A landlady who made thousands of pounds renting out bedrooms in her luxury home with its own swimming pool while claiming benefits has been exposed as a cheat.

Lynne Hampson, of Langley Avenue, Worcester Park, cheated taxpayers out of more than £60,000 by falsely claiming income support and council tax benefit at the same time as renting out the rooms.

She used the money from her five-year scam to pay for a loft conversion, changing her house into a seven bedroom property, which allowed her to rent to more tenants and increase her profits.

The 48-year-old was brought to justice after a tip-off from a disgruntled ex-tenant sparked an investigation by Sutton Council and the Department for Work and Pensions.

The investigation revealed that although Hampson had declared earnings of just £20 a week from renting out the rooms, she actually made up to £540 a month per room.

After pleading guilty at Croydon Crown Court, Hampson could now face jail when she is sentenced on 21 January. She will also be forced to sell her home to repay the money she swindled.

Councillor John Drage, Sutton Council’s spokesman for finance and efficiency, said: “Wrongfully deceiving the taxpayer out of such a large amount of money is a very serious matter, especially at a time when pressures on our budget are so great.

“We will push for the full amount to be repaid promptly so that the money can be used for those in genuine need.”

Anyone who believes someone is claiming housing and council tax benefit they are not entitled to can call the investigation team, in confidence, on 020 8770 5687 or the national benefit fraud hotline on 0800 328 6340 or textphone on 0800 328 6341.