The young man was discovered sleeping next to a gas meter during an early morning raid of the property - writes standard.co.uk.
Eleven more sleeping spaces were discovered – with bunk beds crammed into single rooms.
Newham Council inspectors raided the house as part of a scheme to ensure that all private rented properties in the borough are licensed.
Officers also uncovered fire and electrical safety hazards.
Six tenants were reportedly found living in the property and said the monthly rent was £1,500, or £250 each.
The room, much like Harry Potter’s famed first bedroom, was uncovered on a raid of three properties.
Elsewhere the team found a shed structure in Upton Park where three people were each paying £200-a-month in rent.
The alleged shed was split into eight rooms, over three floors, which were shared by four families.
All the rogue landlords involved will be issued financial penalty notices (FPNs), which can be up to £30,000 per offence.
The Mayor of Newham, Sir Robin Wales, said: “It cannot be right in the 21st century, in one of the world’s wealthiest cities, a young man is being forced to pay hundreds of pounds to rent a cupboard under the stairs, sleeping alongside the gas metre.
“The scenes we saw on this visit are a timely reminder that, while by tackling bad landlords we are driving up standards, there is still much to do.”
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