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A landlord could face prosecution after a squalid garage in Hackney was rented out as a “studio flat” for more than £1,000 a month.

Two people were found living in the small brick building in Brooke Road, Clapton, which was converted into living space even though it was damp and had no front door or heating.

Hackney council officers investigated the property, which was marketed as a one-bedroom studio flat, and found it had no planning permission and did not meet building regulations.

One “wall” inside the building was made from wooden shutters previously used for car access in one of a number of planning breaches found.

The council issued the landlord with a prohibition order to stop it being used as a flat and warned of criminal prosecution or an unlimited fine if it is ignored.

Tenants living inside the garage were moved to alternative accommodation.

Hackney’s deputy mayor, Cllr Philip Glanville, said: “Those who seek to exploit the demand for housing in Hackney to rake in cash through illegal conversions like this should not doubt that we will follow through on our warnings of enforcement action.

“This landlord had barely made any attempt to meet even the basic standards we expect, and we’ll continue to monitor this property to ensure it can’t be used again in this state.

“We will prosecute those who break the law when necessary and always press for the strongest penalties.”

The council has asked residents to sign a petition calling on the Government to update legislation to protect private tenants.