Hampshire residents have launched a European court battle that could see millions of pounds of council house rent being repaid by the Government.

The residents from Winchester are trying to stop Westminster taking one third of rental income from the district's council housing.

If they win, it could force the Government to return hundreds of millions of pounds taken from across the UK.

Alan Rickman, who chairs Winchester tenants' group, Tact, has revealed the European Court of Human Rights in Strasbourg is to hear the case.

"It could mean that the Government will have to return the money it's taken from all the councils. It is exciting that it's getting off the ground," he said.

Westminster currently takes a slice of the rent from local authorities with the aim of giving it to poorer areas where council housing struggles to break even.

Winchester, which has around 5,000 such properties and average weekly rents of £80.81p, does not benefit from the scheme. One third of the money paid by tenants - around £8m per year - goes to Westminster.

Cllr Tony Coates, Winchester City Council Cabinet member for housing, said rents in the district had risen 27 per cent in the last five years, but the amount given to Westminster soared by 50 per cent. Meanwhile, the Government cash for housing repairs had only increased by eight per cent.

"We've survived up until last year, but it's quite clear that for next year there will be greater pressures."