In March, the Housing Ombudsman consulted on its proposed Business Plan for 2026/27. Noting that the HO’s complaint caseload had risen by 500% over 5 years, the Plan included a 3-year caseload reduction strategy, including steps to encourage more complaints to be settled at landlord level, and faster complaint handling by the Ombudsman. The HO is funded from a fee per property payable by landlords in membership, which ultimately falls on tenants’ rents.  The proposed fee for 2026/27 was to be £10.56 per property, a 32% increase from the current fee of £8.03.

The consultation provoked a strong reaction from landlord consultees.  Responses complained about both the amount of the proposed fee increase and the short notice given. The proposed increase would have brought the combined fees of the Regulator of Social Housing and the HO to £18.49, with the HO’s fee being 33% higher than that charged by the Regulator, raising questions about whether the HO’s service represents value for money. Some consultees, noting that the HO reported that 10 landlords, not all the largest, represent 30% of the investigative work in the current caseload, asked for the per-property fee principle to be replaced with one that rewards good complaint handling.

The final version of the HO’s Business Plan, published on 15 April, includes some significant amendments in response to consultation.  The fee increase has been staggered over 2 years, with the 2026/27 fee set at £9.64.  Consultation on arrangements for 2027/28 will take place in October-December 2026, with a further fee increase to £10.56 conditional on progress on complain handling performance. There is also a commitment to explore alternative fee models that recognise good complaint handling.