Housing association asks High Court to clarify Vistry’s responsibility for fire safety defects

Housing association Irwell Valley has filed papers with the High Court in a bid to force Vistry to take responsibility for “life-critical fire safety defects” at a residential development that its subsidiary Countryside built in 2009.

The Greater Manchester provider has filed a Part 8 claim as it is seeking a declaration to say Vistry is the building’s developer and as such responsible for the remediation works.

Irwell Valley told the housebuilder about the fire safety issues at Fourth Quarter, a low-rise development of 29 flats in Great Clowes Street, Salford, in early 2024.

The 7,000-home provider argues that this triggered building remediation obligations under the government’s developer remediation contract (DRC), of which Vistry is a signatory. The scheme legally binds developers to foot all costs associated with the completion of remediation works.

According to the court papers, seen by Building, Irwell Valley says that Vistry hasn’t accepted any responsibility in relation to the flats under the DRC. Irwell Valley’s court papers do not mention the cost of the remediation works or if these have been completed.

Countryside disputes that it is bound by the DRC because it “was merely the contractor undertaking the construction works [at Fourth Quarter] and was not to be regarded as having played a role as a developer”.

Vistry Group bought Countryside Partnerships in November 2022 for £1.25bn. Under the DRC, developers are responsible for buildings developed by companies they have acquired, even if the original development took place before the acquisition.

Irwell Valley affirmed that since 75% of the shares and voting rights in Countryside are owned by Vistry, Countryside is a “participant developer” as defined in the DRC, as are the other Countryside group companies that were involved in the development of Fourth Quarter.

The housing association said that Vistry and Countryside didn’t provide a copy of the development agreement between Irwell Valley and Countryside relating to Fourth Quarter when it requested it.

As part of the proceedings, Irwell Valley wants the High Court to clarify whether Countryside was a developer in relation to the property to determine building safety remediation responsibility.

Vistry’s building safety provision rose by £117m in 2024 and expects the net annual cash cost of building safety to be £65m this year, according to the housebuilder’s latest annual accounts.

Vistry, Countryside and Irwell Valley have been approached for comment.