By Ed Towner

Social landlords are set to benefit from a new government proposal, which aims to clamp down on social housing cheats and ensure thousands of their homes are filled with new more deserving tenants.

Cheating the system will now become a criminal offence which carries a prison sentence and a huge fine thanks to the plans set out by housing minister Grant Shapps.

As waiting lists continue to rise there is a need to take a stronger stance against those that earn thousands of pounds a year from illegally renting out their social homes to private tenants.

It is thought that up to 160,000 social homes across the UK are currently being unlawfully occupied, but those who are caught at present may face no greater penalty than losing their tenancy.

The new proposals aim to make tenancy cheating a criminal offence with a maximum sentence of two years' imprisonment and a fine of up to £50,000 if the case goes to Crown court.

Proceeds of tenancy fraud will be reimbursed to the social landlord rather than the current system where the money is confiscated by the state.

The proposals also suggest that more powers be given to local authorities to investigate social tenancy fraud through better access to data from banks and utility companies. Currently, councils can request data, but organisations can refuse to provide it.

Mr Shapps says: "Tenancy cheats are taking advantage of a vital support system for some of the most vulnerable people in our society and getting away with a slap on the wrist while our waiting lists continue to grow.

"The proposals not only deliver justice to these fraudsters, but will also act as a deterrent to those who think they can earn from this precious resource."