Leaseholders launch claim over fire safety issues and cladding at 11-tower block development
Leaseholders of flats in the New Capital Quay development in Greenwich have launched a group legal claim over the use of what they say is flammable Grenfell-type cladding in the building.
New Capital Quay comprises 11 tower blocks and more than 1,000 flats with both private and social housing.
Law firm Leigh Day is representing 58 leaseholders who between them own 36 flats, and said it expected more to join the claim.
The leaseholders claim landlord Roamquest and builder Galliard Homes - parts of the same company - breached the Defective Premises Act 1972 and that as a result of fire-safety defects including the use of flammable cladding, their flats were not constructed in accordance with the Building Regulations and so are not fit for habitation.
Leigh Day said the 11 tower blocks have cladding made from aluminium composite material and that after the 2017 fire at Grenfell Tower testing by the Building Research Establishment, which assessed that it had no flame-retardant properties.
Insurer the National House Building Council (NHBC) determined the Building Regulations were breached and agreed to pay to replace the cladding.
But Leigh Day said other losses were not covered by the NHBC policy and the claimants were therefore seeking compensation from Roamquest and Galliard Homes including for loss of income, reduction in property values, distress and inconvenience.
Some leaseholders had been advised that the cladding issue had brought about a huge drop in the value of their properties, leaving them effectively trapped until remedial work is completed, while others had seen sales fall through.
Chris Haan, a solicitor at Leigh Day, said: “Although the NHBC has agreed to fund the replacement of the cladding, this will not cover the full cost to our clients.
“Property values have potentially been slashed, the landlord has yet to confirm whether substantial additional costs will be passed on to leaseholders, and residents continue to be distressed by disruptive remedial works and by the risk that they could be incinerated in their homes.”
A Galliard Homes statement said: “Galliard Homes are aware of a claim having been made in connection with New Capital Quay.
“Galliard can confirm that the leaseholders have not been asked for one penny regarding any of the issues associated with cladding at New Capital Quay. Galliard Homes has worked closely with the local authority, the NHBC and local residents at New Capital Quay in order to get issues on site resolved, and have also ensured that residents have been kept up to date on all remedial action being undertaken.
“To the extent that any claim is pursued Galliard Homes will robustly defend it.”
Mark Smulian
