About tenancy fraud

Tackling tenancy fraud

What is tenancy fraud?

Tenancy fraud occurs when someone who has a housing association or council tenancy unlawfully sublets the whole of their home to someone else without the permission of their landlord. They often continue to pay the rent for the property directly to their landlord but charge the person they are subletting a much higher rent.

How widespread is tenancy fraud?

It is estimated that 1 in every 100 housing association and council properties in the UK is illegally sublet.

Why tenancy fraud is a problem

Tenancy fraud affects everyone. When someone sublets the whole of their home, they are depriving someone in need of housing of the opportunity to live in that property. Housing in London is in short supply, and local authorities have long lists of applicants who are waiting for new affordable homes.

Applicants often live in short-term private rented accommodation, which is often very expensive for the local authority and inappropriate for their needs.

How we tackle tenancy fraud

When we identify people who have sublet their homes, we will take action in the county courts to repossess the property. We will also refer the matter to the local authority, who may prosecute the fraudster under the Prevention of Social Housing Fraud Act 2013 , which carries a sentence of up to two years in prison and a fine of up to £5,000.

For more serious cases, the local authority may prosecute someone under the Fraud Act 2006 , which carries a prison sentence of up to 10 years and/or an unlimited fine.