Following the Housing Ombudsman’s severe maladministration report published this month, Jenny Woods considers the call for “a single vision of fair compensation across the housing sector”.
New compensation guidance, effective from 1 April 2026, has been published by the Housing Ombudsman to streamline and focus the approach to resolving complaints. Landlords and residents experiences have been considered to provide industry guidance and to manage expectations of both parties to resolve complaints at the earliest opportunity.
Individual circumstances may impact compensation awards, but the core principles should be common to all complaints. Whilst the guidance provides clear parameters for compensation payments, it also stresses that compensation is not always the appropriate remedy, this maybe a speedy repair or an apology.
The report highlights 3 key themes:
- landlords not applying their own compensation policies
- compensation increased after stage 2
- significant gaps between landlord offers and our orders.
Compensation policies
Before considering any appropriate compensation award, the report focuses the importance of landlords considering if their policies and procedures are accurate and effective. This includes accurate record keeping and a post inspection system to confirm works have been completed within a reasonable timeframe and to an adequate standard.
If a complaint is received, is there a suitable complaint and compensation policy which is utilised and applied correctly to put things right when they go wrong? Do those policies and procedures allow for a level of flexibility to ensure an individual’s circumstances are taken into consideration? Guidance on how and when to offer compensation to resolve a resident’s complaint will ensure consistency.
Compensation increased after stage 2
The new compensation guidance aims to clarify when financial compensation should be offered and how to calculate this. It seeks to avoid a lengthy complaint process and delays in making or increasing offers. The latest report noted several cases where compensation was only increased after a complaint moved to stage two or the Housing Ombudsman became involved. Landlords are encouraged to review information as it comes to light and aim to put things right during the formal complaint process.
Significant gaps between landlord offers and Housing Ombudsman awards
Early resolution of complaints can help the relationship between a landlord and resident. The new guidance aims to assist in focusing the parties’ expectations and narrowing the issues at an early stage. Common reasons for complaints escalating past a landlords formal complaint process include:
- landlords offering compensation for complaint handling failings only and not the cause/length of time of the actual issue at the property
- residents’ unrealistic expectation of compensation for failings.
The guidance sets out clear parameters depending on individual circumstances of each case. Mitigating factors are also clearly defined:
Appendix 1 - Specific compensation orders
| Service | Redress | Considerations |
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Loss of heating and/or hot water |
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Mitigating factors
We’ll consider whether the resident’s actions contributed to the situation. We’ll consider whether they exacerbated, or failed to minimise, the impact. These factors may mitigate or reduce the level of compensation ordered. Examples may include the resident:
- failing to communicate clearly with, or respond to contact from, the landlord
- failing to bring matters to a landlord’s attention within a reasonable timeframe.
- refusing help to make a coherent complaint
- repeatedly refusing to allow a landlord reasonable access to the property to resolve the matters complained of
- pursuing a complaint in an unreasonable or excessive way.
A link to the Housing Ombudsman Compensation Guidance can be found here.
Next steps for landlords
- consider current practices to ensure they are accurate and effective, for example record keeping for repairs, post inspections and complaint handling
- review the Housing Ombudsman Compensation Guidance against internal complaint and compensation policies to identify areas for adjustment
- staff training - ensure consistency when dealing with complaints by utilising and applying complaint and compensation policies. Are staff aware of how to put things right when they go wrong?
For further information on the compensation guidance or advice relating to housing matters, please contact Jenny Woods or Matthew Lake in the Property Litigation Team.
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