Summary: We will not investigate this complaint about the Council’s decision not to sell a commercial freehold as there is not enough evidence of fault causing an injustice to Mr X to justify investigating.

The complaint

1. Mr X complained the Council reneged on an agreement to sell him the freehold of the commercial property he leases from the Council. Mr X says he made considerable investment in renovating the property which he would not have done had he not been able to secure the freehold title to it. Mr X wants the Council to sell him the freehold.

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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. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start or continue an investigation if we decide there is not enough evidence of fault causing injustice to justify investigating (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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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 acknowledged that a ‘without prejudice’ offer was made to Mr X to purchase the freehold of his property, which would need to be approved by the Council before the sale could go ahead. The Council later advised Mr X that the sale would not go ahead as it had decided not to sell any commercial freeholds, at that time. The Council explained to Mr X that as no contract was in place, it was not obligated to sell him the freehold. The Council apologised to Mr X for any confusion caused and refunded him money he had paid in surveyor’s fees.
7. That the Council decided not to proceed with the sale, does not equate to the Council being at fault, as the Council was at liberty to reach such a decision, as indicated in its policy: ‘Acquisition and Disposal Policy and Procedure – Land and Property’. This indicates that consideration may be given to the sale of a freehold under certain circumstances but does not place any obligation on the Council to proceed with such sales.
8. As there was no contract in place, any additional work Mr X carried out on the building was at his own risk and could not be said to arise from any Council fault.
9. For these reasons, we will not investigate.

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Final decision

10. We will not investigate Mr X’s complaint because there is insufficient evidence of fault causing injustice to Mr X.

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Investigator's decision on behalf of the Ombudsman