Case study: £17,000 rent arrears from double subletting

Unauthorised subletting is a growing issue for landlords in the UK, and for one landlord in Central London, it’s led to significant financial and legal problems. This ongoing case has resulted in nearly £17,000 in rent arrears, with the landlord still fighting to regain possession of the property.

The situation

The tenant signed a tenancy agreement for a property in a managed block in Central London, agreeing to pay £3,400 a month (£10,200 per quarter). However, despite having the contract, the tenant never moved in and failed to communicate with the landlord. This raised concerns, but the full scope of the problem wasn’t realised until months later.

The property is in a managed block with concierge services, a service known for subletting problems. The concierge noticed unfamiliar people entering and leaving the property frequently and reported it to the landlord.

The discovery

The landlord became aware of a leak in the property and decided to inspect it. Accompanied by a contractor, they found four people living there who claimed to be renting from someone else. These individuals weren’t listed on the tenancy agreement, and further investigation revealed the property had been illegally sublet. It became clear that the tenant had orchestrated a double subletting scam, renting the property to multiple people without the landlord’s knowledge.

What happened next

The landlord conducted a six-month inspection. By this time, the subtenants had left, likely after receiving guidance from the landlord. To secure the property, the landlord arranged for the locks to be changed and left the new keys with the concierge for the tenant to collect.

By January 2025, rent arrears had built up to just under £17,000, covering almost five months of unpaid rent.

Legal steps taken

In January 2025, the landlord served a Section 8 notice citing rent arrears (Ground 8), persistent late payments (Grounds 10 and 11), and unauthorised subletting (Ground 12). A notice to quit was also issued, expiring in March 2025. This was intended to protect the landlord’s position in case sub-tenants were occupying the property, ensuring possession could be regained if unauthorised subletting was confirmed.

Current status

The landlord has prepared a possession claim, pending to be filed at court. The concierge continues to report suspicious activity, suggesting the tenant has not been occupying the property. The landlord is now preparing for formal possession as the tenant remains unresponsive.

Conclusion

This case highlights the risks of unauthorised subletting. With nearly £17,000 in rent arrears that will continue to amount by the time the matter gets to a hearing, and no possession of the property, the landlord’s situation is still unresolved. It’s a reminder for landlords to stay vigilant, conduct regular inspections, and understand their legal rights to protect themselves from similar issues.

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