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."
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