Overview

This bill aims to tackle fraud in social housing by creating new offences related to unlawful subletting and making provisions for investigating such fraud. It introduces both criminal and civil penalties for tenants who illegally sublet their social housing and mechanisms for recovering any profits made through such illegal activities.

Description

The bill focuses on two main types of social housing tenancies: secure and assured. It criminalizes subletting or parting with possession of a social dwelling, either wholly or partly, without the landlord's consent, if the tenant ceases to occupy the property as their only or principal home. Two offenses are defined: one requiring proof that the tenant knew the action was a breach of tenancy, and a more serious one requiring proof of dishonesty. Exceptions are made for tenants forced to leave due to violence or threats of violence.

The bill also allows for the recovery of unlawful profits. This can be done through both criminal ("unlawful profit orders") and civil proceedings. In criminal cases, the court must consider issuing an order to repay profits to the landlord. The maximum amount recoverable is the total profit made, minus rent paid to the landlord. In civil cases, landlords can pursue unlawful profit orders through the High Court or county court.

Furthermore, the bill allows for the loss of assured tenancy status if the tenant illegally sublets the whole dwelling. The bill grants powers to relevant authorities to request information for investigations and creates a new offence for failing to comply with such information requests.

Government Spending

The bill's financial impact on government spending is not directly stated in the provided text. However, the potential for increased recovery of funds from fraudulent tenants could lead to a reduction in overall government expenditure on social housing.

Groups Affected

• Social Housing Tenants: Tenants who unlawfully sublet their properties face criminal penalties (fines or imprisonment) and/or civil penalties (unlawful profit orders). They may also lose their tenancy.
• Social Housing Landlords (Local Authorities and Registered Social Landlords): These landlords gain new tools to combat fraud, potentially recovering lost revenue and freeing up properties for those in need.
• Individuals Subletting from Fraudulent Tenants: While not directly targeted by the bill, those subletting from tenants committing fraud could face legal ramifications if the subletting was knowingly undertaken in breach of the main tenancy.
• Courts: Courts will be involved in processing criminal and civil cases related to the new offences.
• Enforcement Agencies: Enforcement agencies will have enhanced powers to investigate social housing fraud.

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