Summary: Mr X complained about the Council’s failure to comply with a landlord agreement which his company signed with the Council’s managing agency. We will not investigate this complaint. This is because it concerns a private legal agreement, and it is reasonable for him to challenge any breaches in the courts.

The complaint

1. Mr X complained about the failure of the Council’s management agency to keep to the agreement his company signed over properties rented to tenants supplied by the Council. He says he has suffered damages of up to £8,000 from the tenants and the agency reduced the guaranteed rental income by almost 25%. In addition, he was unable to move tents to empty properties when vacated and the agency failed to pay for void properties once tenants had moved out.

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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)

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How I considered this complaint

3. I have considered all the information which Mr X submitted with his complaint. I have also considered the Council’s responses. Mr X has been given an opportunity to comment on a draft copy of my decision.

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What I found

4. Mr X’s company signed a landlord agreement with the Council’s managing agency for it to provide tenants who would occupy his properties for an agreed rental. The agreement set out who was responsible for repairs, rental payment and managing the tenancies.
5. He says that tenants caused damage to his property of up to £8,000 and he wants the agency to repay this. The Council says he signed separate agreements with the tenants and that its landlord agreement makes it clear he is responsible for repairs.
6. He complained that the agreed rental guarantee was reduced by nearly 25% in 2020 in breach of the agreement. The Council says this was because central government changed the rent guarantee scheme in 2020 and payments were reduced to the Local Housing Allowance rate. The Council says Mr X was advised of the change and accepted the agreement changes.
7. Mr X says he was unable to move tenants to empty properties so he could best utilise his stock and that the agency refused to pay for void properties which were still under tenancy agreements. The Council says that the agreement made no provision for this and that it gave proper notice to end the agreement, but he still had landlord responsibilities for tenants with whom he had separate tenancy agreements.
8. Analysis
9. Mr X’s company signed a private landlord agreement with the Council’s agency. He also signed separate agreements with the tenants in his properties. The Ombudsman cannot determine legal disputes about private contracts. If Mr X believes the Council or its agents breached the conditions of the landlord agreement he would need to seek a remedy in the courts. The tenancy agreements with the occupants of his properties are also separate private legal matters.

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Final decision

10. We will not investigate this complaint. This is because it concerns a private legal agreement and it is reasonable for him to challenge any breaches in the courts.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman