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A2Dominion Housing Group Limited (202319207)

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REPORT

COMPLAINT 202319207

A2Dominion Housing Group Limited

18 June 2025


Our approach

The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This is set out in the Housing Act 1996 and the Housing Ombudsman Scheme (the Scheme). The Ombudsman considers the evidence and looks to see if there has been any ‘maladministration’, for example whether the landlord has failed to keep to the law, followed proper procedure, followed good practice or behaved in a reasonable and competent manner.

Both the resident and the landlord have submitted information to the Ombudsman and this has been carefully considered. Their accounts of what has happened are summarised below. This report is not an exhaustive description of all the events that have occurred in relation to this case, but an outline of the key issues as a background to the investigation’s findings.

The complaint

  1. The complaint is about:
    1. The landlord’s handling of the resident’s request to sell their interest in the property.
    2. The landlord’s handling of the resident’s complaint.

Background

  1. The resident was a shared owner and held a lease with the landlord at the time the complaint was made. The property is a 1-bedroom flat. There are no vulnerabilities recorded for the resident on the housing records.
  2. A section 106 agreement was put in place between the landlord and local authority in November 2005 prior to the property being built. This included a clause restricting the occupation of the building for the exclusive use of key workers.
  3. The resident told the landlord on 21 June 2022 that he wanted to sell his share of the flat by October 2022 and asked what the next steps were. The landlord responded on 28 June 2022 and provided the resident with a copy of its guide on selling properties. It also noted it could not guarantee the property would be sold by October 2022 given many of the processes involved were outside its control.
  4. The resident told the landlord on 30 January 2023 that the property had been on the market for 3 months and said the landlord’s agent could be doing more to find a buyer for his home. The landlord confirmed on 1 February 2023 that the nomination period had ended and the property could be sold on the open market through an estate agent.
  5. The resident’s solicitor asked the landlord on 8 June 2023 for confirmation that the key worker clause included in the lease agreement was no longer applicable. It asked for the clause to be removed from the lease by a deed of variation.
  6. The resident made a complaint on 7 July 2023. He said the landlord had failed to respond to his request to progress matters and the delays were placing the sell of the property at risk.
  7. The landlord contacted the local authority on 18 July 2023 and confirmed it was happy for the key worker clause to be removed from the resident’s lease agreement. It issued its stage 1 complaint response on 19 July 2023 and said:
    1. It responded to most solicitor queries within 5 working days, but it could take longer to deal with more ‘‘obscure enquiries. ‘‘
    2. It believed it had responded to all of the resident’s outstanding queries but was willing to review any evidence he had which indicated it had failed to respond to emails sent by his solicitor.
    3. It had reinforced service response times with its staff.
  8. The resident escalated his complaint on 23 August 2023.
  9. The local authority confirmed on 4 October 2023 that amendments could be made to the lease agreement via a ‘‘side letter’’ rather than making a formal amendment to the section 106 agreement. The side letter was finalised on 14 November 2023.
  10. The landlord issued its final complaint response on 7 December 2023 and said:
    1. It responded to all correspondence within 5 working days and there were no delays on its part.
    2. A key worker clause was included in the resident’s lease agreement and could not be removed without the agreement of the local authority.
    3. The selling of the property could not proceed until the key worker clause had been removed.
    4. The local authority did not confirm that it was willing to vary the section 106 agreement until 4 October 2023. This was despite the landlord chasing up the matter on numerous occasions between July 2023 and October 2023. Updates were provided to the resident’s solicitor in a timely manner.
    5. The local authority provided the landlord with a draft ‘‘side letter’’ on 13 October 2023.
    6. Going forward, it would ensure its staff reminded residents that all correspondence would be directed through their legal representative once they engaged a solicitor. Residents should not expect to receive direct communication from the landlord.
  11. The resident’s lease agreement was varied on 15 December 2023.

Assessment and findings

The landlord’s obligations, policies and procedures.

  1. The section 106 agreement that was put in place between the landlord and local authority in November 2005, prior to the property being built includes a clause restricting the occupation of the building for the exclusive use of key workers. Specific clauses are included in the resident’s lease agreement to this effect.
  2. The landlord’s guide for residents on selling their share of their property says:
    1. Residents must notify the landlord if they wish to sell their home and arrange a valuation.
    2. It will arrange for properties to be marketed, including taking photographs, creating floor plans and arranging viewings.
    3. It will check if prospective buyers are eligible to buy the share of the property.
    4. It will work with the resident’s solicitor and the purchaser’s legal representative to complete the process.
    5. Give the resident permission to sell the property on the open market if it is unable to find a buyer within a specified time (as set out in the resident’s lease).
  3. The landlord’s leaseholder management policy says it will make amendments to lease agreements. The policy also says it will assist in the sale of shared ownership properties to ensure potential buyers meet particular criteria.
  4. The landlord’s complaints policy comprises of 2 stages. Complaints are acknowledged within 5 working days and a reply at stage 1 issued within 10 working days. The landlord responds to escalations at stage 2 within 20 working days. If more time is needed, the landlord says it will contact the resident to advise them.
  5. The landlord’s compensation policy says it may offer compensation if it fails to follow a policy or where there have been unreasonable delays in providing a service. Awards between £100 and £350 are made where there has been moderate disruption or resident effort. The landlord also offers compensation for poor complaints handling, with awards up to £150 given if it fails to follow its procedure and this causes the resident inconvenience and effort to progress the matter.

The landlord’s handling of the resident’s request to sell their interest in the property.

  1. This Service does not dispute the resident’s claims that he lost thousands of pounds due to the delays in completing the sale of the property. It is not the role of this Service, however, to establish whether the landlord is liable for these losses. This is a matter for the courts to decide and the resident should seek legal advice if he wishes to progress this element of his complaint. We have, however, investigated whether the landlord responded fairly and appropriately to the resident’s concerns and whether it acted reasonably and in line with good practice and any relevant policies.
  2. The housing records confirm the resident contacted the landlord on 21 June 2022 and said he wanted to sell his interest in the property. He said he wanted to do this by October 2022 and asked the landlord to confirm the next steps. The landlord responded on 28 June 2022 and provided the resident with a copy of its shared ownership guide. The landlord’s actions were reasonable in the circumstances. The landlord also said it could not guarantee the property would be sold by October 2022. This ensured it managed the resident’s expectations.
  3. The resident noted on 30 January 2023 that the property had been on the market for 3 months and said the landlord’s agent could be doing more to find a buyer for his home. He asked the landlord if he could use an estate agent to sell the property on the open market. The landlord confirmed on 1 February 2023 that the nomination period had come to an end and the resident was able to use an estate agent. This was consistent with the landlord’s shared ownership guide.
  4. It is unclear from the housing records when the resident found a buyer for his home or when the landlord was informed the prospective buyer was not a key worker. The resident’s solicitor contacted the landlord on 8 June 2023 and asked for confirmation that the key worker clause included in the lease agreement was no longer applicable. It asked for the clause to be removed from the lease by a deed of variation. There is no evidence the landlord responded to the request. This caused delays and led to the resident’s solicitor having to chase up the landlord on 5 July 2023.
  5. The landlord confirmed to the resident’s solicitor on 6 July 2023 that it had chased the matter up and would provide a response once it had more information. The landlord’s actions were reasonable in the circumstances given the sell of the property could not progress without the agreement of the local authority. It asked the resident’s solicitor on 13 July 2023 if it had a copy of the local authority search. It said it needed this information to ensure there were no planning restrictions in place regarding the key worker clause.
  6. The landlord contacted the local authority on 18 July 2023 and confirmed it was happy for the key worker clause to be removed from the resident’s lease agreement. It said it could do this via a deed of variation but would need the permission of the local authority before proceeding. The landlord’s actions were reasonable in the circumstances.
  7. The landlord issued its stage 1 complaint response on 19 July 2023. When considering how a landlord has responded to a complaint, this Service considers not just what has gone wrong, but also what the landlord has done to put things right in response to the complaint. This includes the steps the landlord has taken to address the shortcoming and prevent a reoccurrence, as well as any compensation offered. In this case, the landlord did not explain the reason for the delay in progressing the sell, set out the steps it was taking to progress the matter for the resident or provide any timescales for doing so. This was a failure and meant the resident was unclear on what action would be taken by the landlord.
  8. The resident asked the landlord for an update on 21 July 2023 and 31 July 2023. There is no evidence the landlord provided the resident or his solicitor with an update. This demonstrated poor communication on the part of the landlord. He told the landlord on 22 August 2023 there was a risk the sell would fall through if the requested information was not provided. Again, there is no evidence the landlord responded to the resident or updated his solicitor.
  9. The resident’s solicitor asked the landlord on 23 August 2023 to provide a copy of the draft deed of variation whilst it was waiting for consent to be provided by the local authority. There is no evidence the landlord responded to the request. It chased up the local authority on 25 August 2023 and 7 September 2023. The local authority confirmed on 11 September 2023 that it was looking into the matter and a member of staff would be in touch in due course. A further request for an update was made on 25 September 2023.
  10. The local authority confirmed on 4 October 2023 that amendments could be made to the lease agreement via a ‘‘side letter’’ rather than making a formal amendment to the section 106 agreement. The landlord confirmed on the following day that it was happy to progress the matter through a side letter. It also updated the resident’s solicitor on 11 October 2025.
  11. The local authority sent a copy of the draft side letter to the landlord on 13 October 2023. The landlord provided the resident’s solicitor with an update on 23 October 2023. The side letter was finalised on 14 November 2023 following discussions between the landlord and local authority.
  12. The landlord noted on 7 December 2023 in its final complaint response that the sale of the property could not progress until the key worker clause had been removed from the resident’s lease agreement. It said it could not do this without the agreement of the local authority. This provided clarity.
  13. The landlord said there were no delays on its part and it ‘‘exerted the right amount of energy’’ to progress matters on behalf of the resident. It also said it provided his solicitor with timely updates. Whilst the landlord noted it contacted the local authority on 10 occasions between 18 July 2023 and 1 November 2023, it did not provide this Service with evidence of all the contacts listed in the letter confirming this to be the case.
  14. The landlord noted that the local authority did not confirm it was willing to vary the section 106 agreement until 4 October 2023 and it did not receive a copy of the side letter until 13 October 2023, after which the terms needed to be negotiated.
  15. |n summary, the landlord dealt with the resident’s initial queries in a timely manner. It also contacted the local authority once the key worker clause was identified and agreed the lease agreement could be amended. Its communication with the resident and his solicitor was, however, poor at times and it did not take a proactive approach in chasing up the local authority despite stating that it had done so in its final complaint response.
  16. The situation caused the resident inconvenience, time and trouble. In this case, there was maladministration by the landlord in its handling of the resident’s request to sell their interest in the property, for which it is ordered to pay £150 compensation.

The landlord’s handling of the resident’s complaint.

  1. The resident made a complaint on 7 July 2023. The complaint was acknowledged on 10 July 2023. This was consistent with the landlord’s complaints policy.
  2. The landlord issued its stage 1 complaint response on 19 July 2023 in accordance with the timescales set out in its complaints policy.
  3. The resident escalated his complaint on 23 August 2023. The complaint escalation request was acknowledged on 31 August 2023. This was 1 working day after the deadline date. The landlord said it would provide a response within 10 working days, rather than the 20 working days set out in its complaints policy for stage 2 complaints. This caused confusion.
  4. The landlord did not respond to the resident’s complaint escalation request by the deadline date or advise him that there would be a delay. This was not consistent with the landlord’s complaints policy.
  5. The landlord issued its final complaint response on 7 December 2023. This was some 3 months after the resident escalated his complaint. Whilst the landlord apologised for the delay in responding, it incorrectly stated its response was only overdue by 2 working days. The landlord offered the resident £100 compensation for the delay. This was consistent with the landlord’s compensation policy.
  6. In summary, the landlord did not issue its final complaint response in accordance with the deadline set out in its complaints policy. The landlord offered an apology and compensation for the delay. In this case, there was reasonable redress by the landlord in its handling of the resident’s complaint.

Determination

  1. In accordance with paragraph 52 of the Housing Ombudsman Scheme, there was maladministration by the landlord in its handling of the resident’s request to sell their interest in the property.
  2. In accordance with paragraph 53b of the Housing Ombudsman Scheme, there was reasonable redress by the landlord in its handling of the resident’s complaint.

Orders and recommendations

Orders.

  1. Within 4 weeks of the date of this report, the landlord is ordered to apologise to the resident for the failings set out in this report. A copy of the apology letter must be shared with this Service.
  2. Within 4 weeks of the date of this report, the landlord is ordered to pay £150 compensation for the inconvenience, time and trouble caused to the resident in its handling of his request to sell his interest in the property. This must be paid directly to the resident.
  3. Within 6 weeks of the date of this report, the landlord must identify the learning from this case and in particular:
    1. Identify the obstacles that prevented effective and timely actions and proactive communication.
    2. Consider what measures need to be put in place, in addition to any which it already has in place, to avoid a re-occurrence of these obstacles.

Recommendations.

  1. The landlord pays the £100 compensation previously offered to the resident, if not already paid.