Victoria Square residents to get all rates from 2019 onwards refunded

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Apartments in Belfast's Chichester StreetImage source, Google
Image caption,
Residents were told to vacate the properties in 2019 and have not been able to return since

An owner of one of the defective Victoria Square apartments in Belfast has said residents have "no choice" but to mount further legal challenges.

Residents had to leave in 2019 after structural issues were detected.

Since then they have continued to be issued with rates bills and pay a service charge - although it was announced on Wednesday that they would have all their rates payments refunded.

An emergency general meeting of residents was held on Wednesday night.

Francis McAuley, who was at the meeting, said afterwards that it was an emotional discussion and that he backed further legal proceedings to attempt to get compensation.

"Barristers don't come cheap, but the residents have no choice at this point," he said.

"Do you walk away from your apartment or do you fight with every last bit to try to salvage what are the best apartments in Belfast?"

Image caption,
Francis McAuley said that people had their dreams "totally destroyed" by being forced to leave their homes

An interim report on the structural failures claimed a column was "constructed using concrete that was understrength by some 75%".

The findings suggest a dozen other columns are also understrength, although to a lesser degree.

The authors said the failings posed "a serious health and safety issue", but stressed the need for further tests.

The companies involved in construction and fitting out of the apartments deny liability.

The report by engineering and architect firm William J Marshall and Partners in conjunction with the testing and consultancy company Sandberg LLP, was commissioned by owners of the apartments at the city centre property.

BBC News NI has seen the interim views of the authors.

'Substantial structural failure'

Image caption,
A column in Victoria Square with exposed, bent steel rods

Ninety-one properties were evacuated five years ago as a result of the safety concerns, after cracks started appearing in the walls in what was described as "a serious and substantial structural failure" of a column.

Residents of the building have been paying rates since, but Land & Property Services (LPS) has now announced owners will no longer be liable.

The total amount to be refunded is £170,000.

The evidence presented as part of that case has allowed LPS officials to determine the properties can be removed from the Valuation List.

It has also been confirmed that any arrears will be written off.

This amounts to £396,000 in unpaid rates.

What happened at Victoria Square?

  • March 2008: Victoria Square opens in Belfast city centre. It includes retail stores, restaurants, an underground car park and a residential block of 91 apartments
  • February 2019: Sudden damage is reported at two apartments caused by the failure of a concrete structural column
  • April 2019: Residential development evacuated because of safety concerns
  • July 2019: First temporary propping put in place to support failed column
  • July 2021: Investigations into structural failure raise concerns about defects at the building
  • March 2024: Belfast High Court strikes out residents' compensation claim because the legal action was not taken within six years of the building being completed
Image caption,
Finance Minister Caoimhe Archibald said officials had been working hard to find a solution to the rates issue

Finance Minister Caoimhe Archibald told BBC News NI it had been a complex case.

"This has been a really difficult situation for the owners of the apartments who have found themselves in a situation that's not of their making, and they've faced significant turmoil over the past number of years," she told Evening Extra.

"I have been determined to find a way forward in relation to the issue of rates... and officials in LPS have also been working hard to find a resolution for the owners."

The decision today is just related to the Victoria Square apartments and has no impact on any other properties in Northern Ireland.

In Northern Ireland claims for compensation where a building is found to be defective must be made within six years of a building being completed.

There have been calls for new legislation to bring Northern Ireland in line with England and Wales, where owners of properties have 30 years to make a claim.

The recent High Court decision also means the interim findings on the structural failings will not be tested in court.

Liability denied

The building of the apartments was a joint venture by building companies Farrans and Gilbert Ash, with Farrans responsible for the "construction obligations" and Gilbert Ash in charge of fitting out the apartments.

They deny liability for the failings.

In response to specific questions about the concrete used in the development, Farrans said: "We won't be commenting."

In a statement, Gilbert Ash said it "carried out only internal fit-out works" at the development.

"This included internal finishes, joinery, supply and installation of bathroom suites and kitchens as well as electrical and mechanical work for the apartments," they said.

"It did not include any structural work, including the construction of structural columns or the supply of concrete for those columns."

The authors of the report say too much water and too little cement was used in the mix for some of the concrete at the site.

The report also found the column which splintered at Victoria Square had been further weakened by a defective repair.

They believe bonding plaster was used instead of concrete to fix that column, which they suggest was a "key factor" in its "failure".

Farrans and Gilbert Ash said they did not carry out the defective repair and the report concludes it is not possible to say when the work was done nor who was responsible for it.

Column testing

Only a limited number of columns were examined and the authors recommend concrete strength testing should be extended to all "columns, slabs and beams in the building".

They point out that if there was understrength concrete used at the site, it is likely that one lorry load would provide enough for between 17 and 25 columns.

A mix of tests was used at the site including "coring", which involves the drilling and extraction of cylinders of concrete.

However, while that method is seen as reliable it causes vibrations, and because of safety concerns some less precise "rebound hammer tests" were also carried out.

The report said of the 30 columns examined "over 50%… are affected by understrength concrete and are therefore defective".

The residential block sits above shops in Victoria Square centre and part of its underground car park.

Steel props have been put in place to try to stabilise the building - at a cost of £1m paid for by the owners - although that was always intended to be a temporary measure.

The report added the "serious structural failure [is] an alarming situation with significant health and safety implications for the building".

Concerns are also raised about the design of the building although it says that was "not the primary factor" for the failure of a key concrete column.

Nonetheless the report's author goes on to state: "I am unable at this stage to rule out shortcomings in [the] structural design as a significant and/or contributory factor."

The architects of the project, Building Design Partnership (BDP), did not comment when asked about the interim report.

Rates letter

LPS was asked nearly 12 months ago to consider de-valuing the apartments to prevent owners having to pay rates.

BBC News NI has obtained a legal letter sent to LPS which made that representation.

The six page letter outlines details of numerous structural inspections, including visits from LPS officials.

It argued that until the structural issues are resolved, residents cannot return to their apartments and the apartments are unmarketable.

The letter also outlined written professional advice that the building must remain vacant for safety reasons, the lack of public liability insurance, the steel props in a number of apartments, and the decommissioning of lift services, and natural gas.

Under current legislation if a property is deemed capable of repair it is still subject to rates.

It's understood the current legislation also means the evidence presented to LPS in the letter was not sufficient at the time for a rates exemption.