Two Arrested in London Housing Bribery Scandal – As Fresh Allegations Surface in Hartlepool

A housing corruption scandal in London has led to questions about similar activities taking place in Hartlepool....

6th Sep 2025

A corruption scandal at the heart of London’s affordable housing system has sparked fresh questions much closer to home following claims Housing Officials on Teesside are regularly manipulating the housing system allowing applicants to jump priority queues. .

City of London Police confirmed two arrests this week were made after uncovering what they describe as “blatant advertising” on social media offering desperate tenants a shortcut to beat the queue for council homes. Investigators say “evidence exists” that hundreds of properties in the east London borough of Barking and Dagenham were fraudulently allocated in this way...

According to a report recently published by Sky News, police say prospective tenants were forced to pay bribes – branded “finder’s fees” – and in some cases inflated rents. Some payments were channelled through the council, whilst others disappeared into private pockets.

Officers also believe that corrupt housing staff worked with associates to sublet properties for profit, exploiting families already trapped in overcrowded or insecure housing.

Dominic Twomey, leader of Barking and Dagenham Council, said the arrests followed months of intelligence gathering:

“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.”

But housing campaigners say this is just the tip of the iceberg. Activist Kwajo Tweneboa warned that similar schemes are operating across the country:

“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. 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.”

The scandal comes against a backdrop of spiralling waiting lists. Government figures show more than 1.3 million households are now on England’s housing registers, up six per cent in just one year. In Barking and Dagenham alone, families face waits of over 15 years for a three-bedroom property.

Allegations in Hartlepool

Its claimed similar corruption is occurring at Hartlepool Borough Council

The Teesside & Durham Post has been investigating concerns raised by a whistleblower from within Hartlepool Borough Council, where, the insider claims applicants who fail to use “intermediary” services – usually charities who are being funded by the council itself – are being deliberately pushed down the waiting list.

Its claimed applicants, we deemed “not credible” unless their housing applications were processed via one of the council’s authorised charitable partners. The TDP is aware of at least two such organisations operating within Hartlepool, but cannot name them at this stage due to ongoing investigations.

If true, it raises serious concerns about whether access to affordable housing in Hartlepool is being steered through favoured channels – potentially disadvantaging vulnerable residents who do not, or cannot, engage with those charities.

A National Pattern?

The London arrests shine a harsh light on the mechanics of corruption inside council run housing departments. With over a million families trapped on waiting lists and local councils under mounting pressure, the space for exploitation has never been wider.

What's worrying is that the situation emerging in Barking and Dagenham could well be mirrored in towns such as Hartlepool – where whistleblowers now allege that “authorised” charities, backed with council funding, are acting as gatekeepers to housing support.

The question is whether the same culture of pay-to-play, favouritism, and quiet profiteering is quietly eroding trust in council-run housing systems nationwide.