## Social housing landlords criticised for compensation shortcomings

The Housing Ombudsman has issued a stark warning to social housing landlords following a report that found many failing to apply their own compensation policies correctly. Numerous residents living in substandard conditions have received no or inadequate compensation, prompting the Ombudsman to call for a unified approach to compensation across the sector.

The report highlights cases where residents endured prolonged issues such as damp and mould without appropriate redress. In response, the Ombudsman has introduced new compensation guidance, effective from April 2026, designed to standardise how landlords calculate and award compensation.

## Case study: Riverside Housing Association’s delayed repairs and compensation

One notable example involved Riverside Housing Association, which failed to address damp and mould problems for three years despite the presence of a young child in the household. The resident repeatedly sought updates, but the landlord missed appointments and communicated poorly. Riverside did not offer compensation initially; the Housing Ombudsman intervened and awarded £3,000.

Following the report, Riverside has revised its mould inspection procedures to include same-day treatments and increased contractor availability to reduce delays. It has also appointed customer liaison officers for complex cases to improve communication and updated its complaint handling and compensation policies to align with Ombudsman recommendations. Record-keeping has been centralised in a single system, and follow-up calls are now standard after repairs.

## Clarion Housing Association’s missed opportunities to resolve issues promptly

Another case involved Clarion Housing Association, which delayed water testing for five months after a resident reported problems. The landlord repeatedly carried out ineffective repairs and failed to act on recommendations. Communication was poor, and record-keeping inadequate. After 188 weeks, the issue remained unresolved.

Compensation was initially offered at £800 during the landlord’s stage two complaint response but increased to £3,000 only after the Ombudsman’s involvement. Clarion has since introduced a single point of contact for complex cases, providing clear escalation routes, and implemented a real-time feedback tool to identify and resolve issues more efficiently.

## The Housing Ombudsman’s call for a single vision of fair compensation

Richard Blakeway, Housing Ombudsman, emphasised the need for a consistent approach to compensation across social housing. He stated:
“Compensation is emotive. When times are hard and budgets tight, for both residents and social housing landlords, this can drive the wrong behaviours. It can result in residents expecting unrealistic redress for failings. Or organisations being institutionally reluctant to compensate.
There should be a single vision of fair compensation shared across the sector.
At the heart of compensation is fairness. Individual circumstances will lead to different awards but the core principles driving decision-making should be common.
Non-financial orders, like apologies, matter greatly too. But fair compensation can go a substantial way towards restoring trust amongst residents and prevent complaints escalating to us.
A virtuous cycle of improving complaint handling and proactive learning to prevent complaints will longer-term also reduce the need for compensation.”

## New compensation guidelines to improve consistency and fairness

The Housing Ombudsman’s new compensation guidelines, effective later in 2026, will calculate compensation based on the Regulator of Social Housing’s rent calculator. Compensation will cover the period from when an issue is reported, minus a reasonable repair period, until repairs are completed or a determination is made.

Landlords may offer additional compensation if delays persist after a determination. However, compensation will not be awarded for issues such as record-keeping failures or loss of personal belongings, which are expected to be covered by insurance.

## What this means for landlords and agents

Landlords and managing agents in the social housing sector should prepare for the new compensation framework by reviewing their policies and complaint handling procedures. Ensuring clear communication, accurate record-keeping, and timely repairs will be essential to avoid escalation and potential compensation awards.

Adopting a consistent approach aligned with the Ombudsman’s guidance can help build trust with residents and reduce the volume of complaints reaching the Ombudsman. Proactive learning from complaints will also support long-term improvements in service delivery.

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Suggested internal link anchors
– social housing compensation
– complaint handling procedures
– housing association repairs
– tenant communication standards
– compensation policy updates
– Housing Ombudsman guidance
– managing complex cases
– rent calculation for compensation
– repair delays in social housing
– resident complaint escalation
– customer liaison officers
– proactive complaint resolution

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TLA update

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