Olympic Park build-to-rent operator sets aside £14m for fire safety remediation

Triathlon Homes, a joint venture between housing associations Southern and L&Q and investor First Base, is exercising new legal rights through the tribunal to attempt to force responsible parties to pay for the repair of fire safety defects.

The body is responsible for 1,379 affordable homes in East Village where a multitude of fire safety defects have been uncovered in recent years.

The blocks were developed through the Stratford Village Development Partnership (SVDP), a special purpose vehicle created to oversee the development by the Department for Digital, Culture, Media & Sport with various private companies involved.

Get Living’s latest accounts state that SVDP is an ‘active’ subsidiary of Get Living PLC, of which it owns 100%.

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 one of the first times 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.

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.

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.

Additional reporting on this issue by the Financial Times earlier this year reported that of the 66 blocks at East Village, 16 still lack EWS1 fire safety certificates and the final bill in this case could be as much as £27m.

However, five of the properties which lack EWS1 certificates are being remediated, and a further 14 blocks have already had aluminium composite material removed at East Village.

Get Living was asked to explain the difference between the two reported figures and how the money set aside in its accounts relates to the first-tier tribunal.

But a spokesperson simply said that “our accounts are detailed within our annual report and are as stated”.

They added: “Our priority is, and always has been, to complete remediation works at East Village as quickly as possible for the sake of all residents. Through the leasehold management company, East Village Management Ltd (EVML), remediation works are underway at plot N26 which have recently been recognised by DLUHC as an advanced programme of activity.”

Inside Housing understands that while a programme of remediation work on plot N26 has started, and work on another block began in May, several other blocks have still not had work started and some will not be finished until 2025.

An update provided to residents in March by Triathlon revealed that “building safety works does not include buildings where Triathlon Homes has residential homes”.

But Get Living said: "These works are balcony improvements that are being performed as part of its estate management and are not required by a fire assessment.”

A tribunal hearing is expected in November this year, which may then be subject to appeal. 

Update: at 15:00, 19.07.23

This article was amended to include additional info on EVML’s group membership and progress on remediation work at East Village.