Sovereign Network Homes (202209696)

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REPORT

COMPLAINT 202209696

Sovereign Network Homes

25 January 2024


Our approach

The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This is set out in the Housing Act 1996 and the Housing Ombudsman Scheme (the Scheme). The Ombudsman considers the evidence and looks to see if there has been any ‘maladministration’, for example, whether the landlord has failed to keep to the law, followed proper procedure, followed good practice, or behaved in a reasonable and competent manner.

Both the resident and the landlord have submitted information to the Ombudsman, and this has been carefully considered. Their accounts of what has happened are summarised below. This report is not an exhaustive description of all the events that have occurred in relation to this case, but an outline of the key issues as a background to the investigation’s findings.

The complaint

  1. The complaint is about the landlord’s handing of the resident’s rent account, and the resulting legal action due to rent arrears.

Determination (jurisdictional decision)

  1. When a complaint is brought to the Ombudsman, we must consider all the circumstances of the case as there are sometimes reasons why a complaint will not be investigated. 
  2. After carefully considering all the evidence, we have determined that the complaint, as set out above, is not within the Ombudsman’s jurisdiction.

Summary of events

  1. The resident is a shared owner of a house, and the landlord is the freeholder.
  2. In January 2022, the landlord wrote to the resident advising it was going to take legal action against him, due to rent arrears.
  3. The resident complained to the landlord in February 2022 about an alleged error in its calculation of his rent and service charge, and its decision to take legal action against him. The landlord’s response acknowledged a historical error in its rent calculation, and explained £3,152.92 was credited to the rent account in January 2021. It explained the payment of rent and service charges was a condition of the lease. It said it had sent a total of 11 arrears letters since 2011, explaining it would take legal action, if the arrears were not cleared.
  4. The resident was dissatisfied with the landlord’s stage 1 complaint response and escalated his complaint to stage 2. The landlord issued its stage 2 complaint response in April 2022 and restated its position relating to the rent error. It also explained that, while the incorrect amount was on the resident’s rent account, he had not paid it and was not out of pocket. It offered the resident £50 in compensation for the inconvenience of an inaccurate rent account. It explained that the matter was with its legal team, as it was pursuing legal action.
  5. The landlord issued a claim to the County Court in August 2022, and a hearing took place on 6 September 2022. The resident submitted a defence to the court outlining concerns about the landlord’s handling of the matter, and an alleged heavy handed approach. The court issued a judgement on 6 September 2022 ordering the resident to pay the landlord the outstanding arrears, and “contracted costs”. The resident and landlord signed payment plan agreement on the same day.
  6. The resident contacted this Service on 6 October 2022, and asked the Ombudsman to investigate his complaint.

Reasons

  1. The Housing Ombudsman Scheme (the Scheme) sets out the Ombudsman’s jurisdiction to consider complaints brought before this Service. In particular, paragraph 42 sets out an exhaustive list of the type of complaints the Ombudsman will not consider.
  2. Paragraph 42(e) of the Scheme states that the Ombudsman will not investigate complaints which, in the Ombudsman’s opinion concern matters where a complainant has or had the opportunity to raise the subject matter of the complaint as part of legal proceedings.
  3. This means that the Ombudsman will not consider a complaint where, in the Ombudsman’s opinion, the court can handle all the matters now complained of to this Service. This is because the Ombudsman ought not to make decisions on matters which are already subject to findings and orders of the court.
  4. It is evident the resident submitted a defence ahead of the hearing. Therefore, the resident had the opportunity to raise his concerns about the landlord’s handling of his rent account, and his concerns about its approach, ahead of the court hearing.
  5. In accordance with paragraph 42(e) of the Housing Ombudsman Scheme the landlord’s handing of the resident’s rent account, and the resulting legal action due to rent arrears, is outside of the Ombudsman’s jurisdiction to investigate.