Summary: The Ombudsman will not investigate Mr X’s complaint on behalf of firm Y about the decisions the Council has made on whether their rental properties are exempt from Landlord Licensing scheme fees. The Council has apologised for faults in the process, and offered a reduced licence fee, which provides a suitable outcome. An investigation by the Ombudsman would not achieve any further remedy here.

The complaint

1. Mr X complains on behalf of firm Y about the Council’s decisions on whether properties it owns and rents out in the Council’s area have been correctly assessed for exemption from the Landlord Licensing scheme.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word ‘fault’ to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. We provide a free service, but must use public money carefully. We may decide not to start or continue with an investigation if we believe:

• it is unlikely we could add to any previous investigation by the Council, or
• it is unlikely further investigation will lead to a different outcome.

(Local Government Act 1974, section 24A(6), as amended)

3. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

4. As part of my assessment I have:
• considered the complaint and the documents provided by Mr X;
• considered ‘The Selective Licensing of Houses (Specified Exemptions) (England) Order 2006’ (‘the 2006 Order’);
• issued a draft decision, inviting Mr X to reply, and considered his response.

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What I found

5. The Council administers a Landlord Licensing scheme for rental properties in its area. Registration of a rental property by a landlord attracts a fee, currently of £412. A property may be exempt from that fee on various grounds. Exempt properties are set out in national government’s 2006 Order. The relevant exemption here is 2(1)(a)(i): tenancy or licence of a house is an exempt tenancy or licence if it is a house or a dwelling where the full term of the tenancy is more than 21 years.
6. Firm Y acquired property A in 2018. They already had property B, which had been granted an exemption from the Landlord Licensing fee by the Council. The tenancy and rental agreements for property A and property B were identical.
7. Officer Z at the Council emailed firm Y in November 2018 stating property A would be exempt from the fee. The Council accepts this was fault. Property A had been tenanted since 1981. The Council says the officer had misinterpreted the 2006 Order, and determined the property was exempt from the fee because the tenancy had lasted over 21 years. The Council says the tenancy agreed in 1981 does not confirm it was granted at the outset for a term in excess of 21 years, so did not qualify for the exemption.
8. On reviewing its earlier decision to grant exemption to property B, the Council determined property was also not exempt from the Licence fee. The same misinterpretation of the 2006 Order had occurred.
9. To acknowledge its errors in assessing property A’s exemption, the Council apologised to firm Y. On 25 April 2019, it also offered the firm a reduced rate of £200 for the Licence on property A. The Council said this offer would remain valid for four weeks from 25 April. Officers have confirmed firm Y has not taken up this offer, but they would honour it now, should the firm wish to accept it.
10. There is no injustice caused to firm Y by the Council’s error on property B. The firm has benefited from not paying for that Licence for some time. That they are now required to pay the Licence fee due is not an injustice.

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Final decision

11. The Ombudsman will not investigate this complaint. This is because the remedy offered by the Council to acknowledge the injustice caused by its fault is the appropriate outcome. An Ombudsman investigation would not achieve any further remedy here.

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Investigator's decision on behalf of the Ombudsman