An estate agency owned by Westminster City Council arranged the sale of former council homes back to the authority, charging both the sellers and the council.

It is among claims repeatedly put to Westminster City Council, including in a Freedom of Information request.

The FoI request has largely not been answered because, says the letter, it would cost too much and therefore “in accordance with the Freedom of Information Act 2000 this letter acts as a refusal notice”.

But in the letter the council adds: “However, I can advise that in response to the issues you have raised, we will in future be publishing on our website information on all properties bought and sold (to part postcode level) so the public can see details of these properties including any fees paid to CWR.”

CWR stands for CityWest Residential, which is the estate agency arm of CityWest Homes, the property management organisation owned by the council.

The FoI request came from London resident Hannah Fearn, who has been asking questions about council houses both sold and acquired by Westminster City Council through its estate agency.

Fearn claims that when it came to acquiring homes, CWR charged the sellers 1.75% plus VAT, while charging Westminster City Council £5,500.

In other correspondence seen by EYE, dated this September, Westminster Council acknowledges to Fearn that it pays CityWest Homes a flat £5,500 when it secures properties that it can buy. That response adds: “There is no ‘secret profit’ from the sellers. The seller pays the quoted fee to CWR.”

The same response adds: “If the seller wants CWR to market their property, fees are payable. CWR as agent prepare property details and advertise the property.

“The property is then available in the open market and Westminster City Council can view it and consider making an offer. Other people looking for properties can also make offers.”

When it comes to selling off its homes, Fearn alleges that Westminster City Council has paid CWR a fee of £2.5% plus VAT.

She claims that there was no cost exercise or fee comparison with local agents, that 2.5% could be above the going rate, and that it was above what CWR charged other sellers.

EYE asked Westminster City Council about the claims.

A spokesperson told us that it had bought properties, and had paid CWR.

The spokesperson said: “Over the last five years we have bought 92 properties to meet our housing needs; each one purchased means one less family or individual on the housing waiting list.

“CityWest Residential is paid a flat rate to buy these, to cover costs only.”

The spokesperson said it had paid CWR the going rate when selling off its homes.

The spokesperson said: “CityWest Residential is responsible for the sale of properties in Westminster which are no longer fit for our residents.

“To pay for this service, it charges standard market rate estate agency fees of 2.5% which cover valuation, survey, legal and administrative costs.

“Any profit is used to fund CityWest services, whereas if it went to a private estate agent it would be lost.”

It is understood that NTSEAT is looking into the matter, after claims made by Fearn to TPO were passed on to it.

Fearn has also taken up the membership of CWR with the Guild of Property Professionals, because she says it is not independently owned.

In September, Westminster City Council said it would be taking CityWest Residential, together with its estate agency arm, in-house. Until now, they have operated at arm’s length.

In February, CWR was fined £15,000 after Westminster’s own Trading Standards department found failures in how it displayed letting fees.

The fine meant that the agency was placed on the Mayor of London’s blacklist.