Summary: We will not investigate this complaint about the Council’s failure to inform Ms X of the application of a cost floor to Ms X’s Right to Buy for her Council home when she transferred to it in 2018. We have no jurisdiction to investigate the management of tenancies by social housing landlords. There is no fault in the Council’s calculation of Ms X’s discount for her current application.

The complaint

1. Ms X complained about the Council failing to inform her about the implications of any future right to buy application when she agreed to be transferred to a new build property in 2018. She says she has lost her discount because of the cost floor applied to the new build home and would have had a significant discount had she remained at her previous tenancy.

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The Ombudsman’s role and powers

2. We cannot investigate complaints about the provision or management of social housing by a council acting as a registered social housing provider. (Local Government Act 1974, paragraph 5A schedule 5, as amended)

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How I considered this complaint

3. I considered information provided by the complainant and the Council’s responses.
4. I considered the Ombudsman’s Assessment Code.

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My assessment

5. Ms X says she agreed to be moved to a new-build council property in 2018 because her previous home was in a block which was being refurbished. She says the Council failed to tell her that by accepting a new-build home any future Right to Buy application would be subject to the application of the cost-floor rules set out in the 1985 Housing Act. This restricts any discount to the difference between the construction cost and the market value. In this case the cost was higher than the market value and so no discount was awarded.
6. Ms X was notified of the cost-floor when she applied to buy her home in 2024. However, the Council says information about the cost-floor applying to the property was available to her when she accepted the tenancy in 2018.
7. Ms X is a social housing tenant and we cannot investigate complaints about the management of tenancies by social housing landlords. Whether or not she was aware of the cost-floor implications relates to her accepting the tenancy terms and this is outside our jurisdiction.
8. The Council has correctly applied the cost-floor to her current application and the decision on her discount is a requirement of the Right to Buy legislation.

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Final decision

9. We will not investigate this complaint about the Council’s failure to inform Ms X of the application of a cost floor to Ms X’s Right to Buy for her Council home when she transferred to it in 2018. We have no jurisdiction to investigate the management of tenancies by social housing landlords. There is no fault in the Council’s calculation of Ms X’s discount for her current application.

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Investigator's decision on behalf of the Ombudsman