Summary: Miss X complained about the Council’s refusal to pay for all the damages to her property which was leased under the Council’s guaranteed rent scheme. We will not exercise discretion to investigate this complaint. This is because it concerns a legal contract between Miss X and the Council, and it would be reasonable for her to challenge the Council in the courts if she believes the agreement was breached.

The complaint

1. Miss X is a private landlord who signed an agreement with the Council to rent her property under the Council’s guaranteed rent scheme. She says the tenants caused over £1,600 damages to the property and the Council only agreed to pay £800 initially and a further £200 after she complained. She wants the Council to cover the whole amount.

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)

Back to top

How I considered this complaint

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

Back to top

What I found

4. Miss X rented her property using the Council’s rent guarantee scheme which is an arrangement where the landlord and council agree to certain property management issues such as rent level, income and repairs. She says when the property was returned to her there was damage from the tenant amounting to over £1,600. She made a claim to the Council but she only received £800 for the damage.
5. Miss X made a complaint about the response to her claim and the Council finally made a further payment as a goodwill gesture of £200, taking the repayment to the limit of £1,000 in the agreement. Miss X says the Council relied on a technicality to avoid paying her the full amount of costs she incurred. The Council says the agreement she signed in 2017 has a maximum indemnity for damages and this is £1,000. She has received the maximum amount under the legal agreement which she signed and it will make no further payment.
6. The Ombudsman cannot resolve disagreement about terms or breaches of private contracts. The agreement she signed in 2017 was a personal contract with the Council and if she wishes to challenge this she will need to seek advice about taking legal action.

Back to top

Final decision

7. We will not exercise discretion to investigate this complaint. This is because it concerns a legal contract between Miss X and the Council, and it would be reasonable for her to challenge the Council in the courts if she believes the agreement was breached.

Investigator’s decision on behalf of the Ombudsman

Back to top

Investigator's decision on behalf of the Ombudsman