Trend report: complaints to the Housing Ombudsman and compensation to tenants

Since 2019-20, complaints have increased by 167 per cent, and compensation has increased by 1,400 per cent.

 

 

The average compensation per case ordered by the Housing Ombudsman also increased by 58 per cent in 2023-24, to £573.66. This figure had already risen by 48 per cent in the previous financial year. A combination of factors has led to higher compensation rates.

There has been a significant shift in the number of complaints to and the severity of their treatment by the ombudsman in the past two financial years.

 

Events such as the tragic and preventable death of two-year-old Awaab Ishak from a respiratory condition, caused by mould in his family’s social home in Rochdale in 2020, have triggered a spotlight on renters’ rights and led to the increase in complaints to the ombudsman.

 

Increased media attention and campaigners such as Kwajo Tweneboa have furthered this focus and, according to a spokesperson for the ombudsman, prompted tenants to come forward with their housing issues.

 

 

The disparity in compensation compared to number of complaints in 2022-23 and 2023-24 is due to the surge in complaints arising in late 2022 onwards. Therefore, many of these did not reach a determination until the 2023-24 fiscal year, according to the ombudsman.

 

There was £2.24m ordered in compensation in the first five months of 2024-25. A total of 48 per cent of all complaints raised to the ombudsman in 2023-24 related to property condition, within which there were 6,042 complaints about leaks, damp or mould. A total of £2.76m in compensation was ordered for property condition issues in the year.

 

 

Compensation awarded as a result of poor complaint-handling, including ‘delay in escalating or responding to the complaint’ and ‘other poor handling of complaint’ increased from £150,100 in 2022-23 to £861,174 in 2023-24.

 

Average compensation awarded has increased in part because of the length of time for which many tenants had experienced their housing issues before coming forward. In such cases, the severity of the problem seen will often be particularly bad, resulting in higher compensation.

 

On top of this, the cross-party Levelling Up, Housing and Communities Committee published a report in July 2022 on the quality and regulation of social housing in England.

 

The report provided evidence that compensation was too low and that it was cheaper for a housing association to get fined than address the problems. Based on this, the committee recommended amending the Social Housing (Regulation) Act so the ombudsman may award compensation up to £25,000, the same as in the private sector.

 

The report also welcomed the ombudsman’s recent work to raise awareness among tenants of its role, which it concluded would partly explain the rise in complaints.

 

In October 2022, the ‘democratic filter’ was removed from the Building Safety Act. This means that residents no longer need to contact a designated person or wait eight weeks before referring their complaint to the ombudsman.

 

The law firms that made the Freedom of Information request for the data in this report say that social housing providers need to ensure they deal with complaints promptly.

 

Bukola Obadun-Craigs, real estate disputes partner at Shakespeare Martineau, says: “The dramatic increase in compensation and orders made over the past two years underscores the need for landlords to address tenant complaints promptly.

 

“Once a complaint reaches the Housing Ombudsman, the opportunity for landlords to resolve the issue themselves diminishes significantly, so there is a need to be proactive. If landlords were doing what they’re supposed to be doing – for example, prioritising complaints based on a tenant’s situation – they would avoid many of these issues.

 

“Knowing their stock and their tenants, and addressing problems swiftly, is key. The Housing Ombudsman is thorough in its investigations, and landlords must understand that failing to act can lead to significant consequences.”

 

Paul Rooke, property litigation partner at Mayo Wynne Baxter, says: “As the Housing Ombudsman is using its powers more than ever, we strongly urge registered providers to take proactive measures to ensure compliance with their regulatory and legal obligations.

 

“The stakes are high, and the cost of non-compliance is more than just financial and reputational – it’s about the quality of housing provided to some of the most vulnerable members of our society.

 

“The Housing Ombudsman’s increased activity should serve as a wake-up call to landlords across the country: address tenant complaints early and effectively or face the consequences. The cost of ignoring these issues is only getting higher.”