Fylde Borough Council has been criticised for not consulting properly with elderly residents over the sale of a housing complex to a developer.
The Local Government Ombudsman (LGO) said the sale of a housing association which owned the complex should have been communicated better to residents living there.
Residents had complained to the ombudsman after the developer increased rents to an ‘affordable level’ which was higher than a the social rents a RSL might have charged.
Dr Jane Martin, Local Government Ombudsman, said: ‘The residents who came to me feel understandably aggrieved that their homes were acquired by a developer with very little communication from either the council or the association.
‘However, while I appreciate the residents’ concerns about the increased rents they will now have to pay, I cannot say that the sale to the developer would not have happened if the complainants had been properly consulted and I cannot say that rents would not have gone up.’
The council has been told to apologise to each resident and pay them £200 each compensation for the confusion and lost opportunity for consultation.