Government wins landmark cladding case in court

There are 73 residential flats in the Stevenage tower

The government has won a landmark case against the freeholder of a 16-storey tower block forcing them to address issues over unsafe cladding.

The Department for Levelling Up, Housing and Communities took legal challenge against Grey GR Ltd Partnership, the freeholder of Vista Tower in Stevenage, Hertfordshire, after delays in fixing multiple fire safety issues identified in 2019.

The First-tier Tribunal Property Chamber ruled in favour of the government and issued a remediation order which legally requires Grey GR to fix the issues within a mandated time.

Judges Ruth Wayte and David Wyatt considered there had been "delay on both sides" and the order is a "backstop to give reassurance" to leaseholders.

They explained that the works required government funds which "will inevitably lead to delays with approvals bearing in mind that the fund is taxpayers’ money".

And added: "This is not a fault-based order or a case where an order should set short deadlines and expect active interventions to put pressure on a defaulting landlord."

Grey GR is owned by Railpen, a railway pension fund that manages £34bn in assets.

'A victory for leaseholders'

Levelling Up Secretary Michael Gove said: "This decision is a victory for leaseholders in Vista Tower and across the country.

"This court case should serve as a warning to all building owners. If you fail to fix your unsafe buildings and ensure the safety of residents, we will see you in court."

Visa Tower was constructed in the late 1950s and is a 16-story block which contains 73 residential flats

Legal action was launched in October 2022 when the problems had not been fixed three years after being identified.

Gove expressed disappointment that Railpen "kept leaseholders in limbo in this way".

He added: "Railway workers with their pensions invested in this fund, as well as innocent leaseholders, deserve better."

Grey GR said they have "always been fully committed to remediating the buildings for which we are responsible"

In a statement Grey GR said they were satisfied with the tribunal's judgement and said resident safety had been their "upmost priority" and insisted they have been "fully committed to remediating the buildings for which we are responsible".

It continued: "It is important to note the tribunal's determination that this is 'not a fault-based order', nor that the terms of the order will change the timeline for delivery of the agreed remediation.

"Following the decision, we hope we can move forward and continue to be a part of the solution to an issue that was not of our making and provide leaseholders with safer homes."