Red flags flying over Right to Buy

How can people who can’t afford the rent suddenly afford to buy?

To recap in case you missed it, a joint investigation by Inside Housing and BBC Radio 4’s File on 4 found that 16% of Right to Buy sales by 10 councils were to tenants on housing benefit.

This is not in itself evidence of fraud: the 721 tenants concerned could have got money from their family or from a third party. But it is seen as a ‘red flag’ of potential fraudulent activity and a particular cause for concern in the councils with the highest levels of sales to tenants on benefit:  Dudley (37%) and Westminster (29%) and Croydon and Birmingham (who each estimate around half).

And it’s one aspect of a fraud problem that should also set the alarm bells ringing about the 1.2m tenants who are about to get a form of Right to Buy from housing associations that will not have the same expertise as local authorities in detecting fraud and money laundering.

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