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Flagship Housing Group Limited (202006196)

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REPORT

COMPLAINT 202006196

Flagship Housing Group Limited

16 June 2021


Our approach

Under our early resolution process, the Ombudsman works with the resident and landlord to explore the issues in dispute, identify the matters that remain outstanding and assist in reaching an agreed settlement.

The complaint

  1. The complaint is about landlord’s response to the resident’s request for the refund of rent and bedroom tax, following the reclassification of the property.

Determination (decision)

  1. In accordance with paragraph 55 (c) of the Housing Ombudsman Scheme, the landlord has made an offer of redress to the complainant following the Ombudsman’s intervention which, in the Ombudsman’s opinion, resolves the complaint satisfactorily.

Background

  1. The resident’s property was originally classified as having three bedrooms. The landlord reports that in 2015, it became aware of an issue with the size of a bedroom in the resident’s neighbour’s property, which was similar in size to the resident’s, and it reclassified the neighbouring property from three bedroom to a two bedroom, on 28 September 2015.
  2. The landlord’s surveyor attended the resident’s property in February 2019 and reported that the third room identified was likely to be too small to be considered a third bedroom. Following this, the landlord reclassified the property as a two bedroom and refunded the resident the difference in rent between a three bedroom and two-bedroom property, backdated to January 2019.

How the complaint was resolved

  1. The resident raised a formal complaint to the landlord in February 2020, as they were unhappy that they had been charged rent and bedroom tax on a three-bedroom property from 2013, up until when the property was reclassified as a two bedroom in February 2019.
  2. The landlord responded to the complaint at stage one on 12 May 2020 and said:
    1. Following its surveyor’s visit to the property in February 2019, it reclassified the property from a three bedroom to a two–bedroom and refunded the resident the difference in rent between a two bedroom and three–bedroom, backdated to January 2019.
    2. It accepted the property in good faith as a three-bedroom following a transfer in 1993 and would not have had reason to dispute this.
    3. As the bedroom tax was paid to the local authority and the original transfer documents stated that the property was a three bedroom, it declined to offer any further reimbursement.
  3. The resident expressed they remained unhappy with the landlord’s response, and the landlord provided a final response on 29 May 2020. It upheld its decision at stage one and advised the resident to contact the local authority about their request for a refund of the bedroom tax paid for the third bedroom before the property was reclassified.
  4. The resident referred their complaint to this Service as they remained unhappy with the outcome. We called the resident on the 24 March 2021, to discuss their complaint and they explained that to resolve their complaint, they wanted the landlord to backdate the reclassification of the property to 2015 and reimburse them for the additional rent paid for the third bedroom from 2015.
  5. We contacted the landlord about the complaint on 29 April 2021, explained the outcome the resident was seeking and asked if it wanted to take part in our mediation process. It said it would like to take part in our mediation process and confirmed its proposal on 15 June 2021. It said:
    1. It became aware of the issue with the size of the bedroom in the resident’s neighbour’s property, on 28 September 2015. It noted that it reclassified the resident’s property from January 2019 and therefore, considered reimbursement of rent between the week commencing 28 September 2015 up to the week commencing 17 December 2018. It advised the difference in rent for the three bedroom and two–bedroom between this period was £1649.56.
    2. Had the resident’s housing benefit been assessed for a two bedroom instead of a three bedroom between the aforementioned period, they would have been entitled to a further £385.51.

It said that based on this, it would offer the resident £2035.07.

  1. We called the resident on 16 June 2021, to discuss the landlord’s offer and they confirmed they considered the landlord’s offer as satisfactory to resolve their complaint. During the call, the resident confirmed they understood that any refund request for bedroom tax paid, would need to be directed to the local authority.
  2. Paragraph 55 (c) of the Housing Ombudsman Scheme states that:
    1. “At any time, the Ombudsman may determine the investigation of a complaint immediately if satisfied that the member has made an offer of redress following the Ombudsman’s intervention which, in the Ombudsman’s opinion, resolves the complaint satisfactorily. This will result in a finding of ‘resolved with intervention’.”
  3. I am therefore satisfied, following the intervention of this Service, that the landlord has now taken actions to remedy the matters raised which resolve the complaint satisfactorily.

Recommendation

  1. That the landlord pay the £2035.07 to the resident within three weeks of the date of this report. Once the payment has been made, the landlord should provide confirmation to this Service.