ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Leaseholders gear up for potential High Court battle over ACM-clad London blocks

Leaseholders at a high-profile 1000-home London development with tower blocks wrapped in Grenfell-style cladding are gearing up for a potential High Court battle with developer Galliard Homes. 

Linked InTwitterFacebookeCard
The New Capital Quay development in Greenwich, south-east London (picture: Google Street View)
The New Capital Quay development in Greenwich, south-east London (picture: Google Street View)
Sharelines

Leaseholders gear up for potential High Court battle over ACM-clad London blocks #ukhousing

Fifty-eight leaseholders from New Capital Quay in Greenwich have joined a group claim over alleged fire safety issues at the 11-block site.

The development is understood to be the largest in the UK with aluminium composite material (ACM) cladding, the same type used on Grenfell Tower.

The leaseholders allege that as a result of fire-safety defects, including the use of ACM cladding, their flats were not constructed in accordance with building regulations and are not fit for habitation.

Leigh Day, the lawyers acting for the leaseholders, sent a ‘letter before action’ to Galliard Homes and landlord Roamquest, which is part of Galliard Homes, on 13 May. Galliard Homes has been given a deadline of 18 June to officially respond, otherwise the claimants will go to the High Court.

Galliard Homes said it will “robustly defend” any claim.

Leigh Day believes that more claimants will join the action.

New Capital Quay hit the headlines last year as insurer the National House Building Council (NHBC) agreed to foot the bill to replace the cladding. This came after Property Management Matters, a subsidiary of Galliard Homes, launched a legal claim against the NHBC.


READ MORE

Developers vow not to ask for recladding cash back from £200m government fundDevelopers vow not to ask for recladding cash back from £200m government fund
NHBC accepts cladding claims on more private blocksNHBC accepts cladding claims on more private blocks
NHBC accepts claim for Grenfell-style cladding removal from private developmentNHBC accepts claim for Grenfell-style cladding removal from private development

However Leigh Day said “losses caused by the fire safety defects are not covered” by the NHBC policy.

Chris Haan, solicitor at Leigh Day, said: “Although the NHBC has agreed to fund the replacement of the cladding, this will not cover the full cost to our clients.

“Property values have potentially been slashed, the landlord has yet to confirm whether substantial additional costs will be passed on to leaseholders, and residents continue to be distressed by disruptive remedial works and by the risk that they could be incinerated in their homes.”

In one case, a flat bought for £500,000 was last year valued at £50,000, Leigh Day claimed.

Work has started on replacing cladding on some of the buildings but the lawyers claim that at the block known as Admirals Tower work will be not be finished until August 2021.

Last month the government committed £200m to fund remedial work on private blocks covered in ACM cladding.

However Mr Haan added: “It is widely assessed as being insufficient to cover the cost of replacing cladding on all affected buildings in the UK, let alone other losses such as those suffered by our clients. Developers and landlords should take responsibility for the full losses caused by defects in their buildings.”

In a statement Galliard Homes said: “Galliard Homes are aware of a claim having been made in connection with New Capital Quay. Galliard can confirm that the leaseholders have not been asked for one penny regarding any of the issues associated with cladding at New Capital Quay.

“Galliard Homes has worked closely with the local authority, the NHBC and local residents at New Capital Quay in order to get issues on site resolved, and have also ensured that residents have been kept up to date on all remedial action being undertaken.

“To the extent that any claim is pursued Galliard Homes will robustly defend it.”

New Capital Quay, which has an on-site Waitrose, is a mixture of around 1,000 private and social housing flats. Hyde Group has residents at the development but does not own any of the buildings.

End Our Cladding Scandal: campaign aims

End Our Cladding Scandal: campaign aims
  • Government provides a fund to cover the cost of cladding removal and remedial works on private blocks
  • A firm timescale is set out of no more than two years for the work to be carried out
  • Residents are reimbursed for the interim fire safety costs incurred, and funding is to be provided for necessary internal fire safety measures identified by a competent fire risk assessor
Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.