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Metropolitan Thames Valley Housing (202009696)

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REPORT

COMPLAINT 202009696

Metropolitan Housing Trust Limited

17 June 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 landlord’s response to the resident’s concerns about whether their service charges are apportioned in accordance with their lease and the reasonableness of these charges.

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 is a leaseholder of the landlord. They brought a complaint to the landlord due to their concerns over a change in the way the landlord allocated whole estate charges between flats and blocks on the estate. The service charge was previously divided between flats but in 2016, this was changed to by blocks and estates. The resident noticed charges were being split between 3 blocks when there were 5 on the estate. The resident explained this impacted her negatively as there are 6 flats in her block, so she was paying a greater proportion of whole estate charges.
  2. The landlord issued its final response to the complaint on 12 January 2021. The landlord advised that the correct amount for the estate has been paid however there was confusion over how the total was divided between blocks on the estate. The landlord apologised for the delay in addressing the resident’s concerns and committed to address any confusion. The landlord advised they could not investigate discrepancies with the service charges as this falls under the jurisdiction of their Leasehold and Service Charge team.
  3. The Housing Ombudsman was provided a copy of the final response on the 13 January 2021. In their contact with service on 28 November 2020 and the 14 January 2021, the resident explained that their complaint concerns the following issues relating to their service charges:
    1. That the landlord had either changed the apportionment of service charges amongst properties on the estate without appropriate consultation or authority, or that it was not calculating these in accordance with the terms set out in the lease.
    2. That this resulted in increases in service charges which were unreasonable.
    3. That the landlord should not be able to enforce the increases as the resident did not believe them to be compliant with the terms set out in their leasehold agreement.

Reasons

  1. Paragraph 39(i) of the Scheme states that…

‘The Ombudsman will not investigate complaints which, in the Ombudsman’s opinion, 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. In correspondence to this Service, the resident set out that their complaint concerned their belief that estate charges and building were not apportioned in accordance with the terms of the lease. They believe that the landlord may also have varied the way it apportions charges in contravention to the lease. The resident advised this resulted in service charges which they consider to be unreasonably high and unenforceable.
  2. Disputes about liability to pay service charges, or disputes about the interpretation of a lease, require a binding decision from a Court or Tribunal. I am therefore satisfied that, in accordance with paragraph 39(i) of the Scheme, this complaint is not one which the Ombudsman can investigate further, as it is a matter for the First-tier Tribunal.
  3. The resident may wish to contact the Leasehold Advisory Service for further advice or seek independent legal advice to help them assess and clarify this issue.

 

https://www.lease-advice.org/