Report calls for subletting to be a criminal offence
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The unlawful subletting of council homes should be made a criminal offence on a par with benefit fraud, according to a think tank.
The New Local Government Network says subletting should be upgraded from a civil to a criminal offence, allowing authorities to prosecute for fraud.
People convicted could also be ordered to pay back the value of benefits that have been fraudulently claimed under the proposals.
The suggestions are made in a report, Don’t Let On: new measures to help tackle unlawful subletting, published today.
Report author Tom Symons said: ‘The costs associated with unlawful subletting demand action that goes beyond a quick one-off crack down and instead seeks to effect legal change as well as a major shift in societal attitudes towards tenancy fraud.
‘It is imperative that central government now makes the changes that will enable local authorities to galvanise their anti-tenancy fraud efforts and minimise the high social and financial costs of unlawful subletting.’
There are thought to be around 50,000 illegally sublet council homes in the UK. A sublet property in London can earn an outlaw landlord from between £12,000 and £20,000 a year. The estimated asset value of all unlawfully sublet properties comes to £2 billion.
In November housing minister John Healey announced a campaign to tackle the problem which included a £4 million grant to help councils set up anti-fraud initiatives. A £500 reward was also made available to people providing information leading to the recovery of a sub-let home.
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Readers' comments (27)
stephen west | 09/03/2010 10:36 am
Not before time as this deprives those in genuine need on Council waiting lists of a home as it is quite wide spread especially on sink estates. I know of one such block of over 80 flats in South London where a landlord representative has admitted to me that they believe nearly all in the block are sublet out.
Stephen West
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kjetilniki | 09/03/2010 11:40 am
everybody's answer to aproblem is to criminalise. this must stop. There is enough knee jerk criminalisation of activity as it is.
It is not necessarily depriving thosein genuine need. Subletting even of whole may well be temporary to cover rent during temporary absence.
In some cases an offence will be committed at letting by what is said to the subtenant.
Block of 80 flats nearly all sublet. the landlord should be taking the appropriate action inspecting and where appropriate recovering possession.
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Peter | 09/03/2010 12:05 pm
All the proceeds from the sublet should also go back to the Landlord.
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john harrington | 09/03/2010 12:06 pm
Its far worse than that, i have been told that once somebody gets a social housing house by 'borrowing' a number of children. the children are returned and then the 3 or 4 bedroom house is then sublet to a number of families.
a large victorian terraced house in London was sub let to a huge number of people, while the original renters and their 'chldren' had moved on to another HA.
Provided the rent is paid, if it has to be, many HA seem to busy to bother.
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john bull | 09/03/2010 1:08 pm
it should be breach of contract, and the contract should be enforced.
If its social housing its a privilege not a right, its intended to help those in dire need.
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stephen west | 10/03/2010 10:39 am
Well kjetilniki its not quite that simple to achieve, as in most cases of subletting the registered tenant is in receipt of housing benefit and goes to live elsewhere with friends and family and sublets their flat or house out to another friend or relative who cant get rehoused for several reasons and are happy to pay the registered tenant and keep quiet about it. What checks can a landlord possibly undertake if the resident, does not answer the door or replies to any correspondence and the benefit agency will only pay housing benefit to the tenant with a valid tenancy agreement not the person who it is sublet to.
Stephen West
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kjetilniki | 10/03/2010 11:45 am
in john harrington's example the tenant commits an offence under the theft act as does the tenant in stephen west's example assuming t tenant continues with the HB after subletting.
in answer to Stephen an appropriate time for checking would be with t annual gas works as access has to be obtained by injunction if necessary.
as far as HB is concerned in the case of an RSL if the tenant ceases their claim and the subtenant claims HB the tenant agmt between the tenant and subtenant will be avalid tenancy agreemant and HB properly payable to the subtenant and not disclosable.
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stephen west | 11/03/2010 7:54 am
Im sorry kjetilniki but I dont accept that that Housing Benefit would be paid to a sub tenant in receipt of a tenancy agreement provided by the registered tenant who has relinquished his HB claim especially where the authorities know the property concerned to be owned by either a Local Authority or RSL/ Housing Association. I would like to know where he he or she has gotten this information from. My understanding of it is that only the landlord has a legal right to house a tenant and to issue a tenancy agreement and not a second or third party.
Stephen West
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john harrington | 11/03/2010 2:13 pm
Hi stephen
I certainly think your right. I spent many years as a dirctor of a HA and I would have been hoping mad if anyone had sub let our properties. It is for the HA or other landlord (the owners) to decide, you can not pass on or sell what is not yours. it is a civil offence of breach of contract, and I suspect a criminal offence 'gaining pecunary advantage by deception'.
Social housing is in very limited supply and should be allocated based on need,
some couples with children have been waiting many years.
we had 200 vacancies a year and a waiting list of 4000, common in this area. so twenty year wait ?
Tenants who know or suspect sub letting long or short time, is happening should contact their HA or Landlord immediately.
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Harry Lime | 11/03/2010 2:50 pm
As I've made the point elsewhere, and worryingly a point that ILAG and I agree on, is that people rarely report subletting unless those who are subletting cause problems for them, there's no sense of moral or public duty, the main reason being you could get them evicted and you simply don't know who will follow them.
Being selfish if I had a couple subletting a flat above me and they made no noise etc would I risk "shopping" them and have a family with a five year old jumping up and down on the floor, or a "family from hell" having parties every weekend?
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