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Notting Hill Genesis (NHG) (202217867)

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REPORT

COMPLAINT 202217867

Notting Hill Genesis (NHG)

14 April 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 the landlord’s handling of the resident’s requests for rent and service charge accounts. 
  2. The Ombudsman has also looked at the landlord’s handling of the associated complaint.

Background

  1. The resident was a leaseholder of the property, a 1-bed apartment, from 2018.
  2. Between 26 April 2022 and 15 March 2023 the resident requested the 19/20, 20/21 and 21/22 audited service charge accounts for her property on 9 occasions from the landlord. (Audited service charge accounts provide a statement of actual service charge income and expenditure for variable service charges.)
  3. The resident complained on 16 May 2023. She said the landlord had not given her the previous 3 years of audited service charge accounts. The resident also asked for the estimated rent and service charges for 23/24.
  4. On 16 June 2023 the landlord responded at stage 1 of its internal complaints process. It upheld the complaint and offered the resident £250 in compensation.
  5. The resident escalated her complaint on 19 June 2023. She asked the landlord for the following:
    1. The outstanding service charge statements.
    2. The minutes of the last 4 residents meetings.
    3. The notice of review for the 23/24 rent charges.
    4. The 23/24 service charge estimate.
  6. On 19 September 2023 the landlord responded at stage 2 of its internal complaints process and offered the following:  
    1. A 20% reduction of the management fee for 23/24 would be offered to all residents, calculated at 5% reduction for each year of delays.
    2. £50 for the delay in providing the last 4 sets of minutes from the resident meetings.
    3. A further £250 for the “lack of communication” in the 23/24 rent review.
    4. £250 compensation for its delays in complaint handling.
  7. The resident brought her complaint to us and said she sold her property due to the stress of the landlord not providing the documents she requested. For the sale of her property, she agreed to put aside £1000 as a contingency for any money owed for service charges. The resident said she did not receive any of the service charge accounts she requested.

Assessment and findings

Scope of investigation

  1. In relation to the resident’s service charge concerns, the Ombudsman is unable to determine whether service charge amounts are reasonable or payable. The resident should seek legal advice for complaints of this type. We can consider a landlord’s administration of service charges, including its response to requests for information and documents about them.

The landlord’s handling of the resident’s request for rent and service charge accounts

  1. Under Section 20b of the Landlord and Tenant Act 1985, a landlord has 18 months within which to notify the resident of service charge costs being incurred or a demand for a payment. In cases where final costs have not yet been billed, a letter is required notifying the resident they will be required to contribute towards incurred costs.
  2. This provision effectively allows the landlord to stop time running on the period within which it can recover charges and gives it the ability to demand service charges more than 18 months after the relevant costs were incurred.
  3. The landlord issued a section 20b notice on the service charge account for the resident for the following financial years:
    1. 19/20 on 18 September 2020.
    2. 20/21 on 29 September 2021.
  4. On 26 April 2022 the resident asked the landlord for the 19/20, 20/21 and 21/22 audited service charge accounts for her property.
  5. The landlord responded on 15 May 2022. It said the following:
    1. The 19/20 service charge accounts would be sent “in the next few weeks”.
    2. A section 20b had been issued for the 20/21 service charge accounts.
    3. The 21/22 service charge accounts were not due for another 4 months and were currently being processed.
  6. The resident chased the 19/20 and 20/21 service charge accounts on 25 and 31 August and on 26 September 2022. On 4 October 2022 the landlord said the resident should have since received the 19/20 service charge accounts. It said delays were due to its merger with another housing provider.
  7. The resident chased the 19/20, 20/21 and 21/22 service charge accounts on 20 and 24 November and on14 December 2022. The landlord responded on 20 December 2022 and told the resident the 19/20 accounts would be sent out in January 2023. It apologised for incorrectly stating the 19/20 had already been sent to her.
  8. On 29 September 2022 the landlord issued a section 20b notice on the 21/22 service charge account for the resident’s property.
  9. The resident did not receive the 19/20 service charge accounts in January 2023 and she chased the landlord again on 1 February and 15 March 2023. The landlord replied on 22 March 2023 and said the accounts will be provided to the resident “in the summer”.
  10. The landlord’s service charge policy states it will:
    1. Provide an annual statement of accounts to residents for variable service charges.
    2. Ensure residents are sent a service charge summary showing expenditure for the previous financial year. This will be balanced with the estimated budget that will show a surplus or deficit.
    3. Independently certify service charge accounts in accordance with statutory requirements.
    4. Issue a formal section 20b notice under the Landlord and Tenant Act 1985 if it is unable to send a service charge summary.
  11. The resident’s lease states:
    1. The landlord will, as soon as practicable after the end of the account year, determine whether there is a surplus or loss on the service charge accounts. It will also provide the resident with a copy of the certificate.
    2. The rent for the property will be reviewed on 1 April each year by the landlord. It will be assessed on an upwards only basis.
    3. Immediately following a review date, the landlord will serve written notice for the rent review on the leaseholder.
  12. The resident complained to the landlord on 16 May 2023. She said she wanted the audited service charge accounts for financial years 19/20, 20/21, 21/22, 22/23 and the rent review and service charge estimate for 23/24.
  13. On 16 June 2023 the landlord responded at stage 1 of its internal complaints process. It said the following:
    1. A section 20b notification letter had been issued for the 19/20, 20/21 and 21/22 service charge account. The landlord expected the resident to receive the audited accounts for these years in the next 3 months.
    2. The 23/24 rent review and service charge estimate had not been sent out to some residents in error. The landlord confirmed to the resident the new rent and service charge amounts for her property for 23/24 financial year. It said the new budgets would be sent round to residents soon.
    3. There were errors on the service charge accounts due to a merger between the landlord and another housing provider.
  14. A review of the landlord’s stage 1 response shows it recognised its failure to provide the resident with the service charge and rent review for the financial year 23/24. It apologised for this.  
  15. The landlord has provided evidence that it issued section 20b notices to the resident for the 19/20, 20/21 and 21/22 accounts. It was entitled to do so under both its service charge policy and the Landlord and Tenant Act 1985 in cases where it was unable to provide the full accounts.
  16. However, the landlord said the 19/20 service charge accounts were available but it failed to provide them multiple times to the resident when it said it would.
  17. The landlord’s compensation policy states it will award up to £250 when there has been a high impact on a resident. The landlord admitted the delays and its failings.
  18. The resident escalated her complaint on 19 June 2023. She said she had still not received the 19/20, 20/21 or 21/22 service charge accounts. Or the rent review document for 23/24. On 19 September 2023 the landlord responded at stage 2 of its internal complaints process. It said the following:
    1. It was “on track” to provide the 22/23 service charge accounts. It said it would give the resident weekly updates on this.
    2. It had requested the minutes of the residents meeting be sent to the resident.
    3. It did not know why she had not received the rent review for 23/24. The landlord was also unable to tell the resident when it would be sent to her.
    4. There had been an internal breakdown in communication and the resident was told incorrectly that the 23/24 service charge estimate had been processed. It said all residents were still paying the same service charge amount for the last 3 years and it would remain the same for this year.
    5. It said it recognised its failures to the resident. It apologised for the “frustration and stress” caused to her.
  19. A review of the landlord’s stage 2 response shows it again recognised its failures. The landlord had not been able to provide the resident with the service charge accounts since 2019. It also failed to provide the 23/24 rent review and service charge estimate. It recognised these failings, apologised and offered a further £550 compensation. In addition, it gave a 20% reduction of management fees for that year.
  20. On 23 September 2024 the landlord sent the resident a section 20b notice on the 23/24 service charge accounts. It said it hoped the final audited service charge accounts would be with the resident within “the next few months”.
  21. The evidence submitted to us shows the landlord produced the 22/23 audited service charge accounts which were addressed to the resident on 25 September 2023.
  22. In summary the landlord provided notice to the resident that she will be liable for any service charges still due for the years 19/20, 20/21, 21/22 and 23/24. This was due to not having audited accounts for those period. It did provide audited accounts for the financial year 22/23.
  23. The landlord acknowledged its failure to provide the service charge accounts and the review and service charge review for 23/24. It offered a total of £550 compensation for its failings and a 20% reduction of management fees for 1 year.
  24. Where there are admitted failings by a landlord, the Ombudsman’s role is to consider whether the redress offered by it put things right and resolved the resident’s complaint satisfactorily in the circumstances. In this case the landlord’s offer of £550 compensation, a 20% reduction of management fees for 1 year.
  25. The response by the landlord and its offers of compensation show it attempted to put things right for the resident. The steps taken by the landlord and the amount of compensation offered when compared to its failings were reasonable in the circumstances. It offered compensation equivalent to an amount we would consider appropriate in the circumstances based on the Ombudsman’s guidance on remedies. Because the landlord made an offer of compensation which was reasonable in the circumstances to account for its failings and the subsequent impact on the resident, this leads to a determination of reasonable redress.

The landlord’s handling of the associated complaint

  1. The resident raised her complaint on 16 May 2023. We intervened on 9 June 2023 and the landlord replied at stage 1 of its internal complaints process on 16 June 2023. This was around 12 working days beyond the requirement of its complaints policy to respond at stage 1 within 10 working days.
  2. The resident escalated her complaint on 19 June 2023. She chased the landlord for a response on 4 July 2023. It responded and apologised for the delay and said it would contact her within 20 working days with a response. The resident chased her reply on 4 and 29 August 2023. We intervened on 12 September 2023 and asked the landlord to respond within 5 working days.
  3. On 19 September 2023 the landlord responded at stage 2 of its internal complaints process. This was a delay of around 46 working days beyond the requirement of its policy to respond at stage 2 within 20 working days. At stage 2 the landlord offered the resident £250 compensation for its complaint handling failures.
  4. In summary, the landlord failed to respond to the resident at stage 1 and 2 within the policy time frame and without our intervention. It offered £250 compensation to put things right for the resident.
  5. The landlord’s offer of £250 compensation for its handling of the associated complaint is similar in amount to an award we would make in these circumstances using the Ombudsman’s guidance on remedies. This leads to a determination of reasonable redress. This means the landlord made a reasonable offer to put things right for the resident as part of its complaints process.

Determination

  1. In accordance with paragraph 53.b. of the Housing Ombudsman Scheme, the landlord has provided reasonable redress in its handling of the resident’s requests for rent and service charge accounts. 
  2. In accordance with paragraph 53.b. of the Housing Ombudsman Scheme, the landlord has provided reasonable redress in its handling of the associated complaint.

Recommendations

  1. It is recommended the landlord should:
    1. Pay the resident £800 compensation if it has not done so already.
    2. Provide the resident with written updates on the status of the provision of the audited service charge accounts for each of the outstanding years at every second quarter, until they have been issued to her.