RESIDENTS who live in new-build homes so badly constructed they could be demolished say they are trapped in their “uninsurable” properties.
Locals in Camden, north London, fear their properties could now be valued at £0 due to the amount of defects.
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Within months of the first leaseholder moving in four years ago, the roof began leaking into the communal stairwell and terraces started letting in water, causing water damage to flats, residents say.
Interior and exterior walls of the flats have since started to crack, while some windows and doors no longer open and close properly, locals claim.
And the flats sold for between £700,000 and £900,000, are now valued at £0, the owners said.
Despite years of reports about the building cracking, bending and leaking, the insurance company that provided the 10-year warranty has not paid out.
Software engineer Daniel Bruce, 38, sold his successful tech start-up to a bank and put down a 75 per cent deposit on an £850,000 apartment in the building in Agar Grove.
He told the Ham&High: “For years we’ve been trying but the help isn’t there
“We are the victims. We were sold catastrophically damaged homes. But nobody has got our back.”
And the frustrated resident added: “I feel physically repulsed by my computer – because that’s the tool I have to use to fight. I’ve had to become an activist.
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“I don’t remember the last time I slept for more than two hours. It’s frozen our lives.”
His master bedroom is now closed off due to a terrible smell in the ensuite – believed to be rot, caused by a leak somewhere.
Parts of his ceiling have come down and there are cracks throughout the apartment. Some windows no longer open properly.
Jewellery designer Alexandra Druzhinin, 49, who paid £900,000 for her apartment, echoed Daniel’s criticisms.
She said: “We are completely trapped. We can’t get away from this.
“I’m just absolutely drained. Not only have we lost the money we spent buying and renovating the flat, and the legal fees – but now we stand a chance of losing everything we own because we can’t get insurance.”
While downstairs neighbour Adam Helal, 58, paid just over £700,000 for his flat only to be met with a number of problems.
There is significant cracking in his terrace wall. His leaking bathroom has damaged his internal walls and part of his ceiling has also come down.
“All the windows are faulty,” he said.
“I work in sound and there’s no sound-proofing at all. It’s supposed to be triple-glazed but there’s actually not much difference if you have them open or shut.”
Now a government minister has asked Camden Council to consider whether it can prosecute the construction firm for “recklessly” signing off on the block of flats that has been judged ‘not fit for purpose’.
After problems became apparent in 2020, Developer Prime Metro commissioned an expert survey which found evidence of movement in the building.
A survey two years later by a different expert questioned the suitability of the foundations and found the building was unfit for purpose and potentially unstable and suggested demolition as a solution.
Prime Metro Properties based in Islington, north London, said it was limited in what it could say about the block, not wanting to “prejudice any future proceedings”.
A spokesman said the firm retained three of the block’s seven flats, as it “continues to suffer the consequences of the problems which have manifested themselves”.
He added: “Since the building began to display problems we have spent a considerable amount of our own money and time investigating, trying to get to the root of these problems, and have taken matters up with various insurers and the warranty providers, at no expense to the other lessees, and continue to do so.
“We remain committed to having this matter resolved and have kept all the lessees appraised of the issues, as well as our efforts.”
Acasta European Insurance Company Ltd said it was “the insurer for certain warranty and latent defect policies” at the block.
A spokesman added: “Acasta is fully engaged with and is discussing concerns raised regarding the property with all interested parties.
“We take these concerns very seriously and are committed to fulfilling any obligations under the relevant insurance policies.”
The Department for Levelling Up, Housing and Communities (DLUHC) said: “The situation faced by the innocent residents of Agar Grove is deplorable and we are applying pressure to those involved to reach a just solution.
“The minister for building safety has written to Acasta to make it clear to them we consider their behaviour unreasonable and we expect them to produce a plan to resolve the issue promptly.”
Camden Council said it is urgently exploring enforcement options after the government asked it to consider legal action.
A spokesman for the authority added: “Following changes made by central government, private building inspectors can sign off on new developments without approval from local authority building control.
“This unfortunately creates situations like this as we have no powers over the decisions made by private inspectors.
“We want to do all we can to support the leaseholders at Agar Grove and we are urgently exploring what enforcement options are available to us.”
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