Two arrested as police suspect 'corrupt' council staff allocated 'hundreds of homes for cash'

Bribes have been used to beat the long waiting lists for affordable homes, according to the City of London Police - which has now launched an investigation into corrupt housing officers.

Two people have been arrested and police say "evidence exists" that hundreds of homes have been allocated through fraudulent dealings in the east London borough of Barking and Dagenham. Officers believe homes were sometimes sublet by associates of housing officers.

Investigators also believe there was blatant advertising on social media offering prospective tenants a means to beat the queue. The force said: "As part of this process, prospective tenants paid fraudsters 'finder's fees', and inflated rents.

"Some rents were paid in part to London Borough Barking Dagenham Council and some were not." The council's counter-corruption team is assisting in the investigation and says it follows months of intelligence gathering. Leader of the council, Dominic Twomey, said: "Every day, our fraud team are behind the scenes, looking into anything from corruption concerns to illegal sub-letting.

"Ultimately their job is to make sure public money is being spent in the way it should be, so I'm really pleased their proactive work has helped lead to today's arrests." Affordable housing is a system of offering below-market-rate homes to support lower-income households and priority groups, such as those with disabilities. It is administered by local authorities, which set qualification requirements, such as residency periods and points-based systems to assess housing needs and wait times.

Read more from Sky News:UK couple killed in Lisbon funicular crash namedRayner resigns after tax admissionDuchess of Kent dies Waiting lists in England have been increasing over decades due to a shortage of social homes. The latest government figures show the total number of households on the waiting list in 2023-24 was 1,330,611 - a six per cent rise on the year before.

In April, a study by the National Housing Federation found Barking and Dagenham is one of the 50 councils with the longest waiting times - where at current rates, it would take over 15 years for a family joining the back of the queue to be allocated a three-bedroom home. In these conditions, this issue of corruption is likely to extend beyond one council, housing campaigner Kwajo Tweneboa told Sky News.

"I've had people far beyond Barking and Dagenham reach out to me about the exact same issue of corruption, some even saying it's been going on for decades," he said. "Let's be clear, exploiting people who are already suffering, just so individuals in the public sector can line their own pockets, is disgraceful.

It has to be exposed and rooted out.".