Shapps warns landlords to guard against Olympic sub-letting scammers

Published by Max Salsbury for 24dash.com in Housing and also in Legal

The Housing Minister Grant Shapps has warned social landlords to be extra vigilant of tenants who may sub-let their homes during the Olympics.

The MP has demanded that tough action should be taken against scammers who try to make a fast-buck during the Games.

His call came ahead of the Second Reading of a Government-backed Private Members Bill - introduced by Richard Harrington MP – aimed at tackling the multi-billion pound tenancy fraud scam.

Measures include making the sub-letting of social homes a criminal offence for the first time, and forcing profits made from unlawful sub-letting to be paid back to the landlord.

Shapps said: “Sub-letting a much needed social home is not a clever piece of private enterprise in action. Instead it’s a multi-billion pound scam that denies families in need a decent home. That’s why I’m giving my full backing to this Bill.

“Anyone in London hoping to profiteer by sub-letting their council house in the coming weeks needs to know that they could lose their tenancies by unlawfully renting out their home.

“And if these fraudsters think this wheeze is a gateway to earning thousands in the future, then they also need to know that it may soon become a criminal offence.
 
“The Olympics are a great opportunity for London to welcome the world. They are not an excuse for wide boys to rip off the taxpayer. We won’t allow cheating outside the Olympic Park anymore than it will be allowed within it.”

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

Even at the lowest estimate to replace the social homes that are being unlawfully occupied – to house those who have effectively been displaced by tenancy fraudsters – would cost several billion pounds.

Shapps said social housing landlords and councils could learn from others taking on tenancy cheats including:

Hounslow - used Government funding to enable Homes for Hounslow to hire a tenancy fraud officer and as a result recovered 41 properties between July 2010 and June 2011.  Properties recovered included: Clayponds Garden, Ealing - sublet for more than 20 years; and Snowy Fielder Way - the tenant had relocated to USA and the property had been sublet for more than 10 years.

Wolverhampton Homes - used Government funding to employ a dedicated fraud officer, produce publicity material to raise awareness and recruit two tenancy officers to work on high rise blocks conducting tenancy audits and assisting with fraud reports. One recent case involved a tenant who the council believed had not lived at the property for over 20 years, only returning once a week for about 40 minutes. The tenant refused to terminate the tenancy but at the final court hearing the judge ruled in the council’s favour and awarded outright possession plus costs.

Enfield - hired two specialist officers to tackle tenancy fraud with government funding, resulting in the recovery of around 90 properties to date.