Second homes and council tax scams among fraud reports to north Wales council

Dale Spridgeon – Local democracy reporter

Undeclared second homes, council tax evasion and failure to disclose information on social housing applications are among the frauds reported a north Wales council.

Sixty-one allegations were made to to the Isle of Anglesey Council during twelve months of 2025-26.

The previous year had seen 19 – although they only represented the five month period following the launch of the  council’s fraud reporting tool,  launched in November, 2024

Details of frauds on the island have been documented in an annual counter fraud, bribery and corruption report. It was reviewed by Anglesey County Council’s Governance and Audit committee on Thursday (July 16).

Written by the head of Audit & Risk Marion Pryor, she stated that revenue-related allegations accounted for the majority of cases, with 44 allegations representing around 72% of all referrals.

Five cases resulted in fraud or error being identified to date, with a further 13 reviewed.

Social housing tenancy fraud was the second highest reported category, with nine allegations.

One resulted in fraud or error being identified with an estimated value of £42,000 –  three cases remain under review.

The “estimated value demonstrates the potential financial and social impact of tenancy fraud, including the loss of scarce housing resources for those in genuine need,” Ms Pryor’s report said.

Across all categories, 25 allegations were closed as “unfounded” and 10 were closed due to “insufficient evidence.”

At year end, 20 allegations remained under review. This included 13 revenue cases, three social housing tenancy cases and individual cases relating to benefits, blue badges, public protection/trading standards and other matters.

One case study involved a social housing application. An anonymous allegation reported that a potential tenant had not disclosed key information.

A joint investigation by the Counter Fraud Officer and Community Housing Service resulted in a fraudulent application being prevented.

The applicant had “misrepresented their situation and failed to disclose key household information,” the report said.

Another, described an allegation concerning a potential undeclared second home/holiday let.

It also provided information about two possible undeclared new developments  – the conversion of two outbuildings into dwelling and ancillary accommodation.

Ms Pryor said: “Following review, the developments were identified and are now being reviewed by the Revenues Enquiries Officer.

“Subject to the Valuation Officer Agency, they will be banded and enter the council tax list, resulting in increased council tax revenues.  The Revenues Team is also in the process of determining whether the property should be subject to second home premium.”

A similar allegation that a property was no longer someone’s sole or main
residence and that it was a holiday let was also received: “The owner explained that there had been a recent change in circumstances.

“Consequently, a second home premium has been applied, resulting in additional council tax of just under £3,000 for 2026-27,” the report noted.

Two separate allegations relating to unidentified dwellings were received. In the first, a previously unidentified residential dwelling was reported to the VOA to be banded for council tax purposes.

“Excluding any discount/ means tested reduction entitlements, this will result in present year and future years of additional council tax revenue,” the report said.

Another report was  received regarding a separate property, with an allegation of council tax evasion and a planning breach.

Following a review by the Counter Fraud Officer and referral to the Revenues and Planning teams, the previously unidentified dwelling was reported for council tax banding.

Banded by the VOA, the property has since entered the council tax list as it was  an unoccupied annex that could not be legally let separately from the main property due to planning or legal restrictions. It is now in receipt of council tax exemption.

Another case saw allegations of undeclared change in circumstances impacting the owners’ council tax liability and means tested Council Tax Relief Scheme (CTRS) entitlement was received.

Following investigation by the Counter Fraud Officer and referral to Revenues the undeclared council tax dwelling has been banded and backdated to the date of occupation, resulting in a charge of nearly £9k plus current and future years

The means tested council tax reduction entitlement of the owners at their main residence was reviewed and subsequently cancelled, resulting in over£3k being payable for the period in question and future years.

Two allegations of potential fraud against the council are in the process of being investigated.

However, it was noted  “following preliminary investigations, it is likely, due to insufficient evidence, that no further action will be taken with regards both cases.”

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