Shapps backs Bill to criminalise subletting and reimburse social landlords

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

The Government has put its weight behind a new Bill - introduced in Parliament today by Conservative MP for Watford Richard Harrington - which would make the subletting of social homes a criminal offence.

Estimates suggest that between 50,000 and 160,000 social homes are unlawfully occupied across the country.

The housing minister Grant Shapps launched a consultation on plans to criminalise tenancy fraud earlier this year. Under the proposals, tenants could face up to two years in prison and a £50,000 fine if the case goes to the Crown court.

Currently those found guilty, says Shapps, face no greater penalty than losing their tenancy.

However, the consultation - which ended in April 2012 - proposed that the new prosecution powers would only be for councils and wouldn't be extended to housing associations. Giving housing associations the new powers, the Government said, would raise questions around their possible reclassifcation from private sector to public sector bodies.

The same reason was cited for blocking housing associations using new proposed powers to access data about tenants.

Mr Harrington's Bill would create a new criminal offence of subletting; and allow for proceeds of subletting to be reimbursed to the social landlord in whose stock the fraud was committed.

Housing Minister Grant Shapps said: "Tenancy cheats profit from renting out homes that were built to help those in greatest need. Due to their actions, thousands of families who could benefit from this vital support system are instead languishing on housing waiting lists.

"I am delighted that Richard Harrington's Bill will make this fraud a criminal offence so that the perpetrators don't just lose their tenancy but feel the full force of the law. And by introducing this effective deterrent against subletting, we can free up thousands of homes for those who genuinely need them.

"I look forward to working with Mr Harrington to give this Bill the best possible chance of being passed into law."

Conservative MP for Watford Richard Harrington said: "It has been a concern of mine for some time that whilst hundreds of people in my constituency are unable to access social housing and may sit on the waiting list for many years, a large number of properties are being sublet improperly - allowing those individuals who do so to profit at the expense of local authorities and preventing hardworking and the most vulnerable individuals and families from accessing homes.

"I welcome that this and previous Governments have introduced measures to try and tackle this problem. I think it is right that once and for all this offence is criminalised, giving local authorities greater powers to prevent and prosecute.

"I am pleased that this Bill has attracted support from MPs of all parties and that the Government are also lending their support to making this Bill law."