The High Court has overturned a controversial 24 per cent rent rise imposed by the Christchurch City Council in a ruling likely to give several thousand tenants an early Christmas bonus, reports Charlie Gates in The Press.

The controversial 24% rise was passed by a majority of city councillors on March 27 and reconfirmed on April 28. It was designed to raise more revenue to upgrade the council's 2649 ageing rental units.

Justice Chisholm ruled yesterday that the April rent rise was invalid and would be quashed — a major legal victory for a welfare group, the Council of Social Services (COSS), which took the action, and for social housing tenants. The ruling means the tenants could be reimbursed any extra rent they have paid since the rise came into effect on July 1.

The judge said the council failed to properly assess the significance of the decision and failed to give proper consideration to the tenants' views. It had also failed to properly consider the implications of a government funding option to help upgrade the housing. As a result, the tenants had been "substantially prejudiced".

Christchurch Mayor Bob Parker has not ruled out an appeal and said the council would investigate if there were grounds for one. If not, it would have to pay back a "reasonably significant amount".

He said the judgment would result in substandard housing as there would be less money to spend on the needed upgrades.