Last year we rented in house in London from agency . We signed agreement for 12 months.  2 months before end of contract  landlord offered to sign new contract with him directly. He said that he trusted us and etc.  so we signed new contract with him.(he kept deposit) We asked if we could pay rent into his bank account or by cheque (just to be save) but he said that this first months he will collect cash and after we could pay to his bank account. Our new contract just started few days ago,we paid cash for our rent to landlord  and he signed on a paper saying that he received 1200 pounds. next day we received visit from local authority. Lady said that we shouldn't live here because our "landlord" was not allowed to rent house to any one.

We contacted landlord, he apologies and said that he bought house from council and in his contract there was a clause that said that he not allowed to rent it for 3 years after buying. (He bought only 2 months before we moved in last year). He said that lady don't have a right to harass us like this and that he will sort it out this, that he will take  all documents and get solicitor  (he send me sms). He asked me not to speak with a lady if she comes again. But I need it to find out what is really going on so I rang to a lady and ask her what is going on.

She said that this men had no right to let us house us this house belongs to authority and his parents just renting from them. she said that our "landlord" promised her that we move out end of this months. But he didn't say eneything to us about it!

COULD PLEASE SOMEBODY GIVE US ADVISE WHAT TO DO OR FROM WHERE TO GET ADVISE. We don't have money to pay another deposit and rent in advance. 

When we rented from agency we thought  that agency checking landlords.

My Mums heart is broken as she spend a lot of time and money on garden as she planted various vegetables (tomato,cucumbers, spring onions, radishes, salads, strawberries and ect.)

What action can we take? 

What should we do?

Thank you