Summary: Mr B complains about the Council’s decision to increase the rent he pays for a commercial property he leases from it. The Ombudsman will not investigate the complaint because his lease contains an appeal mechanism to determine disputes about rent and an arbitrator so appointed will be better placed to consider this matter.

The complaint

1. The complainant, who I refer to as Mr B, says the Council has acted contrary to his lease by drastically increasing his rent to such a level that he can no longer afford to run his business. He says the Council’s actions have affected his health as well as his business.

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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 or continue with an investigation if we believe there is another body better placed to consider the complaint. (Local Government Act 1974, section 24A(6), as amended)

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How I considered this complaint

3. In considering the complaint I reviewed the information provided by Mr B and the Council. I gave Mr B the opportunity to comment on my draft decision.

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What I found

4. Mr B leases a commercial property from the Council. It has recently increased the rent and Mr B says this is contrary to his lease.
5. The lease contains an appeal mechanism which says “any disputed matter including any failure to agree on a new Basic Rent referred to under arbitration under this Lease is to be decided by arbitration under the Arbitration Act 1950 by a single arbitrator appointed by the parties to the dispute.  If they do not agree on that appointment then the President of the Royal Institution of Chartered Surveyors may appoint the arbitrator at the request of any party”.

Assessment

6. Mr B’s lease contains a specified appeal mechanism for determining disputes about matters relating to the lease, including rent levels. As this is the case, and an arbitrator appointed under the terms of the lease will be better placed to consider such an appeal, the Ombudsman will not investigate the complaint.

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Final decision

7. The Ombudsman will not investigate this complaint. This is because Mr B’s lease contains an appeal mechanism to determine disputes about rent and an arbitrator so appointed will be better placed to consider this matter.

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Investigator's decision on behalf of the Ombudsman