Summary: We will not investigate this complaint about a failure to get the full market value for a property the Council sold. The law says we cannot consider matters which affect all or most of the people who live in the Council’s area. Also, it is reasonable for Mr X to pursue a compensation claim through the courts

The complaint

1. Mr X complains the Council sold property for which he has a lease to a business despite previously advising him the property was not for sale. He says it did not get the full market price for the property.
2. Mr X also complains the business then sold the property on to another third party at a higher price. The new owners then raised Mr X’s rent.
3. Mr X wants £80,000 compensation or the Council to move him with a rent-free period equating to £80,000.

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The Ombudsman’s role and powers

4. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
5. We cannot investigate something that affects all or most of the people in a council’s area. (Local Government Act 1974, section 26(7), as amended)
6. 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)
7. 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.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

8. I considered information provided by Mr X and the Council.
9. I considered the Ombudsman’s Assessment Code.

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My assessment

10. Mr X complains the Council did not get the full market value for the freehold of a property which it sold to a business. Loss of revenue is a matter which affects all or most of the people in the Council’s area. The law prevents us from investigating such matters.
11. Mr X says he was offered £80,000 by the first business to relocate and reassign his lease. However, the business withdrew the offer, and the Council then sold the freehold to another third party. Mr X wants the Council to either give him £80,000 or move him and give him a rent-free period equating to £80,000.
12. Mr X is therefore holding the Council responsible for a financial loss of £80,000. The Ombudsman cannot decide whether the Council is liable for this loss. Where we make recommendations for payments, it is often a modest amount whose value is intended to be largely symbolic, rather than purely financial. It is not our role to assess economic losses or award compensation, and we direct people to the courts where that is their primary goal.

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Final decision

13. We will not investigate Mr X’s complaint about a failure to obtain the best price on a property sale. This is because the law says we cannot investigate matters which affect all or most of the people that live in the Council’s area.
14. Also, it is reasonable to expect Mr X to pursue a compensation claim through the courts.

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Investigator's decision on behalf of the Ombudsman