The complaint
The complainant, Miss X, complains the Council was at fault in the way it carried out a rent review for her business. This resulted in her owing arrears to the Council which she struggled to afford to pay.
The Ombudsman’s role and powers
The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
The law says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)(c), as amended)
How I considered this complaint
I considered information provided by the complainant and the Council.
I considered the Ombudsman’s Assessment Code.
My assessment
Miss X ran her business from a building she leased from the Council. In late 2024, Miss X closed her business as she wished to sell it. The Council conducted a rent review. The review resulted in an increased rent for the building which was backdated 17 months in line with the review date in the commercial lease agreement.
Miss X says she felt pressured to accept the increase. She was in the process of selling her business and did not want to jeopardise the sale. Miss X says she paid the amount of backdated rent the Council told her she owed but was then given a further balance to pay. Miss X says the Council was aware she was in the process of selling her business for eight months and then carried out a rent review two weeks before the sale of the business. Miss X complains the Council has left her in financial hardship.
We will not investigate Miss X’s complaint. The matter turns on the implementation of a commercial lease, and the courts are best placed to consider such matters. It would be reasonable for Miss X to take legal action if she believes the Council has breached the terms of the commercial lease agreement.
Final decision
We will not investigate Miss X’s complaint because the courts it would be reasonable for her to pursue the matter in court.
Investigator's decision on behalf of the Ombudsman