Charlotte Davies (2007) has successfully secured an order recovering the unlawful profits made by a tenant of local social housing provider Ocean Housing. The tenant sub-let the property to an acquaintance, in clear breach of his tenancy agreement and whilst claiming housing benefit in his own name for the property in question.
Ocean Housing 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) (a case also conducted by Capsticks LLP) 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.
In addition to the Unlawful Profits Order of £31,350.00, Charlotte was also successful in obtaining an outright possession order for possession forth with, an order that the tenant pay all the rent arrears owed, and a costs order of more than £6,000.00. The tenant has 14 days to pay the sums awarded to Ocean Housing, which total almost £40,000.00.
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.
Charlotte was instructed by Katrina Robinson MBE, Partner at Capsticks LLP.
If you have any questions about this matter or wish to instruct Charlotte please contact her clerk Jamie Kyte on 01752 221551 or civilclerks@kbgchambers.co.uk.
