Under the programme, Birmingham City Council will work with Airbnb and listings confirmed as operating without permission will be removed.
Early results have shown that six potential cases of fraud have been identified across Birmingham.
Fraudsters subletting on Airbnb face punishments ranging from eviction, fines, and up to 2 years imprisonment.
Airbnb is the first short-term letting platform to partner with the Cabinet Office to help tackle this industry-wide issue.
The agreement allows local councils to check social housing records against Airbnb listings, identifying properties being exploited by fraudsters and allowing these properties to be returned to families in genuine need.
Cllr Baber Baz, Cabinet Member for Housing, said:
"Every property that is fraudulently sublet in Birmingham deprives a family in genuine need of a safe place to live.
“We recovered 36 properties over the last year that were fraudulently sublet, and this agreement will allow us to continue to identify potential tenancy fraud and free up homes for families on waiting lists faster.
“Birmingham City Council is proud to be part of this innovative partnership and the wider effort to tackle public sector fraud.”
The government announced the new data-sharing partnership on 8 July.
