E v Dacorum Borough Council & Anor

E v Dacorum Borough Council & Anor

The First-tier Tribunal erred in law by accepting the local authority's argument that retention of a tenancy deposit could not affect outstanding rent. The correct approach is to consider agreements between landlord and tenant and allow set-off for sums properly incurred. After retention of the deposit and deduction for water charges, only £101.16 remained as outstanding rent.

Parties
Applicant: Ms E; Respondent: Dacorum Borough Council; Interested Party: Mr M
Jurisdiction
England and Wales
Judgment Date
14 February 2017
Procedural Posture
Appeal / Upper Tribunal Judgment
Outcome
Appeal allowed; First-tier Tribunal decision set aside and re-made.
Legal Topics
Housing Benefit, Tenancy Deposit, Rent Arrears, Set Off, Regulation 96 Housing Benefit Regulations 2006
Social Security Housing Law Housing Benefit Tenancy Deposit Rent Arrears Set Off Regulation 96 Housing Benefit Regulations 2006

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Parties

Ms E

Applicant

Dacorum Borough Council

Respondent

Mr M

Interested Party

Procedural Posture

Appeal / Upper Tribunal Judgment

Legal Issues

  1. 1 Whether retention of a tenancy deposit by a landlord can reduce outstanding rent for purposes of regulation 96 Housing Benefit Regulations 2006
  2. 2 Whether eviction-related costs and other claims (cleaning, TV licence, tools, water charges) can be set-off against rent arrears

Ratio Decidendi

The First-tier Tribunal erred in law by accepting the local authority's argument that retention of a tenancy deposit could not affect outstanding rent. The correct approach is to consider agreements between landlord and tenant and allow set-off for sums properly incurred. After retention of the deposit and deduction for water charges, only £101.16 remained as outstanding rent.

Court Disposition

Appeal allowed; First-tier Tribunal decision set aside and re-made.

Orders

  • £101.16 of Ms E’s 2014 housing benefit award is payable to Mr M.
  • £764.22 is payable to Ms E.