A contractual loophole that could cost social landlords millions of pounds in rent losses is set to be reviewed by the Law Lords.
The House of Lords is allowing Riverside Housing to appeal a ruling that, by changing a fixed rent review date in its tenancy agreements, the Liverpool landlord invalidated four annual rent increases.
In December, the Court of Appeal upheld a challenge by Gary and Ellen White, tenants at Riverside’s Brampton Court in St Helens, to a possession order issued by Riverside over £900 in rent arrears.
The court said that Riverside had breached the couple’s tenancy contract by changing the review date from June to April to align with the financial year and with Housing Corporation and local authority practice.
The ruling meant that the Whites, along with 5,000 other tenants holding the same assured tenancy agreement with Riverside, could return to levels set in 1999, recouping consequent overpayments by withholding rent a move predicted to cost Riverside £7m.
Riverside has until the end of February to lodge the petition of appeal.
Riverside Housing Association Ltd v White and another House of Lords (Lord Hoffmann, Lord Scott and Lord Walker) 27 February 2006.
References: EGi Legal News 28/02/06
