Shapps to launch crackdown on sublet social housing

Published by Julien Tremblin for 24dash.com in Housing and also in Central Government, Local Government

Council tenants who sublet their homes could face prosecution and potential prison sentences as part of a new year crackdown on abuse of social housing.

Housing Minister Grant Shapps told the Daily Telegraph the current system was a "scandal", that the coalition aims to end. Mr Shapps is to launch a consultation process ahead of possible legislation.

Up to 160,000 council tenants are estimated to illegally sublet their homes, making thousands of pounds a year in the process. Subletting is currently not a criminal offence. The worst tenants currently face is eviction.

A small number of tenants who earn more than £100,000 a year - estimated to be around 6,000 by Government - will also be asked to pay higher rent or face eviction.

Grant Shapps told the Telegraph such social housing abuse was costing between £5 and £10 billion a year. He said the money saved as part of the new measures would go towards new social housing.

An Audit Commission report from November showed that social housing fraud, including subletting, is costing councils in excess of £900 million a year.

More than 1.8 million families are currently on council waiting lists.

Shapps told the Sunday Telegraph: "For too long this country has turned a blind eye on the multibillion-pound problem of housing tenancy fraud and abuse."

"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 subletting your council house at market rent and simply pocketing up to a thousand pounds a week at taxpayers’ expense? 2012 will be the year that we act."

Grant Shapps had already promised in August to clamp down on housing fraud, saying subletting tenants could face jail.