# Can the council use my housing benefit and council tax details to check overcrowding?

- Jurisdiction: United Kingdom
- Practice area: Tenancy Law
- Published: 2026-10-22
- Last updated: 2026-10-22
- Canonical: https://lawasked.com/uk/tenancy-law/can-council-use-my-housing-benefit-council-tax

## Question

I live in a rented flat in Manchester, England. In January 2025, the council contacted my landlord and said my flat might be overcrowded after receiving a complaint from a neighbour. The landlord then asked me to explain why there are five adults and three children living in the property. I have been there since June 2023 and pay £1,150 a month in rent. My landlord says the council asked for information about housing benefit and council tax records, although I have not been asked to provide anything myself.

I have already sent my landlord a copy of my tenancy agreement, a letter from the council, and my household details. I also called the council twice in February 2025, but was told the housing team could not explain what information had been shared. The council has not told me whether it is checking overcrowding, investigating an offence, or simply carrying out a housing review.

I am worried because I receive £286 a month in housing support and my council tax is still being collected. Can the council use information it already holds about my housing benefit and council tax for a housing-related investigation, and is it allowed to pass that information to my landlord? I would also like to know what complaint or evidence the council is relying on and whether I can see the relevant correspondence.

## Summary

Section 237 allows a local housing authority to use housing-benefit and council-tax information it already holds, but only for specified housing functions or investigations of specified offences. It does not by itself authorise the council to disclose that information to your landlord, so that question depends on other powers and data-protection rules not supplied. Overcrowding notices apply only to HMOs and carry procedural safeguards and an appeal route.

## Analysis

**1. What section 237 says.** The operative power is that "A local housing authority may use any information to which this section applies" [cite:uk-housing-act-2004-sec237]. Section 237(1) then limits the purposes to those "connected with the exercise of any of the authority's functions under any of Parts 1 to 4 in relation to any premises", certain other listed functions, and "investigating whether any offence has been committed" under those provisions [cite:uk-housing-act-2004-sec237]. Section 237(2) says the section "applies to any information which has been obtained by the authority in the exercise of functions under" section 134 of the Social Security Administration Act 1992 (housing benefit) or Part 1 of the Local Government Finance Act 1992 (council tax) [cite:uk-housing-act-2004-sec237].

*Interpretation (not statutory text):* On its face, section 237 covers housing-benefit and council-tax information the council already holds. Whether the council's enquiry about your household fits one of the listed purposes depends on facts we do not have, including what function or offence the council is pursuing.

**2. Use versus disclosure.** Section 237 is a power to "use" information. The supplied text does not say that the council may disclose such information to a landlord [cite:uk-housing-act-2004-sec237].

*Interpretation (not statutory text):* The supplied sections therefore do not establish whether passing information to your landlord was lawful. That question is unresolved on the material provided. It may depend on a separate statutory gateway, a common-law power, or data-protection law. Data protection law (the UK GDPR and the Data Protection Act 2018) is not among the supplied sections, so it is noted here as an area to check, not as a settled conclusion.

**3. Overcrowding notices.** The overcrowding-notice provisions apply to an HMO that is not under an interim or final management order and is not required to be licensed [cite:uk-housing-act-2004-sec139]. Whether your flat is an HMO is not stated in your question and must be confirmed. If it is an HMO, the authority "may serve an overcrowding notice" if, "having regard to the rooms available, it considers that an excessive number of persons is being, or is likely to be, accommodated in the HMO concerned" [cite:uk-housing-act-2004-sec139].

*Interpretation (not statutory text):* A preliminary enquiry is not the same as service of a notice. The supplied sections do not say how a preliminary enquiry must be conducted, so whether you are entitled to see the complaint or evidence at that stage is an open point on this material.

**4. Procedural safeguards before a notice.** The authority "must, at least 7 days before serving an overcrowding notice" inform "in writing every relevant person" of its intention, and must ensure that, "so far as is reasonably possible, every occupier of the HMO concerned is informed" [cite:uk-housing-act-2004-sec139]. It must then give those persons "an opportunity of making representations" [cite:uk-housing-act-2004-sec139].

*Interpretation (not statutory text):* These duties apply once the authority intends to serve a notice. They do not, on the supplied text, impose a duty to disclose the complaint or evidence earlier.

**5. Appeal.** "A person aggrieved by an overcrowding notice may appeal to the appropriate tribunal within the period of 21 days beginning with the date of service of the notice" [cite:uk-housing-act-2004-sec143].

*Interpretation (not statutory text):* The 21-day period runs from service of a notice, so there is no deadline until a notice exists. The notice itself should be checked for its date of service and the tribunal it specifies.

**6. Your correspondence.** The supplied sections do not give you a general right to inspect the neighbour's complaint, the evidence relied on, or all internal correspondence before a notice is served. Your right to request information may instead arise under data-protection law, which is outside the supplied sections and should be checked.

**Other law.** State, regional, or local rules may add further information-sharing, review, or enforcement requirements, and these should be checked alongside the Housing Act 2004 provisions supplied.

## Statutory citations

- Housing Act 2004, Section 237 - Use of information obtained for certain other statutory purposes [in force] (https://www.legislation.gov.uk/ukpga/2004/34/section/237)
  > A local housing authority may use any information to which this section applies
- Housing Act 2004, Section 139 - Service of overcrowding notices [in force] (https://www.legislation.gov.uk/ukpga/2004/34/section/139)
  > The local housing authority may serve an overcrowding notice on one or more relevant persons if, having regard to the rooms available, it considers that an excessive number of persons is being, or is likely to be, accommodated in the HMO concerned.
- Housing Act 2004, Section 143 - Appeals against overcrowding notices [in force] (https://www.legislation.gov.uk/ukpga/2004/34/section/143)
  > A person aggrieved by an overcrowding notice may appeal to the appropriate tribunal within the period of 21 days beginning with the date of service of the notice.

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