Crackdown on illegal subletting
Home alone?
Landlords cannot detect illegal subletting using housing benefit and tenancy records alone, says Ewan Wallace
The government has announced that its autumn crackdown on unlawful subletting will operate within the remit of the Audit Commission’s fraud initiative. At its centre is the concept of information sharing between different organisations. The ambitious target is to reclaim 10,000 properties by the end of 2010.
Undoubtedly, analysis of housing benefit and tenancy records will identify some unlawful sublets, but not all discrepancies will be unlawful as, for example, lodgers may claim housing benefit. It is unlikely that subletting tenants will simply surrender their tenancy on being challenged, so there will be an increase in court cases.
The gathering and presentation of evidence will be key. Information-sharing between local authorities and social landlords will be very important, but there is no substitute for local housing officer knowledge as the best way to establish who lives at a property. A sympathetic approach to the sub-tenants may lead to their assistance with proceedings.
The resources devoted by landlords will always vary depending on their own assessment of the problem. However, this initiative encourages the establishment of specific teams rather than the existing generic approach, which will likely assist with evidence gathering.
Where legal proceedings are issued, as well as pursuing a possession order the landlord should also seek a money judgement for the difference between the rent it charged the tenant and the amount that was charged to the sub-tenants. This would not only send a clear message but would go some way to meeting costs incurred.
Ewan Wallace is a solicitor at Trowers & Hamlins
ewallace@trowers.com



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