Council housing bribery allegations prompt fraud investigations

Investigations are under way at several London councils after allegations that housing applicants paid bribes to be moved up waiting lists. Reports describe desperate people, including a mother living with her two children in substandard accommodation, giving money to fixers in the hope of speeding up their housing search.

Anne-Marie, not her real name, spent 11 years on a council house waiting list before being introduced to someone offering a solution. She paid £1,500 up front to jump the queue. The fixer told her to register on a housing association portal, saying someone inside would help her get ahead. They kept bumping her up but warned it could not be made obvious because it was fraudulent. They later asked for more cash to fast-track the process. Anne-Marie said she could not afford it, and the money was held on to. She eventually got her deposit back after threatening to go to the police, and later secured a new home legitimately.

Housing campaigner Kwajo Tweneboa used a Freedom of Information request to ask all London councils whether they had investigated corrupt housing officials. Newham recorded nine investigations in three years, Southwark seven, and others including Tower Hamlets, Waltham Forest, Hackney, Enfield, Barnet, Brent and Barking and Dagenham also featured. Tweneboa said the problem was likely nationwide, affecting both local authorities and housing associations. "Wherever there's a crisis there's opportunity to exploit," he said, pointing to people with terminal illnesses, children growing up in temporary accommodation, and those with advanced medical needs all stuck on waiting lists.

The scale of the problem is illustrated by the case of John, 72, who has been in temporary accommodation for around 17 years and has moved 11 times. He said he felt "cheated" when he saw others move on while he remained stuck. There are more than 1.3 million households on council waiting lists in England, a quarter of them in London, and in some boroughs the wait could stretch for decades.

Earlier this year, Barking and Dagenham dismissed a housing officer who tried to allocate a home to themselves. City of London police have also made four arrests over alleged housing fraud linked to the council's housing company, B&D Reside. At a council meeting, there were suggestions that criminals might be using ill-gained properties as trap houses and cannabis farms, and that the situation could point to organised crime. The council said it was working with police to investigate.

Tweneboa said he met a person from a different borough who admitted being involved in the fraud. That person said they made tens of thousands of pounds but stopped because of guilt, after families ended up in dire financial situations when deals fell through.

The disclosures come as the government promises billions for a new home building programme, but there are questions about oversight of how existing council homes are allocated.