A hard-working dad was made redundant after being placed in temporary council housing more than 140 miles from his office.
The man, who wishes to remain anonymous, was working two jobs to support his family when he was offered a home in Birmingham, West Midlands.
At the time, he told officers at Merton Council, where he lived in London, that taking up the accommodation would put him at risk of redundancy.
However the council failed to take action.
An investigation by the Local Government and Social Care Ombudsman found Merton Council did not take into account the man's employment status.
The Local Democracy Service said adjudicators also found evidence that the man told the council he was finding it hard to keep up his job, but the council did not consider moving him closer to his employment.
The man gave up one of his jobs and faced increased travel costs to keep the other.
"Had the council listened to the man's concerns, it is likely he would not have been placed so far away from his work," said King.
"I have previously talked about how the pre-conceived ideas of homelessness no longer ring true, and we've seen people in work come to us with complaints about their councils' housing support.
"This is another example of the kind of problems experienced in today's housing situation."
Merton Council later apologised and said it accepted the ombudsman's findings.
The council has now been asked to review the way it places people in temporary accommodation.
A Merton Council spokesman said: "We have complied with the Ombudsman's ruling in full and have reviewed our procedures in line with the recommendations made."
The local Liberal Democrats have called for a review of all residents who have been housed more than 90 minutes outside London in the past two years.
Councillor Paul Kohler said: "We need to go further and investigate why we are housing people so far from their relatives and friends in the first place.
"Moving families to places where they know no-one is hugely stressful and disruptive and Merton should be avoiding doing so whenever possible."
