Social landlord obtains £31k+ unlawful profits order after tenant let property to acquaintance

Social housing provider Ocean Housing has secured an unlawful profits order worth more than £31,000 against a tenant who let their property to an acquaintance.

The subletting was in breach of the tenancy agreement and occurred whilst the tenant was claiming housing benefit in his own name for the property in question.

Charlotte Davies of KBG Chambers appeared for Ocean Housing, instructed by Capsticks partner Katrina Robinson MBE.

The set said the housing association had made a claim for possession as well as for an order pursuant to s.5 of the Prevention of Social Housing Fraud Act 2013 for the "best estimate" of profits the tenant likely received from his unlawful subletting over the relevant period, which spanned almost five years.

“By providing evidence of the market rental value of a similar property and applying Poplar HARCA v (1) Begum (2) Rohim [2017] UKHC 2040 (QB) which held that a tenant should not be able to benefit by off-setting any housing benefit paid as rent when calculating profit under the Act, Ocean Housing was able to secure a substantial order against the tenant, KBG Chambers said.

The landlord obtained an outright possession order for possession forthwith, an order that the tenant pay all the rent arrears owed, and a costs order of more than £6,000. The tenant has 14 days to pay the sums awarded to Ocean Housing, which total almost £40,000.

KBG Chambers said: “The decision sends a clear message to tenants that unlawful subletting will not be tolerated and steps will be taken to recover all sums received.”