Council responds to historic rent compliance issue
The council has identified errors in how some target rents were applied over a number of years, which may have resulted in some tenants being overcharged. The issue was identified through work to improve the council's housing services and has since formed part of the Regulator of Social Housing's regulatory engagement with the council. This followed the Regulator's published judgement of 27 May 2026.
The council has appointed an independent organisation to provide expert assurance. This work includes reviewing rent overcharges, the method used to identify who is affected, rent-setting arrangements, rent policy, and how service charges are managed.
Rent calculations have now been corrected for current charges, and further work is under way to establish the full extent of the issue and determine the appropriate way forward.
Alongside this, the council is reviewing tenancy enforcement cases where action against historic rent arrears may have been affected. This review will, on a case-by-case basis and with appropriate legal advice, consider whether any rent overcharge contributed to arrears or to enforcement decisions taken.
Cllr Claire Edwards, Rugby Borough Council Portfolio Holder for Communities and Homes, Regulation and Safety, said: "We recognise the seriousness of this issue and the concern it may cause for tenants.
"Rent should always be calculated correctly, and we are sorry that this has not happened in every case.
"Our priority is to establish the full facts and ensure the work is carried out carefully, fairly and transparently. That is why we have commissioned independent assurance alongside our own review.
"We are also strengthening our processes and controls as part of our wider housing improvement programme.
“While there is still work to do, we are committed to learning from what has happened and rebuilding confidence in our housing service."
The council continues to work closely with the Regulator of Social Housing as it delivers its housing improvement programme and strengthens its arrangements to help prevent similar issues occurring in the future.