I can't comment about the details of how SORN works in this instance; maybe someone with more experience will comment.
However, this case seems to hinge on whether the car was parked (a) on the highway, or (b) on private land. DVLA don't seem to know which.
The highway can exist in ways not always obvious, and a little cul-de-sac with a cluster of garages around it could technically be part of the highway. Your local authority should be able to establish this and it is worth doing, even though the DVLA seems to have changed its story. To put it bluntly, if the vehicle was parked on the highway, your son has no excuse.
If the car was off the highway I can't see why the DVLA are concerned about permission from the landowner, but if you need to establish who owns the land the agent you are paying rent to should give you the information and I would press for it if you need it.
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