A bombshell investigation has uncovered that fraudsters are illegally owning council houses intended for vulnerable families, leaving thousands on waiting lists in despair.
The probe, launched by Westminster City Council, found that dozens of properties across London were fraudulently acquired or unlawfully sublet, depriving those in genuine need of affordable housing.
How the Scam Unfolded
Fraudsters exploited loopholes in the system, using fake identities and forged documents to secure council homes. Some even rented out their subsidised properties at market rates, pocketing huge profits while families struggled.
Key Findings:
- Over 50 properties confirmed as fraudulently occupied
- Tenants paying up to £2,000/month for illegally sublet council flats
- Some fraudsters owned multiple council homes simultaneously
Calls for Immediate Action
Council leader Adam Hug described the findings as "utterly shocking" and vowed to reclaim every illegally occupied property. "This is daylight robbery from those who need our help most," he stated.
Housing campaigners are demanding:
- Tighter background checks on all applicants
- Regular property inspections
- Harsher penalties for housing fraud
The council has established a dedicated fraud team and hotline for whistleblowers, with prosecutions already underway.
