Summary: We will not investigate this complaint about help provided to a landlord through the Tenancy Bond Scheme. This is because there is insufficient evidence of fault by the Council.

The complaint

1. The complainant, whom I refer to as Mr X, says the Council has failed to help him after a tenant it introduced caused significant problems. Mr X wants the Council to pay compensation and all the rent arrears. He also wants the Council to help him evict the tenant and pay for the repairs.

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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’. We provide a free service, but must use public money carefully. We may decide not to start an investigation if we believe it is unlikely we would find fault. (Local Government Act 1974, section 24A(6), as amended)

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How I considered this complaint

3. I read the complaint and the Council’s responses. I read the Tenancy Bond Agreement that Mr X signed. I spoke to Mr X after he received a draft of this decision.

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What I found

Tenancy Bond Scheme

4. The scheme says that, at the end of the tenancy, the Council will pay a maximum of £1200 for rent arrears or damage. The scheme also says the Council will try to support the landlord and tenant with the tenancy. The bond agreement says the tenancy is between the landlord and the tenant and that the landlord’s decision to accept a tenant is at their own risk. The agreement says the Council is not responsible for the management of the property.

Universal Credit

5. Universal Credit (UC) is a benefit administered by the Department for Work and Pensions (DWP). UC can include help with rent. UC (housing costs) is usually paid to the tenant but the DWP can decide to pay it to the landlord. The Council cannot make decisions about UC.

What happened

6. Mr X says the Council introduced him to a perspective tenant (Mrs A). The Council told Mr X she had a history of rent arrears. Mr X says the officer assured him that Mrs A’s rent would be paid to him through UC. Mr X met Mrs A and, while he had doubts, he decided to offer her a tenancy. This was because the Council had promised he would get the rent. Mr X signed a tenancy bond agreement with the Council.
7. Mr X says Mrs A caused problems from the start of the tenancy. He says she has damaged the property and now has rent arrears of £5700. He has received some payments from UC but not from the start of the tenancy and they stopped after Mrs A told the DWP she had moved. Mr X has served a Notice to Quit but says it will be some time before he can evict Mrs A.
8. Mr X asked the Council to pay all the rent arrears and pay for the repairs. He said he had only agreed to accept Mrs A as a tenant because he had been promised the UC. He also said the Council should rehouse Mrs A and help him with the eviction.
9. In response the Council said there was nothing to suggest an officer told him he would get all the rent direct from UC. The Council said it has no control over what benefits a tenant claims and cannot influence how UC is administered. It said the maximum it would pay would be £1200 as stated in the bond agreement. It also said the bond agreement made it clear that the tenancy agreement is between the landlord and the tenant and a landlord accepts a tenant at their own risk. The Council explained it cannot help Mr X evict Mrs A. It also explained it had encouraged Mrs A to uphold the tenancy and will continue to do so.

Assessment

10. I will not start an investigation because there is insufficient evidence of fault by the Council. Mr X signed the bond agreement which states the maximum liability on the part of the Council is £1200. It also states the landlord accepts a tenant at their own risk and that the tenancy is between the landlord and the tenant. It is unlikely an officer would have told Mr X that he was guaranteed direct UC payments. This is because the Council cannot make UC decisions and would not be able to control whether Mrs A claimed UC. In addition, only the DWP can decide to pay UC to a landlord rather than the tenant. It is unfortunate Mr X misunderstood this point but given that the Council could not guarantee UC payments, I cannot say that the Council misled Mr X.
11. When I spoke to Mr X he said the Council had guaranteed he would receive the rent, not UC. But, in his emails to the Council Mr X complained that an officer had said he would get the rent through UC. In any case, it is unlikely the Council would have guaranteed him rent payments because that is the responsibility of the tenant. Also, the agreement Mr X signed did not say he was guaranteed payment of the rent.
12. It is also correct that the Council cannot help to evict Mrs A because that is Mr X’s responsibility as a landlord and the tenancy bond agreement does not say the Council will help a landlord to evict a tenant.
13. Mr X has also complained that Mrs A told the DWP she had moved so the UC payments stopped. I cannot investigate this issue because I have no power to comment on the actions on private tenants.

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Final decision

14. I will not start an investigation because there is insufficient evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman