Olympic Park affordable housing provider to use new legal powers seeking cladding remediation funding

The Building Safety Act 2022, which was given royal assent in April last year, introduced remediation contribution orders as a new legal route to secure finance from companies responsible for dangerous blocks. 

This is understood to be among the first time these new powers will be tested in the real world – and could ultimately set important precedents for other blocks where developers or freeholders are refusing to provide funding. 

The tribunal is expected to take around 10 months to reach a decision, which may be appealed.

Triathlon is bringing the initial claim in relation to one block, which it believes has particularly severe issues, in the hope that it will clear the way for similar claims for other buildings in the development. 

This block will require “the entire external wall system, including the cladding, combustible insulation and balcony decking to be fully replaced”, Triathlon said in the email. 

Around 200 leaseholders have been stuck, unable to sell the equity in their shared ownership properties since September 2020, when defects ranging from aluminium composite material (ACM) cladding to missing fire breaks were uncovered. ACM was the material used on Grenfell Tower. 

One resident, acting as a spokesperson for the Olympic Park Homes Action Group collective, told Inside Housing that the dominant feeling among residents was “frustration”. 

“We have a WhatsApp group with over 200 people in it, all of whom have a range of different circumstances: people who wanted to move to be close to families or take a job. We have this frustration that nobody will take responsibility,” he said. 

“It’s good that Triathlon are taking action. But legal processes are not quick: they’re not expecting the decision within 10 months, so we’re probably writing off 2023, and then it might be appealed. So it feels to me never-ending. When is a solution going to be found?

“There’s been so many glossy articles and publications about the Stratford redevelopment and what a success it’s been, but there’s hundreds of leaseholders who are all completely trapped. There has been a complete reluctance from anyone involved to take responsibility for making our homes safe.”

The blocks are subject to a complex ownership structure.  

The entire Olympic Park was sold to a joint venture between the Qatari royal family’s development arm and developer Delancey after the games, with Triathlon purchasing a lease on the affordable homes in East Village. 

Market rent homes in East Village are managed by Get Living, a build-to-rent company established by Delancey. 

Fire safety remediation works in East Village are led by the estate management company and long leaseholder East Village Management Limited.

Remediation contribution orders can be sought against landlords, developers and persons “associated with the above” – a wide category that can attach liabilities to group companies and those that share former directors with responsible firms. 

This means liability can still be found where a company no longer exists, or where the developer no longer owns the building or accepts responsibility. Any interested party can seek such an order. 

Some work at East Village has already been completed, including the removal and replacement of ACM cladding from 14 blocks. A new programme of works covering other buildings began this month, after contracts were signed in December. 

It is understood that applications have been made to the government’s Building Safety Fund for qualifying blocks, but none have yet been awarded funding.

A spokesperson for Get Living said: “The development of the Athletes Village, now known as East Village, was led by the Olympic Delivery Authority (ODA) prior to the 2012 Olympic Games. Since taking ownership following the completion of the development in 2013, Get Living, through the leasehold management company East Village Management Ltd (EVML), has moved quickly to remediate potential safety issues. 

“EVML has already undertaken an extensive programme of works and further remediation work has now begun. Get Living has already committed over £25m to remediation works related to the homes that we own that started in April 2019.

“Get Living has, and will always be, totally committed to ensuring our homes are safe for our residents. To be clear, an independent fire risk assessor has confirmed that all homes at East Village are safe to occupy. 

“Our priority is to complete all works as soon as possible for the sake of our residents. Having worked hand in glove with Triathlon for over a decade, we will continue to work collaboratively with all stakeholders at East Village in pursuit of completion of all outstanding works.”

Triathlon Homes was contacted for comment.