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MP raises ‘extreme concerns’ as Dagenham fire victims face bills for old work
An MP has raised “extreme concerns” after residents of a Dagenham block destroyed by fire face bills for alleged work undertaken over 18 months earlier.
The Spectrum Building, a privately owned block of 60 flats, was consumed by fire in August. Demolition of the building began earlier this month.
Former residents have now received statements from the block’s managing agent suggesting that they will have to pay for service charge deficits from 2021 and 2022, which were only calculated after the fire.
One statement seen by Inside Housing suggests that a leaseholder will have to pay a total of £1,153 for her former one-bed flat, including deficits from 2021 and 2022. Former residents of a two-bed flat with a parking space are facing a bill of up to £2,130.
“Essentially, they have illegally charged a traumatised fire victim £1,500,” Sarah Williams, a leaseholder who watched her flat being demolished on 9 December, said.
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Under the Landlord and Tenant Act, a resident cannot be charged for service charges older than 18 months unless they have been served with a Section 20B notice. Residents told Inside Housing they were confident that they were not issued with a Section 20B.
Margaret Mullane, MP for Dagenham and Rainham, wrote to managing agent Block Management UK on 13 December to register her “extreme concerns” about the company’s treatment of residents.
“You have sought to charge leaseholders for costs for alleged work undertaken over 18 months earlier,” she wrote. “My understanding is that costs incurred in excess of that time cannot be recharged unless the requisite notice was given, therefore I would expect that you will not seek to recharge leaseholders for these sums.”
Ms Mullane also said that leaseholders should be “fully reimbursed” for their contributions to the building’s reserve fund which, according to one resident, now total £125,000.
Finally, she called for the refund of “sub-standard” lift refurbishment works and ground rent paid by leaseholders.
“The leaseholders of Spectrum House have endured trauma and the loss of their homes. I expect that Block Management UK will now speedily make good on the four issues I refer to,” she wrote.
Block Management UK wrote to Ms Williams on 13 December after she raised similar concerns with the managing agent. Its reply did not address Section 20B.
The managing agent said: “These transactions are necessary to balance your account in accordance with the terms at which you are required to contribute to relevant costs as per the lease agreement in place for your property.”
Block Management said it had decided to close all contracts from the date of the fire, so that residents will not be charged for any services after their homes burned down. This has provided “a greater refund for you than what you would otherwise have received”, it claimed.
“The freeholder has also now confirmed that no ground rent or service charges will be charged in 2025 or for subsequent years until your flat is returned to your possession,” it said.
“Everyone at Block Management wishes to convey their sincere sympathy and sadness to all the residents of the Spectrum Building, and its lessees, who lost so much in the events of the early hours of 26 August 2024,” it added.
It continued: “With the benefit of hindsight, there are of course occasions, particularly in the immediate aftermath of the fire, when we feel we could have done more… but we also have a duty of care to all involved to not take on tasks that would be unsustainable or for which we were not equipped to give residents and leaseholders the service and support they needed.”
Block Management UK and Arinium, the freeholder, were approached for comment.
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