Landlord to demolish block after being unable to recover remediation funding from collapsed firm

An external wall fire safety survey carried out in 2021 identified an extensive number of issues with the structure and build quality at Bouverie Court and the adjoining homes on Easton Road.

This resulted in a number of interim safety measures to ensure the safety of the building while a longer-term solution was found.

Elim was pursuing a legal claim against ISG Pearce to recover the financial sum required to carry out the remediation work at the building. 

After ISG Pearce became insolvent and collapsed into legal administration in September 2024, the landlord was unable to progress the claim for the estimated £4m cost for the work.

Consequently, Elim is not financially viable to undertake the remedial work at the building.

It is not just small landlords struggling to complete remediation work as costs mount up across the sector. House builder Crest Nicholson reported a loss before tax of £143.7m, down from a profit of £23.1m in 2023. This was due to increased remediation funding of £249.3m at the end of 2024.

Paul Smith, chief executive of Elim, said: “The decision to demolish our Bouverie Court homes was extremely difficult, and our primary concern is the welfare of our residents.

“Unfortunately, the inherited repairs, poor efficiency and structural issues identified at the scheme, along with the unviable potential long-term disruption for residents, mean we have taken the hard decision to demolish the properties after exhausting all other possible solutions.

“Elim is working closely with local authorities and other housing providers to support our residents during the transition period.”

As part of any arrangement for the future sale of the land, the association explained it will explore options that prioritise future development that meets housing need in the local area.

Elim, which has around 900 homes, operates across Bristol, North Somerset, Gloucester, South Gloucestershire, South Wales and the West Midlands.

As well as providing housing for Gypsy, Roma and Traveller communities, Elim also operates general needs, supported housing and specialist supported housing.

According to its 2023-28 corporate plan, the association expects to pass 1,000 homes under management in this period. This will lead to a higher level of scrutiny from the Regulator of Social Housing.