Major bank pauses lending on buildings signed off by sanctioned fire engineer

Charlotte Mitchell, a leaseholder in East Croydon whose building completed a four-year cladding remediation project last year, told Inside Housing she is again unable to sell her home because it was signed off as safe by Mr Kiziak.

She said: “It’s devastating that after waiting four painful years for my cladding remediation to be completed and receive a vital EWS1 rating, that I’m now being told this rating is considered invalid due to the incompetence of a prolific fire engineer who has now been suspended.

“This leaves my home yet again un-mortgageable by many lenders and leaves me unsure if my home is even safe to be occupied. According to my property management company, me and my fellow leaseholders now face an eye-watering bill of up to £30,000 to pay for a replacement EWS1 survey, through no fault of our own.

“Tri Fire have made no response to my attempts to contact them and the IFE are providing no support. It is a scandal.” 

Ms Mitchell’s bank, Nationwide, told Inside Housing it was temporarily refusing to lend on any homes with an EWS1 carried out by Tri Fire.

A Nationwide spokesperson said: “We take building safety very seriously and Tri Fire’s current suspension means that we are temporarily unable to make lending decisions based on its reports without further information and validation.

“It is the responsibility of building owners to ensure that their building is inspected, and a valid report is in place signed off by a person with the correct qualifications. We are continuing to work with building owners and the wider industry to find a way forward on impacted Tri Fire cases.”

Banking trade body UK Finance declined to comment for this article. 

Inside Housing understands that lenders are calling for the IFE to clarify its plan to resolve the issue and what will happen when Mr Kiziak’s suspension period ends.

It is also expected that lenders are likely to take different approaches on accepting or declining assessments done by Mr Kiziak, depending on their individual policies and risk appetites.

A spokesperson for the IFE said that when it sanctions a member, “it does not necessarily invalidate work completed prior to or unrelated to the complaint and resulting sanction”.

It continued: “The relationship for the provision of professional services is between a client and the practitioner including any liabilities arising from services undertaken.

“We strongly recommend that when sanctions are imposed on an individual, where there are concerns about professional services, you should seek verification by consulting an independent qualified professional for further assurance.”

The IFE spokesperson added: “We are aware of the issue of mortgage lenders not accepting EWS forms completed by a sanctioned member. We recognise the impact that this has and while this does not fall within the IFE’s remit as a professional body, we are actively engaging with UK Finance to address the broader impact of member sanctions on mortgages.

“In the meantime, UK Finance recommend that individuals with concerns reach out directly to the lender for clarification and guidance.”

Michael Wharfe, partner at law firm Devonshires, told Inside Housing: “Adam Kiziak and Tri Fire have, over the past four or five years, provided a significant volume of work to the social housing sector, including EWS1 forms, reports on fire safety and more recently FRAEWs [Fire Risk Appraisal of External Walls] carried out in accordance with PAS9980.

“In light of the IFE’s decision, registered providers (RPs) of social housing may wish to review these and consider whether they can be relied on. Due to the broad nature of IFE’s findings – in respect of competence, accuracy and vigour – which do not identify specific types of work, particular failures, or the period affected, RPs may wish to consider all work product produced. 

“We would expect that any review by an RP would initially focus on properties where the advice was that no remedial works were required, or the advice given was not in line with expectations. Naturally, where there have been EWS1 forms produced by Mr Kiziak, or based on a report, and which are no longer accepted by lenders, these may need to be re-considered as a matter of urgency.

“It could also be the case that applications made by RPs for government funding, based on Mr Kiziak’s reports, may well be reassessed and require a peer review.”

Mr Kiziak said: “I can confirm that my membership of the IFE has been suspended while this matter is investigated. I am very sorry for any distress that this has caused.

“We are working to resolve this issue as soon as possible, including alternative options for peer review. We encourage those who have concerns to contact us and we will provide them with any additional support and assistance that they may need.”