Is subletting illegal in the UK?

Subletting in the UK can be a contentious subject. While subletting can easily become a practical arrangement for many, the legal framework is complex. Simply, subletting is not illegal in the UK; however, if your tenants are doing so without your permission, then it automatically becomes a serious breach of contract and can also become a criminal offence. 

It is important to be able to understand the difference between a permissible sublet and an unlawful tenancy so that you can avoid any complications with your tenants. Here, we’ll discuss what subletting is and what you can do as a landlord to deal with it the right way. 

H2: What is subletting, and is it illegal in the UK? 

But what exactly is subletting? It’s important to understand the different terms associated with subletting before going into detail. 

H3: Subletting

Subletting takes place when the main tenant in the tenancy agreement rents out, either a part of the property or the entire property (moving out so it is no longer their primary residence). The main tenant then becomes the subtenant’s landlord. 

H3: Lodger 

Having a lodger on a property means that the main tenant rents out a room to someone else while continuing to live in the property. Taking in a lodger still requires permission from you, as the landlord, but the situation is viewed less strictly. 

Essentially, your tenants will need to check their tenancy agreement before allowing a lodger into the rental property and to check whether subletting is illegal in the UK. You’ll need to ensure there is a clause in there that either prohibits subletting or having lodgers, or that states that your tenant requires written permission from you as the landlord first.

H2: Private sector tenancies (ASTs)

If you rent out your property using ASTs, the risk of your tenant unlawfully subletting will usually be a direct breach of contract. 

H3: The lease clause is king

Ultimately, your tenants will need to refer back to the tenancy agreement before initiating subletting or having a lodger live at the rental property. As a landlord, you should not unreasonably withhold permission from your tenants, but you do have the right to refuse if you have valid grounds. For example, if the arrangement violates your mortgage terms or causes the property to become an unlicensed House in Multiple Occupation (HMO). 

If your tenant is illegally subletting your property in the UK, you have the right to immediately seek possession of the property using a section 8 eviction notice. This would be on the grounds of breached tenancy terms. 

H2: Illegally subletting in social housing in the UK

The consequences of illegally subletting in social housing in the UK are significantly more serious and can also carry criminal penalties. This is viewed as a form of tenancy fraud because it deprives families who are in genuine need of subsidised housing while the official tenant profits from the agreement. 

H3: Criminal offences and penalties

The Prevention of Social Housing Fraud Act 2013 states that penalties can be severe when illegally subletting a property that is regarded as social housing. These penalties will be enforced by the local authority. The consequences are as follows: 

• Loss of tenancy: tenants will lose their secure or assured tenancy status, making it easier for you to regain possession of the property.
• Unlawful profit orders (UPOs): the court can order your tenants to pay the housing provider all of the profits made from the illegal subletting arrangement.

• Fines and imprisonment: if the tenant has committed the offence dishonourably (for example, subletting to make a profit), the result can be an unlimited fine, and potentially prison for up to 2 years. 

H2: So, what is the legal way to sublet? 

So, to avoid illegally subletting in the UK, your tenants should make sure that they take certain steps. This will ensure that they are not subletting illegally, and as a result, putting their tenancy agreement at risk.

1. Review the lease agreement: Your tenants need to make sure that they read the subletting clause in the tenancy agreement in detail. 
2. Request written consent: Your tenants should formally request permission from you as the landlord. This should be written to you and should include the details of the subtenant and the duration of the proposed sublet. 
3. Conduct right to rent checks: if you feel that the subletting arrangement can work in your property, your tenant (now known as the mesne tenant) should now comply with the law, which means they need to carry out right to rent checks on the subtenant. 
4. Protect the subtenant: Your tenant needs to ensure that the subletting arrangement complies with all the tenancy laws, such as deposit protection and safety certificates. Any failure of the subtenant to meet these standards, or if they have caused major damage, remains your responsibility as the head landlord. 

Ultimately, you need to make sure that you feel comfortable with the arrangement as the landlord because the property is still your responsibility. So, this means that you’ll ultimately be responsible for both the main tenant and the subtenant when it comes to the habitability of your property. 

For more information on landlord insurance and managing your rental property efficiently, feel free to visit our advice centre. Otherwise, make sure to get in touch with our friendly team of experts at CIA Landlord Insurance on 01788 818 670.