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The Department for Levelling Up, Housing and Communities (DLUHC) has taken the first step towards legal action against Grey GR, an organisation ultimately owned by RailPen – the Railways Pension Scheme.
Grey GR Ltd Partnership is the freeholder of Vista Tower, a 15-storey tower block in Stevenage. It has been given 21 days to commit to remediating fire safety defects on the building or legal action will begin, with an application to the courts.
This action follows two years of delays for more than 100 residents living in the tower and reaffirms the government’s intention to make building owners, landlords and developers foot the bill for the cladding scandal rather than tenants and home buyers.
Leaseholders of Vista Tower have been handed massive bills and have been unable to sell their flats since unsafe cladding was identified on the building two years ago. The freeholder, Grey GR, knows that repairs are needed but is trying to get leaseholders to pay.
Grey GR is one of the first freeholders to face action by the newly created Recovery Strategy Unit, set up by DLUHC to identify and pursue firms who repeatedly refuse to fix buildings.
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. This legal action should act as a warning to the rest of industry’s outliers – big and small. Step up, follow your peers and make safe the buildings you own or legal action will be taken against you.”
Sophie Bichener bought a flat in Vista Towers in 2017 for£230,000. Last year she received a letter from the freeholder saying that she would have to pay another £208,000 towards the total £15m repair bill. She said: “We thank the government for helping us, and leaseholders across the country – Vista Tower residents simply want to live in safe and secure homes.
“This action is a step in the right direction for the innocent leaseholders still desperately pleading with their building owners to take responsibility.
“Now the leaseholder protections are in force – it should serve as a warning to those entities still playing games and doing all they can to dodge their legal obligations.”
The building was registered with the Building Safety Fund in 2020 but the funding agreement has yet to be signed, meaning that the government cannot release any money. There are at least 23 other buildings registered with the Building Safety Fund that have also stalled in bureaucracy. The department is considering next steps for these cases as well.
The secretary of state will also consider 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 contribute to the remediation costs.
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