COUNTER-FRUAD investigators in Sandwell have saved millions of pounds by stopping 428 right-to-buy housing applications.

Sandwell Council clamped down on tenancy and right-to-buy fraud and its annual counter fraud report for 2015/16 estimated over £38.4 million had been saved.

The biggest saving came from the team’s work which led to the withdrawal of nearly two-thirds of the 693 right-to-buy applications in 2015/16.

This follows the introduction of anti-money laundering forms being issued to all right-to-buy applicants, which puts the onus on buyers having to prove where the funds to buy the property are coming from.

The Government's Cabinet Office estimated £65,000 is saved with each prevention of sale due to the loss of property from the council’s housing stock, the discount allowed to the buyer and the loss of rental income, in total £27,820,000 was saved.

A further three right-to-buy applications which appeared fraudulent were refused saving the council another £195,000.

Further investigations also uncovered 109 instances of council tenancy fraud, where properties had been abandoned, sub-let or misused in other ways saving the council a further £10,137,000.

Other council housing-related investigations comparing tenancy records with other Midland councils and housing associations prevented seven false applications to join the council’s housing register, the cost to the council is estimated at £36,000 per property, saving a further £252,000.

Sandwell Council leader, Councillor Steve Eling, said: “Tenancy fraud and right to buy fraud is extremely lucrative because of the value of properties in today’s market and the two are very often linked – a tenancy fraud becomes a right-to-buy-fraud.

“We are now far more robust with our right-to-buy processes. During the year 2015/16 we received just under 700 right-to-buy applications. After anti-money laundering forms were sent to applicants nearly two-thirds of those applications were not pursued any further.

He added: "It’s also important to remember that every tenancy and right to buy fraud removes a property from the council’s housing stock and deprives a genuine tenant of a home.”

Another success for the team included identifying 833 cases where the Council Tax Single Person Discount was no longer payable, increasing council tax revenue by £201,000.

The counter-fraud team also investigated various cases of fraud in the other areas such as claims for benefits, council tax, supported accommodation, personal budgets/direct payments, blue badges and insurance.