Homeowners in Croydon’s failed Brick by Brick developments claim serious complaints ignored

Owners of flats built by Croydon council’s failed developer Brick by Brick (BbB) say they have faced a catalogue of problems since moving in, from fire safety issues to faulty waste pipes.

Tenants of three BbB developments – Auckland Rise, Sylvan Hill and Church Road – finally met with Mayor Jason Perry last week to discuss the “litany of problems” they say have been ignored.

The meeting was also attended by Liberal Democrat Crystal Palace & Upper Norwood councillor Claire Bonham, who had requested the appointment at a meeting of the full council on April 17.

Residents raised concerns, including routine maintenance issues, Fire Risk Assessments that were carried out in 2022 but recommendations not acted upon until residents contacted the London Fire Brigade directly, and spiralling insurance and service charge costs.

Ayshea Howell, 65, who lives in a BbB development in Sylvan Hill, said: “Just this year our service charge has increased from £145 to £185 and our insurance costs are very high.”

The BbB developments are shared ownership properties where rents are strictly regulated but service charges are uncapped. Many residents moved into the property with the promise that shared ownership would make the cost of living in a newly-built property “affordable”.

Ms Howell moved to Sylvan Hill in October 2021. She said: “We quickly realised we had many issues to deal with.

“We had a waste pipe in our kitchen that was not capped off, causing a foul smell. At that same time we had an issue with our toilets not flushing, pipes on our balconies were leaking and gas meters were incorrectly numbered.

“The constant barrage of emails to get anything done has been agonising.”

Residents claim they have been ignored by BbB management, and are unclear as to what routes are available for escalation.

The company’s complaint policy suggests that residents can access the Housing Ombudsman, but BbB is not a member of the Ombudsman scheme, which leaves residents with no option for escalation short of legal action.

Cllr Bonham said: “Residents have had enough of feeling let down by BbB.

“They cannot enjoy living in their homes knowing that fire safety issues are not being addressed and that they have had no communication on how the wind down of Brick by Brick will affect them.”

BbB, created by Croydon council in 2016, borrowed £200million from the local authority but failed to make any profits leading to the council’s decision to wind the company down in 2021.

The authority’s independent auditors said the loans to the company contributed to it having to declare bankruptcy in November 2020.

BbB is currently insolvent, but is supported by the “Letter of Comfort” issued by the council as shareholder. The cash-strapped council and BbB are working to wind down the company on a solvent basis.

Cllr Bonham said a follow-up meeting with the mayor has been set for September.

A spokeswoman from Croydon council said: “The Mayor recently met Cllr Bonham and three Residents’ Associations. It was agreed that they would produce a list of concerns to be submitted to the Mayor’s office for the council to consider, bearing in mind that the council does not own the three sites in question, does not have any control over the setting of service charges and insurance, and is not responsible for managing these buildings.”

Pictured top: Councillor Claire Bonham (left) with Auckland Rise resident Sinead Harmey (Picture: Claire Bonham)