The Commons foreign affairs committee has strongly criticised the Foreign Office's transactions in the property market.

In attempts to save money, officials often managed to make a loss.

In New York, the attempt to recoup £6 million by moving the consul general's residence from its prestigious building overlooking Fifth Avenue to an apartment block resulted in a loss of £380,000.

The committee also discovered that the Foreign Office lost out on a potential profit of at least £4 million when it sold the residence of the Dublin ambassador, then changed its mind and bought it back again.