Ombudsman Finds Council at Fault in Landlord Tenant Dispute and Orders Remedy?

The Local Government and Social Care Ombudsman has ruled against a council following a complaint from a landlord, identified as Mrs X, who faced delays and financial strain after the council failed to rehouse her tenant. The decision, released today, highlights the council’s failure to adhere to statutory homelessness guidance, resulting in significant frustration for Mrs X. The council has agreed to apologise and pay £400 to remedy the injustice.

Mrs X lodged her complaint after the council advised her tenant, referred to as “Z,” to remain in her property despite her issuing a notice to seek possession in early 2023. This followed Z’s accumulation of substantial rent arrears. A court granted a Possession Order in August 2023, mandating Z’s departure by late September. However, the tenant remained in the property, reportedly on the council’s advice, until bailiffs evicted them in April 2024. Mrs X argued that the council’s inaction led to lost rental income, additional costs, and emotional distress.

The Ombudsman’s investigation found the council at fault for not considering whether it was reasonable for Z to continue occupying the property, as outlined in the Homelessness Code of Guidance. This statutory guidance, while not legally binding, advises councils to assess factors such as the landlord’s intentions, the tenant’s preferences, and the financial implications of prolonged occupancy. The Ombudsman noted that the council had limited contact with Mrs X during the possession process and failed to explore resolutions that could have allowed Z to remain or be rehoused sooner.

“The council did not follow good administrative practice,” the Ombudsman’s decision stated. “Its failure to engage with Mrs X and assess the situation properly left her with significant uncertainty about whether she could have regained her property earlier.”

While the Ombudsman could not definitively link the council’s fault to Mrs X’s financial losses—due to variables involving Z’s potential actions and third-party decisions—it acknowledged the distress and frustration caused. To address this, the council has agreed to issue a formal apology and a symbolic payment of £400 within one month. The council must provide evidence of compliance to the Ombudsman.

The investigation also revealed that the council has recently undertaken training to address such shortcomings, a step the Ombudsman praised as a proactive measure, leading to the withdrawal of an additional training recommendation.

Mrs X had raised concerns about the council’s knowledge of Z’s financial difficulties dating back to 2022, but the Ombudsman declined to investigate this aspect, deeming it a late complaint under the Local Government Act 1974. Instead, the focus remained on events from early 2023 onward.

This case underscores ongoing challenges in balancing tenant rights with landlord interests under homelessness legislation. The Ombudsman’s ruling serves as a reminder to councils to diligently apply the Homelessness Code of Guidance to avoid undue hardship for all parties involved.

The council has not yet commented publicly on the decision but is expected to comply with the agreed actions by mid-April 2025.