Victoria Square apartment owners will not pay rates, minister says
- Published
Residents were told to leave the apartments in 2019 due to structural issues
Land and Property Services (LPS) will not issue rates bills to owners of the defective Victoria Square apartments this year, Stormont's finance minister has said.
Residents were told to leave them in 2019 due to structural issues.
Despite being unable to return, they have continued to pay rates, a service charge and in some cases, mortgages.
Some residents told the BBC despite asking for a rates exemption they had been turned down.
On Thursday, Caoimhe Archibald said legal action over unpaid rates had also been "paused" by LPS.
It is responsible for the management, issuing and collection of rates in Northern Ireland.
She said all ministers were "deeply concerned" about the plight of the residents and were working to reach a solution.
"LPS have put a stop on bills being issued for the new rating year and a pause also on legal action for the non-payment of rates so we are trying to identify a way forward," she added.
"All of us recognise the unfairness that there seems to be and we are working with LPS to find a way forward."
Rates relief welcomed
Former residents Karen and Terry Priestly, who have been facing court action over unpaid rates, said the development is "welcome news".
The couple were left devastated when they were forced to leave their turn-key apartment which they planned to use for retirement.
"I told everyone in work I couldn't wait until I was 60 because I was going to retire and I now have no retirement date, I will be working for a long time," Mrs Priestly said.
"It's not a nice thing to have it taken away particularly whenever we did nothing to instigate it."
Terry and Karen Priestly says the finance minister's decision was welcome
Mr Priestly said the "relentless" costs of the apartment has caused continuous worry and anxiety for all residents.
But the finance minister's announcement is helping to ease the couple's stressful journey.
"It takes the pressure off us in regards to the ongoing issue with the rates," Mr Priestly said.
"I think we're pleased and everybody else will be pleased that they've actually taken some action on it."
Apartment owner Patrick McKeague told BBC News NI's Evening Extra's programme he was "delighted and relieved" by the minister's announcement.
"It's been five years of stress," he said.
"You can just imagine what it's like getting those letters through the post, and then to be summoned to go to court for non-payment of rates it was just ridiculous."
Patrick McKeague was one of the residents forced to leave the Victoria Square complex in 2019
Mr McKeague said the letters over unpaid rates had caused "an awful lot of stress" to him and other residents.
"This really is a plus for us when everything seems to be against us," he added.
Owners of the apartments recently had their bid for compensation struck out.
In Northern Ireland such claims 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 found to be defective have 30 years to make a claim.
Communities Minister Gordon Lyons confirmed his department would take on responsibility for the issue.
Ways of helping the residents were also raised at a meeting of executive ministers on Thursday.
On Wednesday, the first and deputy first ministers said they were happy to meet the owners of the apartments in the complex.
Michelle O'Neill said it was a "traumatising time" for people, and Emma Little-Pengelly said she was keen to take urgent action to support owners.
Repairs 'could cost millions'
Meanwhile, BBC News NI understands it would cost millions of pounds to repair the defective Victoria Square apartments.
Multiple sources have indicated to the BBC that they can be repaired but it is not clear who would be responsible for the cost.
It is understood the bill would not be expected to run into the tens of millions.
The management company is Victoria Square (Chichester Street) Residential Management Limited.
BBC News NI posed a number of questions to the company relating to the management of the apartments since residents moved out.
It said there is a significant amount of work carried out on a regular basis to ensure the building is maintained, including weekly checks of common areas and every apartment in the building.
There is also regular testing of fire and intruder alarm systems.
The management company said that the estimated overall costs of repairing the apartments "are significant given the technical nature of the work involved"
A statement through the company's solicitor said the costs incurred in relation to maintaining the building were "essential".
It said this was "in order to maintain the insurance of the building, to monitor the building for the purpose of public safety, and to ensure that the apartments are ready for re-occupation by owners, if and when a solution is determined for the structural issues within the residential development".
"These costs are billed to the apartment owners as service charge."
The company also said it has facilitated inspections by the fire service, Land & Property Services, building's insurers and consultants who are involved in the investigation of the structural damage and potential strategy for repairs.
The statement continued: "None of the the apartments are habitable due to the absence of heating and full water supply.
"A number of the apartments are directly affected by the large steel propping system which was installed May 2019 as a safety measure to stabilise a partially failed structural column in the residential development.
"The estimated costs of completing the overall repair are significant given the technical nature of the work involved."
Related topics
- Published21 March
- Published19 March
- Published18 March
- Published13 March
- Published11 April 2019
