Ombudsman outlines tests for fair shared ownership: England.
England’s Housing Ombudsman has unveiled its latest Insight report, concentrating on shared ownership, laying out nine tests for evaluating shared ownership complaints in the future as part of its evolving approach.
The report not only outlines how the Ombudsman can address shared ownership complaints but also delineates its limitations when dealing with issues such as defects and the sales process. Furthermore, the Ombudsman has revamped its website to furnish crucial information for both shared owners and landlords.
The investigations mentioned in the report encompass sales process errors that resulted in residents being unable to afford purchases or facing unexpected charges upon moving in. Instances where a poor understanding of lease agreements led to significant delays in essential repairs for residents were also highlighted.
The Ombudsman engaged with landlords and shared owners throughout the investigative process, and the subsequent modifications made to the report and website reflect this engagement.
Despite receiving complaints from shared owners in proportion to the tenure’s size annually, the notably high level of dissatisfaction necessitates more complaints to be escalated. To address this, the Ombudsman will raise awareness and ensure accessible complaints procedures.
Miscommunication, confusion regarding maintenance responsibilities, and the intricate nature of shared ownership have hindered landlords’ responses to complaints due to inadequate knowledge and information management.
The key points brought to light by the Ombudsman regarding shared ownership cases include:
- Sales process – highlighted delays in solicitor instructions, incorrect charge or rent levels prior to the sales process, undisclosed staircasing information, among other issues.
- Defects – cases where defects were not addressed promptly post-raising, and managing defects beyond the developer’s liability period.
- Cladding – instances of unreasonable delays in communicating essential documents or building safety information to residents.
- Repairs – the significance of landlords understanding repair obligations and effectively communicating with residents during complex repair works.
- Charges – instances of reasonable and unreasonable actions by landlords concerning charges and associated information.
- Managing agents and freeholders – the inefficiency in managing relationships with freeholders or managing agents, leading to ineffective resident communication.
These issues underpin nine crucial tests that the Ombudsman may consider during investigations, employing Paragraph 48 of its Scheme to treat individual cases as ‘test cases’ affecting others.
Richard Blakeway, the Housing Ombudsman, remarked, “Critiques surrounding shared ownership stem from its inherent complexity, unequal design inequities, and the responsibility it places on residents without equivalent control.
“While this report cannot resolve these issues, it empowers residents to bring complaints to improve their housing situations. It also aids landlords in learning from past complaints to enhance their service for shared owners.
“The complexities of shared ownership have often led to miscommunications that undermine landlord-shared owner relationships from the outset. One key lesson from our review is how landlords can address service failures in complaint resolutions for shared owners compared to other tenure types. This should inform overall complaint handling approaches.
“We may stand at a turning point for shared ownership. Any future reforms in shared ownership must tackle the recurring sources of discontent and service lapses evident in our casework.”
