Social housing fraud cost public purse £8m in 2024/25, report warns

Social housing fraud cost the public purse in Northern Ireland around £8 million in 2024/25, a report from the region’s fiscal watchdog has said.

The Northern Ireland Audit Office (NIAO) has said each case of social housing fraud costs more than £28,000 in a report warning that the full extent of the issue is still unknown.

The report by Comptroller and Auditor General Dorinnia Carville notes that demand for social housing has reached unprecedented levels and Northern Ireland still lacks an evidence-based estimate of the scale of tenancy fraud, despite this being recommended more than a decade ago.

There are approximately 134,000 social homes in the region, most of which are managed by the Northern Ireland Housing Executive (NIHE), with the remainder managed by registered housing associations (RHAs).

Estimates in England suggest that up to one in 30 social homes may be affected and were this rate to be applied locally, it would mean as many as 4,000 properties in Northern Ireland could be subject to some form of tenancy fraud or misuse.

By comparison, in 2024-25, a total of 284 social houses were recovered in Northern Ireland as a result of tenancy fraud and misuse.

The NIAO says these cases incur a financial cost to the local economy (for example, investigation costs, legal costs and temporary accommodation costs), with latest estimates putting the cost of each case at £28,450.

For the 284 houses identified, this equates to a total cost to the public purse of approximately £8 million in 2024-25.

The report does acknowledge progress made by the Department for Communities and NIHE to develop measures for tackling tenancy fraud and misuse.

Ms Carville said every “case of tenancy fraud and misuse denies a social home to someone in need at a time when housing waiting lists are at record highs.

“There is also a significant financial cost, with a direct cost of £8 million in 24-25.

“In addition, my report last year on homelessness in Northern Ireland highlighted that a lack of social housing is resulting in an increasing and costly reliance on temporary accommodation, with expenditure continuing to rise to over £40 million in 2025.

“Tackling this issue effectively starts with understanding the scale of the problem, which has been inhibited by an unco-ordinated and inconsistent approach to recording and reporting data.

“I have therefore recommended that the department establish an evidence-based baseline estimate within the next six months.

“My report also recommends that the department makes it a requirement of both the NI Housing Executive and the registered housing associations to implement an annual co-ordinated programme of tenancy fraud and misuse audits, to help ensure a more strategic and joined-up approach across the social housing sector.”