Summary: We will not investigate Ms X’s complaint that the Council has refused to compensate her for financial losses incurred after she was misinformed about the terms of a Council-run property management scheme. This matter is better considered by a court.

The complaint

1. Ms X complains the Council has refused to reimburse her for costs incurred after she was misinformed about the terms of a Council-run property management scheme. She says this has cause distress and financial loss. She wants the Council to compensate her for costs incurred.

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The Ombudsman’s role and powers

2. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
3. 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)

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How I considered this complaint

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

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My assessment

6. The Council runs a private sector letting agency as part of its housing services.
7. Ms X is a landlord. In 2024, she enquired about a property management package offered to landlords. During her initial discussion, she says she was told that under the 5- year lease scheme, her property would be leased as long-term accommodation. The Council told her that to be accepted onto the scheme, she would need to complete a schedule of works to bring the property up to the required standard.
8. Ms X completed the works requested. She says during subsequent communications, the Council then told her that her property would be let as temporary accommodation. Ms X did not want short-term tenants in the property so decided not to sign up to the scheme.
9. In her complaint to the Council, Ms X said it had misled her about the terms of the scheme. She said this had led her to incurring costs by completing unnecessary maintenance work on the property and she had miss out on rental income. She asked the Council to reimburse her costs.
10. In its responses, the Council accepted there had been some miscommunication and it could have provided her with better information. It sincerely apologised to her for this. However, it did not accept liability for her costs. It said as she had decided not to sign up for the scheme, it was not bound by any terms and conditions and so would not compensate her for any perceived financial losses.
11. We will not investigate this complaint. We cannot decide whether the Council is liable for her costs. If Ms X considers the Council liable for her costs or financial losses, it is reasonable for her to take the matter to court. Only a court can determine whether the Council is liable and if so, whether the Council should pay compensation.

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Final decision

12. We will not investigate Ms X’s complaint because id Ms X considers the Council liable for financial losses, it is reasonable for her to take the matter to court.

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Investigator's decision on behalf of the Ombudsman