Criminal investigation launched into Airbnb key worker home ‘scandal’, council says

The property at the heart of the investigation is still listed on Airbnb. Image: Oberon Copeland

A criminal investigation has been triggered into the alleged fraudulent use of a council-funded property in Hackney destined for a disabled key worker, the Local Democracy Reporting Service (LDRS) understands.

In December, the Citizen received reports of a potential “scandal” after locals became aware of a fully-accessible bungalow-style home, built by Peabody housing association with Town Hall funding, being let on Airbnb.

Resident Mary Pimm said she raised this with Peabody CEO Ian McDermott immediately after spotting the adaptable home listed on the holiday website.

Pimm told the Citizen: “It seems to us that this is a failure of due diligence by both the housing association and the council.”

The local authority gave the housing association £1.5 million in Right-to-Buy receipts to build several developments, including the property in question.

This funding was provided on the condition that the new homes were at “affordable” rent, and that the fully-accessible home be let to a disabled key worker.

After residents brought the issue to the attention of Dame Meg Hillier MP, she subsequently wrote to constituents assuring she had approached Hackney Mayor Caroline Woodley about the “concerning situation”.

Independent Socialist councillor Penny Wrout told the Citizen last week that she had since met with the mayor, who was “shocked” to see that the listing was still on the website.

A Hackney Council spokesperson said: “There is a criminal investigation into this property, which means we cannot comment further at this stage. We are working with Peabody to support the investigation.”

A Peabody spokesperson added: “As a not-for-profit housing association with a strong social purpose, we are of course totally against anyone fraudulently obtaining affordable housing that’s there to help people in genuine need.

“We treat all reports of this nature incredibly seriously and are carrying out an investigation into these allegations alongside partners.”

The Citizen understands from the Town Hall that Peabody carried out the formal assessment of the tenancy applications.

The council spokesperson said most social landlords use “similar processes to assess prospective tenants”, including “checking eligibility against qualifying documentation provided by an applicant”.

But the Citizen also understands that the council’s Living Rent team provided the key worker nominees for Peabody to choose from, and that the mayor has now asked for this process to be reviewed.

The Metropolitan Police has been contacted for more information regarding the investigation.