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Moat Homes Limited (202009700)

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REPORT

COMPLAINT 202009700

Moat Homes Limited

5 March 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 concerns the resident raised about a sales clause in their lease.

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 brought a complaint to the landlord concerning terms in their leasehold agreement about selling the property, which they considered unfair.
  2. The landlord issued its final response to the complaint on 6 November 2020. The landlord explained that as the main points of the resident’s complaint relates to clauses stipulated within the lease, they did not uphold the complaint, stating that it, ‘falls outside the remit of our complaints procedure’.
  3. The Housing Ombudsman was provided a copy of the final response on the 1 December 2020. In their contact with service, the resident explained that their complaint concerns a clause in their lease agreement which sets out that the landlord expects to be paid for their share of the property based on the valuation, not the sale price. The resident explained that they understood this to mean that, should they sell the property for less than the valuation, they would be expected to pay the landlord a larger share of the sale proceeds. They explained that they believe this clause is unfair.

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. The resident confirmed on the 11 February 2021 that the complaint concerns a sales clause stipulated in their lease, which they consider to be unfair. Disputes about whether a leasehold agreement contains an unfair clause which may or may not be enforceable, require a binding decision from the Court or Tribunal.
  2. 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.
  3. The resident may wish to seek independent legal advice to help them assess and clarify this issue.