The British National Party (BNP) has lost all 12 of its seats on east London's Barking and Dagenham Council.
Labour gained 19 wards and now has control of all 51 council seats.
The party also took control of Brent, Camden, Ealing, Enfield, Harrow, Hounslow, Islington, Southwark and Waltham Forest.
The Liberal Democrats held Sutton and Kingston but lost Richmond to the Tories, who held on to control of nine boroughs.
There is no overall control in Merton or Redbridge.
Speaker's wife loses
More than 6,000 candidates contested 1,861 seats in 32 boroughs.
The BNP's loss in Barking in the local elections mirrored its defeat in the parliamentary elections where Labour minister Margaret Hodge saw off a challenge by BNP leader Nick Griffin, winning by a majority of more than 16,000.
Mr Griffin came in third place, with 6,620 votes, behind the Conservatives. The Labour Party has been in control of Barking and Dagenham Council since 1964.
In Newham, Labour won all 60 seats.
Sally Bercow, the wife of the Commons speaker John, failed to win a council seat for Labour in Westminster, losing St James's ward to the Tories.
Three borough mayoral elections have also taken place.
Sir Robin Wales, from Labour, has been re-elected mayor of Newham; Jules Pipe, Labour, was re-elected mayor of Hackney and the party's Steve Bullock was re-elected as mayor of Lewisham.
Recounts have delayed the final outcomes until next week at Havering and Lewisham. Tellers were sent home on Saturday morning after marathon all-night counting sessions produced close results in three seats.