Summary: Mr X complained the Council mishandled his housing application, incorrectly assessed his medical priority and mishandled subsequent homelessness application and review request. We find the Council at fault for failing to apply the correct exemption criteria to Mr X’s application. This caused Mr X to be removed from the housing register and caused him distress, frustration and uncertainty. The Council has agreed to apologise, reinstate Mr X’s application and make a symbolic payment to remedy the injustice caused.

The complaint

1. Mr X complained the Council mishandled his housing application, incorrectly assessed his medical priority and mishandled his subsequent homelessness application and review request. Mr X told us the Councils actions have significantly impacted his mental health and left him feeling alone and isolated. Mr X would like the Council to reinstate his housing application and allow him to bid on suitable properties. Mr X would also like the Council to admit its mistakes and provide a financial payment in recognition of the distress caused.

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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’. If there has been fault which has caused significant injustice, or that could cause injustice to others in the future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. When considering complaints we make findings based on the balance of probabilities. This means that we look at the available relevant evidence and decide what was more likely to have happened.
4. If we are satisfied with an organisation’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(1), as amended)

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How I considered this complaint

5. I considered evidence provided by Mr X and the Council as well as relevant law, policy and guidance.
6. Mr X and the Council had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

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What I found

Legal and administrative background

Homelessness

7. Part 7 of the Housing Act 1996 and the Homelessness Code of Guidance for Local Authorities set out councils’ powers and duties to people who are homeless or threatened with homelessness.
8. Someone is homeless if they have no accommodation or if they have accommodation, but it is not reasonable for them to continue to live there. (Housing Act 1996, Section 175)
9. Councils must complete an assessment if they are satisfied an applicant is homeless or threatened with homelessness. The Code of Guidance says, rather than advise the applicant to return when homelessness is more imminent, the housing authority may wish to accept a prevention duty and begin to take reasonable steps to prevent homelessness. Councils must notify the applicant of the assessment. Councils should work with applicants to identify practical and reasonable steps for the council and the applicant to take to help the applicant keep or secure suitable accommodation. These steps should be tailored to the household, and follow from the findings of the assessment, and must be provided to the applicant in writing as their personalised housing plan. (Housing Act 1996, section 189A and Homelessness Code of Guidance paragraphs 11.6 and 11.18)

The relief duty

10. Councils must take reasonable steps to help to secure suitable accommodation for any eligible homeless person. When a council decides this duty has come to an end, it must notify the applicant in writing (Housing Act 1996, section 189B)

The main housing duty

11. If a council is satisfied an applicant is homeless, eligible for assistance, and has a priority need the council has a duty to make accommodation available (unless it refers the application to another housing authority under section 198).

Review rights

12. Homeless applicants may request a review within 21 days of being notified of the following decisions:

• their eligibility for assistance;
• what duty (if any) is owed to them if they are found to be homeless or threatened with homelessness;
• the steps they are to take in their personalised housing plan at the prevention duty stage;
• the steps they are to take in their personalised housing plan at the relief duty stage;
• giving notice to bring the relief duty to an end;
• the suitability of accommodation offered to the applicant after a homelessness duty has been accepted (and the suitability of accommodation offered under section 200(3) and section 193). Applicants can request a review of the suitability of accommodation whether or not they have accepted the offer.

Housing register application

13. Every local housing authority must publish an allocations scheme that sets out how it prioritises applicants, and its procedures for allocating housing. All allocations must be made in strict accordance with the published scheme. (Housing Act 1996, section 166A(1) & (14))
14. The Council has a published allocations policy which sets out its eligibility criteria for joining its housing register.
15. Section 10 of the policy states that applicants must have resided within the area for five continuous years prior to submitting their application.
16. There are a number of exceptions to this eligibility criteria. This includes where the applicant has been placed outside of the area into private rented sector accommodation under the Council’s statutory homeless duties and powers.

What happened

Homelessness

17. Mr X first approached the Council as homeless in October 2023.
18. The Council assessed Mr X’s application and determined he was eligible for homelessness support and assistance. The Council has not provided any evidence of the timeframe it took to complete the assessment and issue its duty letter. The Council did not provide any support to Mr X until May 2024.
19. From May 2024 the Council supported Mr X with securing accommodation in the private rented sector.
20. In June 2024, Mr X was successful in securing a private rented sector tenancy which was out of borough. The Council provided financial support with the deposit and first months rent for this property.
21. There is no evidence to suggest affordability or suitability concerns we raised at the time Mr X accepted the tenancy.
22. In August 2024, the Council wrote to Mr X to end its relief duty. The letter explained the Council was satisfied Mr X’s private rented tenancy was suitable and would be available to him for at least 6 months. The letter detailed Mr X’s right to a review of this decision. There is no evidence to suggest Mr X requested a review at this time.
23. Mr X approached the Council again in August 2024. Mr X told the Council he was not able to afford the rent for his private rented accommodation and would need to move out. The Council responded to advise Mr X to apply and see if he was eligible for discretionary housing payments.
24. In the first week of September Mr X contacted the Council again to advise he had moved out of the private rented property as it was not affordable. Mr X explained he was now homeless. The Council advised Mr X to submit a new homelessness application.
25. Mr X submitted a new homelessness application in April 2025.
26. Once it had the relevant documents, the Council completed an assessment of Mr X’s application. The Council determined Mr X was eligible for the relief duty.
27. The Council completed an assessment of Mr X’s medical needs and determined the evidence he had provided did not show he had specific medical needs which were of particular significance compared to an ordinary person. This meant Mr X was not considered to have priority need and the Council did not owe him the interim accommodation duty. The Council used a letter which explained its decision and explained Mr X had a right to appeal the decision.
28. In order to fulfil its relief duty, the Council referred Mr X to its Single Homelessness Prevention Service (SHPS). This service supported Mr X with a personalised housing plan and exploring accommodation options.
29. Mr X requested to withdraw his homelessness application in June 2025 as he did not wish to explore the option of private rented accommodation. The Council withdrew the application and ended its relief duty.

Housing register application

30. Mr X applied to join the Council’s housing register in May 2024.
31. Mr X was initially accepted onto the housing register with band two medical priority and he was able to bid on properties between June 2024 and September 2024.
32. At the beginning of September, the Council wrote to Mr X to explain he was no longer owed a housing duty due to accepting private rented accommodation. The Council asked Mr X to complete a change of circumstances form to include an accurate address history to allow it to review his place on the housing register.
33. Mr X responded to the Council stating he never moved into the privately rented property due to being unable to afford the rent. Mr X said he had not left the borough and believed he remained eligible for the Council’s housing register.
34. The Council completed a review of Mr X’s circumstances in December 2024. The review concluded Mr X did not have eligible medical needs and he was no longer eligible to remain on the housing register as he did not have 5 years of continuous address history within the borough.
35. Mr X requested a review of this decision the following day.
36. The Council did not issue a review decision until March 2026. In its review the Council again concluded Mr X was not eligible to remain on the housing register due to not have five years of continuous address history within the borough.

My findings

37. The Council accept it owed Mr X a relief duty following Mr X’s initial application in October 2023. The Council has not provided any evidence it issued a letter to accept this duty or provided Mr X any support until May 2024. This is a delay of approximately 6 months. The delay is fault which caused Mr X distress, frustration and uncertainty.
38. There is no evidence of fault in the Council securing a private rented tenancy for Mr X in May and June 2024. There is no evidence to suggest Mr X raised suitability or affordability at the time of securing the tenancy.
39. There is no evidence of fault in the Council’s decision to end its relief duty in August 2024. The Council had reason to believe Mr X had a suitable accommodation which would be available for at least 6 months.
40. There is no evidence of fault in the Council’s consideration of Mr X’s homelessness application which he submitted in April 2025.
41. There is no evidence of fault in the Council closing Mr X’s homelessness case in June 2025.
42. The Council failed to apply its 5 year exemption criteria in Mr X’s case. Mr X’s out of borough property was secured by the Council under the relief duty. This means Mr X falls under the exemption criteria where ‘the applicant has been placed outside of the area into private rented sector accommodation under the Council’s statutory homeless duties and powers’. On the balance of probabilities, had the Council correctly considered this exemption criteria, the Council would not have removed Mr X from the register. This is fault which caused Mr X distress, frustration and uncertainty.
43. The Council has completed two medical assessments of Mr X’s needs as part of his housing register application. The initial assessment determined Mr X was eligible for band two medical priority. The second assessment, completed after Mr X’s move from the area, determined Mr X had no eligible needs. It is not clear why there is a difference in the outcome of these assessments as Mr X’s medical needs did not change during this time. As the second assessment was completed in response to the Council failing to correctly apply the exemption criteria, I cannot say, even on the balance of probabilities, which outcome is correct. This is fault which causes Mr X uncertainty, distress and frustration.

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Action

44. Within one month of the final decision the Council will:
• Apologise to Mr X for the injustice caused by the faults identified. We publish guidance on remedies which sets out our expectations for how organisations should apologise effectively to remedy injustice. The Council should consider this guidance in making the apology.
• Reinstate Mr X’s housing register application to the date of his initial application.
• Complete a reassessment of Mr X’s medical needs to determine whether the second assessment correctly removed the previously awarded Band B priority. If the priority was incorrectly removed, this should be reinstated and backdated to the date of the initial application.
• Make a symbolic payment of £500 in recognition of the distress, frustration and uncertainty caused by the faults identified.
45. The Council should provide us with evidence it has complied with the above actions.

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Decision

46. I find fault causing injustice. The Council has agreed actions to remedy injustice.

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Investigator's decision on behalf of the Ombudsman