Social housing tenants who sublet their properties are being warned they could face fines of up to £50,000 and a prison sentence thanks to a new law.
The Prevention of Social Housing Fraud came into force on October 15th and gives local councils far reaching powers to prosecute tenancy fraudsters. Landlords will be able to recover the profits of illegal subletting and tenant caught breaking the law will lose their security of tenure permanently.
The new law’s been welcomed by local authorities and it’s anticipated that the government will introduce new powers for tenancy investigators, similar to those of benefit investigators.
Lambeth’s Cllr Paul McGlone, cabinet member for Finance said: “This is a powerful piece of legislation that gives us real power and sends out a message to those either committing, or considering committing tenancy fraud. It is good news for the residents of Lambeth as when fraudsters are identified, we can act more swiftly which will mean more properties being made available to families in need of decent affordable housing.”