Learning from severe maladministration – January 2026
Taking the key lessons from our severe maladministration decisions.
On this page
About this report
This report focuses on compensation and what happens when landlords' do not apply it fairly.
Alongside the report, we’ve released new compensation guidance, created with input from landlords and residents. It sets out clear, fair principles to encourage greater consistency across the sector. This guidance takes effect from 1 April 2026.
The report highlights 3 key themes.
- Landlords not applying their own compensation policies.
- Compensation increased after stage 2.
- Significant gaps between landlord offers and our orders.
This page provides a summary of the report. To read the report in full and view the full case examples, please download the PDF.
Helpful Links
Compensation policies not followed
Compensation can be an important part of resolving an issue in many cases. This can be due to failings that have taken place before or during a complaint.
Landlords can offer many remedies. Sometimes compensation is the right choice to reflect the impact on an individual.
Cases highlighted in the full report relating to not following compensation policies:
- London Borough of Southwark 202438144*
- Peabody 202217418, 202336678*
- Home Group 202443954
- Riverside 202340331*
- London Borough of Lambeth 202327080*
- L&Q 202502269*
Learning from compensation policies not followed
An effective compensation policy is essential for landlords. It ensures they can put things right when something goes wrong.
Landlords must build flexibility into their approach. No 2 cases are the same because individual circumstances differ.
A strong set of parameters for compensation ensures consistency. It also empowers staff to make confident offers that help resolve disputes and repair relationships.
Failure to apply the policy correctly in practice can often result in residents seeking help from us. Our new guidance is clear on where landlords should offer financial redress. It also explains how to calculate it. This will help landlords and residents reach agreements earlier without having to access our service.
If a landlord says it will consider compensation when it has more information, it should fulfil that promise. Where a landlord offers compensation, it should pay it quickly.
Increase in compensation after stage 2
In some cases, we have seen a landlord increase the offer of compensation after the stage 2 response. While it is welcome landlords do not give up on a case following its final response, this is still delayed redress for a resident.
Cases highlighted in the full report relating to increases in compensation after stage 2:
- Stonewater 202447159
- Clarion 202321081*, 202441230
Learning from increases in compensation after stage 2
Landlords should put things right for residents during their formal complaint process.
Landlords should review their actions as new information comes to light. They should reflect the increasing impact where an issue continues over time.
However, greatly increasing an offer after our intervention is not reasonable redress.
This approach misses the chance to rebuild trust with the resident during the complaints process. It can also disadvantage residents who decide not to bring their complaint to us.
Significant increases in compensation at determination
In these cases, the difference between the landlord’s offer of compensation and our offer is significant. This is one of the areas we hope the new compensation guidance will improve.
Our Annual Complaints Review shows we award less compensation per case. However, these cases involve payments much higher than average.
Cases highlighted in the full report relating to increases in compensation at determination:
- L&Q 202314975, 202348138
- London Borough of Kingston 202451646*
- Hyde Housing Association 202335613*
- Cornwall Council 202347155*
- Peabody 202450722*
- Hexagon Housing Association 202444542*
- Karibu Community Homes 202427163
- Freebridge Community Housing 202432825*
- London Borough of Haringey 202416895*
- Basildon Council 202407113
Learning from increases in compensation at determination
Landlords should think about a range of factors when offering compensation. This includes:
- the length of time an issue has gone on for
- circumstances of the household
Landlords should consider how unusable rooms affect residents' enjoyment of their home. Other areas include missed appointments and communication failings.
Sometimes landlords only compensate for complaint handling delays. They do not fully consider the main issue behind the complaint.
When complaints have several issues, landlords may compensate for some but miss others. Landlords may also fail to properly look at issues such as temporary accommodation.
Inevitably, where a landlord’s offer of compensation misses parts or does not fully consider others, our awards may be higher. By taking all areas of the complaint into account, landlords can ensure they make fair and proportionate compensation offers and may prevent complaints coming to us.
Sometimes a landlord will believe the lower amount it has offered is acceptable in a case. Or a resident may expect more compensation.
The level of compensation we have ordered is not a reason to request a review of our decision. Landlords or residents should show us new evidence or reasons why the decision should change.
Learning from severe maladministration report
Download the full learning from severe maladministration report to see the case studies in more detail.
Learning from severe maladministration report (PDF)
* We anonymise all decisions, so residents’ names are not used, but landlords are named. In some cases, we may decide not to publish a decision if it is not in the resident’s or landlord’s interest, or the resident’s anonymity may be compromised.
Centre for Learning resources
Our orders
This key topic page explores the variety of orders that we can make to put things right.
Find out more about compensation, ordering a repair to be undertaken or a survey to be completed, as well as apologies and reviews of policy.
Repairs
Complaints about repairs and property condition are the most common topic that we see in our casework.
Explore our reports, case studies and guidance to gain an understanding of how to navigate repair concerns.
Knowledge and information management
Effective Knowledge and Information Management (KIM) is a challenging issue for landlords.
Discover guidance, spotlight reports, and training options to help you understand this key topic.
Temporary moves
This key topic page shares learning from cases involving moving residents to alternative accommodation.
This is either temporarily or permanently and due to significant repairs or their home being unfit for habitation.
Damp and mould
Damp and mould is a reoccurring issue that continually arises in our case work.
Residents and landlords can use this page to find out more about this key topic including guidance, spotlight reports, and training options for landlords.