London Borough of Lambeth (25 025 985)
Category : Other Categories > Commercial and contracts
Decision : Closed after initial enquiries
Decision date : 27 Jul 2026
The Ombudsman's final decision:
Summary: We will not investigate this complaint about the Council’s handling of a commercial lease for the complainant’s business. This is because the courts are best placed to deal with contractual matters, and it would be reasonable for the complainant to pursue the matter in court.
The complaint
- Miss X complains about the Council’s handling of a commercial lease of a business premises. She says she has held a lease for the premises for more than 30 years and when she first signed the lease, the Council agreed to a discounted rate due to disrepair. She says the Council should continue to give her discounted rent as per her first lease agreement. Miss X says the increased rent has caused debt to accrue and her health has been affected.
The Ombudsman’s role and powers
- The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
- 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)
How I considered this complaint
- I considered information provided by the complainant the Ombudsman’s Assessment Code.
My assessment
- Miss X first leased the premises from the Council more than 30 years ago. In 1991, the Council agreed to a discounted rent as there were outstanding repairs. The evidence shows Miss X has since agreed a further two leases and negotiated rent. The most recent lease was signed in March 2025.
- The Council says the agreed discount in her first lease is not applicable to any subsequent leases and Miss X is liable for the full amount of rent.
- We will not investigate Miss X’s complaint. The matter turns on the implementation of a commercial lease, and the courts are best placed to consider such matters. It would be reasonable for Miss X to take legal action if she believes the Council has breached the terms of the commercial lease agreement.
Final decision
- We will not investigate Miss X’s complaint because it would be reasonable for her to pursue the matter in court.
Investigator's decision on behalf of the Ombudsman