Mid Devon District Council is repaying over 1,200 tenants after discovering years of rent miscalculations across its housing stock. The error, identified by auditors in 2024, led to overcharges lasting up to six years and will cost the council an estimated £1.8 million.
The case has also prompted a review of around 70 past evictions where inflated rent arrears may have played a role. The council has referred itself to the Regulator for Social Housing and is assessing possible compensation.
Rent Error Affects More Than 1,200 Tenants
Mid Devon District Council has begun reimbursing tenants following the discovery of a long-term housing rent miscalculation. According to the council, more than 1,200 renters were overcharged—some for as long as six years—due to an error in how rents were calculated across its housing stock.
The issue, identified in 2024 by newly appointed auditors Bishop Fleming, stemmed from a blanket application of a rent formula without considering property size. The mistake also led to around 1,600 tenants being undercharged. Those in this category will not be asked to repay the difference, and their rent will remain unchanged unless their tenancy changes.
The council confirmed it took immediate corrective action once the error was identified. “Following the discovery of our housing rent error the council took immediate steps to rectify the error and this work remains ongoing.” said Simon Newcombe, Head of Housing and Health at Mid Devon District Council.
According to Newcombe, all affected tenants were notified by the end of 2024, and rent levels were corrected from January 2025 onwards.
Refunds and Evictions Now Under Scrutiny
The council has earmarked £1.8 million to reimburse tenants who overpaid, with refunds being backdated up to six years—the maximum statutory limit for such claims. The process is being rolled out in stages, beginning with tenants who received no housing benefit or Universal Credit.
Refunds for those in receipt of housing-related support are expected to take longer due to required coordination with the Department for Work and Pensions.
In parallel, the council is reviewing approximately 70 historical eviction cases where rent arrears—potentially inflated by overcharging—played a role.
According to the Local Democracy Reporting Service (LDRS), some of these evictions were solely based on rent arrears, while others included additional factors such as anti-social behaviour, unauthorised property use, or tenancy fraud.
The council maintains that mitigation factors could protect it from liability, including the fact that rent levels were agreed with tenants and remained within expected social housing parameters. Legal advice received by the council also suggests that its obligation is limited to repaying six years’ worth of overcharges.
Although refunds are being prioritised, the council has stated it is also considering compensation in certain cases. Each tenant will be contacted once their individual entitlement is calculated. The wider review of evictions is expected to follow after the refund programme concludes.
