GreenSquareAccord Limited (202410846)

Background

1. The resident contacted the landlord in March 2024 to discuss an increase in her charges. On investigation the landlord found the increase was because of a deficit in the service charge from 2022/2023.
2. The resident referred her case to us in June 2024 as she was unhappy with the landlord’s explanation and did not think it was fair to be charged for the landlord incorrectly estimating the service charge. She asked for the to waive any deficit and not apply the increase.

What the complaint is about

3. The complaint is about the landlord’s response to:
   1. concerns regarding an increase in charges to cover service charge arrears.
   2. the resident’s complaint.

What we have not looked at

4. The resident says the services covered by the service charge are of a poor standard or not carried out. As this issue has not been raised through the landlord’s complaints process, the landlord must be given a fair opportunity to respond. The resident should raise this as a new formal complaint if she wishes to pursue this matter.

Our decision (determination)

5. We found there was reasonable redress regarding an increase in charges to cover service charge arrears.
6. We found no maladministration in the landlord’s handling of the complaint.

We have not made orders for the landlord to put things right.

Reasons

Increase in charges due to service charge arrears

7. The evidence shows the landlord acted in line with the lease and its policies when it increased the resident’s rent to recover service charge arrears. The Service Charge Policy explains that service charges are collected on an estimated basis. Any shortfall identified at year end is carried forward and recovered through future charges, rather than being demanded immediately. This approach is supported by section 7.6 of the lease, which allows the landlord to certify the difference between estimated and actual costs and recover any deficit.
8. The rent account statements from 2022 to 2024 show that service charge adjustments were routinely applied each October. The deficit from the 2022/2023 period was calculated and clearly set out in a detailed breakdown sent to the resident in a letter dated 20 September 2023. The landlord’s actions regarding the service charge arrears were fair, and in line with its policies and the lease.
9. In its complaint responses, the landlord addressed the resident’s concerns and clearly explained the reasons for the increase and the arrears. It provided a detailed breakdown of the service charge and explained the difference between the estimated and actual figures. This was reasonable.
10. However, the landlord did not communicate effectively between March and May 2024. After the resident contacted the landlord in March 2024, it did not return her calls within its 7-day timescale. This occurred on at least 2 occasions. The landlord also said its Home Ownership Team would contact the resident, but this did not happen. These failings led the resident to make a complaint.
11. The landlord acknowledged these communication failures at stage 1 and stage 2 of its complaints process. It apologised and paid the resident £150 compensation in June 2024 to recognise the impact of the failings. This amount was in line with both our remedies guidance and the landlord’s compensation policy.

Complaint handling

12. The landlord operates a 2‑stage complaint process, with target timescales of 5 working days to acknowledge complaints, 10 working days to respond at stage 1, and 20 working days at stage 2. In this case, the landlord responded at both stages within these timescales. It also answered all of the resident’s questions clearly and in an easy‑to‑understand manner.