Is subletting illegal in central London? 

‘Is subletting illegal – and what can I do about it,’ are question we sometimes get asked by our landlords in central and south east London.  Whether subletting is illegal, very much depends on what’s in your tenancy agreement.

If you’re concerned about subletting by your tenants, it’s worth knowing more about the issue – from spotting the signs of a sublet property to the legal position and what you can do about it. Whether you’re renting out property Soho or Paddington or Bromley, we answer landlords’ top queries on illegal subletting.  

What is subletting?   

Subletting happens when a tenant lets all or part of the property to someone else – the subtenant. Sometimes your tenant may approach you first for permission, and you’ll need to weigh up the pros and cons and get advice about how to proceed. But this won’t always be the case, and you may find someone has moved into the rental home without you being consulted first. 

Is subletting illegal in the UK? 

While different rules may apply to social housing, subletting properties in the privately rented sector isn’t necessarily illegal. However, most assured shorthold tenancy agreements contain clauses which prohibit subletting or require a landlord’s permission. If your tenancy agreement doesn’t mention subletting, you may find it difficult to take legal action. It’s important to get this right from the outset and make sure your tenancy agreement clearly states your position on subletting. 

Why do tenants choose to sublet?  

Tenants sublet for a variety of reasons, some more reasonable than others. With the relatively high cost of renting in London, your tenant may be struggling with the rent and wish to take a in a lodger to spread the cost, if they have room. They may be helping out a friend who needs a place to stay long-term. Or they might need to leave the property empty for an extended period due to a work trip or family issue but want to hang onto it for their return. 

In other cases, however, the tenant may be subletting as a source of income – charging a high rent or squeezing too many people into the space. If this type of issue comes to your attention, you’ll need to act quickly.  

What are the signs of subletting? 

Look out for signs of subletting during your periodic inspections of the property. These include evidence of extra people in the property – extra bodies about the place, makeshift beds, lots of baggage, additional toothbrushes etc. Look out for mail addressed to non-tenants and any reports of unfamiliar people at the property from neighbours. If you’re finding the original tenant hard to contact this could be a sign they are absent and have sublet to someone else.  

How to prove illegal subletting?  

First check your tenancy agreement to make sure you are legally able to take action against subletting. Keep records of all correspondence or failure to contact the tenant. Compile evidence of any subletting – photos of addressed mail or extra belongings, for example. 

Talk to your tenant – ask them outright if they have sublet the property. Contact the sub-tenant if necessary. 

What are the consequences of illegal subletting?  

If your tenancy agreement bans subletting, your tenant will be in breach of their terms meaning you have the right to seek possession of the property under Section 8 of the housing act. Also, the tenant has a level of responsibility to the subtenant which they are obligated to fulfil and unless they know the rules, could be in breach of the law on numerous counts.    

From your perspective, it is also important to check your mortgage and insurance terms as many buy-to-let mortgages and landlord policies forbid subletting. 

If you’ve had no previous issues with your tenant and they are subletting for genuine reasons, you may decide to formalise the arrangement and allow it to continue. It’s worth getting advice about adding the new tenant to the agreement to establish a legal relationship with the subtenant.  

Checklist – avoiding subletting from the start 

• Have a clause in your tenancy agreements outlawing subletting.   
• Carry out thorough tenant referencing to minimise the chance of any illegal activity. 
• Keep in touch and communicate – this may encourage your tenant to come to you first if they need help to pay their rent, for example and you can agree a way forward. 
• Carry out regular property inspections so you pick up on any issues quickly.   

If you’re a new landlord in central or south east London, we’d love to talk to you about our management services that can help things go smoothly and ensure you avoid tricky issues such as subletting from the start. You can equally discover tips and advice for letting property, from rental market forecasts to the new Renters’ Rights Act and tenancy deposit dispute handling.