Peabody Trust (202412165)

Background

1. The landlord sent the resident an estimate of the 2024/25 variable service charges in March 2024. The resident questioned the managing agent scheme fee and asked for a clear breakdown of the services included. He also requested a Microgeneration Certification Scheme (MCS) certificate for his Smart Export Guarantee application. He brought his complaint to us because the landlord could not provide or fund the certificate and, in his view, did not give sufficient information about the managing agent scheme. He said he wants the landlord to supply or pay for the certificate and clearly explain what the managing agent scheme fee covers.

What the complaint is about

2. The complaint is about:
   1. the landlord’s response to a request for information about charges for a managing agent scheme
   2. a missing MCS certificate
   3. a deficit accrued in 2018 which was reflected in the 2020/21 accounts

Our decision (determination)

3. We have found the following complaints are outside our jurisdiction and we have not investigated them:
   1. the concerns about a missing MCS certificate
   2. the resident’s request for information about a deficit accrued in 2018 which was reflected in the 2020/21 accounts
4. We have found there was maladministration in its response to a request for information about charges for a managing agent scheme.

We have made orders for the landlord to put things right.

Reasons

Request for a MCS certificate and information about a deficit accrued in 2018

5. Our scheme rules state we may not investigate complaints that were not raised with the landlord within a reasonable time, normally within 12 months. The resident said he became aware of the missing MCS certificate around July 2021 and was aware of the deficit accrued in 2018 from around December 2020. He did not raise a formal complaint until 25 May 2024. There is no evidence he raised either issue promptly or within 12 months of becoming aware of them, and we have not seen evidence he was prevented from complaining sooner. For these reasons, we will not investigate the complaint about the missing MCS certificate or the complaint about the deficit accrued in 2018.

Request for information about charges for a management agent scheme

6. On 14 March 2024 the resident received estimated charges for 2024/25, which included a £17.46 management agent scheme (MAS) fee. On 2 April 2024 he asked the landlord for a breakdown of what this charge covered, such as a budget or list of services. He repeated this request in his formal complaint on 25 May 2024 and again on 3 June 2024 because the landlord had not responded. The landlord’s failure to give any information for more than 2 months was unreasonable and left the resident frustrated as he could not get clear or transparent details about the charge.
7. On 13 June 2024 the landlord said the MAS fee included an 8.9% uplift from the previous year. In its stage 1 response on 17 June 2024 it told the resident the £17.46 was an estimated charge and that the actual amount would be confirmed when invoices were received in September 2025. It said it could not give a breakdown until then as it did not have details of the services covered. The resident escalated his complaint in June 2024. In the stage 2 response, the landlord repeated that it could not provide a breakdown of services covered until it received the actual invoices in September 2025.
8. It was unreasonable for the landlord to say it did not know what the charge covered. Even estimated charges must relate to specific services provided under the lease, such as grounds maintenance, cleaning or lighting. The landlord must be able to explain what services the estimate included and the budgeted costs. Its lack of transparency was unfair and caused the resident inconvenience.
9. The resident said the landlord’s inability to explain the charge caused him distress, and he remains unsure about the services he will receive. This continues to cause him some worry. Our remedies guidance says that where a failure has affected the resident but has no permanent impact, compensation of up to £600 may be appropriate. In this case, £250 is suitable to recognise the distress and inconvenience caused. This is to recognise the prolonged period where no clear information was provided. We have also asked the landlord to clearly set out what the MAS fee covers, including a summary of the specific services included.

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.

Orders

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