Tenant hit with £10k fine and narrowly avoids jail following tenancy fraud

A former Southway Housing tenant has been told to pay thousands of pounds in fines and has received a suspended sentence following an investigation by Manchester City Council.

Mr David Collins, of Westbury Way in Oldham, pleaded guilty to three offences at an earlier hearing and was sentenced by a district judge at Manchester Magistrates Court on Tuesday (September 28) – resulting in a fine of £10,000 and a total 14-weeks custodial sentence, suspended for 12 months.  

Mr Collins was sentenced to eight-weeks suspended custody for illegally subletting a social property owned by Southway Housing, and fined the £10,000 under the Prevention of Social Housing Fraud Act.

Mr Collins was also charged separately on two accounts of failing to disclose a change of circumstances in relation to claiming Council Tax support, which resulted in a six-week custody sentence, suspended for 12 months.  

Manchester City Council were awarded costs of £1,840 and the defendant was ordered to pay a victims of crime surcharge of £122. 

An unlawful profit order was also awarded in relation to the subletting for £2,160 to be paid to Southway Housing within 14-days.   

In 2012, Mr Collins was rehoused by Southway Housing in a property in Chorlton. 

A social housing tenant must not sublet their property and must tell their landlord if they move out so the property can be used by someone else who is in need.  

At this property Mr Collins was in receipt of Council Tax support but failed to notify the Council when he began living at a separate address in 2015, and he did not inform Southway Housing that he had vacated the premises.  

Mr Collins continued to claim Council Tax support at the old address and in 2017 began illegally subletting the property to a third party.  

While in receipt of welfare support, Mr Collins was awarded around £470,000 following a medical negligence case, which found in his favour. 

He failed to inform the Council that he received this settlement, which would have meant he was ineligible for the support he was receiving due to his level of savings.  

Cllr Rabnawaz Akbar, Manchester City Council’s executive member for neighbourhoods, said: “Subletting a social home may seem like a victimless crime, but the reality is that a family or individual in need – whose life could be changed for the better by getting a new home – are left without.  

“We know the numbers of new social rent housing in Manchester and the UK has plummeted due to chronic under funding in recent years. 

"And this man has knowingly profited from by keeping this property out of the hands of someone else who needs it. 

“The seriousness of the offence is very much reflected in the level of fine and this man is lucky to have avoided jail time.

"I hope this acts as a deterrent to others, but also a warning that this behaviour is not acceptable, and we will use the full extent of the law when we find you.” 

Lai Chan, Community Action Manager, Southway Housing, said: “Social housing is desperately needed in Manchester and beyond, with long waiting lists of individual and families most in need of support.

"Those who abuse this system are preventing people in greater need from having a home and will eventually get found out.

"This successful prosecution sends a message to individuals who are committing similar offences; that Tenancy Fraud carries unrestricted fines and a significant sentence. 

"Southway Housing Trust has a zero tolerance approach to such fraud and carry out this policy with the help of Manchester City Council, to allow only genuine individuals and families access to social housing.” 

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