Regulator finds serious failings at council after 4,000 tenancies overcharged rent

The RSH said Rugby had applied a general rent setting approach that failed to apply the correct property valuations as the basis for formula rent.

It became clear that – when the correct property valuations were applied – approximately 4,000 tenancies had been overcharged, totalling approximately £415,000.

The council told the Regulator that a small number of tenants who were evicted had an overcharge on their rent account at the time of the eviction, ranging from 0.2% to 48.9% of their arrears.

Rugby has confirmed to the RSH that new tenancies are now charged at the correct rent, and that rents have been corrected for those tenants previously overcharged so further overcharges do not occur.

“Rugby BC is continuing to investigate the issues and has sought external legal support to inform its plan to correct the errors. Rugby BC has advised us that it is starting work to confirm the refunds due to individual tenants,” the judgement said.

Cllr Claire Edwards, Rugby's Portfolio Holder for Communities, Housing and Safety, said: “Rugby Borough Council identified this historical issue through our own investigation and reported it to the Regulator.

“We apologise that this happened. During our ongoing work, we identified the potential for approximately 4,000 tenancies to have been potentially overcharged, totalling approximately £415k.

“A small number of tenants who were evicted potentially had an overcharge on their rent account at the time of the eviction, and we take that extremely seriously.”

Cllr Edwards added: “These figures remain approximate and further verification work is ongoing, including independent review, and final confirmed positions will be established through that process.

“Tenants will be kept informed throughout and where tenants have been overcharged, we will put it right.”

Three housing providers have meanwhile received consumer grades of C1 in the latest judgements from the RSH.

Sanctuary Housing Association, Railway Housing Association and Regenda all achieved the highest mark, with Railway and Sanctuary being upgraded following noted improvements.

Chief of Regulatory Engagement Kate Dodsworth said: “Our job is to hold landlords to account and drive continuous improvement to ensure tenants get good quality homes and effective services. Getting a top grading shows a landlord is meeting our minimum standards – and there’s always room to do better.

“It’s really encouraging when we see landlords listening, acting on our feedback and making the necessary changes to deliver better quality homes and a better service for their tenants.”

Harry Rodd