Summary: Miss B complains the Council gave incorrect information regarding her rent charge for temporary accommodation. Because of this she now has to pay an extra £51 each week. The Council has remedied the injustice caused by its fault.

The complaint

1. Miss B complains the Council gave the wrong rent amount on her tenancy agreement for her temporary accommodation. As a result, she is now faced with a significantly higher rent than expected.

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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(i), as amended)

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How I considered this complaint

4. I have discussed the complaint with Miss B and considered the information she provided. I have made enquiries of the Council and considered the comments and documents it provided. Miss B and the Council had an opportunity to comment on my draft decision. I considered their comments before making a final decision.

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What I found

Legislation and guidance

5. 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.
6. If a council is satisfied an applicant is homeless, eligible for assistance, and has a priority need the council has a duty to secure that accommodation is available for them. I will refer to this as the main housing duty. (Housing Act 1996, section 193 and Homelessness Code of Guidance 15.39)
7. The law says councils must ensure all accommodation provided to homeless applicants is suitable for the needs of the applicant and members of his or her household. This duty applies to temporary and interim accommodation. (Housing Act 1996, section 206 and (from 3 April 2018) Homelessness Code of Guidance 17.2).
8. When considering whether an offer of accommodation is suitable, a council must have regard to factors such as its size, state of repair, location and affordability.

What happened

9. Miss B was homeless and applied to the Council. The Council accepted that she was homeless, eligible for assistance and in priority need. It therefore owed her the main housing duty, and it was required to provide suitable temporary accommodation.
10. In May 2023 the Council wrote to Miss B and offered her temporary accommodation. It stated the property was a one-bedroom flat and the rent was £99 per week. It said that it considered the property was large enough, affordable and in reasonable condition.
11. A few days later the Council wrote to Miss B and advised that the rent of the same property was £168 per week.
12. Miss B questioned the rent of £168. She said a Council officer had advised her the rent was £99 per week.
13. The Council’s team manager replied that the basic rent was £99 per week and then there were additional charges for heating and hot water which were included as well as service charges. He said that the Council would clarify everything in due course.
14. When Miss B came to sign the licence agreement, it stated the rent was £99 per week. Miss B moved into the flat on the basis of the rent stated.
15. In August Miss B said the Council advised her the correct rent was £168 per week. This was because it included heating and hot water charges of £51 per week, as well as additional service charges in the total rent of £168. The heating and hot water charges were not eligible for housing benefit. The Council said she was in rent arrears.
16. Miss B contacted the Council to say that the inclusive heating and hot water charges were very expensive. She said a gas company told her the charges should be around one third of £51 per week. She said the housing officer had agreed to lower the rent to £99 per week. Now the Council was threatening her with homelessness if she did not pay a higher rent.
17. The Council replied that its heating and hot water charges had increased in April 2023. It said that Miss B was liable for the charges. The Council gave Miss B some information about assistance with energy bills.
18. Miss B complained at stage one of the Council’s complaints procedure.
19. In September 2023 the Council replied, upholding Miss B’s complaint. It said it had made an error in the rental figure on its tenancy agreement. The Council apologised for the error and for any distress and inconvenience caused. However, it said it had a duty to correct the error. It explained it had made a discretionary decision not to hold her liable for the heating and hot water from the start of the tenancy to the date of a new licence agreement which it would issue. The Council also explained it had based the heating and hot water element on market costs. The Council said it provided a package of support to help residents to maximise their incomes and reduce costs in the cost of living crisis.
20. Miss B complained further that when she signed the agreement it was for the rent the Council stated. She said the Council should not go back on the amount stated in the contract. She said a housing officer had agreed the rent was too high. In her view the reason for the high gas charge was because the Council had not read the meters.
21. In November 2023 the Council replied once again apologising for its error. However, it repeated its earlier comment that it had a duty to collect the correct rent. It then sent a letter giving Miss B four weeks notice it would vary the rent charge to £168 per week from December 2023.
22. The Council removed the £51 per week heating and hot water charges for the period June to December 2023.
23. In its response to my enquiries the Council explained it considered the affordability of the accommodation when it considered its suitability. It explains the rent element charge of £99 is 90% the local housing allowance rate set by the government and is fully eligible for housing benefit. The Council says that it considers the inclusive heating and hot water charges are reasonable and no more than other households might expect to pay if they were being charged directly. The Council confirms that the rent charge has reduced from April 2024 because the inclusive heating and hot water element has reduced.
24. The Council considers it resolved the complaint by removing Miss B’s liability for the heating and hot water for the period from June 2023 to December 2023.

Analysis

25. There was fault by the Council because it gave the incorrect rent figure in its tenancy agreement. There was clearly some confusion by the Council because its first offer letter stated the rent was £99. However, it corrected this in the later letter. The team manager also confirmed the correct rent was £168 per week in his email to Miss B.
26. However, when it came to signing the licence agreement, the Council gave the wrong rent figure again. I note Miss B says the housing officer agreed the rent was too high and this was the reason it charged £99 per week. However, I have not seen documentary evidence of this. When the Council confirmed the rent it had intended to charge in August 2023 Miss B was caused distress and confusion. The Council has accepted it made a mistake and apologised for this. It has formally varied the rent, correcting the amount to its intended rent figure.
27. The Council did not send the variation notice correcting the rent until November 2023. But this has not disadvantaged Miss B. She has benefited from the Council’s delay in correcting the rent charge as she is liable for a lower rent for a longer period. The injustice caused by the Council’s fault has been remedied by the Council waiving the heating and hot water charges for five months. I have not seen evidence the Council started legal action for possession despite the rent arrears increasing prior to the Council reducing the charge.
28. Some of the information the Council gave in its responses regarding cost-of-living support was not up to date. However, this did not cause Miss B injustice.

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Final decision

29. The Council has already remedied its fault by removing rent charges. I have completed my investigation and closed the complaint.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman