Housebuilder Bellway has made a £30.5m provision to remediate structural defects in a high-rise block it built in London.
Bellway said it had identified an “isolated design issue” relating to the reinforced concrete frame of an apartment scheme it built 12 years ago in the London Borough of Greenwich. The name of the high-rise was not provided.
The company made the disclosure in its 2023 year results, published this week (17 October).
The housebuilder said it is reviewing its other buildings that used the same third parties responsible for the design of the defective concrete frame in Greenwich. But it added that no similar issues have been identified to date.
Bellway also said it is planning to seek reimbursement from the companies responsible for the structural defect.
“We intend to seek recoveries from the entities involved in the development of the Greenwich apartment scheme, however, given the complexity of this process, these have not yet been recognised as an asset,” said the company.
Bellway has set aside more than £613m since 2017 for legacy building remediation, with a remaining provision of over £508m as at 31 July 2023. The company said costs have been provided “regardless of whether Bellway still retains ownership of the freehold interest in the building or whether warranty providers have a responsibility to carry out remedial works”.
The Building Safety Act 2022 makes it a legal requirement for building owners to fix historical building safety defects. Any provisions relating to historical safety defects have been overridden by the applicable provisions in the Building Safety Act.