Summary: Mrs X complained the Council's application process for discounted landlord licenses was unclear and meant the landlords she applied on behalf of did not benefit from the discount. The Council was not at fault.

The complaint

1. Mrs X works for a letting agency. She complained the Council's application process for discounted landlord licenses was unclear. She says this meant she failed to make the applications during the discounted period and her company suffered a £4000 financial loss as a result.

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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. 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)
3. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)

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How I considered this complaint

4. I have considered:
• all the information Mrs X provided and discussed the complaint with her;
• the Council’s comments about the complaint, supporting documents it provided and its policies.
5. Mrs X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

Background

6. The Housing Act 2004 requires local authorities to keep the housing conditions in their area under review. The purpose of this is to ensure the local authority identifies any actions it needs to take to improve the quality of rental properties in its area.
7. To achieve this, some authorities have introduced selective licensing schemes. The schemes require private landlords to apply for licenses. The licenses impose conditions on the landlord such as the requirement to have references for all occupants and valid gas safety certificates.
8. On 1 May 2020, the Council started its selective licensing scheme. A license cost £700 and was payable in two parts. The Council's website says “Part A will be taken upon application”. “Part B will be taken once the Council has determined to grant the license”. Part A cost £250 and Part B cost £450.
9. The Council also offered an ‘early bird’ discount running until 31st October 2020. The discount meant the applicant paid £250 for Part A and £200 for Part B.
10. The Council advertised the licensing scheme in its newsletter for landlords and Council wide news. It also says it discussed the scheme at its landlord forums.

What happened

11. In mid-October 2020, Mrs X contacted the Council to say her company had begun license applications for all properties that needed one. It totalled around 20 applications. She asked the Council to confirm she would receive the discount. The Council responded to say applications submitted before 31st October 2020 would receive the discount. Mrs X’s company submitted the applications in November 2020, after the discount period ended.
12. Mrs X complained to the Council. She asked the Council to honour the discount because her company was not familiar with the Council's process, which differed to other councils it worked with. It had struggled with communication with landlords and within the company due to the COVID-19 pandemic. She said the Council's form had an option to ‘pay later’ which gave the impression payment was not required to get the discount. She also said the Council's email in October was misleading and the company had relied on that instead of the information on the Council's website.
13. The Council's stage one complaint response said:
• it’s email from October 2020 clearly stated Mrs X would not receive the discount until she submitted the application;
• Mrs X would not have received a message the application was complete or submitted until she made payment; and
• Mrs X would have had repeated automated emails reminding her to finish submitting the applications.
14. Mrs X asked the Council to consider her complaint at stage two. The Council replied to say:
• it published the scheme widely and was satisfied Mrs X was aware of it;
• it sent Mrs X’s company an email in April 2020 which said that to receive the discount she would need to submit her applications by the end of October 2020 and pay £250 ‘at the point of application’;
• it extended the discount period from July to October to allow for issues caused by the COVID-19 pandemic; and
• applicants could only submit their forms once they paid.
15. I have seen a screenshot of the Council's online application form. It states “the first part of the fee is payable now (£250)”. At the bottom of the form it says “Submit & pay now”, or “Cancel. You can come back and pay later”.

My findings

16. Mrs X said the Council's communication about the application process for its landlords’ licenses did not make it clear at what point the application had been submitted and the discount applied. She said this meant she thought she had submitted the forms when she had saved them for later.
17. The Council's advertising, website and April 2020 email confirmed Mrs X would have to pay at the time she applied for the license. The Council’s application form clearly stated submission of the application form was tied to payment of the fee. The Council's email in October 2020 correctly stated that to benefit from the discount, Mrs X would need to submit her applications, not just begin them. Further, Mrs X would have received reminders that she had not completed the applications. I am satisfied the Council's communication about the application process was sufficiently clear and therefore do not find it at fault.
18. The Ombudsman cannot question the Council's decision if it is made without fault. The Council considered Mrs X’s extenuating circumstances, including the effect of the pandemic on her company’s ability to work and that she said its processes differed from other councils. It was satisfied it had properly explained the scheme and noted it had extended the scheme due to the pandemic. It decided Mrs X’s circumstances did not justify accepting the late applications. There was no fault in how the Council made its decision so I cannot question it.

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Final decision

19. I have completed my investigation. I have not found evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman