LGO raps council for delay in fulfilling remedy over property covenant

The Local Government Ombudsman has criticised a local authority after it agreed a settlement with a property owner over a restrictive covenant – only to realise later that it no longer owned it.

A woman had wanted to develop her land and asked Plymouth City Council to release her from the restrictive covenant, which prevented further development.

The local authority agreed in principle, but subsequently proposed that the covenant should be varied.

Negotiations continued but the woman was prompted eventually to complain to the LGO.

The Ombudsman suggested – during the course of her investigation – a remedy. Plymouth agreed as part of this to consider whether to release the covenant either in whole or in party.

The authority also agreed to reduce any fees or costs in recognition of the delays.

The LGO ended her investigation as a result.

But Plymouth delayed in carrying out the terms of the settlement. It subsequently found that the transfer of its housing stock to a local housing association in 2009 meant it no longer owned the restrictive covenant.

Instead, the Ombudsman said, it was the housing association that enjoyed the benefit and right to enforce, release or vary the covenant.

The LGO, Dr Jane Martin, found Plymouth guilty of maladministration causing injustice. This was because the council had:

  • “delayed in acting on the remedy it had agreed; and
  • failed to identify the situation about the ownership of the covenant either when the woman complained to the Ombudsman, or when the Ombudsman proposed the settlement remedy.”

Dr Martin accused the local authority of showing “a lack of appropriate commitment to customer service” in failing to fulfil the agreed remedy and for providing inaccurate information.

She added: “I can agree remedial action with a council during an investigation to enable complainants to receive a remedy more quickly. This demonstrates a willingness by a council to make amends. It relies on councils providing accurate and well-researched information.”

The LGO pointed out that after “having spent years” trying to obtain a release of the covenant, the complainant had to start again with a new owner.

Plymouth has agreed to review its procedures. It will also apologise to the complainant and pay her £1,000.