The UK government has won a “landmark” case against the freeholder of a tower block in Stevenage over fire safety issues.
In a press release published on 9 May 2024, the Department for Levelling Up, Housing, and Communities (DLUHC) announced it had won a “landmark legal challenge” against the freeholder of Vista Tower in Stevenage, Grey GR.
Following a trial in March 2024, the firm owned by the multibillion-pound railway pension fund Railpen has been ordered to pay for cladding remediation at the 16-storey building by the First-tier Tribunal Property Chamber. As reported by Inside Housing, remediation costs amount to around £15 million. This includes a reimbursement of £3.7 million to the government and Homes England that was used to cover fire safety fixes in February 2024.
DLUHC explained that it launched legal action against the firm in October 2022 under powers introduced through the Building Safety Act. As previously reported by the FPA, the action was taken due to “unacceptable delays in fixing multiple serious fire safety issues” first identified at Vista Tower in 2019.
“Following the trial in March, the Court has decided in favour of the Government and will issue a Remediation Order imposing a legally binding requirement on Grey GR to fix building safety issues within a mandated timeframe,” DLUHC stated.
As reported by BBC News, during the trial, Judges Ruth Wayte and David Wyatt stated that there had been a “delay on both sides” but added that the order would “give reassurance” to leaseholders that their homes would be made safe.
Speaking about the Vista Tower case, Levelling Up Secretary Michael Gove said: “Leaseholders have lived with uncertainty for far too long while Grey GR delayed essential works to make homes safe. This decision is a victory for leaseholders in Vista Tower and across the country.
“It is hugely disappointing that Railpen – the ultimate owner of Grey GR and who manage £34bn in ‘assets’ – has kept leaseholders in limbo in this way. Railway workers with their pensions invested in this fund, as well as innocent leaseholders, deserve better.
“This court case should serve as a warning to all building owners. If you fail to fix your unsafe buildings and ensure the safety of residents, we will see you in court. We will not stop until we secure justice for leaseholders.”
Sophie Bichener, a leaseholder in Vista Tower, added: “I am very pleased to see this remediation order has been made. This gives leaseholders the reassurance we deserve and is the closest we have been to regaining our freedom after what has been an extremely difficult few years.”
It is understood that Grey GR began “extensive remediation…to the external façade” at Vista Tower in January 2024 after “internal safety works throughout the building” were completed in 2023. The cladding work is expected to be completed by autumn 2025.
As reported by BBC News, in a statement, Grey GR said: “The safety of residents has been and remains Grey GR’s utmost priority. We have faced numerous delays during the remediation process in our attempts to seek the clarity needed from DLUHC to proceed at pace with remediation.
“We have engaged extensively with the government throughout where it has been possible to do so, but have been met with slow – and in some cases no – responses to our enquiries, constantly changing deadlines and requirements, and a frequent moving of goalposts.
Grey GR added: “It is important to note the tribunal's determination that this is 'not a fault-based order', nor that the terms of the order will change the timeline for delivery of the agreed remediation.
“Following the decision, we hope we can move forward and continue to be a part of the solution to an issue that was not of our making and provide leaseholders with safer homes.”
This is the first legal action case brought by the government since the powers under the Building Safety Act came into effect. It is understood that the government is seeking remediation orders on five additional buildings owned by Grey GR. Four remediation orders have also been issued against another freeholder, Wallace Estates, over fire safety delays.