Summary: We will not investigate this complaint about a claim that the Council has breached the terms of a bond agreement which Mr X signed with it in 2023. It is reasonable from Mr X to seek a remedy in the courts if he believes the private agreement was breached.

The complaint

1. Mr X complained about the Council providing misleading information when he signed a bond agreement to allow his property to be used as accommodation for a homeless tenant. He says the tenant failed to pay the rental for two months and caused damage to the property. He wants the Council to cover his losses and also any court costs associated with evicting the tenant.

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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 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. Mr X says he entered a private agreement with the Council in July 2023 to provide a bond agreement which guaranteed part of the rental for a tenant selected by the Council to prevent homelessness. He says he was told that the Council would be responsible for rent arrears incurred by the tenant and that he could claim the housing allowance part of the rental not covered by the bond directly from the Department For Work and Pensions (DWP).
6. The tenant who signed a separate agreement with him subsequently cancelled the direct payment arrangement with the DWP and failed to pay the rent herself to Mr X, leaving him with arrears. Mr X says he wishes to evict the tenant but will be left with unpaid rent and the costs of possession proceedings which the Council should pay.
7. The agreement Mr X signed with the Council was a private arrangement and the Council says it made the terms clear to him in 2023. He asked some questions about the agreement at the time but signed it after being given a draft copy for his information.
8. We cannot decide claims about breaches of private legal agreements. These are legal matters which can only be determined by the courts. It was reasonable for Mr X to seek legal advice before he signed the agreement in 2023 and he can seek a remedy in the courts for any breach of the agreement terms since then.

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Final decision

9. We will not investigate this complaint about a claim that the Council has breached the terms of a bond agreement which Mr X signed with it in 2023. It is reasonable from Mr X to seek a remedy in the courts if he believes the private agreement was breached.

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Investigator's decision on behalf of the Ombudsman