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How many tenants are affected?  

At this stage we believe the majority of our tenants will be affected in some way.

How did this mistake happen?

The Government has guidelines for calculating social housing formula rents, using a set formula. We believe the Council did not apply this guidance as it should have, and based rents on an average capital value for each property by bedroom size rather than the individual capital value of each property.

What is my new rent?

It will take some time to recalculate our formula rent charges, but we aim to contact our tenants again within eight weeks.  At this time our Customer Services staff will not be able to tell you the correct formula rent for your property and the correct formula rent may be higher or lower than your existing rent.  If it is lower, you may be entitled to a refund.  If it is higher we will not move you directly onto this new rent, but will apply any increase in line with Government policy.

Will my rent increase once I move from an Introductory Tenancy to a Secure Tenancy? 

No, if you have been undercharged for your rent, the amount you pay will stay the same when you move onto a secure tenancy

How long has this been going on for?

We know this is a historic issue, however the exact period that we need to address will be confirmed when investigations have concluded.

How much money has been over paid?

Investigations are underway tenants who have overpaid will be advised as soon as possible. 

How much has been under paid?

We are still investigating this. However, at this stage we do not intend to claim back any money owed as a result of our undercharging. We will write to all tenants affected to let them know if they have been overcharged or underpaid when the full facts are known.

Will I owe the Council any rent money if my rent was calculated too low?

It is not our intention to claim back any money from underpayments. However, it is likely that once a tenancy agreement comes to an end, new charges will come into effect for that property.

What do I do if I can’t afford my rent?

Recalculated rents, which are higher than existing rents, will only come into effect once a current tenancy agreement ends. Tenants may receive an annual increase in their rent in line with Government policy.

Anyone struggling to pay their rent should contact their Income Neighbourhood Officer for support by calling 01884 255255 or emailing htenancy@middevon.gov.uk

I have not received a letter, am I affected?

We have sent letters to all our current tenants who are on formula rent. If you have not received a letter, but believe you should have, please email rentcorrections@middevon.gov.uk with your full name and tenancy address.

When will I get my money back and how much will I get?  

The amount of overpayment is currently being calculated, the Council needs to take into account if part or all  of your rent was paid via Universal Credit or Housing Benefit, checks will also be made to see if there are any arrears owed to the Council. All tenants will be contacted by the Council with advice on next steps, we are aiming to do this within the next eight weeks.

What if I moved out years ago?

Former tenants may also have under or overpaid rent. We will be contacting former tenants, whose details we have. However, if you are a former tenant please contact rentcorrections@middevon.gov.uk providing your name and previous address and a correspondence address for where you live now, this will ensure we can send you a letter once our investigations have been completed, if you are affected.

Will my benefit be affected?

Claimants should not contact DWP or the Council benefits team directly and await further communications.

Your benefit may be affected by the change to your rent charge.  It may cause an under or overpayment of Housing Benefit.

We will let you know of any changes to your entitlement as soon as we are able.

If you are in receipt of Council Tax reduction your entitlement may be affected if you are in receipt of Universal Credit.  We will need to wait to hear from Universal Credit of any changes to your entitlement before we know if your reduction will be affected.

Should I stop paying my rent?

No, you should continue to pay your rent as normal.  Until we have made the corrections on our computer system and worked with DWP on any benefit overpayments we will not know how much is owed to you. If you are struggling financially please contact your Income Neighbourhood Officer for support and advice.

When should I amend my direct debit?

You should not make any changes at this time. We will contact you with full details as soon as possible.

Who is the Regulator of Social Housing? (RSH)

The RSH regulates the social housing sector to ensure quality homes and services are delivered for current and future tenants. They have the power to take action against social landlords where they fail to meet regulatory standards, hold providers to account and conduct regulatory inspections of social landlords every 4 years. Landlords can self-refer to the RSH if they believe they are in breach of the regulatory standards. To find out more about the RSH: Regulator of Social Housing - GOV.UK

What is a self-referral to the RSH?

Social landlords can self-refer to the RSH when they believe they may not be delivering the outcomes of regulatory standards. In this case, this is what Mid Devon District Council have done due to being non-compliant with the Rent Standard. The RSH will review the information we have provided, assess what we have done to fix the issue and what we plan to do. They will then look at this evidence and issue a regulatory judgement.

Do the underpayments affect my Council Tax?

No, the rent collected through the Council’s housing stock is separate to the General Fund where Council Tax sits. The Council’s housing stock is funded through the Housing Revenue Account and has no affiliation with Council Tax. It is important to note that any rental income from Council properties is always ring fenced into the Housing Revenue Account, which by law, must be used solely for Council housing purposes. This means our rental charges do not have an impact on any other Council service or charges.

 

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