SWINDON Council has launched an investigation into the undercharging of rents that may have cost it millions of pounds in lost revenue.

The problem came to light by accident after a man in a sheltered housing complex complained that he was paying more than some of his fellow residents.

The anomaly at the Peter Furkins Court sheltered housing complex in Westcott Place has led to the council looking at rent levels across the 11,300 properties it owns.

The amount of rent paid by tenants depends on the type and location of their home and the individual's financial situation, which is determined by a points system.

Coun John Taylor (Lab, Central), who has raised the issue with the council, believes mistakes may have been made in the way tenants are categorised, leading to many of them be charged the incorrect rent.

He says that even a small percentage of people being charged just £5 per week less than appropriate could have cost the council millions of pounds over the last few years.

He believes the anomalies may have remained unchanged since at least 1997, the year when Swindon became a unitary local authority.

He said: "I was staggered that such a basic error could have gone undetected for five years or more.

"The financial implications for the council in lost rent have still to be calculated.

"I have been assured that a report is being compiled by council officers right now.

"There are 33 such group dwellings in Swindon and 11,300 council properties, and the points system operates in all of them. This has the potential to cost millions of pounds."

Swindon Council spokes-woman Sarah Deacon said the matter was being looked at. However, she insisted that it came to light earlier this month when the council switched from an old-style points system to a new system for calculating rents.

She said: "Officers are currently preparing a report."

Labour Group leader Sue Bates (Gorse Hill and Pinehurst), said she understood the number of anomalies was minute, while council leader Mike Bawden (Con, Old Town and Lawns) and LibDem spokesman Matthew Pearce both said the issue would be investigated.

Coun Taylor said: "A lot of money may have been lost by the council's revenue department and I am pressing for answers. "This money could have been spent on other projects to improve the quality of council housing."

Swindon Council awards points for matters such as disability when considering its rents.

The points are used to calculate any discounts that should be given to tenants.

Residents of sheltered housing pay an average of about £50 per week.

General rent for council housing ranges up to about £380 per month for better apartments in the 19-storey David Murray John Tower in the town centre.