Sovereign Network Group (202341125)

Decision
Case ID	202341125
Decision type	Investigation
Landlord	Sovereign Network Group
Landlord type	Housing Association
Occupancy	Assured Tenancy
Date	12 February 2026

Background

1. The resident lives in a house and pays a fixed service charge covering communal lighting and grounds maintenance. She complained about an increase in service charges, noting that lighting related only to 2 lampposts in the car park, one of which was not working. She felt the charges were excessive and asked how it had calculated them.

What the complaint is about

2. The complaint is about the landlord’s response to the resident’s:
   1. Concerns about service charges.
   2. Reports of faulty car park lighting.
3. We have also investigated the landlord’s complaint handling.

Our decision (determination)

4. We found no maladministration in the landlord’s response to the resident’s concerns about service charges.
5. We found service failure in the landlord’s:
   1. Response to the resident’s reports of faulty car park lighting.
   2. Complaint handling.

We have made an order for the landlord to put things right.

Summary of reasons

Service charges

6. The landlord reviewed the resident’s concerns, obtained an updated meter reading, and issued reduced service charges based on the revised electricity invoice. It clearly explained the new charges and confirmed they would apply to all residents.

Car park lighting

7. The landlord said it attempted repairs in May 2023 and arranged another visit for September 2023, but its repair logs show no evidence that either visit took place. Repairs were completed around March and April 2024, many months after its final response.

Complaint handling

8. The landlord did not respond to the complaint within its policy timescales at stage 2, and it did not adequately remedy the distress and inconvenience caused by the delay.

Putting things right

Where we find service failure, maladministration, or severe maladministration we can make orders for the landlord to put things right. We have the discretion to make recommendations in all other cases within our jurisdiction.

Order

Landlords must comply with our order in the manner and timescales we specify. The landlord must provide documentary evidence of compliance with our order by the due date set.

Order	What the landlord must do	Due date
1	Compensation order   The landlord must pay the resident £125 made up of: £75 for the distress and inconvenience caused by its response to reports of faulty car park lighting. £50 for the distress and inconvenience caused by its complaint handling.   This must be paid directly to the resident. The landlord must provide documentary evidence of payment by the due date.	No later than 12 March 2026

Recommendation

Our recommendation is not binding, and a landlord may decide not to follow it.

Our recommendation
The landlord should inspect the car park lights to ensure they are adequate, if it has not done so already.

Our investigation

The complaint procedure

Date	What happened
22 April 2023	The resident complained that the weekly service charge increased without an explanation. She disputed the costs for lighting and gardening, noting that communal car park lights were not working. She wanted the service charges reduced to the amount it was before.
5 May 2023	The landlord issued its stage 1 response explaining that the service charges reflected recent utility bills and the overall increase in energy costs. It confirmed the estimate calculations were correct, but it had requested an updated meter reading from the supplier. It could not reduce the charges until a new bill was issued but would amend the 2023/24 estimates if the revised bill showed a reduction. It also arranged to inspect the car park lights on 19 May 2023.
11 May 2023	The resident escalated the complaint. She remained unhappy with the service charge for the lighting as it was initially £3 per week now it was almost £12 per week for 1 car park light. She said the only other car park light was condemned.
15 August 2023	The landlord issued its stage 2 response. It said it checked the 2023/24 estimates and the latest meter readings. It explained that the original lighting charge had risen due to a substantial increase in electricity costs and the information available when estimates were set. After receiving an updated meter reading and revised invoice, it recalculated the lighting charge and reduced it to £2.61 per week. It then issued a revised estimate and said it would review whether any refund was due. It would take annual meter readings to improve accuracy. It also reported that its electrical testing team was scheduled to inspect the car park lights on 19 September 2023 after previous unsuccessful visits.
Referral to the Ombudsman	The resident told us told us the landlord increased service charges significantly, including a rise in communal lighting costs, despite no working communal lights. She added that although the landlord later reduced the lighting charge, it still failed to repair the car park lights and then increased the charge again. The resident wanted a refund of 2023’s lighting charges and suspension of future charges until the service was provided.

What we found and why

The circumstances of this complaint are well known by the parties involved, so it is not necessary to detail everything that’s happened or comment on all the information we’ve reviewed. We’ve only included the key information that forms the basis of our decision of whether the landlord is responsible for maladministration.

Complaint	Service charges
Finding	No maladministration

What we’ve not investigated

9. In the resident’s complaint she was unhappy about the level of service charge increase, with no explanation and wanted her service charge reduced. She questioned the charges given, in her view, the poor maintenance of the communal areas including stress lights and maintaining the car park, and overgown shrubs and rubbish, and felt as the service was not being provided the costs were therefore not reasonable.
10. We will not usually consider complaints about the amount of a service charge or any increase in it. If a resident wants to challenge the amount or recover fixed service charges, they should consider taking their dispute to court.
11. However, we can consider how a landlord has handled the administration of the service charge and the complaint. This includes whether it responded to the resident’s queries, gave enough information to explain the charges, and informed the resident of their options if they remained unhappy with the service charge administration.

What we’ve investigated

12. The resident complained that her service charges had increased without explanation and questioned the need for them given the small communal areas. In response, the landlord said it reviewed the charges, obtained updated meter readings, and confirmed reduced communal lighting and electricity service charge costs.
13. The landlord had an obligation to maintain communal areas, including lighting, and any charge had to reflect a genuine service. Its service charge policy required transparency about what services were charged for, how costs were calculated, and how they were allocated. Charges had to follow the tenancy agreement, be reviewed annually using up‑to‑date cost information and be divided only between homes receiving the service.
14. The landlord acted fairly by explaining why charges had risen. It clarified that increased supplier costs and an additional uplift were factored into the estimates. It recognised that while the estimates used up to April 2023 were based on the information available at the time, an updated meter reading was required.
15. The landlord reviewed the resident’s concerns and took proportionate action in response. After it obtained the updated meter reading and received a revised invoice, it recalculated the communal lighting and electricity charges, confirmed the reduction, and arranged to review whether a refund was due. This approach aligned with its policy.
16. After reviewing the revised invoice, it identified the overcharge, confirmed the reduction, and backdated the charges to 3 April 2023. Its statement of account showed the credit adjustment on 14 August 2023 and ongoing lower weekly charges, demonstrating learning from the issue.
17. Although she remained unhappy about the further increase from April 2024, the landlord was entitled to recover the actual cost of the services it provided. In its final response, it said future estimates would be based on accurate readings and committed to obtaining at least one annual meter reading to improve accuracy. It also confirmed that the revised charges applied to all residents in the scheme.
18. Taken together, the landlord responded reasonably to the resident’s concerns. It acted in line with its service charge policy, reduced charges based on accurate information, and applied correct credit adjustments, which the evidence supports. It also consistently explained what the revised charges were and confirmed they applied to all residents.

Complaint	Car park lighting
Finding	Service failure

19. The resident complained that the communal lighting was not working, stating that the car park lighting was faulty. She first reported the issue in April 2023.
20. In response, the landlord said it would inspect the car park lights on 19 September 2023, and that earlier attempts to complete the work in May 2023 had failed due to circumstances beyond its control.
21. However, the repair logs contained no evidence that these May or September 2023 visits took place. In the absence of records, we could not conclude that the landlord attended as claimed. The landlord did not provide an explanation why it could not complete the work in 2023.
22. The repair logs also showed a large gap between a separate work order in April 2023 and December 2023. Numerous blank entries and missing information made it unclear what actions were taken and when. These gaps indicate poor record keeping, noted as a learning point.
23. Works to the car park lights did not take place until March and April 2024, many months after the landlord’s final complaint response. This was almost a year after first reporting the repair and well outside the landlord’s 38‑day target for non‑emergency repairs. These avoidable delays caused the resident distress and inconvenience.
24. However, the resident told us in July 2024 that she felt the car park lights were inadequate. A recommendation has been made in view of this.
25. Although the faulty lights did not directly affect her ability to occupy her home, the prolonged delay caused distress, inconvenience, and unnecessary time and trouble. The landlord failed to resolve the issue within a reasonable timeframe, and the complaint process did not move the repair forward.
26. Overall, the landlord did not act within its repair policy timescales, and the complaint process did not put matters right. Compensation has therefore been ordered to remedy the impact on the resident.

Complaint	Complaint handling
Finding	Service failure

27. The landlord issued its stage 1 response within its 10-working day complaint policy timescales. The resident then escalated the complaint on 11 May 2023. However, it did not respond within its 20-working day timescales for stage 2 complaints, contrary to its complaint policy and our Complaint Handling Code. The landlord eventually issued its stage 2 response on 15 August 2023 – over 60 working days after the escalation without an explanation, apology, or remedy for the delay.
28. Our compensation order reflects the likely distress caused by these delays and is consistent with our remedies guidance, which recommends awards of up to £100 where there has been a minor failing that has not been fully put right.

Learning

Knowledge information management (record keeping)

29. The landlord’s record keeping was inadequate. Key repair information was missing, including inspections it said took place in May and September 2023. Landlords must keep accurate records showing when repairs were reported, inspected, carried out, and completed. Without this, it is unclear what actions were taken or why. The landlord should review our Spotlight report on Knowledge and Information Management and implement its recommendations to improve record accuracy and consistency.

Communication

30. Considering the delay in its stage 2 response, the landlord should review our Spotlight on Complaint Handling, which recommends clear accountability, timely responses, and proactive engagement to resolve concerns early.