Industry News
Half of all complaints to Ombudsman are from tenants living in London
Report highlights £14.6 billion economic contribution of the London private rented sector
A report by professional services firm PwC, commissioned by the NRLA and Paragon Bank, indicates that London’s private rented sector (PRS) makes a gross value added contribution of £14.6bn to the UK economy. Entitled “Te Economic Contribution of the
T
he Housing Ombudsman has released its latest Insight report, looking into complaints within Greater London. Te
report comes it was revealed that 47% of the cases determined by the Ombudsman in 2023/24 were from tenants living in a London postcode. Tis rate is disproportionately high, given just
under one in six homes in the Ombudsman’s membership is located within Greater London. No other region of England has such a wide gap between the proportion of social housing and complaints. In line with the acute housing crisis in the
capital, most indicators reveal poorer outcomes in London for residents with the Ombudsman’s severe maladministration rate at 9.3% compared with 7.4% for the rest of the country and an overall maladministration rate of 77% compared to 68.5% for England. Te uphold rate on property condition,
including repairs and health and safety, is also the highest in the country. Tis is despite more homes reportedly meeting the Decent Homes Standard in the capital. Te report sets out the challenging operating
environment for social landlords, including working with third parties like managing agents and historic under-investment in homes, alongside the need for improvements by landlords in communication, record management and oversight of repair services. Included in the case studies is one on building
safety, in which the landlord failed to provide timely information on fire safety measures and cladding on the building. In another case on decants, the Ombudsman did not uphold the complaint because the landlord went beyond its obligations to address concerns about parking.
In this report, the Ombudsman has provided
learning and case studies on a range of topics under two main banners of quality of homes and quality of customer service. Among the learning themes are: • A positive complaints culture starts from the top – it is crucial that leadership and governance are seen to support the complaints function;
• It is important a landlord does not lose sight of the person at the centre of a protracted issue, does not blame them for the situation, and there is a continuous assessment of whether the remedial actions taken remain appropriate or whether a decant is now necessary;
• Landlords need to be clear on their role and responsibilities and proactive working with third parties, with robust service agreements in place;
• Complaint handling is a landlord’s opportunity to regain a resident’s trust aſter they have had a bad experience. It is far more than just ascertaining what the service failure is and rectifying that situation; and
• Insight and intelligence from complaints should be used strategically. Tis ranges from effective root cause analysis of casework through to identifying risks and horizon scanning.
Te Ombudsman is urging other landlords (outside of London) to take note of the recommendations and learning points, especially in other urban areas, as they provide vital indicators of where things go wrong and how to stop that from happening.
Private Rented Sector,” the report delves into the economic value generated and supported by small and medium-sized landlords (those with 15 or fewer properties) in England and Wales. Te report states that the £14.6bn economic contribution made by London’s PRS accounts for 2.6% regional GVA. Te report also highlights that London’s
private rental market supports, directly and indirectly,128,000 jobs in a number of areas. Te figure underlines the important role that the UK’s PRS plays in encouraging investment and employment across a range of regions. Further findings from the report reveal that
the private rented sector in England and Wales contributes, in total, £45bn of GVA to the UK economy, and supports approximately 390,000 jobs. Key industries which benefit from the PRS’s economic activity include construction, building maintenance, and public administration. Ben Beadle, chief executive of the National
Residential Landlords Association, responded to the report: “Tese findings underline the extent to which the PRS plays a pivotal role in the delivery of much-needed investment and jobs. “Although the national contribution that the
PRS makes is significant, the positive impact the PRS makes can be seen most clearly in the regional data featured in this report. “It’s an important reminder of how a thriving
private rented sector is in the interests of not only landlords and tenants, but also to the market’s wider supply chain which depends on high levels of investment.” Richard Rowntree, managing director of
Mortgages at Paragon Bank, added: “London is a transient city and, as such, requires a thriving private rental sector to serve the capital’s tenants. Not only does the London rental sector make a direct economic contribution, it also supports the city’s wider economy by providing housing for hundreds of thousands of tenants who work in the city across a broad range of sectors.”
www.housingmmonline.co.uk | HMMAugust/September 2024 | 15
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