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Government set to launch first legal action against a building owner over fire safety remediation delays
The government has announced that it intends to take legal action against the freeholder of a 15-storey tower block where residents have faced two years of delays over fire safety remediation work.
The government has confirmed this morning that it has now given 21 days notice to Grey GR Limited Partnership, which owns Vista Tower in Stevenage, to commit to remediating the building’s fire safety defects, after which the government will apply to the courts.
The action is the first by the Recovery Strategy Unit, part of the Department for Levelling Up, Homes and Communities (DLUHC). Michael Gove, then housing secretary, said in June that the unit would pursue freeholders that have billed leaseholders for fixing historic fire safety defects, and would take enforcement action.
A statement to Inside Housing from Grey GR said the notice it had received from DLUHC had factual inaccuracies, without specifying exactly what they were, and that the company was seeking legal advice.
Grey GR is ultimately owned by Railpen, a company that administers several pension schemes, including the Railways Pension Scheme.
According to its website, Railpen manages around £37bn in assets.
Accordiing to DLUHC, the housing secretary Simon Clarke is now considering applying for a remediation contribution order against entities associated with Grey GR, including Railpen and its associated firm Railtrust. This would require them to financially contribute to the remediation costs.
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Leaseholders of Vista Tower have been facing potentially huge remediation bills to fix the block and have been unable to sell flats, since unsafe cladding was identified on the building more than two years ago.
“Vista Tower residents simply want to live in safe and secure homes,” said resident Sophie Bichener, part of the Hertfordshire Cladiators group.
“This action is a step in the right direction for the innocent leaseholders still desperately pleading with their building owners to take responsibility.”
Vista Tower was registered with the Building Safety Fund in 2020, but the funding agreement is yet to be signed, meaning the government cannot release any money, DLUHC said.
Mr Clarke said: “The lives of over 100 people living in Vista Tower have been put on hold for over two years while they wait for Grey GR to remediate unsafe cladding – enough is enough.
“This legal action should act as a warning to the rest of industry’s outliers – big and small,” he added. “Step up, follow your peers and make safe the buildings you own or legal action will be taken against you.”
DLUHC said there are at least 23 other buildings registered with the fund that have been “unable to progress due to unnecessary delays”.
The department said it was examining these cases closely and considering next steps.
Leaseholders in buildings with safety defects can now apply for a remedial order, and are encouraged by the government to do so if the owner of their building is failing in their responsibilities.
Grey GR’s statement said: "We were surprised and disappointed to receive the notification of warning that DLUHC intends to take legal action against Grey GR.
It added that the government’s letter contained a "number of factual inaccuracies" which the firm would address "in due course".
"We have been in regular dialogue with senior officials at DLUHC to address several unclear aspects within the legislation, and we have not been alone in raising these issues," the statement added.
"We have been seeking the necessary clarity on the process in order to move forward, engaging constructively with the department in support of applications for Building Safety Fund grants to deliver the remediation works and ensure the safety of our residents.
“The safety of residents in their homes has been and remains an utmost priority for us," Grey GR’s statement said. "We are seeking legal advice and will be unable to provide further comment whilst this matter is proceeding.”
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