Clarion Housing Association Limited (202015742)

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REPORT

COMPLAINT 202015742

Clarion Housing Association Limited

11 November 2021


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 is about the level of service charges for planned works.

Determination (jurisdictional decision)

2. 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.

3. 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

4. The resident made a complaint about their leasehold service charge account to the landlord. They questioned aspects of the service charge itself (whether this was payable or not), and that they believed the landlord had failed to follow the terms of the lease. The complaint was first raised with the landlord in late 2020.

5. The landlord replied to the resident on 17 November 2020. That letter addressed concerns about service charge amounts that had been removed, but later reinstated mistakenly by the landlord; as well as the transparency of service charges.

6. The resident remained unhappy with the landlord’s response and escalated the matter with it in January 2021. The resident set out a series of outstanding issues and questions in a six-page letter – which amongst other things – explained why they remained dissatisfied with the landlord’s leasehold services, its administration of the service charge account and service charge amounts.

 

 

7. In a letter dated 15 February 2021, the landlord responded to the resident’s ongoing concerns. The letter confirms the complaint had exhausted the landlord’s internal complaints process and provided the resident with Ombudsman escalation rights.

8. As the resident remained unhappy with the landlord’s final response, they brought their complaint to this Service in February 2021.

9. As part of the correspondence the resident submitted to this Service, they outlined the history of the complaint in a five-page document in April 2021 which primarily concerned their dissatisfaction about the level of service charges and the landlord’s compliance with the lease.

Reasons

10. Paragraphs 39 (g) and 39 (i) of the Ombudsman Scheme states that the Ombudsman will not investigate complaints which, in the Ombudsman’s opinion:

(g) “concern the level of rent or service charge or the amount of the rent or service charge increase”.

(i) “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”.

11. The issue surrounding the level of service charge itself, and whether this is payable or not, is outside the jurisdiction of this Service. Part of the resident’s complaint also relates to them querying service charge increases. As per paragraph 39 (g) of the Scheme, matters concerning the level of service charge or increases to the service charge, falls outside the jurisdiction of this Service.

12. Aspects of the resident’s complaint also concern whether the terms of the lease have been complied with by the landlord. Matters concerning leaseholder terms fall under contract law, so the Ombudsman cannot investigate or comment upon the merits of this. As per paragraph 39 (i) of the Scheme, if the resident believes the landlord is in breach of the lease terms, this may be better suited for the courts.

13. Whilst this Service can look into the landlord’s administration of the service charge account, the Ombudsman does not have the resources to conduct a detailed audit of the service charge accounts. Nor is the Ombudsman satisfied that even if it were to carry out an investigation into the landlord’s administration of the account, that its findings would be sufficient to answer the outstanding queries the resident has regarding historical account anomalies and/or inaccuracies.

14. From the information this Service has been provided with, the resident’s main concern is their belief that the landlord has not complied with the terms of the lease when managing their service charge account and that, therefore, some charges are set at an unfair level, and some cannot be charged at all. There are then further concerns about how information about these disputed charges has been provided to the resident. Given that this Service is unable to conduct a detailed audit of the service charge account, this Service is satisfied that the First Tier Property Tribunal is better placed to carry out an explorative investigation into the resident’s complaint in full. I am therefore satisfied that this complaint is not one the Ombudsman can consider further.