Grey GR, owned by pension investment firm RailPen, has been given 21 days by the Department for Levelling Up, Housing and Communities to commit to remediating Vista Tower, a 15-storey block in Stevenage. If it fails to do so, an application will be made to the courts.
The freeholder is one of the first to face action by the Recovery Strategy Unit, a newly created body which was set up to identify and pursue firms who repeatedly refuse to fix buildings.
The presence of unsafe cladding was identified on the Vista Tower building more than two years ago and while the property was registered with the government’s Building Safety Fund in 2020, the funding agreement has not been signed meaning no money can be released.
This has left the leaseholders of Vista Tower unable to sell or remortgage their properties.
‘Vista Tower residents want to live in safe homes’
Simon Clarke, secretary of state for Levelling Up, 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, leaseholder in Vista Tower, added: “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.”
Further action
The government has identified at least 23 other buildings which have registered with the Building Safety Fund, but are yet to progress due to what it called “unnecessary delays”. The Levelling Up department said it was examining these cases and considering the next steps.
Clarke 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 financially contribute to the remediation costs.
