As the housing company that did so much to bankrupt Croydon Council is being wound-up, residents in Crystal Palace who bought its new-build homes say their serious complaints are being ignored
Housing crisis: the BxB flats at Auckland Rise, just before completion in 2020. Brick by Brick never signed up to the Housing Ombudsman scheme
Residents of three Brick by Brick developments this week finally got to meet Jason Perry, the Mayor of Croydon, to discuss the litany of problems they have experienced since purchasing their properties from the council-owned developer.
The residents had been waiting almost six months for the chance to make their case to Mayor Perry over a range of issues they have encountered in the new-build properties, as Brick by Brick is being wound up as a company.
Some now refer to their homes as being “cursed” by Croydon Council’s failed housing developer.
Some of the residents in supposedly “affordable” shared ownership homes built in Crystal Palace by the council-owned developer have been hit with a 35% service charge hike.
Shared-ownership properties have strictly controlled rent rises but there are typically no similar limits on service charges.
Brick by Brick, created by Croydon Council in 2015, borrowed £200million from the local authority but never managed to make a profit, a key part of the Town Hall finances crashing in 2020.
Slow to act: Mayor Jason Perry
Brick by Brick is technically insolvent, but is supported by a “Letter of Comfort” issued by the council as shareholder. The cash-strapped council and BxB are working to wind down the company on a solvent basis.
This week’s meeting was attended by more than a dozen residents living in Brick by Brick developments, including Auckland Rise, Sylvan Hill and Church Road, and they were joined by Crystal Palace and Upper Norwood’s LibDem councillor Claire Bonham, who had called on the Mayor to listen to residents at a council meeting earlier this year.
Councillor Bonham had been approached by three residents’ associations whose members have all been affected by the failure of Brick by Brick.
Various issues discussed included defects in the build and routine maintenance issues that have not been addressed, as well as solar panels that have not provided any benefit to residents.
Fire risk assessments were carried out on the properties in 2022, but the recommendations were not acted upon by Brick by Brick or the council until residents and councillor contacted London Fire Brigade directly.
Residents in the BxB properties have also been hit by spiraling insurance as well as service charges. Overshadowing everything is the unresolved issue over who will own the freehold of properties when Brick by Brick ceases to exist.
Residents say that they have been ignored by what remains of Brick by Brick’s management (now based in the council’s offices at Fisher’s Folly), while being uncertain where to escalate their complaints.
Highly charged: Cllr Claire Bonham (left) with Sinead Harmey, a resident of Auckland Rise
Brick by Brick’s complaint policy misleadingly suggests that residents can access the Housing Ombudsman. But Brick by Brick is not signed up as a member of the Ombudsman scheme, thereby leaving residents no option short of legal action – potentially against a council-owned, insolvent company which may soon not exist at all.
“Residents have had enough of feeling let down by Brick by Brick,” Bonham said.
“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.
“Mayor Perry and Croydon Council must step in and address residents’ concerns as a priority.
“I have pushed for action plans to be created for each development and timelines put in place for this.”
Bonham says that after such a long wait for their meeting, they have now secured agreement for a follow-up meeting next month with Mayor Perry to ensure that the undertakings given are being put in place.
From 2018: Brick by Brick’s shared ownership flats are far from affordable
From 2019: Brick by Brick’s homes prove too expensive for Croydon locals
Read more: How myth of shared ownership has made housing crisis worse
Read more: Feeling the heat as residents are stung with 775% price hike
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