Summary: Mr X complained the Council delayed processing his housing application and then failed to backdate it. He also complained the remedy payment for this delay was not paid to him but offset against arrears on his mother’s rent account. While there was delay in processing Mr X’s application there is no evidence to suggest he missed out on a property. The Council has agreed to make the payment to Mr X.

The complaint

1. Mr X complained the Council delayed processing his housing application and then failed to backdate it. He also complains that the remedy payment for this delay was not paid to him but offset against arrears on his mother’s rent account.

Mr X says he was unable to bid on available properties and has therefore missed out on being rehoused.

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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. 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

4. I considered evidence provided by Mr X and the Council as well as relevant law, policy and guidance.
5. 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

Key facts

6. This section sets out the key events in this case and is not intended to be a detailed chronology.

7. Mr X completed an application to join the housing register in April 2022. Mr X says that he contacted the Council in 2023 but no response was provided. He says that he continued to follow up his application but received no resolution.
8. In July 2025, Mr X submitted a formal complaint about the failure to assess his housing application. He noted the housing allocation policy stated that applications should be assessed within 28 calendar days.
9. The Council investigated his complaint and responded on 22 July. The Council confirmed Mr X submitted his application on 28 April 2022 and that it was not considered within the normal timeframe. It accepted there had been no communication with Mr X to advise him of the delay and it apologised. It said the housing service was working through the backlog and that a new housing allocation policy was to be implemented by the end of the year. It confirmed that contact had been made with Mr X to progress his application and to seek evidence to support it. The Council also awarded Mr X a compensation payment of £810 which was calculated at £5 per week from 7 June 2022 to 18 July 2025.
10. Mr X escalated his complaint to stage two of the Council’s complaint process. He said that although the Council had admitted fault, his application had not been backdated. He complained about the burden placed on him to resolve the situation. The Council responded saying it awarded him compensation and provided a form for him to provide proof of a five year connection to Southwark. It confirmed this had been received and that he had been placed in Band 3 and he was eligible to bid on one bedroom properties. It urged him to begin his search for suitable accommodation weekly.
11. Mr X then complained to the Ombudsman saying the Council had refused to backdate his housing application to April 2022 when he first applied and that the compensation had been applied to his mother’s rent account arrears instead of being paid to him.

Analysis

12. The Council, after investigating Mr X’s complaint in July 2025, accepted fault and took action to rectify the situation. It assessed his application by August 2025 meaning Mr X could begin to place bids on available properties. It also awarded him compensation. However, Mr X remains dissatisfied.
13. Mr X said in his complaint the Council had not backdated his application to April 2022 when he first submitted his application. In response to my enquiries the Council confirms Mr X is in Band 3 with a qualifying dated of 22 May 2022. I am therefore satisfied the Council has appropriately backdated Mr X’s application.
14. There was fault in this case as the Council delayed for over three years in assessing Mr X’s housing application. It should have been assessed within 28 days and if so Mr X would have been able to place bids on available one bedroom properties from that date. I have therefore considered whether Mr X has missed out on a property in the period he was unable to place bids due to the Council’s failure to assess his application.
15. In response to my enquires the Council has provided details of all one bedroom properties allocated since May 2022 as well as details of the bids placed by Mr X since August 2025. This information shows that Mr X’s bids since August 2025 have not been successful and his highest bidding position was 18. I am satisfied that the successful bidders for all one bedroom properties were allocated to applicants with higher priority than Mr X and that therefore he has not missed out on a property as a result of the delay in this case.
16. The Council has a compensation policy and awarded Mr X a payment in line with that policy. It assessed Mr X as low impact saying that this is the appropriate payment based on the fact Mr X did not miss out on a property during the period of delay. However, it has now accepted that it offset the payment against Mr X’s mother’s tenancy in error because he is not named on the tenancy agreement. It says it has now reversed this action and will be making the payment to Mr X shortly.

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Action

17. To remedy the injustice caused as a result of the fault identified above the Council will, within one month of my final decision, make Mr X a payment of £810 as it should have done when responding to his stage one complaint in July 2025.
18. The Council should provide us with evidence it has complied with the above actions.
19. I am not recommending any service improvements as I am aware the Ombudsman has dealt with similar complaints within the last year and action has been taken to address delays within the housing application process.

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Decision

20. I have completed my investigation with a finding of fault for the reasons explained in this statement. The Council has agreed to implement the actions I have recommended. These appropriately remedy any injustice caused by fault.

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Investigator's decision on behalf of the Ombudsman