Subletting isn’t always a dealbreaker for landlords, as long as tenants ask first
- More than two-thirds (68%) of landlords have discovered tenants subletting their property without consent
- Neighbours reporting “unusual activity” (31%) is the most common way landlords find out, followed by routine checks (28%) and complaints about noise or damage (24%)
- One in five (20%) found their property listed on a website such as SpareRoom, Airbnb or Gumtree
- Over half (53%) of landlords would consider allowing subletting if certain conditions were met
New research from Direct Line business insurance reveals that more than two-thirds (68%) of UK landlords have discovered their tenants renting out the property without permission.
The most common way these ‘secret sublets’ come to light is through neighbours reporting unusual activity or frequent new faces at the property (31%), closely followed by routine landlord inspections (28%) and complaints from other residents about noise or damage (24%).
Landlords are also taking to the internet to check for illegal subletting, as one in six (15%) found evidence online or via social media after suspecting something unusual. One in five (20%) spotted their property listed on a rental website such as SpareRoom, Airbnb or Gumtree.
Despite the prevalence of secret subletting, landlords remain vigilant. Nearly half of landlords (43%) conduct routine property checks every six months, while three quarters (74%) inspect their property at least once a year. Of those who have found out their tenants were subletting without their permission, almost two-thirds (64%) said it had happened within the last 12 months.
When discovering a secret sublet, the majority of landlords said they issued a formal warning to the tenant(s) (34%) or reported the situation to a letting agent and property manager (30%). Over a quarter (26%) said they allowed the sublet to continue under new terms or with freshly written permission, whilst a further one in four took legal advice but did not act further (27%). However, some landlords took a stricter approach, as a quarter either immediately requested the subtenant to leave (27%) or started eviction proceedings against the original tenant (25%). Over one in five (22%) decided to increase the rent or charge a subletting fee.
To address subletting, just over three quarters (77%) of landlords said they made updates to their tenancy agreements to address subletting. Over a third have included penalties or consequences for unauthorised subletting (35%), whilst 34% require tenants to formally request approval for any guests or subletters staying for more than a set number of days.
Over a quarter (28%) have revised the language in their agreements to make existing subletting rules clearer, and nearly two in five (38%) have added a specific clause prohibiting subletting without written permission. One in ten (10%) don’t believe it’s necessary to make any changes.
Jonny McHugh, Head of Landlord at Direct Line business insurance, commented: “Landlords work hard to look after their properties, so it’s understandable that secret subletting is a real worry. Direct Line urges landlords to ensure that they stay up to date with their periodic property checks and make tenants aware about rules in relation to subletting or moving in additional tenants.”
Not all landlords are opposed to subletting, over half (53%) say they would consider allowing subletting if certain conditions were met. These conditions include having clear terms and insurance coverage (16%), full vetting of subtenants (13%), ensuring subtenants meet the same standards as the original tenants such as references and credit checks (13%) and allowing short-term sublets during specific periods only (11%), such as summer holidays or student breaks.
However, some landlords remain strongly opposed to subletting, with a fifth (18%) believing that subletting fundamentally undermines their control over the property and a further 8% citing bad personal experiences or stories from other landlords.
Jonny McHugh, Head of Landlord at Direct Line business insurance, added: “Our research shows that not all landlords are opposed to subletting, but the security of knowing who’s living in their property and that the right checks are in place are important. In this case, being upfront with tenants about what is allowed, and putting clear agreements in writing, can help prevent misunderstandings and protect everyone involved.”
“As always, having open communication with the tenants is a great way to create a safer, more trusting renting environment for both landlords and tenants.”
-ENDS-
Notes to Editors
Research conducted by Censuswide, sampling 500 UK landlords (aged 25+), data collected between 01.07.2025 – 05.07.2025. Censuswide abides by the MRS code of conduct and ESOMAR principles.
For further information, please contact:
Unni Henry
PR Manager
Email: unni.henry@directlinegroup.co.uk
About Direct Line business insurance
Launched in 2007 Direct Line business insurance provides a flexible range of insurance products for the landlord, van and small business sectors and is part of the Aviva Group.
Customers can find out more about Direct Line business insurance products or get a quote by calling 0345 301 4827 or visiting www.directlineforbusiness.co.uk