A WORCESTERSHIRE MP has come under fresh criticism for his expenses - amid claims he could make almost £200,000 profit on a former taxpayer-funded second home.

After the expenses scandal MPs were banned from claiming back mortgage interest payments for their second property, and told they must either rent a flat or stay in a hotel room and claim the costs it back.

But the 2010 clampdown led to many politicians keeping hold of their old second homes to then let out privately, including Sir Peter Luff who still owns a flat in south London as well as renting another elsewhere in the capital.

Estate agents eMoov says 31 MPs due to retire this spring could make £9 million in profits by selling those properties on, including Sir Peter who could get £194,000.

The company says the calculation is based on similar flats in the area being worth £263,757 on average in 2005, with Sir Peter claiming £93,207 back in second home claims in the five-year period before the rule changes.

The flat, which he only actually bought in 2009, is deemed to be worth £458,000 now after rocketing London prices.

Both eMoov and campaign group the Taxpayers' Alliance criticised MPs today, calling the situation "appalling".

But Sir Peter, who represents Mid-Worcestershire, has cast severe doubt on the valuation and says he has no plans to sell the flat anyway.

When he bought it in 2009 he hoped to remain in it during the remainder of his time in the Commons, but moved out to rent another London property for himself after the rule changes, claiming back around £1,600 a month in recent months.

Ironically, he has since said that the rule change means his living arrangements have been more expensive for taxpayers.

The change was decided upon by the Independent Parliamentary Standards Authority (IPSA) after MPs around the country were criticised during the expenses scandal.

EMoov claims some retiring MPs are in line to pocket huge sums by selling their former second homes on.

That includes £504,000 for Suffolk Tory Tim Yeo, £1.4 million for Southampton Labour MP John Denham, £1.8 million for Havant Conservative David Willetts and £554.000 for Labour's George Mudie, who represents Leeds East.

EMoov founder Russell Quirk said: "'As someone who takes an active interest in local and national politics, I am appalled that elected representatives are able to make personal gain from public money.

"The very same people who are struggling to get on the property ladder are forced unwittingly to give MPs a helping hand and I think that is wrong."

There is no requirement on the MPs to pay back the money if they sold the properties on.

Jonathan Isaby, chief executive of the Taxpayers' Alliance, says it shows there are "too many loopholes" in the system.

But Sir Peter today said: "The idea it's taxpayers money is just wrong, it's my flat and I'm certainly not selling it on."

He said he was certain the new valuation was inaccurate and added his expenses meet "all HMRC and ISPA rules".

Sir Peter, a former defence minister, is about to step down fron the Commons after 23 years as an MP.