1 Unlawful sub-letting: secure tenancies

(1) A tenant of a dwelling-house in England let under a secure tenancy commits
an offence if—

(a) in breach of an express or implied term of the tenancy, the tenant sub-
5lets or parts with possession of—

(i) the whole of the dwelling-house, or

(ii) part of the dwelling-house without the landlord’s written
consent,

(b) the tenant ceases to occupy the dwelling-house as the tenant’s only or
10principal home, and

(c) the tenant knows that the conduct described in paragraph (a) is a
breach of a term of the tenancy.

(2) A tenant of a dwelling-house in England let under a secure tenancy commits
an offence if—

(a) 15dishonestly and in breach of an express or implied term of the tenancy,
the tenant sub-lets or parts with possession of—

(i) the whole of the dwelling-house, or

(ii) part of the dwelling-house without the landlord’s written
consent, and

(b) 20the tenant ceases to occupy the dwelling-house as the tenant’s only or
principal home.

(3) The offence under subsection (1) is not committed where the tenant takes the
action described in paragraphs (a) and (b) of that subsection because of
violence or threats of violence by a person residing in, or in the locality of, the
25dwelling-house—

(a) towards the tenant, or

(b) towards a member of the family of the tenant who was residing with
the tenant immediately before the tenant ceased to occupy the
dwelling-house.

(4) The offence under subsection (1) is not committed if a person (“P”) who
5occupies the dwelling-house as a result of the conduct described in subsection
(1)(a) is—

(a) a person entitled to apply to the court for an order giving P a right to
occupy the dwelling-house or to have the tenancy transferred to P, or

(b) a person in respect of whom an application may be made to have the
10tenancy transferred to P.

(5) A person convicted of an offence under subsection (1) is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

(6) A person convicted of an offence under subsection (2) is liable—

(a) on summary conviction, to imprisonment for a term not exceeding 6
15months or a fine not exceeding the statutory maximum (or both);

(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).

2 Unlawful sub-letting: assured tenancies

(1) A tenant of a dwelling-house in England let under an assured tenancy to which
20this section applies commits an offence if—

(a) in breach of an express or implied term of the tenancy, the tenant sub-
lets or parts with possession of the whole or part of the dwelling-house,

(b) the tenant ceases to occupy the dwelling-house as the tenant’s only or
principal home, and

(c) 25the tenant knows that the conduct described in paragraph (a) is a
breach of a term of the tenancy.

(2) A tenant of a dwelling-house in England let under an assured tenancy to which
this section applies commits an offence if—

(a) dishonestly and in breach of an express or implied term of the tenancy,
30the tenant sub-lets or parts with possession of the whole or part of the
dwelling-house, and

(b) the tenant ceases to occupy the dwelling-house as the tenant’s only or
principal home.

(3) This section applies to an assured tenancy—

(a) 35under which the landlord is a private registered provider of social
housing, and

(b) which is not a shared ownership lease.

(4) The offence under subsection (1) is not committed where the tenant takes the
action described in paragraphs (a) and (b) of that subsection because of
40violence or threats of violence by a person residing in, or in the locality of, the
dwelling-house—

(a) towards the tenant, or

(b) towards a member of the family of the tenant who was residing with
the tenant immediately before the tenant ceased to occupy the
45dwelling-house.

(5) The offence under subsection (1) is not committed if a person (“P”) who
occupies the dwelling-house as a result of the conduct described in subsection
(1)(a) is—

(a) a person entitled to apply to the court for an order giving P a right to
5occupy the dwelling-house or to have the tenancy transferred to P, or

(b) a person in respect of whom an application may be made to have the
tenancy transferred to P.

(6) A person convicted of an offence under subsection (1) is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

(7) 10A person convicted of an offence under subsection (2) is liable—

(a) on summary conviction, to imprisonment for a term not exceeding 6
months or a fine not exceeding the statutory maximum (or both);

(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).

3 15Prosecution of offences

(1) Proceedings for an offence under section 1(1) or 2(1) may be brought within the
period of 6 months beginning with the date on which evidence sufficient in the
opinion of the prosecutor to warrant the proceedings came to the prosecutor’s
knowledge.

(2) 20But no such proceedings may be brought more than three years—

(a) after the commission of the offence, or

(b) in the case of continuous contravention, after the last date on which the
offence was committed.

(3) A certificate signed by the prosecutor and stating the date on which such
25evidence came to the prosecutor’s knowledge is conclusive evidence of that
fact; and a certificate to that effect and purporting to be so signed is to be
treated as being so signed unless the contrary is proved.

(4) Subsections (1) to (3) also apply in relation to an associated offence which is a
summary offence (to the extent that they would not otherwise apply to that
30offence).

(5) A local authority may prosecute an offence under section 1 or 2 in relation to a
dwelling-house—

(a) whether or not the dwelling-house is or was let under a tenancy under
which the local authority is or was the landlord, and

(b) 35whether or not the dwelling-house is located in the local authority’s
area.

(6) In subsection (5) “local authority” means a county council in England, a district
council, a London borough council, the Common Council of the City of
London or the Council of the Isles of Scilly.

(7) 40Subsections (5) and (6) also apply in relation to an associated offence (to the
extent that they would not otherwise apply to that offence).

4 Unlawful profit orders: criminal proceedings

(1) This section applies if a person (“the offender”) is convicted of—

(a) an offence under section 1 or 2, or

(b) an associated offence.

(2) The court by or before which the offender is convicted—

(a) must, on application or otherwise, decide whether to make an unlawful
profit order, and

(b) 5may, if it considers it appropriate to do so, make such an order, instead
of or in addition to dealing with the offender in any other way.

(3) An “unlawful profit order” is an order requiring the offender to pay the
landlord an amount representing the profit made by the offender as a result of
the conduct constituting the offence.

(4) 10If the court decides not to make an unlawful profit order, it must give reasons
for that decision on passing sentence on the offender.

(5) The amount payable under an unlawful profit order must be such amount as
the court considers appropriate, having regard to any evidence and to any
representations that are made by or on behalf of the offender or the prosecutor,
15but subject to subsections (6), (7) and (8).

(6) The maximum amount payable under an unlawful profit order is calculated as
follows—

Step 1

Determine the total amount the offender received as a result of the conduct
20constituting the offence.

Step 2

Deduct from the amount determined under step 1 the total amount, if any, paid
by the offender as rent to the landlord (including service charges) over the
period during which the offence was committed.

(7) 25Where an unlawful profit order has been made against the offender under
section 5, an order under this section may only provide for the landlord to
recover an amount equal to the aggregate of the following—

(a) any amount by which the amount of the offender’s profit found under
this section exceeds the amount payable under the order made under
30section 5, and

(b) a sum equal to any portion of the amount payable under the order
made under section 5 that the landlord fails to recover,

and the landlord may not enforce the order under this section, so far as it
relates to a sum mentioned in paragraph (b), without the leave of the court.

(8) 35In determining whether to make an unlawful profit order against the offender,
and in determining the amount to be paid by the offender under the order, the
court must have regard to the means of the offender so far as they appear or
are known to the court.

(9) Subsection (10) applies where the court considers—

(a) 40that, as well as being appropriate to make an unlawful profit order, it
would be appropriate to make a compensation order under section 130
of the Powers of Criminal Courts (Sentencing) Act 2000 or to impose a
fine (or to do both), and

(b) that the offender has insufficient means to pay both—

(i) 45an appropriate sum under an unlawful profit order, and

(ii) an appropriate sum under a compensation order or an
appropriate sum under a fine (or both).

(10) The court must give preference to making an unlawful profit order (though it
may impose a fine, make a compensation order or do both as well).

(11) Sections 131 to 133 of the Powers of Criminal Courts (Sentencing) Act 2000
(supplementary provisions about compensation orders) apply to unlawful
5profit orders as if—

(a) references to a compensation order were to an unlawful profit order,

(b) references in section 131 to the compensation to be paid under a
compensation order were to the amount to be paid under an unlawful
profit order,

(c) 10the reference to injury, loss or damage in section 133(3)(a) were a
reference to profit, and

(d) section 133(3)(b) were omitted.

(12) In this section “the landlord” means the landlord under the tenancy in respect
of which the offence was committed.

5 15Unlawful profit orders: civil proceedings

(1) The court may, on the application of the landlord of a dwelling-house in
England let under a secure or an assured tenancy, make an unlawful profit
order if—

(a) in the case of a secure tenancy, the conditions in subsection (3) are met,
20and

(b) in the case of an assured tenancy, the conditions in subsection (4) are
met.

(2) An “unlawful profit order” is an order requiring the tenant against whom it is
made to pay the landlord an amount representing the profit made by the
25tenant from the conduct described in subsection (3)(a) or (4)(c).

(3) The conditions in the case of a secure tenancy are that a tenant under the
tenancy—

(a) in breach of an express or implied term of the tenancy, has sub-let or
parted with possession of—

(i) 30the whole of the dwelling-house, or

(ii) part of the dwelling-house without the landlord’s written
consent,

(b) has ceased to occupy the dwelling-house as the tenant’s only or
principal home, and

(c) 35has received money as a result of the conduct described in paragraph
(a).

(4) The conditions in the case of an assured tenancy are that—

(a) the landlord is a private registered provider of social housing,

(b) the tenancy is not a shared ownership lease,

(c) 40in breach of an express or implied term of the tenancy, a tenant under
the tenancy has sub-let or parted with possession of the whole or part
of the dwelling-house,

(d) the tenant has ceased to occupy the dwelling-house as the tenant’s only
or principal home, and

(e) 45the tenant has received money as a result of the conduct described in
paragraph (c).

(5) Subject to subsection (6), the amount payable under an unlawful profit order is
calculated as follows—

Step 1

Determine the total amount the tenant received as a result of the conduct
5described in subsection (3)(a) or (4)(c).

Step 2

Deduct from the amount determined under step 1 the total amount, if any, paid
by the tenant as rent to the landlord (including service charges) over the period
during which the conduct described in subsection (3)(a) or (4)(c) took place.

(6) 10Where an unlawful profit order has been made against the tenant under
section 4, an order under this section may only provide for the landlord to
recover an amount equal to the aggregate of the following—

(a) any amount by which the amount of the tenant’s profit found under
this section exceeds the amount payable under the order made under
15section 4, and

(b) a sum equal to any portion of the amount payable under the order
made under section 4 that the landlord fails to recover,

and the landlord may not enforce the order under this section, so far as it
relates to a sum mentioned in paragraph (b), without the leave of the court.

(7) 20For the purposes of this section “the court” means the High Court or the county
court.

(8) Section 110(3) of the Housing Act 1985 (by which the claimant in proceedings
relating to a secure tenancy may not recover the claimant’s costs if the
proceedings are taken in the High Court) does not apply to proceedings under
25this section.

6 Loss of assured tenancy status

After section 15 of the Housing Act 1988 insert—

“15A Loss of assured tenancy

(1) Subsection (2) applies if, in breach of an express or implied term of the
30tenancy, a tenant of a dwelling-house in England let under an assured
tenancy to which this section applies—

(a) parts with possession of the dwelling-house, or

(b) sub-lets the whole of the dwelling-house (or sub-lets first part of
it and then the remainder).

(2) 35The tenancy ceases to be an assured tenancy and cannot subsequently
become an assured tenancy.

(3) This section applies to an assured tenancy—

(a) under which the landlord is a private registered provider of
social housing, and

(b) 40which is not a shared ownership lease.

(4) In this section “shared ownership lease” means a lease of a dwelling-
house—

(a) granted on payment of a premium calculated by reference to a
percentage of the value of the dwelling-house or of the cost of
45providing it, or

(b) under which the lessee (or the lessee’s personal representatives)
will or may be entitled to a sum calculated by reference, directly
or indirectly, to the value of the dwelling-house.”

7 Consequential amendments

5The Schedule (consequential amendments) has effect.

8 Interpretation

(1) In this Act—

(a) “secure tenancy” has the meaning given by section 79 of the Housing
Act 1985, and

(b) 10“assured tenancy” has the same meaning as in Part 1 of the Housing Act
1988.

(2) In the application of this Act in relation to a secure tenancy, the following
expressions have the same meaning as in the Housing Act 1985—

• “dwelling-house” (see section 112 of that Act);

• 15“landlord” (see section 621 of that Act);

• “tenancy” (see section 621 of that Act);

• “tenant” (see section 621 of that Act).

(3) In the application of this Act in relation to an assured tenancy, the following
expressions have the same meaning as in the Housing Act 1988—

• 20“dwelling-house” (see section 45(1) of that Act);

• “landlord” (see section 45(1) and (3) of that Act);

• “tenancy” (see section 45(1) of that Act);

• “tenant” (see section 45(1) and (3) of that Act).

(4) References in this Act to a member of the tenant’s family (in relation to a secure
25or an assured tenancy) are to be construed in accordance with section 113 of the
Housing Act 1985.

(5) In this Act “shared ownership lease” means a lease of a dwelling-house—

(a) granted on payment of a premium calculated by reference to a
percentage of the value of the dwelling-house or of the cost of
30providing it, or

(b) under which the lessee (or the lessee’s personal representatives) will or
may be entitled to a sum calculated by reference, directly or indirectly,
to the value of the dwelling-house.

(6) References in this Act to the landlord under a secure or an assured tenancy
35include—

(a) in a case where the tenancy has ended, a person who was the landlord
under the tenancy, and

(b) in a case where the tenancy has ceased to be a secure or an assured
tenancy, the person who was the landlord under the tenancy when it
40was a secure or an assured tenancy.

(7) References in this Act to the tenant under a secure or an assured tenancy
include—

(a) in a case where the tenancy has ended, a person who was the tenant
under the tenancy, and

(b) in a case where the tenancy has ceased to be a secure or an assured
tenancy, a person who was the tenant under the tenancy when it was a
secure or an assured tenancy.

(8) In this Act “associated offence” means—

(a) 5an offence of aiding, abetting, counselling or procuring the commission
of an offence under section 1 or 2,

(b) an offence of attempting or conspiring to commit an offence under
section 1 or 2, or

(c) an offence under Part 2 of the Serious Crime Act 2007 (encouraging or
10assisting crime) in relation to an offence under section 1 or 2.

9 Extent, commencement and short title

(1) This Act extends to England and Wales only, subject to subsection (2).

(2) An amendment of an Act made by this Act has the same extent as the provision
to which it relates.

(3) 15The provisions of this Act come into force on such day as the Secretary of State
may by order appoint.

(4) An order under subsection (3) is to be made by statutory instrument.

(5) An order under subsection (3) may—

(a) appoint different days for different purposes, and

(b) 20make transitional, transitory or saving provision.

(6) This Act may be cited as the Prevention of Social Housing Fraud Act 2012.

Section 7

Schedule Consequential amendments

Administration of Justice Act 1970 (c. 31)1970 (c. 31)

1 The Administration of Justice Act 1970 is amended as follows.

2 5In section 41(8) (power of Crown Court to specify longer period of
imprisonment for default under compensation order), after “paragraph 10”
insert “or 13A”.

3 In Schedule 9 (enforcement of orders for costs, compensation, etc), in Part 1
(payment enforceable as on summary conviction), after paragraph 13
10insert—

“13A Where under section 4 of the Prevention of Social Housing Fraud
Act 2012 a court makes an unlawful profit order.”

Criminal Justice Act 1991 (c. 53)1991 (c. 53)

4 (1) Section 24 of the Criminal Justice Act 1991 (recovery of fines by deduction
15from certain benefits) is amended as follows.

(2) In subsection (1)—

(a) after “compensation order” insert “or unlawful profit order”, and

(b) in paragraph (a), for “or compensation” substitute “, compensation
or unlawful profit”.

(3) 20In subsection (3)(b), after “compensation order” insert “or unlawful profit
order”.

(4) In subsection (4), after the definition of “prescribed” insert “;

• unlawful profit order” means an unlawful profit order under
  section 4 of the Prevention of Social Housing Fraud Act
  252012.”

Family Law Act 1996 (c. 27)1996 (c. 27)

5 In section 30(4)(b) of the Family Law Act 1996 (occupation by spouse or civil
partner with home rights to be treated as occupation by other spouse or civil
partner), for “and Chapter I of Part V of the Housing Act 1996” substitute “,
30Chapter 1 of Part 5 of the Housing Act 1996 and the Prevention of Social
Housing Fraud Act 2012”.

Powers of Criminal Courts (Sentencing) Act 2000 (c. 6)2000 (c. 6)

6 The Powers of Criminal Courts (Sentencing) Act 2000 is amended as follows.

7 In section 12(7) (power to order absolute or conditional discharge not to
35affect power to make various orders), after “orders)” insert “or from making