Government eyes remediation order against freeholder for failing to fix unsafe cladding

The Department for Levelling Up, Housing and Communities has begun the pre-action for a Remediation Order against the freeholder of a residential tower in Stevenage over delays in fixing building safety defects.

Simon Clarke, the Secretary of State for Levelling Up, said the legal action "should act as a warning to the rest of industry's outliers" who are delaying making their buildings safe.

Grey GR Limited Partnership, the freeholder of Vista Tower, a fifteen-storey tower block in Stevenage, now has 21 days to commit to remediating the tower's unsafe cladding, or an application will be made to the courts.

The Government’s move follows two years of delays for residents living in the tower.

Grey GR, which is owned by the pension fund RailPen, is one of the first to face action by the Government's newly created Recovery Strategy Unit, set up to identify and pursue firms who repeatedly refuse to fix buildings.

Levelling Up Secretary of State, Simon Clarke, said: "The lives of over 100 people living in Vista Tower have been put on hold for over two years whilst they wait for Grey GR to remediate unsafe cladding. Enough is enough."

The Secretary of State added that organisations delaying remedial works should "step up" and "make safe the buildings [they] own or legal action will be taken against [them]".

Leaseholders of Vista Tower have been handed bills and unable to sell, despite unsafe cladding being identified on the building two years ago.

While the building registered with the Building Safety Fund in 2020, the funding agreement is yet to be signed, meaning the Government cannot release any money.

Responding to the action, a spokesperson for Grey GR said: "The safety of residents in their homes has been and remains an utmost priority for us. The letter we received from Government contained a number of factual inaccuracies, however, we remain committed to starting remediation works as soon as possible."

It added: "We have been in regular dialogue with senior officials at the Department to address several unclear aspects within the legislation, and we have not been alone in raising these issues. We have been seeking the necessary clarity on the process in order to move forward, engaging constructively with the Department in support of applications for Building Safety Fund grants to deliver the remediation works and ensure the safety of our residents.

"We were surprised and disappointed to receive the notification of warning that the Department for Levelling Up, Housing and Communities intends to take legal action against Grey GR. We are seeking legal advice and will be unable to provide further comment whilst this matter is proceeding."

The Secretary of State is also considering issuing an application for a Remediation Contribution Order against other entities associated with Grey GR including Railways Pension Trustee Company Limited (RailPen) and Railtrust Holdings Limited (Railtrust), requiring them to financially contribute to the remediation costs.

There are at least 23 other buildings registered with the Building Safety Fund that have been unable to progress due to unnecessary delays, the DLUHC has said. The Department is examining these cases "closely and considering next steps".

Adam Carey