A GYM manager who was given a social housing property and rented it out for a profit has appeared at court.

Michael Robert Ketch, who manages a gym in Stockton, appeared at Newton Aycliffe Magistrates’ Court charged with two offences relating to a property in Newton Aycliffe.

The 36-year-old, who has no previous convictions, sub-let a house in Neville Parade for £650 a month whilst living elsewhere, the court heard.

Stephen Buston, prosecuting on behalf of Durham County Council, said: “The council received a referral stating that the defendant had been sub-letting his rental property.

"Further investigation confirmed that he no longer resided at the property.

“The property had been sub-let to two occupants, each paying a total sum of £325 per calendar month.

“The defendant was interviewed under caution and said that he did advertise one room online but two people came forward.

"Bank statements showed the payments being made to the defendant each month.

“He said he was only going to rent one room out but ended up renting them both for a period of five months, before the council intervened.”

An unlawful profit order was made by the court for a total of £1,796.30.

Ketch, of Bluestone Close, Newton Aycliffe, pleaded guilty to one charge of sub-letting a house let under an assured tenancy and a further charge of failing to notify the council that he was no longer eligible for a single-person council tax reduction.

Laurence Pettison, mitigating, said his client had no previous convictions and had never been in a police station prior to this incident.

He added: “He had absolutely no idea that what he was doing actually constituted to a criminal offence.”

However, District Judge Tim Capstick told Mr Pettison: “Well, I’m not sure about that.

"The whole point of social housing is to provide it to people who are in need. He has allowed greed to take over.”

Mr Pettison continued: “He obtained a tenancy elsewhere and wanted to see if it suited his needs. He accepted a modest amount of rent, he co-operated fully in the investigation and he now sadly has a criminal conviction.

“This is in itself a very substantial punishment on its own.”

Judge Capstick said: “Whether you are a person in need or not, there is only a limited amount of social housing about.

“You chose to apply for it and it was provided to you and for those five months we have heard you effectively sub-let it for a profit.

“I take into account that you are of previous good character.”

For sub-letting the property, Ketch was ordered to pay £1,796.30 back to Durham County Council. He must also pay £600 towards court costs and was given to separate penalty for failing to notify the council of his change in circumstances relating to council tax payment reductions.