Ministers to consult on making unlawful subletting a criminal offence

Ministers are to consult on making it a criminal offence for council tenants to sub-let their homes, the BBC has reported.

The consultation will also set out proposals to force those tenants earning £100,000 or more to pay market rates.

Housing Minister Grant Shapps told the BBC: "For too long this country has turned a blind eye on the multi-billion pound problem of housing tenancy fraud and abuse.

"This year the coalition is determined to end that scandal. Why should someone on a six-figure income enjoy a fantastically subsidised council rent, whilst those in real need languish on the waiting list?

"And why is it so easy to get away with sub-letting your council house at market rent and simply pocketing up to £1,000 a week at taxpayers' expense?"

On the need for a new criminal offence, the minister argued that the current sanctions were so weak that the worst that could happen was the council home being taken away.

However, it is not yet clear how the proposals will change the current legal framework, which has already led to prosecutions.

In November 2011, Local Government Lawyer reported on how Camden Council had become one of the first local authorities to prosecute successfully a council tenant for housing fraud under the Fraud Act, after he unlawfully sublet his council property.

Oladapo Talabi had been granted a secure tenancy in January 2008 because of overcrowding at the family home.

However, from September last year he rented out the property for approximately six months for the sum of £780 per calendar month. Talabi received a lump sum of £4,000 from the estate agent who handled the letting on his behalf.

After an investigation by Camden’s housing investigation team, Talabi was prosecuted under sections 1 and 3 of the Fraud Act for failing to disclose information to make a gain and exposing the council to loss.

On 1 September 2011 he pleaded guilty at Highbury Magistrates Court to two counts of fraud. He was given a community order of 12 months comprising 100 hours unpaid work and ordered to pay the council £750 in costs.

Possession proceedings were listed for last month to be heard at Central London County Court.

Labour’s Maria Eagle, a member of the Shadow Cabinet, acknowledged the need to crack down on abuse, but told the BBC that what was really required was the building of more social housing.

Philip Hoult