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Council tenants who illegally sublet their homes could face tough new penalties if it is made a criminal offence.
Currently such fraud counts as a civil offence, resulting in the offender losing their tenancy and receiving a small fine. Under measures planned by John Healey, the Housing Minister, those convicted of illegal subletting would face larger fines and prison sentences, while courts would have the power to recover the profits made.
The new legislation would also increase the powers of tenancy fraud investigators, enabling them to access utility and social service records for evidence of alleged fraud.
Up to 200,000 council tenants are suspected of illegally subletting properties, with many of those renting from them unaware of the scam. However, as 80 percent of the new tenants did not qualify for council accommodation, some eligible families are being denied the housing they need.
If ten percent of unlawful tenants were removed, it would free up 20,000 council homes to be reallocated to those on housing waiting lists.
To find out more about how we can help you, please contact Carvill & Johnson in Northfield, Birmingham.
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