Decision

Rugby Borough Council (44UD) - Regulatory Judgement: 27 May 2026

Updated 27 May 2026

Applies to England

Our Judgement

	Grade/Judgement	Change	Date of assessment
Consumer	C3 Our judgement is that there are serious failings in the landlord delivering the outcomes of the consumer standards and significant improvement is needed.	Based on previous assessment	February 2026
Rent	Our judgement is that there are serious failings in the landlord delivering the outcomes of the Rent Standard and significant improvement is needed.	New judgement	May 2026

Reason for publication

We are publishing this regulatory judgement for Rugby Borough Council (Rugby BC) to confirm that there are serious failings in how Rugby BC is delivering the outcomes of the Rent Standard and significant improvement is needed. This regulatory judgement follows responsive engagement with Rugby BC.

Prior to this regulatory judgement, the consumer grade for Rugby BC was last updated in February 2026 to confirm a C3 grade following an inspection. Our assessment of Rugby BC’s consumer grade remains unchanged, and we are continuing to work with Rugby BC as it addresses the identified issues.

Summary of the decision

From the evidence and assurance gained during the inspection which concluded in February 2026, we found that there are serious failings in Rugby BC delivering the outcomes of the consumer standards and significant improvement is needed, specifically in relation to the outcomes in our Safety and Quality Standard and Transparency, Influence and Accountability Standard. Based on this assessment, we concluded a C3 grade for Rugby BC.

Since then, from evidence and assurance gained through our responsive engagement, we have also concluded that there has been serious failings in how Rugby BC is delivering the outcomes of the Rent Standard. Rugby BC overcharged a large number of tenants and former tenants over a prolonged period due to errors it made in setting rents.

How we reached our judgement

We carried out an inspection of Rugby BC, which concluded in February 2026, to assess how well it is delivering the outcomes of the consumer standards, as part of our regulatory inspection programme. During the inspection we considered all four of the consumer standards: Neighbourhood and Community Standard, Safety and Quality Standard, Tenancy Standard, and the Transparency, Influence and Accountability Standard.

During the inspection we observed Rugby BC’s Performance, Risk and Assurance Group. We met with tenants, officers, the leader of Rugby BC and the portfolio holder for housing. We also reviewed a wide range of documents provided by Rugby BC.

Alongside the inspection, and in response to information from our annual rent data review, we carried out responsive engagement with Rugby BC that focused on issues related to rent setting. This responsive engagement included reviewing documents and information provided by Rugby BC, and follow up meetings and discussions with Rugby BC.

Our judgement is based on all the relevant information obtained during the inspection and responsive engagement, as well as analysis of information received through routine regulatory returns and other regulatory engagement activity.

Summary of findings  

Consumer – C3 – February 2026

The Safety and Quality Standard requires landlords to have an accurate record at an individual property level of the condition of their homes, based on a physical assessment of all homes, and to ensure that homes meet the requirements of the Decent Homes Standard. Rugby BC has used an external company to complete stock condition surveys for 86% of its homes, however Rugby BC currently only holds partial information from these surveys, so is unable to fully analyse the results. Rugby BC reports that over 99% of its homes meet the Decent Homes Standard, however this figure has not been checked against the stock condition survey information. We have concluded that this is a weakness in Rugby BC’s assurance that it fully meets the requirements around the condition of its homes, which it needs to address. We will continue to engage with Rugby BC as it seeks to understand the quality of its homes and uses the information to inform its improvement programmes.

The Safety and Quality Standard also requires landlords to identify and meet all legal requirements that relate to the health and safety of tenants in their homes and communal areas and ensure that all actions arising from required health and safety assessments are conducted within appropriate timescales. Overall, we have assurance that Rugby BC is meeting the legal requirements that relate to the health and safety of tenants in their homes and communal areas, although there are some identified weaknesses, which it is addressing. Rugby BC identified 800 homes with Electrical Installation Condition Reports over five years old and has implemented an accelerated inspection programme to complete these. There are also 600 homes without a smoke alarm, and Rugby BC is using a range of initiatives to gain access and complete installation. We also identified a weakness in its approach to tracking and reporting safety remedial actions. Rugby BC has plans to address this through the implementation of a new asset management system. We will continue to engage with Rugby BC as it completes these improvements.

We found serious failings in Rugby BC meeting one of the outcomes of the Safety and Quality standard, which requires landlords to deliver an effective, efficient, and timely repairs service. Prior to the inspection Rugby BC made a self-referral to us following a third-party assessment that highlighted issues relating to the accuracy and completeness of information relating to repairs. During the inspection Rugby BC was unable to demonstrate it had an accurate understanding of how its repairs service was performing. Rugby BC reported that issues were in part due to a lack of integration across its systems. We were therefore unable to gain assurance that the required outcomes were being delivered. Rugby BC has recognised that improvements are needed and has procured a new single asset management system to hold repairs information and ensure accurate reporting. We will continue to engage with Rugby BC as it makes these improvements.  

The Neighbourhood and Community Standard requires that landlords must work in partnership with appropriate local authority departments, the police, and other relevant organisations to deter and tackle anti-social behaviour and hate incidents in the neighbourhoods where they provide social housing. Through the inspection we saw evidence that Rugby BC deals effectively with anti-social behaviour and hate incidents in line with its policy and procedures and in partnership with relevant organisations.

In relation to the Tenancy Standard the inspection found evidence that Rugby BC is offering tenancies or terms of occupation that are compatible with the purpose of the accommodation, the needs of individual households, the sustainability of the community, and the efficient use of their housing stock. Rugby BC has a lettings policy that sets out its approach to ensuring all properties are let in a fair and transparent way and that it considers the needs of its tenants and prospective tenants.

The Transparency, Influence and Accountability standard sets out the outcomes that landlords must deliver about being open with tenants and treating them with fairness and respect so that tenants can access services, raise complaints, influence decision making and hold their landlord to account. During the inspection we identified a serious failing in relation to tenant engagement and scrutiny. We do not have assurance that Rugby BC is engaging with tenants in a way that allows them to influence how Rugby BC delivers its services. The inspection found a limited range of opportunities for tenants to scrutinise their landlord’s performance and influence how its housing services are delivered, and we do not have assurance that these opportunities were meaningful. Rugby BC told us it is implementing a new framework for tenant engagement, and we will continue to work with it as it makes these improvements.

We also found weaknesses relating to the requirements around fairness and respect, meeting diverse needs and the provision of service and performance information. While we observed a respectful approach to tenants during our inspection, Rugby BC does not hold sufficient information to demonstrate that it understands the diverse needs of its tenants or how its services deliver fair and equitable outcomes for tenants. Rugby BC provides a range of service and performance information in its tenants’ newsletter, which is sent to every tenant. However, the inspection found numerous examples of poor usability and outdated information on Rugby BC’s website. Rugby BC has acknowledged the issues with its website, and we will continue to work with Rugby BC as it develops and delivers its improvement plan across all these areas of weakness.

Rugby BC has made changes to its complaints handling service and during the inspection we gained assurance that these changes have impacted positively on response times and tenant satisfaction in relation to complaints. Rugby BC was also able to evidence that it analyses and learns from complaints via a quarterly Lessons Learned Clinic, and that learning from complaints has led to service improvements.

Rugby BC has been engaging constructively with us. It has an understanding of the issues it needs to address and is taking action to rectify the failures and weaknesses identified. We are engaging with Rugby BC as it continues to address the issues set out in this judgement. Our engagement will be intensive, and we will seek assurance that Rugby BC is making sufficient change and progress, including ongoing monitoring of how it delivers its improvement programme. Our priority will be that risks to tenants are adequately managed and mitigated. We are not proposing to use our enforcement powers at this stage but will keep this under review as Rugby BC seeks to resolve these issues. 

Rent – Serious failings in delivering outcomes - May 2026

Through our annual review of rent data, we identified a potential failure by Rugby BC in delivering the outcomes of the Rent Standard. Specifically, Rugby BC applied a general rent setting approach that failed to apply the correct property valuations as the basis for formula rent.

During Rugby BC’s ongoing investigation into the issue, when it applied the correct property valuations it identified that approximately 4,000 tenancies had been overcharged, totalling approximately £415k. Rugby BC informed us that a small number of tenants who were evicted had an overcharge on their rent account at the time of the eviction. These overcharges range from 0.2% to 48.9% of their arrears, and Rugby BC has told us that these are the approximate values and it is unable, at this time, to confirm the exact position.

Rugby BC has confirmed that new tenancies are now charged at the correct rent, and that rents have been corrected for those tenants previously overcharged so further overcharges do not occur. Rugby BC is continuing to investigate the issues and has sought external legal support to inform its plan to correct the errors. Rugby BC has advised us that it is starting work to confirm the refunds due to individual tenants.

Taking into account the extent of these issues and the potential impact on tenants, we have concluded that there are serious failings in how Rugby BC is delivering the outcomes of the Rent Standard.

Rugby BC continues to engage constructively with us as it addresses the issues that led to this situation. Our engagement with Rugby BC is intensive and we will seek evidence to give us the assurance that sufficient change and improvement is being made. Our priority will be that any relevant risks to tenants are adequately managed and mitigated, and that affected tenants have appropriate redress.

Background to the judgement

About the landlord

Rugby BC owns and manages 3,448 social and affordable rent homes, with 1,223 independent living homes. 

Our role and regulatory approach

We regulate for a viable, efficient, and well governed social housing sector able to deliver quality homes and services for current and future tenants.  

We regulate at the landlord level to drive improvement in how landlords operate. By landlord we mean a registered provider of social housing. These can either be local authorities, or private registered providers (other organisations registered with us such as non-profit housing associations, co-operatives, or profit-making organisations). 

We set standards which state outcomes that landlords must deliver. The outcomes of our standards include both the required outcomes and specific expectations we set. Where we find there are significant failures in landlords which we consider to be material to the landlord’s delivery of those outcomes, we hold them to account. Ultimately this provides protection for tenants’ homes and services and achieves better outcomes for current and future tenants. It also contributes to a sustainable sector which can attract strong investment. 

We have a different role for regulating local authorities than for other landlords. This is because we have a narrower role for local authorities and the Governance and Financial Viability Standard, and Value for Money Standard do not apply. Further detail on which standards apply to different landlords can be found on our standards page. 

We assess the performance of landlords through inspections and by reviewing data that landlords are required to submit to us. We also respond where there is an issue or a potential issue that may be material to a landlord’s delivery of the outcomes of our standards. We publish regulatory judgements that describe our view of landlords’ performance with our standards. We also publish grades for landlords with more than 1,000 social housing homes. 

The Housing Ombudsman deals with individual complaints. When individual complaints are referred to us, we investigate if we consider that the issue may be material to a landlord’s delivery of the outcomes of our standards.  

For more information about our approach to regulation, please see Regulating the standards.

Further information 

• Regulating the standards 

• Regulatory standards for landlords