AN EX-CHILDREN'S home in Isleworth is to be sold off due to massive financial mismanagement by Hammersmith & Fulham Council who own the property, it was revealed this week, though a mystery remains over who currently uses the site.

An accounting error was discovered in December last year, at Hounslow's neighbouring borough, and public finance experts brought in soon discovered undeclared costs in roads and housing departments, amounting to a budget deficit of £5.4 million.

The shortfall is to be met by selling off council owned buildings, including More House, in The Grove, Isleworth.

The three-storey detached property with extensive grounds, and a basketball court currently operates as the Lillie Road Centre, though it remains unclear what the centre is used for.

A spokesperson for Hammersmith & Fulham Council said: It's been a property we've been leasing for a number of years. We were going to sell it anyway and the current difficulties have brought the issue to a head.''

He was unable to reveal who the leaseholders were, and could only say it had been closed as a children's home for two years.

He added that it was not unusual for local councils to own property outside of their boundaries, and that the home's closure was the result of a general trend away from children's homes to foster caring.

As for the attractive building in the leafy part of Isleworth, he felt: It's too early to say who we're selling it to, or how much it is worth.''

A spokesperson for Hounslow council said children from the borough had been housed in the home by Social Services, but the last time this happened was in 2001.

No-one from the Lillie Centre was available for comment this week.

A public inquiry has been called by Conservative councillors in Hammersmith & Fulham over the accounting debacle, which has seen the Direct Services director resign, and two assistant directors lose their jobs, though at this stage there is no question of fraud.