Thursday, 09 February 2012

Subletting to become a criminal offence

Unlawfully subletting a council home will become a criminal offence under government plans.

Housing minister John Healey said he wanted ‘to deter those who are thinking of making a fast buck from council housing’ by allowing councils to chase tenants subletting fraudulently through the criminal as well as the civil courts.

Breaking a tenancy agreement by subletting a social property is currently a civil offence, meaning offenders can lose their tenancy. Making it a criminal offence would allow social landlords to pursue offenders through the criminal courts, meaning they could be fined and ordered to repay any profits.

‘Tenancy cheats cannot be allowed to hang onto the council houses they don’t need,’ said Mr Healey. ‘By unlawfully subletting these properties for a profit they deprive families of the homes they need.’

Mr Healey announced a crack down on subletting in November, including a £4 million grant to help councils set up anti-fraud initiatives and a £500 reward for people providing information leading to the recovery of a sub-let home.

The government has given councils and housing associations 27,000 leads to potential tenancy cheats, uncovered through data sweeps by the Audit Commission where tenancy records are cross-referenced with housing benefit and electoral records.

Readers' comments (11)

  • I would go further and suggest that all those caught subletting homes while collecting housing benefit for these properties should be prosecuted further and more effectively. This would automatically include private properties and housing association propeties. Let the legislation not distinguish between council or otherwise

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  • Why is it that when offered the opportunity to add yet another law and another layer of bureaucracy the Labour Party never fails? Let us criminalize yet another person and ensure that afterwards they are even more wedded to the state for benefits handouts because they can't get a job. No wonder there have been thousands of new laws over the past 13 years and yet little improvement in the social fabric of the country. Does Healey really understand the problem or is he pandering to public commentary? I'll plump for the latter.

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  • Hmmmm aburke I can sort of understand what you're saying about not wishing to criminalise, and a fraud/theft type conviction would severely limit job opportunities, to put it mildly. However, whilst not knowing the full spectrum of sublets that occur, as many figures are guesstimates at best, I've yet to hear of many cases where peole have sublet for exactly the same amount it may cost them to live elsewhere but rent privately, if that could be proven then perhaps SOME leniency could be offered. Personally I'm all in favour of the criminalising of it - it is theft from the state and hopefully the fear of getting caught could bring some sublets to an end or at least put others off the idea in the first place.

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  • aburke - you are well named.

    people who are ripping off the tax payer should be heavily punished. I just fear that there will be so many hoops to jump through that very few transgressors will actually be proscecuted. It seems that cheating benefits, tax or generally ripping off the state is seen by some to be an acceptable thing - sort of Robin Hood effect - but what this is in reality is a few profiteering whilst the rest of us pay. Its not right and must be clamped down on - hard.

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  • We've received one of these lists of "leads to potential tenancy cheats" where I work. EVERY SINGLE PERSON on it is a former tenant who has either died or moved to another address. My conclusion is that the Audit Commission, or at least that part of it doing the data sweep, is completely incomptent. Furthermore if this is how they have arrived at their estimate of the amount of subletting going on, the numbers are wildly inflated. The problem with social housing is lack of supply, not what is happening with the existing supply.

    This looks like another pathetic attempt to distract people from New Labour's failure to enable local authorities (or even RSLs) to build enough decent homes. Scapegoats are always useful...

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  • This is a good idea in principle, but it should be made clear in the article whether this is English only legislation. Housing matters are generally devolved issues elswewhere outwith England, and references to "government" should be carefully chosen - there is a UK wide government, and a separate Scottish government" - so "government" should not be automatically taken to mean "UK."

    As a general point articles should be clear, when talking about law, whether they mean it applies "England only" or "UK wide" or "Scotland only" "Wales only," etc and so on. Not every reader/CIH member lives in England, and whilst we are all interested in developments outwith our own countries, there is a danger of readers taking certain things to be applying in their particular country when in fact they don't.

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  • Is this criminalizations for all and any illegal subletting (i.e. both in the private and social sector)?...

    If this is aimed only a social tenants then it is discrimination and yet another way of treating social tenants as second class citizens.

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  • Here we go again, let’s criminalise those on the margins of society. Why not go after the real criminals, Mr. Healey knows who they are, three of them from his own party are currently awaiting trial for raiding the public purse, of course he took £162,499 out himself so he may not want to comment. What ever happened to the Labour party the defenders of the poor and dispossessed. Oh I remember, they got into bed with the bankers and decided to bankrupt the nation on the alter of home ownership.

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  • Quite right. I hope the wording of the legislation is equally clear.

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  • I seem to recall that it was the Tory party who brought in the Right to Buy, not Labour.

    People who are subletting are rarely the poor and dispossessed; very often they are vastly overcharging the people they sublet to and use threatening behaviour towards their 'tenants'. It's not at all unusual for them to also be claiming HB for the property they're subletting but still charging their unfortunate tenants a figure higher than the gross rent. Why on earth would anyone who cares about social housing andprotecting the vulnerable be leaping to these people's defence?

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    20/01/2012

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    The government is proposing to create a new criminal offence of tenancy fraud to crack down on the subletting of social housing.

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  • The great divide

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  • Public body fears hold back subletting plans

    12 January 2012

    The government is holding back from giving housing associations the same powers to tackle subletting as local authorities due to fears over their status.

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    New proposals to tackle sub-letting should include grounds for possession to bring stock back into use, says Colin Hammond, head of housing litigation at Penningtons Solicitors

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