Summary: Mrs X complained the Council failed to make her aware of the ‘cost floor policy’ when advertising the property she moved into as part of its allocations scheme. She said this caused her to lose her Right to Buy discount. There was no fault in the Council’s actions.

The complaint

1. Mrs X complained the Council failed to make her aware of the cost floor policy when she applied for the right to buy her home.
2. She said the Council’s actions meant she could not take advantage of the Right to Buy discount she had accrued.

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The Ombudsman’s role and powers

3. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word ‘fault’ to refer to these. 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)
4. 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

5. I have discussed the complaint with Mrs X and considered her view of the complaint, along with her written complaint testimony and the Council’s responses to her complaint.
6. We have made enquiries of the Council and reviewed the information it provided.
7. I wrote to Mrs X and the Council and considered their comments before I made a final decision.

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What I found

Council Allocations Scheme and Policy

8. The Council operates a lettings scheme which enables housing applicants to bid for available properties on the Council’s housing list.
9. The housing list is divided into four bands in order of priority: A, B1, B2 and C. Applicants are allocated housing of their choice according to their band.
10. Available homes to let are advertised on the Council’s website and in the local newspaper. The adverts should show a photograph of the property and include information about the landlord, the rent, the type of property it is, the area it is in and the size of household that can apply.

Right to Buy and the Cost floor rule

11. The Right to Buy scheme allows council tenants to buy their own home at a discount.
12. The cost floor rule states that if the landlord has spent more money on the home than it is worth, the applicant cannot receive a Right to Buy discount.

What happened

13. Mrs X applied to buy her council house as part of the Council’s Right to Buy Scheme in December 2018.
14. The Council accepted her application and she received an offer notice in February 2019. The notice informed Mrs X that the cost floor rule meant she could not claim the Right to Buy discount which would have been £108,000.
15. Mrs X complained to the Council because she felt it should have told her the cost floor rule applied when it advertised her property. She asked the Council to give her £108,000 in compensation as a resolution to her complaint.
16. The Council responded at Stage 1 of its complaints process in April 2019.
    The Council apologised and said it should have made prospective applicants aware they would not qualify for the Right to Buy discount when it advertised the property.
17. The Council explained its primary purpose was to place individuals requiring housing in suitable properties but agreed prospective tenants would benefit from being made aware of the cost floor rule and how it could affect them.
18. To resolve Mrs X’s complaint, the Council advised it would begin informing applicants which properties were affected by the cost floor rule. The Council also offered to place Mrs X on the housing register again and give her priority band B1 status.
19. Mrs X was unhappy with this because she did not want to move again. She asked the Council to look at her complaint again. The Council responded at Stage 2 of its complaints process, maintaining it could not give her the discount but offering to move Mrs X to priority band A status.
20. Mrs X was not satisfied with this response and referred her complaint to the Ombudsman.

My findings

21. Mrs X is unhappy the Council did not tell her about the cost floor policy when it advertised her property.
22. The Council’s primary purpose is to house tenants who are in need. The Council is not required by law or its process to provide this information. There is no fault in the Council’s actions.
23. During the complaints process the Council increased Mrs X’s priority. Because I have not identified any fault, I will not comment on whether this was an appropriate action for the Council to take.

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Final decision

24. I have not found fault in the Council’s actions. I have, therefore, completed my investigation.

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Investigator's decision on behalf of the Ombudsman