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Council to pay £40,000 in compensation over damp and mould failings

Lewisham Council has been ordered to pay nearly £40,000 in compensation to two residents over failures in dealing with damp and mould complaints.

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Lewisham Town Hall
Lewisham Town Hall (picture: Google Street View)
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Council to pay £40,000 in compensation over damp and mould failings #UKhousing

The Housing Ombudsman, which made three severe maladministration findings across three cases, awarded the compensation after the council left residents in “dire” conditions.

The watchdog said the level of compensation awarded in two of the cases reflects the rent paid by the residents during a period where the conditions “meant they lost enjoyment of the home”.

One resident was awarded nearly £20,000 after “significant failings” by the council meant there was mould on her baby’s cot bed and on her other children’s beds.

The walls were covered in mould in both the living room and the bathroom. Evidence from the children’s school indicated that the living conditions affected their attendance.


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The council failed to provide sufficient evidence to demonstrate the steps it took to investigate the root cause of the damp and mould and failed to take into account any of the external factors, “simply attributing a lot of the problems to the residents’ lifestyle”.

In 2021 the ombudsman told the sector to stop blaming residents’ lifestyles for conditions in their homes.

Lewisham also failed to provide evidence of surveys done, as well as clarity on which repairs had been carried out at the property to date.

Eight years after the resident first reported a leak in the home, the landlord was still saying an annual mould wash would be sufficient.

The council failed to demonstrate how it supported the resident and her family while dealing with the recurring damp and mould, as well as any consideration of the health and well-being of the family.

This was exacerbated by the fact that it was made aware of health conditions within the household and the additional impact of overcrowding in the property.

Along with the compensation, the ombudsman ordered the landlord to remove the family from the home and consider whether that needs to be permanent considering the vulnerabilities present in the household.

The council should also look into producing a damp and mould strategy, it said. 

In 2022, Lewisham Homes, the council’s former ALMO, said it had created a damp and disrepair action plan in the wake of one of its tenant’s poor housing conditions being exposed by an ITV News investigation.

In another other case, the watchdog found severe maladministration for how the council dealt with a leak. 

After the resident reported the problem, there was no evidence to suggest that the landlord investigated the cause of the issue. 

The time taken to complete the repairs fell “considerably” outside the council’s target timescales for repairs. 

The delays caused significant distress and inconvenience to the resident. She was unable to use one of the bedrooms and her personal belongings were damaged by the damp and mould. 

The council often failed to respond to her at all. 

The ombudsman ordered the council to complete a surveyors report, pay £1,700 in compensation, and provide the resident with details of the landlord’s insurer.

In another case, the ombudsman found severe maladministration and ordered £19,500 in compensation after the landlord failed to deal with a window repair for six years, leading to severe damp and mould.

The resident has various vulnerabilities, including allergies, asthma, and mental health difficulties caused by the conditions.

The watchdog said the time taken to address was the issue, which included windows being held together with tape, was unacceptable. 

“The actions taken and the records kept do not indicate any level of understanding of the issue affecting the resident, or any urgency in completing the required repairs.

“The landlord seemed to be waiting to undertake the repairs as part of ‘major works’,” it said. 

On top of the compensation, the ombudsman ordered the council to undertake a full survey of the property and carry out a comprehensive review of its practices in relation to responding to requests for repairs and record-keeping. The chief executive was also required to write an apology to the resident.

Richard Blakeway, the housing ombudsman, said: “The financial awards at this level are unusual, reflecting the impact on the residents and the prolonged period of service failure they experienced.

“It is crucial landlords learn the lessons of these cases so that funding can go into services rather than redress service failings.

“The landlord has self-referred itself to the Regulator of Social Housing over Decent Homes and repairs, and these complaints would have given it an indication that it was not performing as it should be.”

Lewisham Council’s statement to the ombudsman is included below. 

Will Cooper, cabinet member for housing management and homelessness, told Inside Housing: “We took the decision to close our arm’s-length management organisation, Lewisham Homes, in October 2023 with the overwhelming support of our residents. The purpose was to provide a more joined-up service and maintain closer control.

“There are technical reasons behind the failures highlighted in these reports, but the fact is they also represent weeks, months or more of stress and frustration for ordinary people requesting basic services, which simply isn’t good enough. 

“I am working closely with the new housing services leadership team to make sure the systems we are putting in place will prevent such cases in the future.”

Lewisham Council’s statement

“We have identified in all three cases our failures could have been prevented by better record-keeping; better communication within the organisation and with our residents regarding their complaints; and a more proactive/preventative approach to repairs and maintenance. 

“Since taking over from Lewisham Homes in October, the council has taken steps to improve services. We have mobilised an immediate short-term improvement plan, along with a full transformation plan to deliver long-term improvements to the repairs service. Following an order from the Housing Ombudsman in November 2023 we commissioned an external organisation to carry out an additional review of our repairs service, including access to our service, communications and identifying and completing repairs.

“We have also undertaken a comprehensive review of our approach to complaints-handling. We will publish the outcome of our reviews and share action plans with residents. In progress is a stock condition survey of all our housing stock to build a more accurate picture of their condition to direct investment where it is most needed. Our capital programme commits to £321m of investment in the stock over five years.

“Alongside this, we are making major investments to modernise our systems for managing and storing information. With a new housing management system now in place, we are developing new ways to use data to deliver better outcomes for residents.”

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