Key Points
- Ten council-owned homes in Barking and Dagenham were discovered being illegally sublet on Airbnb.
- Barking and Dagenham Council and its housing arm B&D Reside are leading repossession efforts.
- The discovery was made between July 2024 and September 2025, according to a Freedom of Information request.
- Only two out of the ten properties have been recovered so far.
- Council fraud officers claim difficulties obtaining information from Airbnb.
- B&D Reside calls the illegal lettings a “fraudulent misuse” of affordable housing.
- Investigations are ongoing into individuals suspected of illegally profiting from council homes.
- The issue highlights broader problems around affordable housing and short-term rental regulation in London.
At least ten council homes in Barking and Dagenham have been illegally sublet on Airbnb, sparking a repossession drive by the local authority and raising fresh concerns about the abuse of council-owned housing amid London’s ongoing rental crisis.
The discovery, made through investigations by Barking and Dagenham Council’s affordable housing company B&D Reside, has prompted the council’s counter-fraud team to launch an ongoing recovery operation. Between July 2024 and September 2025, at least ten properties were identified as being listed on the short-term rental platform, according to data obtained by the Local Democracy Reporting Service (LDRS) under the Freedom of Information Act.
How were the illegal Airbnb listings discovered?
As reported by Rafi Mauro-Benady of MyLondon via the Local Democracy Reporting Service, B&D Reside found multiple council-owned homes being advertised on Airbnb during a routine housing compliance review.
A council spokesperson told the LDRS that the team “is aware of some Reside homes still being used as short-term lets and work is ongoing to recover these properties.” The spokesperson added that the council
“remains committed to protecting affordable housing for genuine residents and addressing instances of fraudulent use of public housing assets.”
The findings emerged when officers compared council tenancy records with online listings, uncovering Airbnb profiles showing photos, postcodes, and descriptions matching specific council-owned flats.
What action has Barking and Dagenham Council taken so far?
According to the LDRS report published on MyLondon, two of the ten illegally sublet homes have already been repossessed by the council.
“B&D Reside discovered ten of its homes being advertised for rent on Airbnb between July 2024 and September 2025 and repossessed two of them,” confirmed the Freedom of Information request.
The council’s counter-fraud team has since launched a detailed investigation into remaining cases and is reportedly working with internal legal teams to accelerate repossession processes. However, as Lucy Davis of BBC London previously reported in an October 2025 feature on housing fraud, recovering illegally sublet properties often takes several months due to legal complexities and tenant verification procedures.
Why is Airbnb under scrutiny in this case?
Barking and Dagenham’s counter-fraud officers have encountered difficulties obtaining all the information they need from Airbnb. The council’s spokesperson, cited by the LDRS, said that
“contact has been made with the platform, but details identifying the subletters have not always been forthcoming.”
Critics argue that short-term letting platforms should share data more transparently with local authorities to prevent social housing abuse.
As reported by Sadiyah Choudhury of The Guardian, London councils have been calling for “tighter cooperation between rental platforms and local regulators,” stressing that the lack of transparency “enables the misuse of scarce public housing.”
A spokesperson for Airbnb told The Guardian in response to wider London housing concerns that the company
“takes housing misuse very seriously and supports authorities in tackling illegal activity on its platform where information is lawfully requested.”
What does B&D Reside say about the situation?
In a statement published on their official website, B&D Reside, the council’s affordable housing subsidiary, said that it continues to work to
“tackle the illegal activities of fraudsters and prevent dishonest money-making through sub-letting using online short-term letting platforms such as Airbnb.”
As cited by MyLondon, the organisation emphasised that such acts undermine genuine tenants waiting for affordable accommodation. A spokesperson added:
“Our mission is to ensure fair access to genuinely affordable housing. Exploiting social housing stock for private gain directly harms residents in need.”
How common is housing fraud involving Airbnb in London?
Housing fraud involving Airbnb listings is not unique to Barking and Dagenham. According to an investigation by Liam O’Neill from the Evening Standard in August 2025, at least 119 suspected cases of council homes being illegally rented on short-let platforms were recorded across several London boroughs in the past 18 months.
Authorities across the capital, including Camden, Southwark, and Westminster, have run dedicated anti-fraud programmes. Nonetheless, the scale of the problem remains uncertain due to limited access to online platform data and enforcement resources.
The London Councils group, representing all 32 boroughs, has repeatedly urged central government to grant councils stronger investigative powers against illegal subletting. A report from London Councils (May 2025) stated that
“social housing fraud, including illegal short-letting, costs local authorities an estimated £58 million annually.”
What challenges are councils facing in tackling this issue?
As highlighted by the Local Government Association (LGA) in a 2025 policy briefing, one of the biggest obstacles local authorities face is data-sharing limitation. Without prompt disclosure of rental account information or host IDs, councils cannot verify the individuals posting such listings.
A Barking and Dagenham Council officer told the LDRS that,
“Each property must be handled individually, with due legal process, which slows down recovery timelines.”
They also stressed that some platforms “operate internationally, making jurisdictional enforcement difficult.”
MyLondon’s report further noted that councils often rely on public tip-offs or cross-referencing rent records to identify fraudulent subletting, both of which require time and resources already stretched thin by broader housing demands.
What does this mean for Barking and Dagenham residents?
The discovery has angered many local residents who feel council resources are being misused. Speaking to BBC London, Catherine Morley, a local housing advocate, said:
“People wait years for affordable housing in Barking and Dagenham. Seeing precious council homes used for profit while families struggle is disheartening.”
The borough has one of the longest social housing waiting lists in East London, with nearly 7,000 applicants currently seeking council accommodation, according to the council’s 2025 housing report. B&D Reside’s approach aims to return all unlawfully used homes to the social housing pool as quickly as possible.
What happens next?
The council reaffirmed its commitment to “recover all misused homes and take legal action where evidence supports prosecution.” Although repossession efforts are ongoing, it remains unclear whether any criminal proceedings will be launched against those responsible.
Experts believe the case could shape future housing policy discussions. As Betty Maguire from the Financial Times noted in a November 2025 analysis,
“Councils are under increasing pressure to show taxpayers that public housing is protected. Cases like Barking and Dagenham may push national debate toward stricter regulation of short-term rentals.”
For now, Barking and Dagenham Council insists its mission remains clear. A B&D Reside representative told MyLondon:
“Affordable housing exists for residents in need, not as an income generator for unlawful profiteers. Every property recovered is a step toward fairness and accountability.”
