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Orbit Group Limited (202125373)

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REPORT

COMPLAINT 202125373

Orbit Group Limited

27 September 2023

 

Our approach

The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This is set out in the Housing Act 1996 and the Housing Ombudsman Scheme (the Scheme). The Ombudsman considers the evidence and looks to see if there has been any ‘maladministration,’ for example whether the landlord has failed to keep to the law, followed proper procedure, followed good practice, or behaved in a reasonable and competent manner.

Both the resident and the landlord have submitted information to the Ombudsman, and this has been carefully considered. Their accounts of what has happened are summarised below. This report is not an exhaustive description of all the events that have occurred in relation to this case, but an outline of the key issues as a background to the investigation’s findings.

The complaint

  1. The complaint is about the level of compensation offered by the landlord for delays in carrying out repairs to the floor that affected the ability to sell the property.

Background

  1. The resident owned a 75% share of a new build retirement flat since 2014. The landlord is a housing association.
  2. During the defects period of the property, the resident informed the landlord of a problem with the floor in the property. The landlord inspected the property with the developer and assessed the works needed were structural and would be too disruptive to the resident. The parties agreed the landlord would carry out the work when the property was empty.
  3. In October 2020, aged 101, the resident went into respite care for a period of 4 weeks. Accordingly, the resident’s family informed the landlord that the flat was empty and available for carrying out the repairs.
  4. The landlord started the repairs to the floor one year later in October 2021 and completed the work in February 2022.
  5. The resident and her family were dissatisfied with the amount of time taken by the landlord to carry out the repairs and complained to the landlord. The landlord apologised, upheld the complaint, and offered £100 as a good will gesture for the delays.
  6. The resident passed away a few days after the landlord’s offer of £100 and the resident’s family continued with the complaint.
  7. The family escalated the complaint to stage 2 of the landlord’s complaint process stating the compensation offer was derisory and said the length of time taken for the landlord to carry out and complete repairs had affected their ability to market and sell the property.
  8. In its final stage 2 response the landlord apologised for its delays and said it would reduce the service charges by 50%, refund the care charge, water charge, heating, and electric charge up until 12 November 2021, which was the anticipated completion date of the works. It also informed the family that it would adjust the compensation accordingly should the works take longer than expected. Based on the anticipated completion date of 12 November 2021, the compensation offered amounted to £2,199.96.
  9. The resident’s family remained dissatisfied with the landlord’s final compensation offer and escalated the complaint to this Service. To resolve the issue, the family want the landlord to provide compensation and continue to provide compensation up to the time the property is sold.

Assessment and findings

  1. The landlord and resident had an agreement to carry out the repairs needed when the property became empty. However, the landlord did not respond to the notification that the property was empty. The documents indicate the landlord was notified the property was empty on 12 October 2020 but did not visit until February 2021.
  2. In its stage 1 complaint response the landlord did apologise for the delays from February 2021 onwards but did not provide any explanation for its initial 4-month delay between 12 October 2020 and February 2021 when it failed to visit the property. It also did not include this time of delay in its compensation calculation.
  3. The landlord attributes delay from February 2021 onwards to contractor staffing issues due the covid 19 pandemic, supply issues of specialist materials, a leak into the resident’s property from the flat above, and the need for input from structural engineers. However, these factors do not explain why the landlord did not attend the property between 12 October 2020 and February 2021.
  4. Additionally, this Service understands the flooring defect affected multiple properties in the block including the flats immediately above and below the resident. The work to some flats had already been completed or was in progress, so the landlord already had knowledge and understanding of the inputs, materials, and personnel required.
  5. In its stage 1 complaint response the landlord acknowledged that its delays meant the family could not advertise the property for sale because it was in a state of disrepair for a prolonged period. It apologised for this which demonstrates the landlord understood the impact and detriment caused to the family at an already difficult time.
  6. The landlord’s compensation policy states it aims to deal with customer issues fairly and appropriately. In view of its understanding of the impact on the resident’s family, the fact that it took 4 months for the landlord to visit the property after being notified it was empty, and then another 8 months before work commenced in October 2021, the landlord’s stage 1 compensation offer of £100 pounds was not fair or appropriate. It missed an opportunity to put things right at an early stage.
  7. At stage 2 of the complaint process the landlord improved its compensation offer to the resident. The Ombudsman considers the landlord’s stage 2 compensation was becoming more reflective of the landlord’s lengthy delays. However, its compensation calculation still did not acknowledge its initial 4-month delay in attending the property between 12 October 2020 and February 2021.
  8. The Ombudsman’s view is that in the circumstances, compensation should be calculated from the first point of delay which was October 2020.
  9. The records indicate the landlord and the resident’s representative agree that floor works, and reinstatement works were completed on 11 February 2022. Accordingly, the Ombudsman considers a compensation calculation date starting from 12 October 2020 to 11 February 2022 would be fair and reasonable.
  10. The resident’s family believe the landlord should pay compensation up until such time the property is sold as an additional compensation measure for its delays. The Ombudsman cannot identify any quantifiable loss experienced by the family after the works were completed on 11 February 2022 and the family were able to market and sell the property from this date. Therefore, the Ombudsman cannot identify any grounds for the landlord to pay compensation up until the time the property is sold.
  11. The Ombudsman’s view is that for the landlord’s compensation offer to be fair and put things right it should have been calculated from 12 October 2020 to 11 February 2022.
  12. Accordingly, there was service failure in the landlord’s calculations of the compensation it offered the residents family for the delays in carrying out repairs to the floor because it did not include the period of its delay between 12 October 2020 and February 2021.

Determination

  1. In accordance with paragraph 52 of the Housing Ombudsman Scheme, there was service failure in the level of compensation offered by the landlord for delays in carrying out repairs to the floor that affected the ability to sell the property.

Orders

  1. Within 4 weeks of the date of this report the landlord should backdate its compensation offer (reduce the service charges by 50%, refund the care charge, water charge, heating, and electric charge) from 12 October 2020 until 11 February 2022 and compensate accordingly.
  2. Within 4 weeks of the date of this report, the landlord must provide evidence that it has complied with the above Order.