With just two weeks to go before the start of the Olympics, Housing Minister Grant Shapps has called on social housing landlords in East London to be extra vigilant and take tough action against tenancy cheats trying to make a fast-buck out of sub-letting their homes.

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. A summary of responses to the consultation and the proposed next steps are also published today.

In the meantime, the Minister is calling on all social housing landlords to use their existing powers to their full extent including eviction.


Mr 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."

Conservative MP Richard Harrington said: "I join Grant's call for landlords to be extra vigilant over this Olympics summer. By introducing my Private Members Bill I want to see stronger punishments for those who commit tenancy fraud and introduce effective deterrents. This new legislation will go a long way in tackling this problem in the long term."

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.

(CD/GK)