Rent Rise Publication Error Lost Council £380,000

Pembrokeshire has lost £380,000 in revenue as a council tenants’ rent rise was not correctly publicised in the appropriate time, councillors heard.

Tenants have a statutory two-month period of notice before any rent rises, which were due to take place from April 1, can come into effect.

However, statutory rent increase notices were only delivered to tenants in late March, delaying the time of rent increases to July 1.

Back in late March the council stated: “It has come to the council’s attention that the statutory rent increase notice has only been delivered to tenants over the last couple of days.

“Therefore, as tenants have not received the required statutory notice, rent will not increase from April 1, 2023.

“We are currently investigating this matter with our external contractors who print and post on our behalf.”

Questions on the rent rise not being publicised in time were received at the May meeting of Pembrokeshire County Council’s full council, from Councillor Aled Thomas, Councillor Mark Carter, and Councillor Delme Harries.

Councillor Mark Carter asked: “At the end of March this year an announcement was made that the required two month written notice of the April 1 rent rise to all council tenants had not been correctly made.

“Given that a new letter would have to be drafted, it has now been suggested that the rent increase cannot be implemented until July 1 this year.

“A rough calculation suggests that the rent increase would provide an extra £500,000 for that three-month period.

“Could the Cabinet member please confirm how much the exact loss of rental income over the mentioned three-month period is?

“Please provide exact details how and from whom, this sum of money will be recovered if PCC is not to suffer the loss caused by this error?

“Clarify why this mistake was not spotted or members were not made aware until a few days before the rent increase should have been implemented?”

Councillor Delme Harries asked broadly similar questions on the “embarrassing situation on the failure of delivering rental proposals”.

He also asked: “Does this failure to deliver notices impact the further notice period of rent increases?

“What lessons have been learnt and remedial action taken?”

Cllr Thomas had raised concerns those paying by direct debit would be unfairly penalised.

Responding, Cabinet Member for Housing Operations & Regulatory Services Cllr Michelle Bateman said the council had lost some £380,000 and an investigation was currently being undertaken with the council’s print and postage supplier.

Members heard the council only became aware of the issue after being contacted by council tenants, taking remedial action to reissue notices.

Members were told rent increases would now take place every July due to the error.

Cllr Carter said: “This problem is here to haunt us every year; is it correct that every year forward we’re going to be three months late getting the rent?”

Cllr Bateman confirmed there was a statutory period of 365 days before any further rent changes could take place, adding the council was currently working to see if there was any way of recovering the money.