Ministers to back Bill making unlawful subletting a criminal offence

Ministers are to back a Private Members Bill making the unlawful subletting of social homes a criminal offence and requiring the reimbursement of the proceeds to the social landlord of the property affected.

The Local Government Association welcomed the move but said local authorities needed greater support in identifying tenancy fraud, particularly through enhanced data sharing.

The Bill is being introduced by Conservative MP Richard Harrington.

Announcing that ministers would support the Bill, the Department for Communities and Local Government cited estimates which suggested that between 50,000 and 160,000 social homes were unlawfully occupied.

It claimed that those caught unlawfully subletting currently “face little more than losing their tenancy”.

However, Camden and Westminster Councils have recently started prosecuting tenants under the Fraud Act. 

Richard Harrington said: "It has been a concern of mine for some time that whilst hundreds of people in my constituency are unable to access social housing and may sit on the waiting list for many years, a large number of properties are being sublet improperly - allowing those individuals who do so to profit at the expense of local authorities and preventing hardworking and the most vulnerable individuals and families from accessing homes.

"I welcome that this and previous Governments have introduced measures to try and tackle this problem. I think it is right that once and for all this offence is criminalised, giving local authorities greater powers to prevent and prosecute.”

The MP said he was pleased that the Bill had attracted support from MPs of all parties and that the Government was also lending its support to making it law.

Housing Minister Grant Shapps said: "I am delighted that Richard Harrington's Bill will make this fraud a criminal offence so that the perpetrators don't just lose their tenancy but feel the full force of the law. And by introducing this effective deterrent against subletting, we can free up thousands of homes for those who genuinely need them.”

Responding to the announcement, Cllr Clyde Loakes, Vice Chairman of the Local Government Association’s Environment and Housing Board, said: “Making tenancy fraud a criminal offence will mean offenders will be subject to an appropriate punishment, something councils have previously called for.

“However, the most crucial thing government can do to tackle this problem is to equip local authorities with adequate powers to identify tenancy fraud.”

Cllr Loakes said obliging TV licensing, utility companies and others to share name and address data would mean councils could investigate much more quickly and build up the necessary evidence to take offenders to court.