"£900 per month with bills included."
0:28:46 > 0:28:49If an official tenant is unlawfully subletting,
0:28:49 > 0:28:51one of the tactics they commonly use
0:28:51 > 0:28:55is to charge an all-in monthly rental that includes bills,
0:28:55 > 0:28:58and that means if routine checks are carried out,
0:28:58 > 0:29:01it will look as if the tenant is actually living there
0:29:01 > 0:29:03and paying the bills.
0:29:03 > 0:29:05Clever stuff, but not clever enough
0:29:05 > 0:29:09to throw determined tenancy fraud investigators off the scent.
0:29:09 > 0:29:13He's kept all the utilities in his name, so that if we run a check,
0:29:13 > 0:29:16- it looks like no-one else is living there.- Right, OK.
0:29:16 > 0:29:20And to a tenant, £900 with all the bills looks like a good deal
0:29:20 > 0:29:22cos then you've just got that one monthly payment.
0:29:22 > 0:29:24Graham had all the evidence he needed.
0:29:24 > 0:29:27The next step was to serve Michael Hollingsworth
0:29:27 > 0:29:29with a notice to quit.
0:29:29 > 0:29:31Normally, you would serve the notice at the address.
0:29:31 > 0:29:35- Because he's in prison, we served it to him in prison.- OK.
0:29:35 > 0:29:38And what we asked him to do was to give the keys back
0:29:38 > 0:29:43and to leave the property, which he agreed to do in April.
0:29:43 > 0:29:46The only problem now is the flat isn't empty.
0:29:46 > 0:29:48There's a subtenant still living there.
0:29:48 > 0:29:50She told us, you know, she had a young child
0:29:50 > 0:29:53in the property with her, unfortunately,
0:29:53 > 0:29:55and she had another child on the way.
0:29:55 > 0:29:57What we've advised her to do
0:29:57 > 0:30:00is to go and make an application to a local authority.
0:30:00 > 0:30:03She would have a priority need because she's got young children.
0:30:03 > 0:30:06- Effectively, she's a victim here, isn't she?- She is, yeah,
0:30:06 > 0:30:09and it's obviously a difficult situation for us at that point
0:30:09 > 0:30:13because we've got a young mum who's been caught up in this.
0:30:13 > 0:30:16Housing officials have been granted a possession order for their flat
0:30:16 > 0:30:18and will today carry out an eviction,
0:30:18 > 0:30:22and the unfortunate subtenant will have to leave.
0:30:22 > 0:30:26Well, the subtenant is going to have to leave the property today
0:30:26 > 0:30:27if she's there.
0:30:27 > 0:30:30She's been given notice, so she's had time enough there
0:30:30 > 0:30:33to prepare to move their belongings and to move elsewhere.
0:30:33 > 0:30:36This isn't as heartless as it sounds.
0:30:36 > 0:30:40The idea is the subtenant applies for social housing in her own name
0:30:40 > 0:30:42and uses the eviction notice as proof
0:30:42 > 0:30:44that she needs somewhere to live.
0:30:44 > 0:30:47But if she is still in the Brick Lane flat,
0:30:47 > 0:30:49she will have to leave.
0:30:49 > 0:30:52We'll be joining Luke and the eviction team later.
0:30:57 > 0:30:59Subtenants in these situations
0:30:59 > 0:31:02have no protection in the eyes of the law.
0:31:02 > 0:31:05So, how do you avoid becoming an innocent victim
0:31:05 > 0:31:09unwittingly caught up in an unlawful subletting fraud?
0:31:09 > 0:31:13Firstly, always make sure you sign a tenancy agreement.
0:31:13 > 0:31:18Secondly, be wary if your landlord asks you to pay your rent in cash.
0:31:19 > 0:31:21And thirdly, make sure your deposit
0:31:21 > 0:31:23is held in a government-authorised
0:31:23 > 0:31:25deposit protection scheme.
0:31:26 > 0:31:29The housing needs to be for the people who need it,
0:31:29 > 0:31:31so anyone who's misusing that system
0:31:31 > 0:31:32should have their housing taken away.
0:31:32 > 0:31:35Lots of people have been turning a blind eye to stuff like this
0:31:35 > 0:31:37and I think it's only where
0:31:37 > 0:31:39the situation has got to a breaking point
0:31:39 > 0:31:41where people are actually starting to crack down on stuff.
0:31:41 > 0:31:46People who sort of sublet, to be quite truthful,
0:31:46 > 0:31:48I can't really tell you on television
0:31:48 > 0:31:51what I really think of them, but it should be stopped
0:31:51 > 0:31:55and they should be penalised very, very heavily.
0:32:00 > 0:32:03Earlier, we were on the trail of Marie-Laure Badai,
0:32:03 > 0:32:04a woman who has made thousands
0:32:04 > 0:32:07from unlawfully subletting her council flat
0:32:07 > 0:32:09on the Roupell Estate in South London.
0:32:11 > 0:32:14Lambeth's housing investigator Pam Esiso
0:32:14 > 0:32:17has already discovered that the two-bedroom flat
0:32:17 > 0:32:19is being sublet to three people -
0:32:19 > 0:32:23one man and two women who are sisters.
0:32:23 > 0:32:24I requested bank statements
0:32:24 > 0:32:29and the activities on the account were such
0:32:29 > 0:32:34that I believed that she was living outside the country.
0:32:34 > 0:32:36Pam wasn't giving up.
0:32:36 > 0:32:39She decided to pay the subtenants another visit.
0:32:39 > 0:32:42Last time she went, she met a male subtenant.
0:32:42 > 0:32:45This time when she arrived, the two sisters were at home.
0:32:45 > 0:32:48They told Pam that they'd found the flat online
0:32:48 > 0:32:52and that Miss Badai had come from France to show them around.
0:32:52 > 0:32:56The subtenant said she saw the advert on Gumtree
0:32:56 > 0:32:58and phoned up the tenant.
0:32:58 > 0:33:00She actually confirmed that the tenant came from France
0:33:00 > 0:33:04to meet up with her and she was quite keen to stress
0:33:04 > 0:33:07that the tenant said, "Oh, I've only just come from France
0:33:07 > 0:33:10"to meet up with you and show you the property."
0:33:12 > 0:33:14This was the confirmation Pam needed
0:33:14 > 0:33:16the tenant was, in fact, living in France
0:33:16 > 0:33:20and enjoying a lifestyle which may have been financed, in part,
0:33:20 > 0:33:21by subletting her council flat.
0:33:23 > 0:33:26The subtenants gave Pam contact numbers for the tenant.
0:33:26 > 0:33:29Someone who identified herself as the tenant answered the phone
0:33:29 > 0:33:32and as soon as I introduced myself, oh, she just said,
0:33:32 > 0:33:34"Oh, I don't know who you're talking about"
0:33:34 > 0:33:37and the conversation ended.
0:33:37 > 0:33:40Despite the tenant's denial, Pam had all the evidence she needed
0:33:40 > 0:33:43to get the property back and end the fraud.
0:33:43 > 0:33:48She mobilised her colleague Stefan to serve the notice to quit.
0:33:48 > 0:33:53This was passed on to Stefan, who served notices on the property,
0:33:53 > 0:33:57so we're currently in the process of taking legal action.
0:33:58 > 0:34:00In January this year,
0:34:00 > 0:34:03almost 12 months after the case first came to light,
0:34:03 > 0:34:06the courts granted Lambeth Council outright possession.
0:34:06 > 0:34:11The subtenants were evicted and the flat repossessed from Miss Badai.
0:34:14 > 0:34:18Now it's been redecorated and it's ready for a new family to move in.
0:34:19 > 0:34:23We got the property back, which has been almost a year now,
0:34:23 > 0:34:26and it's been worth it because it's a nice property,
0:34:26 > 0:34:29it's done up and this one's going to be allocated
0:34:29 > 0:34:32to the people that need it or are in need of social housing.
0:34:34 > 0:34:37Five families from the housing waiting list
0:34:37 > 0:34:39are invited to view the flat.
0:34:39 > 0:34:42- Feel free to look around.- Right. - Yeah, take your time. Yeah.
0:34:45 > 0:34:49- Just ask me any questions you need, OK?- OK.- All right?
0:34:49 > 0:34:52Catherine O'Grady, who's on the top of the list, snaps it up.
0:34:52 > 0:34:55- Obviously, I'm interested. - Yeah.- Quite happy.
0:34:55 > 0:34:56OK, I'm going to give you the details.
0:34:56 > 0:35:00Catherine has been on the housing waiting list for seven years.
0:35:00 > 0:35:02The property I'm in now is private rented.
0:35:02 > 0:35:05My landlord has been very difficult from day one.
0:35:05 > 0:35:08As that cold weather we had just a little while back,
0:35:08 > 0:35:10my whole boiler popped and water was running out
0:35:10 > 0:35:12and it took them over a week -
0:35:12 > 0:35:15and I've got two very young kids, and sick kids as well -
0:35:15 > 0:35:18over a week to get my heating back and my hot water.
0:35:18 > 0:35:20So, now my two kids are going to have,
0:35:20 > 0:35:22like, a nice, happy, family home now,
0:35:22 > 0:35:25so I'm over the moon. Over the moon.
0:35:25 > 0:35:27This property was subletted.
0:35:27 > 0:35:30- You could have been in this property years ago.- That makes me angry.
0:35:30 > 0:35:33The first person that has accepted it,
0:35:33 > 0:35:37she's happy with the property, which makes me happy
0:35:37 > 0:35:39because now we can give it to somebody
0:35:39 > 0:35:40that's suitable to the property.
0:35:41 > 0:35:44This lady has now been given something
0:35:44 > 0:35:48that they should have had a long time ago.
0:35:48 > 0:35:50There's people like me with young kids
0:35:50 > 0:35:53that have been struggling from 2008, and we're now, what, 2016,
0:35:53 > 0:35:55and there's people that are renting these places,
0:35:55 > 0:35:58making their money when there's people like myself
0:35:58 > 0:36:01that could do with these places, that are in desperate need of them,
0:36:01 > 0:36:04and there's people taking them out of the system.
0:36:04 > 0:36:07I just think it's disgraceful, to be honest with you.
0:36:07 > 0:36:09So, I'm glad that they're finally cracking down
0:36:09 > 0:36:10on situations like this.
0:36:10 > 0:36:13It's great. It's a great feeling to know that, really,
0:36:13 > 0:36:14that she's got what she needs.
0:36:14 > 0:36:17- Job done. - HE CHUCKLES
0:36:20 > 0:36:23There's people desperate for housing,
0:36:23 > 0:36:28so they're just making it worse by subletting them
0:36:28 > 0:36:31and obviously making a profit out of it.
0:36:31 > 0:36:33There is a lot of people, unfortunately, misusing it.
0:36:33 > 0:36:37I hear lots of stories of subletting and things like that,
0:36:37 > 0:36:40which is quite sad because the people that are subletting
0:36:40 > 0:36:43obviously can afford to, but then, in the meantime,
0:36:43 > 0:36:45there's families going without places to live.
0:36:45 > 0:36:47There's a huge, huge, huge issue
0:36:47 > 0:36:50with homeless people in Sheffield at the minute that I've noticed
0:36:50 > 0:36:52and you think, like, if the social housing is there,
0:36:52 > 0:36:54then why are these people not being helped?
0:36:54 > 0:36:57And then you think there's people abusing and exploiting the system.
0:36:57 > 0:37:01If you've got social housing of any sort
0:37:01 > 0:37:03because you're a person that needs that,
0:37:03 > 0:37:08then you shouldn't sublet it for a big profit for yourself.
0:37:12 > 0:37:13In Ealing, West London,
0:37:13 > 0:37:16a woman was given a two-bedroom council flat
0:37:16 > 0:37:20after producing false documents and using a false ID
0:37:20 > 0:37:23to prove she'd been made homeless by her landlady.
0:37:23 > 0:37:27In reality, she owned her own home and continued to live there
0:37:27 > 0:37:29as she sublet her council property
0:37:29 > 0:37:31in a fraud that spanned 18 years
0:37:31 > 0:37:34and netted her over £90,000.
0:37:36 > 0:37:40In 2010, she was sentenced to a year in prison,
0:37:40 > 0:37:44ordered to pay over £80,000 in costs and compensation
0:37:44 > 0:37:46and handed a confiscation order
0:37:46 > 0:37:49of £290,000.
0:37:53 > 0:37:56Earlier, we uncovered the case of Michael Hollingsworth,
0:37:56 > 0:38:01who was supervising the unlawful sublet of his flat from behind bars.
0:38:03 > 0:38:04The flat is in Brick Lane -
0:38:04 > 0:38:07with its markets, galleries and restaurants,
0:38:07 > 0:38:10one of the most vibrant areas of East London and very lucrative.
0:38:10 > 0:38:15Hollingsworth had advertised the one-bedroom flat for £900 a month.
0:38:17 > 0:38:20Today, Luke joins Graham Littlewood from One Housing,
0:38:20 > 0:38:22who is due to repossess the flat.
0:38:22 > 0:38:25But there is one problem - the subtenant, a young mother,
0:38:25 > 0:38:27may still be in the flat.
0:38:27 > 0:38:32You've got an entrance here and one block that leads here and here
0:38:32 > 0:38:33and then that communal door in the corner
0:38:33 > 0:38:35has flats in that corner and that corner.
0:38:35 > 0:38:38And the flat is up here and it looks out
0:38:38 > 0:38:40onto Old Montague Street.
0:38:40 > 0:38:42The eviction team has arrived,
0:38:42 > 0:38:44including the bailiffs and a locksmith.
0:38:44 > 0:38:46After you guys.
0:38:46 > 0:38:48They wish to remain anonymous.
0:38:56 > 0:38:59So, we're just outside the property. It's ten o'clock in the morning.
0:38:59 > 0:39:02The bailiff's going to knock to see if the subtenant is in.
0:39:03 > 0:39:06Hello? County Court bailiffs!
0:39:08 > 0:39:11HE KNOCKS ON DOOR
0:39:13 > 0:39:15Mr Locksmith, do your business.
0:39:15 > 0:39:19As there's no answer, the locksmith has to drill out the locks.
0:39:23 > 0:39:26DRILL WHIRS
0:39:34 > 0:39:37Do you have any idea what kind of condition the property's in?
0:39:37 > 0:39:41I don't. I've not been into the property before.
0:39:43 > 0:39:47DRILL WHIRS
0:39:47 > 0:39:51Breaking in without damaging the door is a lengthy process.
0:39:51 > 0:39:54I'm quite surprised that, as a housing association,
0:39:54 > 0:39:57- you don't actually hold keys. - We can't hold keys.
0:39:57 > 0:39:59You have, legally, what's called
0:39:59 > 0:40:02the right to exclusive possession of your property.
0:40:02 > 0:40:04That means that, once we let it to you, legally, it's yours.
0:40:04 > 0:40:07You can keep out anyone, even your landlord.
0:40:09 > 0:40:11DRILL WHIRS
0:40:13 > 0:40:15Finally, they're in.
0:40:15 > 0:40:17- There we go.- Hello? Bailiffs!
0:40:18 > 0:40:20The bailiffs have just gone inside.
0:40:20 > 0:40:23They're just going to check that the property's safe and secure.
0:40:23 > 0:40:24There's no-one at home.
0:40:24 > 0:40:27The subtenant seems to have moved out.
0:40:27 > 0:40:29So, Graham, we now have access.
0:40:29 > 0:40:32- That took a little while to get in, didn't it?- It did, yeah.
0:40:32 > 0:40:35- So, let's go. Is this the...? - This looks like the bedroom.
0:40:35 > 0:40:37- OK.- It looks in pretty good condition.
0:40:37 > 0:40:39Obviously, there's a bit of rubbish around.
0:40:39 > 0:40:42- A few bits and pieces and kids toys.- Sure.
0:40:42 > 0:40:44But it doesn't look in bad condition, actually.
0:40:44 > 0:40:46It looks like someone's left pretty damn quick.
0:40:46 > 0:40:49Someone's left in a hurry. They've not taken everything.
0:40:49 > 0:40:52- They've left a few bits and pieces. - You're pretty sure she's left?
0:40:52 > 0:40:54I mean, just having a quick look around,
0:40:54 > 0:40:57you just get that feeling from there's not many pots and plates
0:40:57 > 0:41:00and things outside. You know, if you've got a couple of young kids,
0:41:00 > 0:41:03you'd expect just the usual, everyday items for living, you know.
0:41:03 > 0:41:04Mugs, etc.
0:41:04 > 0:41:08I've not had a look in the fridge, but there's a few bits and pieces.
0:41:08 > 0:41:11- That's pretty gross. - That's not a great smell.
0:41:11 > 0:41:13On the basis of the smell coming out of that fridge,
0:41:13 > 0:41:16I imagine she's left... You know, the power's been off.
0:41:16 > 0:41:19I imagine she's been gone for a couple of weeks,
0:41:19 > 0:41:21looking at the state of the flat.
0:41:21 > 0:41:26The tenant and subtenant now have 28 days to remove any belongings.
0:41:26 > 0:41:29Once we've cleared out the property, our voids team will come in here,
0:41:29 > 0:41:31we'll look at any works that need doing,
0:41:31 > 0:41:33any decorations that might need doing.
0:41:33 > 0:41:38It'll be cleaned and then we'll get it back out and get it let.
0:41:38 > 0:41:41The flat has now officially been repossessed
0:41:41 > 0:41:43and is signed back to One Housing.
0:41:44 > 0:41:47How long will it be before you can give this
0:41:47 > 0:41:50to someone who's in genuine need who's on the housing list?
0:41:50 > 0:41:53So, viewings, hopefully, within the next two, two and a half weeks.
0:41:53 > 0:41:55- That's really quick. - Yeah, it's really quick.
0:41:55 > 0:41:58They've got a long waiting list. They want to get people in.
0:41:58 > 0:42:02So, it's been a successful day for Graham and his team.
0:42:02 > 0:42:04So, you must be incredibly relieved to have those keys back.
0:42:04 > 0:42:09Yeah, absolutely. These are going to go to someone really deserving.
0:42:09 > 0:42:10It's been a fantastic day.
0:42:10 > 0:42:12We couldn't be happier with the result
0:42:12 > 0:42:14- and the way it's gone.- Brilliant.
0:42:15 > 0:42:17Even better news comes through -
0:42:17 > 0:42:20that the subtenant has been rehoused by a neighbouring local authority,
0:42:20 > 0:42:23and since then, someone from the housing list
0:42:23 > 0:42:26has moved into Brick Lane, so it's good news all round.
0:42:30 > 0:42:33It's not just housing investigators
0:42:33 > 0:42:36winning the war against tenancy fraud.
0:42:36 > 0:42:39There's an army of neighbours, caretakers and contractors
0:42:39 > 0:42:42helping to root out tenancy cheats
0:42:42 > 0:42:46and give social housing back to those who really need it.