‘Small number’ of tenants evicted had rent overcharges ranging from 0.2% to 48.9% of arrears
A borough council charged incorrect rents to 4,000 tenants, the Regulator of Social Housing (RSH) said in a judgement published today.
Rugby Borough Council, which manages around 4,600 properties, has been found non-compliant with the RSH’s rent standard as a result.
Today’s judgement said the council applied a “general rent setting approach” that “failed to apply the correct property valuation for the basis of formula rent.”
RSH said around 4,000 tenancies have been overcharged, totalling £415,000. RSH said a “small number” of tenants who were evicted had an overcharge on their account ranging from 0.2% to 48.9% of their arrears.
RSH said: “Rugby Borough Council has told us that these are the approximate values and it is unable, at this time, to confirm the exact position.”
It added: “Taking into account the extent of these issues and the potential impact on tenants, we have concluded that there are serious failings in how Rugby Borough Council is delivering the outcomes of the Rent Standard.”
RSH said the council has now confirmed tenancies are being charged the correct rent.
It said: “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.”
RSH said the council continues to engage constructively as it addresses the issue.
Kate Dodsworth, chief of regulatory engagement at RSH, said: ”We expect to see clear evidence of meaningful improvement, with a firm focus on managing risks to tenants and ensuring those affected receive appropriate redress.”
The council also holds a low ‘C3’ consumer grade, meaning there are serious failings. In February, an RSH judgement said the council made a self-referral after a third-party assessment highlighted issues relating to the accuracy of repairs information.
The RSH found the council commissioned stock condition surveys for 86% of its homes but only holds partial data so cannot fully analyse the results.
In other judgements today Sanctuary was upgraded to the highest ‘C1’ consumer rating after improving its repairs service. Railway Housing Association and Regenda also received the top C1 grading.
Latest RSH regulatory judgements
| Landlord | Consumer grade | Governance grade | Viability grade | Rent |
|---|---|---|---|---|
| Railway Housing Association | C1 (upgrade) | G1 (based on previous assessment) | V2 (based on previous assessment) | - |
| Regenda | C1 (first grading) | G1 (upgrade) | V2 (unchanged) | - |
| Rugby Borough Council | C3 (based on previous assessment) | - | - | New judgement |
| Sanctuary Housing Association | C1 (upgrade) | G1 (based on previous assessment) | V2 (based on previous assessment) | - |
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