Sharp increase in maladministration prompts Ombudsman to launch special investigation into Southern Housing

The Housing Ombudsman has launched a special investigation into recently formed Southern Housing after the landlord’s complaint handling maladministration rate rose from 56% to 81% in the past year.

Using powers within the Housing Ombudsman Scheme, the Ombudsman will produce a learning report for the landlord based on investigations into individual complaints and wider engagement and make recommendations for service improvement.

Having previously operated as Southern Housing Group, Southern Housing was formed upon the completion of the merger with fellow housing association Optiva in December of 2022. The newly formed housing association owns in the vicinity of 77,000 homes and serve over 167,000 residents across London, the South East, the Midlands and the Isle of Wight.

The investigation is also prompted by reviewing Southern Housing’s and Optivo’s complaints handling in light of a Complaint Handling Failure Order and severe maladministration findings made last financial year.

The Ombudsman has upheld over 70% of the landlord’s complaints handling complaints since 1 April 2021. There are also 50 open cases that have been assessed as high or medium risk.

The Ombudsman met with Southern Housing Group and Optivo in the months leading up to the merger given the impact mergers can have on complaints handling performance. The further investigation uses the Ombudsman’s systemic powers under paragraph 49 of its Scheme.

Richard Blakeway, Housing Ombudsman, said: “The sharp increase in maladministration rate, combined with number of high or medium risks cases we’re seeing from this landlord, is of concern.” He also indicated that other cases brought to the attention of the Ombudsman relate to similar issues and may indicate a repeated failing.

Southern Housing said that that improving complaint handling is a top priority for following their recent merger.

“We’ve already taken measures to improve both complaint handling and the causes of complaints. This includes creating additional posts in our Complaints team and expanding our Repairs and Maintenance teams to ensure we resolve problems more rapidly.”

Southern Housing’s complaint handling maladministration rate rose from 18 complaint handling determinations out of 32 cases in 2021/22, to 22 out of 27 cases in 2022/23, a rise from 56% of cases to 81%.

These are reportedly historic cases with the oldest dating back to 2019. Southern Housing acknowledged that during the Covid pandemic, they had particular challenges responding to complaints as quickly as desired.

“We’ve been working hard to improve complaint handling since merger in December 2022. Maladministration cases remain a very small percentage of our overall complaint cases. But one maladministration determination is too many and we will endeavour to deal quickly and professionally with all complaints.

We’re confident the Ombudsman investigation will be a valuable learning experience and an opportunity to demonstrate our commitment to delivering for our residents.”

Harry Rodd