COUNCILLOR Graham Chapman said the council had attempted to take action over some of the homes which the Audit Commission said were allocated wrongly. These included:

Looking to see if houses could be repossessed under the Housing Act 1985. But Mr Chapman said based on the evidence available there was "negligible or no prospects for success."

One case was investigated to see if the council could remove a tenancy from someone suspected of having another home. Mr Chapman said not enough evidence had come to light but the case would remain under review.

There will be investigation to see if secure tenancies were invalid because they had been given outside normal procedure. However, this avenue was recently tested by Birmingham City Council but did not stand up in the court of appeal.

The council is "contesting" one council house which was wrongly allocated and then bought under the right-to-buy policy. Mr Chapman said the council had secured a "charging order" on another home owner. This was after the owner was wrongfully given a discount when they bought their home. They must now pay more than £11,000 back, plus £250 in costs.

Mr Chapman said the council had contemplated action against a former senior manager. However, he added: "It had been concluded that such proceedings carrying a significant risk of failure and or non-recovery of damages sufficient to match the city council's likely costs."