London housing association pays residents £6.9m in compensation for building safety defects

While NHG is working with the National House Building Council to resolve the defects, the remedial works are leading to disruption and inconvenience for the residents, which has resulted in the compensation payment.

An NHG spokesperson said: “We know residents in some of our blocks have been seriously impacted by remediation of building defects for some time.

“While many of those issues are beyond our control, we certainly didn’t want residents bearing the brunt of those costs and, as such, have agreed compensation payments in specific circumstances.”

NHG’s accounts also show that it booked a surplus of £106.1m for the last financial year, despite a sharp fall in turnover from sales and development.

This revenue had fallen from £254.9m in 2021-22 to £108.8m in the year to the end of March 2023. 

During the year, the landlord completed a review of its ongoing development projects.

This resulted in a stock write-down of four schemes under development and a write-down of four completed projects after factoring in a 5% reduction in the estimated sales price due to the current political and economic environment.