Ian Ames - accused of 'selling out'

Builders are now renovating the property, which Mr Ames - the author of a book on alternative lifestyle called Journey to Myself - had owned since the hearing last summer.

A Lambeth Council spokeswoman said: "We knew Mr Ames would sell the property as soon as he gained possession."

Squatters' rights

Commonly known as "squatters' rights", a loophole in the 1980 Limitations Act means that anyone occupying a property unchallenged for 12 years may acquire legal ownership.

A nearby property which was also granted to a squatter

But neighbours who supported Mr Ames' legal battle with the council are reported to be dismayed at the turn of events.

"I can't believe it. He's sold out big time," one neighbour who refused to be named told The Guardian.

"Selling his house goes against his whole way of thinking. We were all under the impression he'd carry on living there and that was why he fought the case against the council. To me, it's just greed."

Outrageous

Sculptor Nicola Henshaw, 32, who lived in the same street as Mr Ames, said he was known in the area for wearing mini-skirts and colourful tops.

"I only spoke to him a couple of times but he said he expected to get between �80,000 and �100,000 for the house," she said.

"The last time I saw him he said he wanted to go back home to Australia with the money."

She added: "It's pretty outrageous that the council have allowed him to get away with it - in the end it all comes out of our taxes."