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Subletting Tenant- What are my rights?

OK, I have been living down in London for a few months and unfortunately I am still working part time.
Basically I won't have enough savings left to pay Junes rent so I decided I would contact the Council for some housing allowance.

I contacted who I thought was my landlord today to get her address only to be told she isn't the home owner and the owner said they won't accept me getting housing allowance because they have a mortgage and loans.

The woman who I deal with is Chinese and sends pretty unclear/broken English messages. Apparently she will speak to the owner tomorrow but seems they want me out within two weeks.

I have told her that is impossible as I don't have the cash to pay for a new place and that I would only have the cash if I got backdated housing allowance or they give me what I paid in rent/deposit back.

Has anyone had a similar situation?

What would people advise?

My contact obviously didn't admit the owner was subletting but it's pretty obvious that it must be and one of the housemates says it's a sublet.

They knew I wasn't working in full time employment when I moved in so I (wrongly) assumed that me getting housing benefit wouldn't be an issue.
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