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Orbit Housing Association Limited (202114041)

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REPORT

COMPLAINT 202114041

Orbit Housing Association Limited

4 March 2022


Our approach

What we can and cannot consider is called the Ombudsman’s jurisdiction and is governed by the Housing Ombudsman Scheme. The Ombudsman must determine whether a complaint comes within their jurisdiction. The Ombudsman seeks to resolve disputes wherever possible but cannot investigate complaints that fall outside of this. 

In deciding whether a complaint falls within their jurisdiction, the Ombudsman will carefully consider all the evidence provided by the parties and the circumstances of the case.

The complaint

  1. The complaint concerns the resident’s liability to pay service charges for communal spaces.

Determination (jurisdictional decision)

  1. When a complaint is brought to the Ombudsman, we must consider all the circumstances of the case as there are sometimes reasons why a complaint will not be investigated.
  2. After carefully considering all the evidence, I have determined that the complaint, as set out above, is not within the Ombudsman’s jurisdiction.

Summary of events

  1. The resident submitted a complaint to the landlord stating concerns, in respect of the payment for service charges for the use of communal space. The resident explained that his property is such that there is no communal space. The resident did not consider that he should be paying for a charge pertaining to a space he does not have use of.
  2. The resident explained that the landlord had further overcharged for service charges for the previous eight years. The resident considered that this demonstrated that the landlord had not been administering the accounts appropriately.
  3. The landlord provided a final response to the complaint on 9 April 2021. It explained that the resident’s property had been defined as part of a block and this is therefore why the charge had initially been levied. The landlord acknowledged that the agreement in place poorly reflected the position of the property on the site but explained that it was unable to vary the terms of the lease without consultation. The landlord stated that should there fail to be an agreement at consultation, that it would be necessary for a court to determine the accuracy of the terms of the lease. 
  4. The landlord agreed that the resident’s service charge account had been overcharged for eight years and attributed this to a computational error. The landlord provided a £672.09 refund for the charges in addition to £400 compensation for the inconvenience experienced and £70 to acknowledge the error.
  5. The resident raised their complaint with this service on 22 September 2021. The resident explained that he did not have use of any communal space and therefore did not consider the charges enforceable.

Reasons

  1. Paragraph 39(i) of the Housing Ombudsman Scheme states that:

The Ombudsman will not investigate complaints which, concern matters where the Ombudsman considers it quicker, fairer, more reasonable or more effective to seek a remedy through the courts, a designated person, other tribunal or procedure;

  1. The resident’s complaint turns on their belief that the lease agreement is inaccurate as he does not have the benefit of communal facilities. The resident does not therefore consider that he should pay the service charges for them.
  2. The landlord’s position is that the resident shares his position with eight other parties and as such it is necessary for a consultation to take place. The landlord explained that this is likely a situation which is better suited to the courts who can determine the correct terms of the lease.
  3. This Service cannot issue a binding decision about the liability to pay for the service charges. In this case the resident has been clear that her complaint relates directly to a dispute about whether service charges are enforceable. Therefore, this case is better suited to the First-Tier Tribunal and is not a complaint that the Ombudsman can investigate further.
  4. If the resident remains dissatisfied with this issue, they may wish to seek further assistance from Citizens Advice, and their complaint may be one that the First-tier Tribunal can consider.

www.citizensadvice.org.uk

https://www.lease-advice.org/advice/find-the-right-information-for-you/?step-option=61

https://www.gov.uk/courts-tribunals/first-tier-tribunal-property-chamber