Hundreds of homes owned by Barking and Dagenham Council's property company could have been allocated to organised criminal gangs, an investigation has revealed.

An investigation by the City of London Police has found that housing owned by B&D Reside could have been fraudulently allocated to gangs by the council.

Labour councillor Rocky Gill told the BBC the investigation could reveal ‘mass-scale organised fraud’, such as the use of properties for cannabis farms.

Detective Inspector Adam Maskell from the Domestic Corruption Unit (DCU) of the City of London Police confirmed the investigation was ‘ongoing’ and was focused on identifying the key players involved.

‘We continue to work closely with partners in local government to progress the investigation, which relates to matters that have a significant impact on public services and local communities,’ he added.

A spokesperson for B&D Reside said: 'We are pleased to confirm that Reside has been able to provide the investigating authorities with corroborating information that has helped these cases proceed effectively. Our cooperation has been instrumental in ensuring that the relevant evidence was available to support the investigative process.

'It is important to note that Reside is not being investigated. As a responsible housing managing company committed to providing affordable homes to those in genuine need, we maintain a zero-tolerance approach towards any form of tenancy abuse. We are committed to combating tenancy fraud, and we will continue to work collaboratively with all relevant authorities to identify and address any instances of abuse within our housing portfolio.'