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Under government proposals, council tenants in England who are convicted of sub-letting their homes, could face up to two years in prison. The new criminal offence of tenancy fraud could also incur a fine of up to £50,000.
Sub-letting a council property is not currently a criminal offence, and official estimates are that around 160,000 council tenants currently sub-let their homes, at a cost of 5bn a year to the tax payer.
The new proposals would also give local councils more power to investigate fraud, accessing information from utility companies and banks.
There are around 1.8 million families in England and Wales currently on waiting lists for social housing.
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