Summary: We will not investigate Mr X’s complaint about a Council’s involvement with a property management company. We could not achieve what he wants and any contractual dispute between Mr X and the property management company are private matters which are better considered by a court.

The complaint

1. Mr X complains the Council has refused to terminate its contract with a property management company currently managing his rented property, and to deal with him directly about the property. He says he never signed a management contract and the agent has committed fraud and is corrupt. He wants the Council to terminate all its contracts with the management company and sign a direct contract with him to manage his property.

Back to top

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 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:

• we cannot achieve the outcome someone wants, or
• there is another body better placed to consider this complaint.
• (Local Government Act 1974, section 24A(6), as amended, section 34(B))

4. The Property Redress Scheme is an independent organisation whose role is to consider and resolve disputes between consumers and property agents in the UK.

Back to top

How I considered this complaint

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

Back to top

My assessment

7. In its complaint response, the Council states it is satisfied the property management company had Mr X’s agreement to manage the property. It says that any dispute between Mr X and the property management company about their agreement is a private matter which does not involve the Council. It advises him he can contact the Property Redress Scheme if he is unable to resolve his complaints directly with the agent, or if he wants to terminate the contract with the agent, it recommends he seek legal advice.
8. We will not investigate this complaint. Although Mr X disputes that he signed a contract with the management company, this is a private matter between Mr X and the agent. If Mr X is unable to resolve the matter directly with the agent, it is open to him to either complain to the Property Redress Scheme or take the management company to court. The courts are the appropriate body to consider any contractual dispute between two parties.
9. We will not investigate the Council’s contractual arrangements with the property management company. The Council has appropriately considered Mr X’s concerns. It is for the Council to decide who it makes contractual arrangements with, and we could not require it to terminate all its contracts with the agent. We could not achieve the outcome Mr X wants.

Back to top

Final decision

10. We will not investigate Mr X’s complaint because any dispute between him and the property management company about their contractual agreement is a private matter, and we could not achieve what Mr X wants.

Back to top

Investigator's decision on behalf of the Ombudsman