Summary: We will not investigate this complaint about the Council’s responsibilities under a private agreement with a landlord to provide housing. Any breaches of the legal agreement may be determined by the courts.

The complaint

1. Mr X complained about the Council’s failure to take responsibility for tenants recommended to him by its Housing services. He says his rental business suffered losses due to rent arrears and disrepair which required court action, adding to the costs. He wants the Council to compensate him for the losses.

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The Ombudsman’s role and powers

2. The law says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)(c), as amended)
3. We can decide whether to start or discontinue an investigation into a complaint within our jurisdiction. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended)

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How I considered this complaint

4. I considered information provided by the complainant.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. Mr X has a business which provides accommodation for housing and homeless applicants who are recommended by the Council. The Council provides an advance rental deposit directly to him as landlord once a tenancy is signed with the tenant. Mr X has had difficulty in receiving rental payments when housing benefits changes have affected his direct rental payment from the tenant.
7. The Council has explained over several years that the agreement he holds with it does not cover the tenant’s rental payments or any possession action which he may wish to take. This is part of the tenancy agreement he holds directly with the tenant and the Council is unable to intervene in any disputes as it cannot divulge any personal data about the tenant without breaching data protection legislation.
8. Mr X is dissatisfied with the outcome of his complaints which were made about various tenants from 2019-2022. The Council advised him that he should seek legal advice if he wishes to challenge the Council’s conduct under terms of the private lease arrangement it made with him.
9. We cannot determine if the terms of a private agreement between a Council and a third party have been breached. These are legal matters and only the courts can ultimately decide this. Mr X took his own legal action against the tenants for some matters and this again is a private legal matter which we are unable to investigate.

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Final decision

10. We will not investigate this complaint about the Council’s responsibilities under a private agreement with a landlord to provide housing. Any breaches of the legal agreement may be determined by the courts.

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Investigator's decision on behalf of the Ombudsman