North Devon Homes (202332031)

Background

1. The resident holds a joint tenancy with her partner. She receives housing benefit which is paid to the rent account in arrears. The resident is registered on a choice based lettings scheme (CBL) as she was seeking a move to another property. On 20 September 2023 the landlord wrote to the resident to inspect the property to identify any works required before she moved. The letter stated the rent account must be up to date for the landlord to consider her as ready for a move if she was successful in obtaining a new property via CBL. The letter also included a guide which outlined tasks the landlord expected residents to complete before leaving the property, such as cleaning and removing floor coverings.

What the complaint is about

2. The complaint is about the landlord’s administration of the resident’s rent account.
3. This investigation has also considered the landlord’s complaint handling.

Our decision (determination)

4. There was no maladministration in the landlord’s administration of the resident’s rent account.
5. There was no maladministration in the landlord’s complaint handling.

Summary of reasons

Administration of the rent account

6. The landlord acted in line with its policy, acknowledged the impact of the housing benefit payment cycle, and took proportionate steps to explain its position about the arrears on the account. It offered the resident practical options such as a payment plan and support, to help the resident take steps to keep the account up to date.

Complaint handling

7. The landlord responded to the complaint in line with the timeframes in our Complaint Handling Code (the Code).

Our investigation

The complaint procedure

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.

What we have not looked at

8. In the resident’s initial complaint, she raised other issues which she did not escalate to stage 2 of the landlord’s complaint process. In the resident’s referral of the complaint to us, she confirmed her outstanding complaint was about the rent account. Therefore, this investigation has focused on the landlord’s administration of the rent account.

The landlord’s administration of the rent account

9. Housing benefit is paid into the resident’s rent account every 4 weeks in arrears. During the intervals between the housing benefit payments, weekly rent charges continue to accrue, leaving the account in arrears until the next payment.
10. Within the 12 months before the resident’s complaint, the landlord sent the resident a payment reminder on 27 April 2023. This stated the rent account was in arrears and should not go into debt between payments. On 28 April 2023 the landlord apologised for the letter, acknowledged the resident received full housing benefit every 4 weeks, and confirmed it marked the rent account as being in receipt of full housing benefit.
11. It was important for the landlord to recognise the resident’s housing benefit payment cycle. Leaving a note on the account ensured staff were aware of this arrangement, preventing unnecessary arrears letters and reduced the risk of avoidable distress or confusion for the resident.
12. The resident complained that the landlord’s letter dated 20 September 2023 contained intimidating content about rent arrears and the need to leave the property in a specific condition.
13. In the landlord’s complaint response, it explained the letter was part of its new ‘transfer ready’ guidance for residents on the CBL scheme. It said the letters were the result of a customer scrutiny review of its voids process. The landlord said the information within the letter about rent arrears and the guidance it provided, was intended as advice. It said the content of the letters was not intended to be intimidating for residents. It apologised that the resident felt otherwise. It also confirmed its customer scrutiny group were developing guidance about the process and apologised it did not send the guidance to the resident prior to its letter.
14. Our assessment of the landlord’s responses to the complaint has found it was reasonable for it to explain the purpose of the proposed inspection. While the landlord said the letter was not intended to be intimidating, it nevertheless apologised for the resident’s perception and acknowledged prior guidance would have been helpful. The landlord’s statement in the letter about rent arrears aligned with the CBL scheme requirements, which include checks on rent being up to date. The landlord’s guidance on how residents should leave the property, reflected its aim to complete works before tenancy end in order to avoid recharges. This demonstrates the landlord had adopted a proactive approach to managing the end of the tenancy process. Its letter to the resident set this out.
15. The resident complained she received constant threats from the landlord to address the arrears on the account, despite being a recipient of full housing benefit.
16. The landlord’s response explained the housing benefit payment cycle caused the account to fall into arrears between payments. Under the tenancy terms, the resident is responsible for keeping the account up to date, which was the reason the landlord suggested a payment plan. It also offered support through its income team to help the resident achieve this.
17. The evidence demonstrates the landlord’s response was in line with its income collection policy. This policy confirms the landlord expects residents to pay their rent on time regardless of whether they receive benefits. The landlord acknowledged housing benefit was paid in arrears, it explained the impact of this on the rent account and its expectation under its policy for residents keep payments up to date. The landlord offered a practical option for the resident to avoid the rent account falling into arrears when it suggested a payment plan.
18. The evidence shows following the landlord’s final response, it visited the resident to discuss her options for financial assistance. The landlord also referred the resident to its internal financial support services and signposted the resident to external agencies for financial assistance.
19. Overall the evidence shows the landlord explained how the rent account was regularly falling into arrears as a result of the housing benefit payment cycle, it clarified why it required the rent account to be up to date and offered the resident options, including a payment plan, along with appropriate support to work towards this. There was no maladministration in the landlord’s administration of the rent account.

20. The landlord has a 2 stage complaint process with timescales that align with the Complaint Handling Code (the Code). The Code requires landlord’s to log complaints within 5 working days and respond to complaints within 10 working days at stage 1 and 20 working days at stage 2.
21. The landlord provided its formal response at both stages of the process within the appropriate timescales. There was no maladministration in the landlord’s complaint handling.

Learning

22. The landlord’s offer to inspect the property prior to the resident’s move indicates it has taken a proactive approach to managing the end of tenancy process with residents.
23. The landlord acknowledged it could have sent the request for it to inspect the property in preparation for her move, after it provided guidance about its ‘transfer ready’ process. It confirmed plans to develop guidance around its ‘transfer ready’ process, which was a reasonable step and demonstrates it has taken learning from this complaint.

Knowledge information management (record keeping)

24. The landlord has demonstrated good record keeping in relation to its management of the resident’s rent account.

Communication

25. The landlord maintained good communication with the resident and provided clear guidance on the importance of keeping the rent account up to date.