Developer told to pay £45m to Government for post-Grenfell repairs

A building developer has been ordered to pay more than £45 million to the Government after fire safety defects were repaired in seven high-rise buildings. The buildings in Manchester , developed by Urban Splash between 2000 and 2008, were alleged to have serious defects discovered in inspections after the Grenfell Tower disaster. The extent of the defects was disputed but they have been fixed at a cost of more than £60 million, with around £51.1 million paid from the Government’s Building Safety Fund (BSF) established after the disaster.

The seven buildings were not owned by Urban Splash at the time of the remediation work, and no BSF money was paid to the firm. The Department of Housing, Communities and Local Government brought a case to a specialist tribunal, seeking an order for the developer to contribute towards the cost of the works paid from the taxpayer-supported fund. On Thursday 6 November, the tribunal ruled that more than £45.7 million should be paid to the Government by Urban Splash.

Judge Jonathan Holbrook, sitting with two other First Tier Tribunal members, said in a 260-page judgment that there was a “powerful case” for the developer “rather than the taxpayer, to bear the remediation costs”. He later said: “We accept that Urban Splash provided useful and responsible assistance with the post-Grenfell investigations into the safety of these buildings. 72 people died after Grenfell Tower caught fire in June 2017 in North Kensington, prompting changes to building safety regulations.

Credit: PA Images “But there is an important distinction between assisting those investigations and accepting financial responsibility for the resulting remediation.” Judge Holbrook said the tribunal found each of the buildings contained fire safety-related defects, including combinations of combustible materials and ineffective cavity barriers. The tribunal reduced the amount Urban Splash is required to pay by 10% in light of previous Government failures, but said this “does not represent a finding that Government was responsible for 10% of the defects or remediation costs”.

After the decision, a spokesperson for Urban Splash said: “While we are reviewing it and taking legal advice our focus is finding a constructive way forward with Government while continuing to deliver much-needed homes and regeneration across the country. “Making buildings safe and protecting residents and leaseholders is of fundamental importance to Urban Splash. “We have remained closely engaged throughout the remediation process, and we are pleased that the tribunal recognised the ‘useful and responsible assistance’ Urban Splash provided with the post-Grenfell investigations into these buildings.”

The spokesperson said the scale of the liability was “significant for a business of our size”. Want more on the issues affecting the North? Our podcast, From the North answers the questions that matter to our region.