ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Shared owners in block below government height threshold fear £80,000 fire safety bills

Residents in a shared ownership London block are fearing a potential bill of around £80,000 each to make their building safe, despite falling below the government height threshold of 18 metres to qualify for state support. 

Linked InTwitterFacebookeCard
Residents of Oyster Court could face huge bills to repair fire safety defects (picture: Google Street View)
Residents of Oyster Court could face huge bills to repair fire safety defects (picture: Google Street View)
Sharelines

Residents in shared ownership block fear £80,000 bill each over fire safety costs #UKhousing

The 33 leaseholders at Oyster Court, in Southwark, have been told by Optivo, the owners of the five-storey building, that the total estimated cost of fixing it will be £2.63m.

A letter from Optivo, seen by Inside Housing, said that a notice to residents was being served to “formally notify you of the costs that may be recharged” for the works.

One resident, Beth Pritchard, told Inside Housing that the bill facing her is “ludicrous”. She said: “I’m speechless, it just doesn’t seem real.”

It is understood the block of two and three-bedroom flats contains many key workers, including nurses and teachers with children.


READ MORE

Cladding loans scheme unlikely to be fully implemented for at least a yearCladding loans scheme unlikely to be fully implemented for at least a year
EWS crisis: homeowners face huge fire safety bills on newly bought flats despite cladding assurances before purchaseEWS crisis: homeowners face huge fire safety bills on newly bought flats despite cladding assurances before purchase
Housing association set to to push £100,000 fire safety bill on to shared ownersHousing association set to to push £100,000 fire safety bill on to shared owners

As the building is under 18 metres, it does not qualify for the government’s £4.5bn Building Safety Fund. Shared owners are liable to pay the full costs of work to the building despite only owning a portion of the equity.

In February, the government announced plans for a loan scheme for leaseholders in buildings between 11 metres and 18 metres under which no resident should ever pay more than £50 per month to remove cladding.

But seven months on, details on how it will work remain scarce, no legislation has been bought forward to introduce it and it could take at least a year to implement if it is implemented at all.

The Oyster Court case, which is similar to one seen in Manchester this summer, is another eye-opening example of the building safety crisis currently affecting many thousands of people across the country.

Ms Pritchard has also been left confused as to why Optivo is acting so quickly on a building that appears to be low risk due to its height. “They tell us they want to do everything for our own safety, but where is the debate to say, ‘Actually, you know what? I’m prepared to live with the risk.’”

She said that within the building there is a maximum of three flats per floor and and believed that everyone is within three metres of a fire escape.

Ms Pritchard understands that the main cause of concern with the building, built in 2007, is the fire breaks, insulation and wooden balconies.

She claimed the remediation work is starting next month, but the residents have not been shown a copy of the survey outlining the buildings’ issues. “We’ve been told work is starting on site in November and there is already equipment on site,” she said. “They (Optivo) are moving through this at breakneck speed.”

The block next to Oyster Court, known as Flamingo Court, with social housing tenants, is also undergoing remediation work and Ms Pritchard believes the move to work on her block could be linked to this.

It is understood that Optivo has reviewed all its blocks and found that 7% require remediation work, with Oyster Court being one of those.

In a statement Optivo said: “Our number one priority remains keeping our residents safe in the building they live in.

“We’ve explained in the letter we sent to residents at Oyster Court that our understanding of the government’s finance scheme is that the monthly cladding repayment costs should not exceed £50 per month. This is because Oyster Court is between 11 to 18 metres in height. Optivo and other housing associations are still awaiting clarity from government on this. It is vital government provides details of the finance scheme to the housing sector as soon as it can.”

It added: “We completely understand the situation around fire remediation costs is continuing to cause concern for affected leaseholders, including our residents at Oyster Court.

“We empathise with the difficult position leaseholders find themselves in and we’ll continue to lobby the government to protect them from these costs.”

In its most recent annual report, Optivo said it expects to spend £251m on fire safety works over the next 10 years. The G15 group of landlords has estimated that its 12 members will have spent £3.6bn on building safety work by 2036.

Full statement from Optivo

Our number one priority remains keeping our residents safe in the building they live in.

We’ve explained in the letter we sent to residents at Oyster Court that our understanding of the government’s finance scheme is that the monthly cladding repayment costs should not exceed £50 per month. This is because Oyster Court is between 11 to 18 metres in height. Optivo and other housing associations are still awaiting clarity from government on this. It is vital government provides details of the finance scheme to the housing sector as soon as it can.

Since the Grenfell Tower tragedy, the government has set up investigations into materials and practices used in buildings.

We’ve been proactive in assessing and managing the risk of external fire spread in all our buildings and bringing buildings in line with new regulations.

Our assessments have been proportionate and risk based and we’ll continue to only plan remediation work where there’s evidence it’s needed. Our evidence shows work is required at Oyster Court to ensure residents’ safety.

Dame Judith Hackitt, who is providing independent advice to the government, has urged building owners to begin the process of change now. It would not be right for us to ignore the fire safety risks that have been identified, and government guidance does not encourage us to do so.

We completely understand the situation around fire remediation costs is continuing to cause concern for affected leaseholders, including our residents at Oyster Court.

We empathise with the difficult position leaseholders find themselves in and we’ll continue to lobby the government to protect them from these costs.

Together with other housing associations and the National Housing Federation, we’re doing everything we can to find a way forward with the government.

Unlike private developers, we’re a not-for-profit organisation. We reinvest our income back into providing services for our 90,000-plus residents.

We’ll urgently need clarity from the government about their financial scheme for leaseholders so our residents can be given protection and peace of mind.

Sign up for our fire safety newsletter

Sign up for our fire safety newsletter
Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.