What is Subletting? A Guide For Landlords in Peterborough
By Wayne Beecham | Created on 11th June 2025
As a landlord with concerns that your tenant is unofficially letting their home on to someone else, you need to know about subletting.
Data gathered by Direct Line reveals that 13% of renters have owned up to subletting, the majority of whom didn’t check if it’s allowed in their tenancy agreement. But is subletting legal in the UK, and what action can you take if it happens at your property?
If you suspect that tenants are subletting a room in your rented property in Northamptonshire or Cambridgeshire, you’ll understandably have concerns – though you may not know what to do next.
To help you, we answer some frequently asked questions about subletting by landlords and tenants.
What Is Subletting?
Subletting is when an existing tenant lets all or part of their home to someone else – known as a subtenant. Sometimes, the current tenant may approach the landlord for permission to sublet, but this won’t always be the case.
What Is A Subtenant?
A subtenant is a person who rents all or part of a property from a tenant. They do not have a direct legal relationship with the main landlord.
Is Subletting Legal?
Subletting isn’t necessarily illegal unless set out as a clause in the tenancy agreement signed by the original tenant. However, most assured shorthold tenancy agreements contain clauses banning subletting or stating that tenants must get their landlord’s permission first.
What Is Considered Unlawful Subletting?
Unlawful subletting is when tenants sublet without their landlord’s permission when the tenancy agreement either disallows subletting or requires prior consent.
This depends on what your tenancy agreement says about subletting. If the tenancy agreement permits subletting, then it is legal. Conversely, the tenancy agreement may prohibit subletting completely. Where the tenancy agreement states that the landlord’s permission is required, landlords must provide reasonable grounds if they refuse the request.
If the tenancy agreement does not mention subletting, the tenant’s rights depend on the type of tenancy agreement:
For periodic tenancies, tenants cannot sublet without the landlord’s permission, and landlords can refuse for any reason.
For fixed-term tenancies, tenants can sublet without the landlord’s permission.
Why Would Tenants Want To Sublet?
There are various valid reasons why subletting may suit a tenant. They may struggle financially and want a lodger to take on their spare room and help with the rent. Or they may be going away for an extended period but wish to retain the tenancy for when they get back. Some people may also prefer having a flatmate to living alone.
In other cases, however, a tenant may see subletting as an income source and charge their subtenants a higher rent or cram more people into the property than is reasonable, claiming rent from them all.
What To Do If A Tenant Sublets Without Permission?
Some tenancy agreements stipulate no subletting, or perhaps that the tenant who rents out the property can seek permission to sublet. They may also state that if a tenant sublets without seeking consent, they are breaching the terms of the agreement and subletting illegally. Illegal subletting gives the landlord the right to seek possession of the property using Section 8 of the Housing Act, but maintain your professionalism – and be pragmatic.
If you discover that your tenant is subletting without your permission, talk to them. You should also approach the subtenant to make them aware that the property is being sublet without permission. Finding a solution amicably might be worthwhile if they have been a good and reliable tenant. For instance, you can draw up a new tenancy agreement that includes the subtenant.
However, you do have the right to demand that the subletting ends and if they refuse to comply, you can begin the eviction process. Subletting issues can get tricky, so take professional legal advice.
Subtenant rights without a written agreement
Even if the tenancy agreement doesn’t allow subletting and there’s no written agreement, subtenants have rights in a rental property. Subtenants take on the same rights and responsibilities that apply to the tenant who holds the tenancy agreement.
What Are The Risks Of Subletting?
On occasion, subletting can work well for both landlord and tenant, however, illegal subletting can have consequences for landlords – and so can agreeing to a request from a tenant to sublet. Many buy-to-let mortgages and landlord insurance policies do not allow subletting or specify that you hold the tenant’s details. Unauthorised subletting will put you in breach of the terms.
Another risk of subletting is that the landlord has no legal relationship with the subtenant, leading to problems throughout the tenancy and if the landlord wants the subtenant to leave. Subletting is particularly tricky when a tenancy ends, and the primary tenant decides to move out – but their subtenant still lives in the property. Evicting a tenant without a tenancy agreement can get complicated.
You could also open yourself up to enforcement action and a criminal record as you won’t be meeting your legal obligations as a private landlord. For instance, you’re required to carry out the Right to rent check on all adult residents. Landlords can also fall foul of selective and HMO licensing rules if there are too many people in the property.
What are the signs a tenant is subletting?
Multiple signs might point to a sub-tenant being present. Look out for these during property inspections. Here are several signs to look out for:
A suspicious number of people: if you see an increased number of people within the property regularly, this signals that they may be more than guests or friends.
More stuff!: Extra toothbrushes, beds or makeshift areas may signal that your tenants are trying to squeeze an extra person or two into the property.
Mail for strangers: This is trickier to determine; we all know of ex-tenants’ mail that filters into the property years after they have left. However, if there is entirely unrecognisable mail, it may belong to sub-tenants.
Your tenants are nowhere to be seen: If they’re shameless enough, tenants may not even be living in the property as they sublet to other people. If your tenants are never around or are reluctant to let you into the property, this is a sign they might be subletting.
How to prove illegal subletting
Your inspection reports and photos from landlord checks can help to prove illegal subletting in court, if it comes to it. Ask the neighbours to provide a statement if they’ve seen the subtenants coming and going, or any other changes. If you receive utility bills for the property, increased usage can also provide evidence of changes.
What Can A Landlord Do To Prevent Subletting In The First Place?
Make sure your tenancy agreements clearly state whether or not you allow subletting and whether you require permission.
Be thorough with tenant referencing to give you a better chance of finding reliable tenants. Look for evidence of subletting in the past.
Be a good communicator, responding to your tenants’ queries and being available. In that way, they may come to you first if circumstances change. You should also conduct regular property inspections to catch any issues quickly.
How Landlords Should Deal With Illegal Subletting
When you believe there is a case of illegal subletting, you should confront your tenant and try to reach an agreement. If that doesn’t work, speak to the subtenant. They may be willing to move on or sign a tenancy agreement directly with you.
If you cannot agree, you can initiate eviction proceedings because your tenant has breached the tenancy agreement. More severe cases of unlawful subletting, for example, when the house has been sublet multiple times and has essentially been turned into an illegal HMO, should be reported to your local authority. You should inform them of this as soon as possible to avoid being liable personally, which could result in significant fines.
If you suspect criminal activity concerning subletting and HMOs, it should be reported to the police.
Where To Find Help
You should always remain vigilant to rogue subletting of your properties. Allowing subletting of your property may mean you require an HMO license.
If you rent a property in Peterborough to five or more people (from two or more households), you must apply for a House in Multiple Occupancy (HMO) License. Failing to do so is an offence. For more information about HMO licensing or your general obligations as a landlord, visit the Peterborough Council website.
To discuss the laws on subletting or any other concerns about your rental property, get in touch. If you’re a new landlord in the Peterborough area, Northampton or Wisbech, or we can help you with letting property. Contact us today to find out more about our services.
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Wayne Beecham
Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.
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