Barking Dagenham Housing Fraud Probe Uncovers Crime Links

Key Points

• Police investigation by City of London Police targets housing fraud in Barking and Dagenham, with fears of links to organised crime gangs.
• “Hundreds” of Barking and Dagenham Council-owned homes potentially fraudulently allocated by corrupt housing officers for personal gain.
• Labour councillor Rocky Gill warns of “mass-scale organised fraud – criminality at its highest end”, including possible use of properties for cannabis farms and other illicit purposes.
• Six people arrested so far, including two on 4 September; no charges filed yet.
• Investigation limited to properties owned by B&D Reside, the council’s wholly owned private housing company set up in 2015 for letting and selling affordable homes from regeneration projects.
• Council has amassed £1bn in debt for regeneration, aiming to repay via rent and sales income.
• Council counter-fraud and risk manager Kevin Key describes fraud involving “multiple” housing blocks, with homes used for tenancy fraud including Airbnb listings.
• Fraud methods include false documents for low-income homes and legitimate documents used for non-residential purposes.
• Council recovered 12 fraudulently let B&D Reside homes since April.
• Case deemed “unethical and immoral” by council officials.

Barking and Dagenham (East London Times) January 17, 2026 – A police probe into suspected mass-scale housing fraud at Barking and Dagenham Council has uncovered potential corruption involving hundreds of properties, with councillors raising alarms over organised crime connections. City of London Police revealed that corrupt housing officers may have allocated council-owned homes for personal gain, prompting fears of broader criminal networks exploiting the system. Six arrests have been made, though no charges have followed, as the investigation centres on B&D Reside, the council’s private housing arm.

What triggered the police investigation?

The City of London Police launched the probe after detecting irregularities in property allocations linked to B&D Reside, the wholly owned company established by Barking and Dagenham Council in 2015. This entity manages the letting and sale of affordable homes built under the council’s extensive regeneration initiatives. As stated directly by the police, “hundreds” of such homes could have been fraudulently handed out by “corrupt housing officers for personal gain”.

Labour councillor Rocky Gill highlighted the gravity, suggesting the inquiry might expose “mass-scale organised fraud – criminality at its highest end”. He pointed to possibilities like properties being converted into cannabis farms or other illicit operations, underscoring the potential infiltration by organised crime gangs.

Who has been arrested and what is their status?

As part of the ongoing investigation, the force has arrested six individuals, with two specifically detained on 4 September. No one has been charged to date, and details on the suspects’ identities or roles remain undisclosed pending further inquiries. The Labour-run council emphasised that the matter pertains solely to B&D Reside properties, not its direct council stock.

How extensive is the fraud according to council officials?

Council counter-fraud and risk manager Kevin Key provided detailed insights during an audit and risk committee meeting this week. He described the case as spanning “multiple” housing blocks, where fraudulently let homes had been exploited for “anything you can think of that is linked to housing, tenancy fraud”. Key noted the recovery of 12 such B&D Reside properties since April, signalling proactive measures amid the scandal.

Key further explained the tactics employed: some perpetrators submitted false documents to secure homes designated for low-income residents, while others used legitimate paperwork but harboured “the sole intention of using that property for various things other than living there”. This included listing properties on short-term platforms like Airbnb, diverting them from their intended affordable housing purpose.

What is B&D Reside and its role in regeneration?

B&D Reside was created in 2015 to handle the letting and sales of affordable homes constructed as part of Barking and Dagenham Council’s ambitious regeneration projects. According to the Local Democracy Reporting Service, the local authority has shouldered £1bn in debt to fund these developments, with repayment hinging on rental income and property sales. The fraud allegations now threaten this financial model, casting a shadow over efforts to rejuvenate the area.

Why is this fraud described as unethical and immoral?

Kevin Key labelled the activities as “unethical and immoral” during his address to councillors, reflecting the betrayal of public trust in a system meant to support vulnerable residents. Councillor Rocky Gill echoed this sentiment, framing it as high-level criminality that undermines community welfare. The council’s statement reinforces that the probe isolates B&D Reside, aiming to protect the integrity of broader housing stock.

What measures has the council taken so far?

Since April, the council has reclaimed 12 fraudulently occupied B&D Reside homes, as confirmed by Kevin Key at the recent committee meeting. This recovery effort demonstrates swift internal action alongside police cooperation. The council maintains that its direct housing assets remain unaffected, focusing scrutiny on the private subsidiary.

Could organised crime be involved?

Councillor Rocky Gill explicitly warned of potential links to organised crime gangs, citing the scale as indicative of “mass-scale organised fraud”. He referenced uses like cannabis cultivation, which align with patterns seen in other UK housing scams. City of London Police have not yet confirmed such ties but acknowledged the personal gain motive behind corrupt allocations.

What challenges does the council face financially?

The £1bn debt accrued for regeneration places immense pressure on revenue streams from B&D Reside. Fraudulent lettings erode this income, complicating repayment plans reliant on legitimate rents and sales. The Local Democracy Reporting Service highlighted this vulnerability, noting the council’s dependence on the company’s performance.

How does this fit into broader tenancy fraud patterns?

Kevin Key’s testimony outlined classic tenancy fraud markers: falsified low-income applications and subletting via platforms like Airbnb. These methods bypass eligibility checks, depriving genuine applicants while enabling anti-social uses. The involvement of “multiple” blocks suggests systemic lapses in oversight.

What next steps are expected in the investigation?

With six arrests and ongoing inquiries, the City of London Police continue to probe the extent of corruption. No charges have materialised, but recoveries indicate momentum. The council’s audit processes, as referenced by Key, will likely intensify to prevent recurrence.

Impact on local residents and housing waitlists

Fraudulent allocations exacerbate pressures on Barking and Dagenham’s housing waitlists, where low-income families await support. Recovered properties offer some relief, but the scandal erodes confidence in the system. Regeneration aims to expand stock, yet debt and distrust pose hurdles.

Council response to public concerns

The Labour-run council has isolated the issue to B&D Reside, reassuring residents that core stock remains secure. Statements from officials like Key emphasise recovery and risk management, positioning the authority as vigilant despite the setback.