All Case Studies

Rent increase communication (February 2025)

Summary

The resident (shared owner) complained about our communication regarding rent increases and arrears.

In February 2023, we sent a letter about a rent increase. The resident complained in March 2023 about not receiving rent increase letters since 2019. She also raised concerns over rent arrears due to a lack of communication, affecting the sale of her flat.

We responded in April 2023, apologising for communication failures but asserting that it was the resident’s responsibility to ensure correct payments were being made in line with her lease. We apologised for her being passed from one department to another when querying arrears and we offered her a payment plan to clear arrears within 12 months.

In our final response in July 2023 we said that:

1. we had evidence of rent increase letters being sent out
2. It was the resident’s responsibility to make correct payments
3. We should have told the resident when her account fell into arrears, and when she started the sales process
4. that the format of the rent increase letter did “not precisely match” the example in the lease agreement but it gave details of the rent increase

We offered £100 compensation for communication failures on rent arrears and said we would set up a repayment plan.

The Ombudsman found that the lease agreement clearly stated that rent would increase annually and that it was the resident’s responsibility to check for increases. They also found that our failure to inform the resident about rent increases or arrears was acknowledged.

In relation to the rent increase letter, they found that our explanation was reasonable even though we deviated from the lease format. This was because we continued to communicate the increase.

The Ombudsman also found delays in our complaints handling.

Outcome

1. There was reasonable redress on the complaint about communication on rent increases and rent arrears
2. There was service failure in our complaint handling

Orders and recommendations

1. Pay the resident £100 compensation for the complaint handling failures
2. Reoffer the £100 compensation awarded at stage 1 of our complaints response