Hastings District Council’s approach to Cyclone Gabrielle buyout scheme “not unreasonable.”

The Ombudsman says the Hastings District Council’s approach to preparing buyout offers for property owners affected by Cyclone Gabrielle has not been unreasonable.

Chief Ombudsman John Allen has published a case note on four complaints he received from property owners, who took part in the buyout scheme.

The owners questioned the independence of the Council’s land valuations and felt they weren’t compensated for trauma or financial losses and costs including rents, mortgage payments and consent costs.

The funding arrangements for the buyout scheme were announced by the government in June 2023 and administered by the Council for owners of high-risk residential properties whose land was assessed as “Category 3” and deemed unsafe due to flood risk.

Mr Allen says the scope of the Council’s scheme was in line with the government’s vision for the programme and it did not seek to determine fault or offer full compensation for financial losses.

“I acknowledge property owners suffered considerably but the Council’s buyout policy wasn’t designed to address the profound effects on people after the Cyclone or all of the damage caused.” 

“Compensation over and above the market value of the property would have faced criticism from ratepayers and may not have been financially prudent.” 

 Mr Allen says the Council took steps to make valuations as independent as possible given it was funding the process. 

“There was no evidence to suggest that the Council’s valuers were directed to under value properties. In fact, in some cases, the Council’s valuation was higher than the owners.”

Mr Allen says the Council gave financial help to owners to commission their own valuations, and these were considered alongside those of the Council valuer.

 He says the Council also provided funding to owners to obtain legal advice after receiving their offers.

“Owners were also given three months, which was sufficient time to consider their offers and this timeframe could also be extended in some cases.”

“All of these measures, in my view, contributed to creating a reasonable process,” he says.

Category 3 voluntary buy-out offers for properties affected by Cyclone Gabrielle