York becomes latest council to use Fraud Act for subletting prosecution

City of York Council has become the latest local authority – after Camden and Westminster – to use the Fraud Act successfully to bring a prosecution for unlawful subletting.

News of the prosecution came as the Department for Communities and Local Government confirmed that it would narrow the scope of the proposed new criminal offence of unlawful subletting.

The DCLG said this was in recognition of the need to avoid creating new criminal offences when existing criminal sanctions might already be available.

City of York prosecuted Beatrice Stanford, 43 of Bielby and a council tenant at a property in Fenwick Street since 2006.

The council and Veritau, a shared services company it runs with North Yorkshire County Council, received information in January this year, suggesting that unlawful subletting was taking place.

A subsequent investigation found that the defendant had been subletting the property to a third party since November 2009 when she went to live in Bielby.

Stanford charged the tenant £450 per calendar month in rent, but this later rose to £520 per month to include utility bills. City of York Council charged her £350 per month. 

A notice to quit was served on Stanford in January 2012. The council has now re-let the property to new tenants.

The defendant pleaded guilty to the offence and was sentenced to 12 months conditional discharge and costs of £425.

Cllr Tracey Simpson-Laing, cabinet member for Health, Housing and Adult Social Services for City of York Council, said: “This case sends a clear message to the people of York that the council will take a zero tolerance approach to the illegal subletting of council properties. We currently have over 4,000 people on a waiting list for housing and we need to maximise the social housing available to us.”

Max Thomas, head of Internal Audit for Veritau, said: “This is the first prosecution of its kind in North Yorkshire and one of only a handful across the country. Subletting council properties is a criminal offence and those that choose to do it can face prosecution.”