Social housing sub-letting to be criminalised

Permalink: Social housing sub-letting to be criminalised
by Gill Montia

Housing Minister, Grant Shapps, has set out proposals to make unlawful sub-letting and “key-selling” in the social housing sector criminal offences.

According to Mr Shapps, thousands of homes could be freed up for those on social housing waiting lists if the practices were stamped out.

Currently, tenancy cheats can earn thousands of pounds a year renting their social homes out to private tenants while facing no greater penalty than losing their tenancy.

The minister wants to see much greater legal consequences for tenancy cheats and intends introducing specific criminal offences for tenancy fraud, in line with those for social security fraud.

Estimates suggest that between 50,000 and 160,000 social homes are currently unlawfully occupied and the proposals would also strengthen councils’ legal rights in detecting and prosecuting tenancy fraud.

Proposals include:

1. A new criminal offence with a maximum sentence of two years’ imprisonment and a fine of up to £50,000 if the case goes to the Crown court.

2. Proceeds of tenancy fraud to be reimbursed to the social landlord in whose stock the fraud was committed, rather than being confiscated by the State.

3. More powers for local authorities to investigate social tenancy fraud through better access to data from banks and utility companies.

While councils can currently request data, organisations can refuse to provide it and the proposed changes would oblige them to comply.

Mr Shapps sums up: “Tenancy cheats are taking advantage of a vital support system for some of the most vulnerable people in our society and getting away with a slap on the wrist while our waiting lists continue to grow.”

He adds: “It’s time for these swindlers to pay the price.”