A Commitment to Enforcing Leaseholder Protections – Department for Levelling Up, Homes and Communities v Grey GR Limited Partnership

In April 2024, the First Tier Tribunal (FTT) handed down judgment in the Department for Levelling Up, Homes and Communities (DLUHC) v Grey GR Limited Partnership (Grey) [2024]. This was the Secretary of State for the DLUHC's first application for a Remediation Order under s.123 of the Building Safety Act (BSA).

Background

Grey owns Vista Towers, a residential tower block located in Stevenage. In 2019, Grey commissioned an external wall assessment in accordance with the government's Advice for "Building Owners of Multi-storey, Multi-occupied Residential Buildings" (the Advice). The external wall assessment identified combustible materials within Vista Towers. Grey applied to the government's Building Safety Fund (BSF) to fund the remedial works.

In 2022, the government withdrew the Advice and instead adopted to follow the new "PAS 9980" Code of Practice. As a result, Grey and the BSF entered protracted negotiations, which delayed the remedial works.

The Secretary of State, aware of the delays, sought a Remediation Order (RO) to impose a legally binding obligation on Grey to remediate the issues within a specified timeframe. Grey challenged the application because the remedial works were underway and due to be completed in 2025. The Secretary of State asked the Tribunal to consider whether a RO should be ordered.

The FTT's ruling

The Tribunal ordered an RO against Grey to ensure that Grey completed the remedial works within a determined timeframe. The Tribunal's priority was to provide protection to the leaseholders who were not party to the building contracts and whose safety was compromised.

Analysis

This judgement demonstrates that the underlying policy considerations that influenced the BSA – protecting leaseholders from defective premises – are the principal concern of both the government and the Judiciary.

Anyone required to undertake remedial works should take heed of this judgment. The Secretary of State will not tolerate delays to remedial works, and the FTT will exercise its jurisdiction to give leaseholders the reassurance they need.

If you require any advice in relation to the BSA or any advice following the ruling in Department for Levelling Up, Homes and Communities v Grey GR Limited Partnership [2024], please contact our Real Estate Dispute resolution team.

This article was written by Partner Kate New and Paralegal Cameron Trotman.