A Crawley councillor who pleaded homelessness while letting out four London flats will continue to represent his ward.

Dennis Wallis was found to have breached the local government code of conduct by the council's standards committee.

Council colleagues who met last night to discuss what action should be taken against Coun Dennis Wallis were told he had quit his executive post by email two days earlier.

But he is free to continue to sit as a councillor until the 2004 elections unless the Labour Party decides to expel him.

Council and Labour group leader Chris Redmayne said: "I received an email from Coun Wallis at 9pm on Monday tendering his resignation.

"Despite this, the council still had to discuss the decision of the standards committee, which we ratified.

"What we have not done yet is discuss it within the Labour group. They may have their own investigation and keep Coun Wallis in the party or the whip may be withdrawn."

Two months ago the council's standards committee ruled unanimously that Coun Wallis had breached the national code.

At the end of a two-day hearing, the committee told Coun Wallis it regarded the breaches as so serious it was recommending the council remove him as executive member for continuous improvement and development.

The committee was told Coun Wallis, 46, of Caroline Court, Southgate, Crawley, failed to declare he owned four London properties, which were let to tenants when he applied to the council for temporary housing accommodation after becoming homeless.

Coun Wallis has consistently denied any wrongdoing and said he had made a mistake filling in the application form which asked if he had any interests in properties.

He told the hearing he had a legal title to the properties but they were bought to supplement his father's pension and had been put into Coun Wallis' name to avoid death duties.

He was unavailable for comment this morning.

A council spokeswoman said: "It is the first time it has happened here. We do expect a high standard from our councillors. The electorate has to have confidence in members."