A cladding court case has been won by the government, requiring the freehold owner of a high-rise building to address unsafe cladding issues.
In October 2022, the Department for Levelling Up, Housing and Communities took legal action against Grey GR Ltd Partnership, the owner of Vista Tower in Stevenage, on account of their failure to rectify several fire safety concerns that surfaced in 2019.
The government’s position was upheld by the First-tier Tribunal Property Chamber, making it obligatory for Grey GR to remediate the problems within a set timeframe.
Grey GR, owned by Railpen, a railway pension fund responsible for managing £34bn in assets, is now legally bound to make the necessary corrections.
Michael Gove, the housing secretary, remarked: “This ruling represents a triumph for the leaseholders of Vista Tower and indeed for leaseholders nationwide.
“The outcome of this case should act as a stern reminder to all building owners that failure to address unsafe buildings and to guarantee resident safety will lead to legal consequences,” he declared.
Furthermore, he added: “Both the railway employees whose pensions are invested in this fund and the leaseholders affected by this issue deserve better.”
Following the legal challenge, Grey GR commenced remedial work on Vista Tower in January 2024.
This case marks the first use of the new powers granted under the Building Safety Act 2022 by the government.
The government is also pursuing remediation orders against five other buildings under Grey GR’s ownership, including The Chocolate Box in Bournemouth.
A representative from The Residential Freehold Association criticized the government’s approach.
They expressed: “This case is a manifestation of the government’s inclination to point fingers instead of taking accountability and providing the necessary support to stakeholders for remediation efforts.
“Freeholders are not the instigators of this predicament and should not bear the responsibility for poor government regulations and irresponsible construction practices.
“Despite this, the Building Safety Act unfairly imposes the cost and effort of addressing unsafe buildings on innocent parties, while absolving developers and product manufacturers of guilt.
“The government must cease its blame game, which has only caused further delays. Instead, it should immediately fund the evaluation and remediation of all structures within the remit of the Act, and subsequently insist that those responsible for building these structures fulfill their financial obligations,” concluded the spokesperson.
