The Telegraph today reported that the Coalition government has made plans to crack down on council house tenants who are illegally sub-letting their property while they are living in a house of their own. Currently there are no laws against these illegal sub-letters and many are earning up to £20,000 a year from it.
There are apparently 50,000 people in the UK cashing in on council house sub-letting, but new plans to tackle these criminals head on could save up to £5 billion in taxes. Housing minister, Grant Shapps, had this to say: “Social housing is really precious and it’s not right that tenancy fraud and abuse locks out some of the most vulnerable families from getting a roof over their heads.”
Announcement of these plans also detail new schemes that will see those earning in excess of £100,000 losing their council home, as well as an abrupt end to the allowance of council flats ‘for life’ rule for new residents. Fraudulent residents in social housing are costing the government an estimated £5 billion every year with 1.8 million families legitimately waiting to receive a council home.