New Build / NHBC / tenants compensation process

boongywoongy

I will try to keep to the point but just after two years of purchasing a new build apartment, mould started to appear on a wall between the neighbouring flat. The builders were informed and after many months of investigation, they finally determined that water had been coming in between the wall via the neighbours balcony (the investigation involved us, the neighbouring property and the one above). Almost 5 months later, the repair work is virtually complete but the tenants who have been living at the property since this began have now requested compensation from me. Although I do sympathise, I have done what I can to push along the investigation and the subsequent insurance claim e.g. dealing with the loss adjuster to supply a builder quote etc.

Clearly, dealing with faults from three properties isn't easy but my questions are:

1. Do I have grounds to seek any compensation from the builder or NHBC for how lengthy the problem has taken for resolution?
2. The tenants are seeking up to 50% compensation from me for distress and loss of amenity during this period. 50% of 5 months rent is substantial and a bit excessive imho.

Who can I contact to seek further guidance?

Thanks for any help.

anselld

What loss have they actually suffered?
Distress - taking the P, they can forget that.
Loss of amenity - Did they actually lose 50% of the amenity? ie was 50% of the property uninhabitable for the whole time? Or is that just a made-up number?

boongywoongy

To be fair, they have been accommodating in letting builders in (dropping their keys to the concierge etc) and have moved their furniture away from the affected wall whilst the investigation and repair has been ongoing (4.5 - 5 months). They have said that they have avoided inviting guests to stay for the entire period.

boongywoongy

I should add that the problematic wall is in the open plan lounge but I think the 50% figure is negotiable.

anselld

boongywoongy wrote: »

To be fair, they have been accommodating in letting builders in (dropping their keys to the concierge etc) and have moved their furniture away from the affected wall whilst the investigation and repair has been ongoing (4.5 - 5 months). They have said that they have avoided inviting guests to stay for the entire period.

So no material loss then, just the normal inconvenience an owner occupier would have experienced under the same circumstances.

They are not entitled. Up to you if you want to make a goodwill gesture. However, if they have set their expectations at 50% rent then any sensible offer will probably just be seen as the start of negotiations. I would just say no and explain that you have fulfilled your repairing obligations as quickly and effectively as possible.

lush_walrus

There is no recourse of action with nhbc.

With regards to the tennants, I think to give them nothing is unreasonable and really you would have been wise to have offered a discount before they had to come to you. I would be quite unhappy having to tolerate that and to be honest I personally would have pushed to terminate the contract and go to another new build without damp issues.

The question is do you want them to remain your tennant? If so you need to build that into any good will payment to them. Perhaps rather than refund what has gone discount going forward so you tie them into staying with you and show understanding that they have been inconvenienced.

AdrianC

Was the property uninhabitable? No.
Were the repairs completed as quickly as if they'd been owner-occupiers? Yes.
So the tenants have no grounds for compensation from you.

Have you suffered any loss? No.
So you have no grounds for compensation from the freeholder.

Has the freeholder suffered any loss? If they have, and it isn't covered by the builders or the NHBC warranty, then it would come back to you via the service charge, as would the cost of any compensation they may have to pay you. But that still wouldn't be grounds for compensation for you...

Enterprise_1701C

But it wasn't your fault, so why would you pay compensation? You got it sorted as quickly as you could.

Maybe it is not as simplistic as that, but my daughter was waiting for a year to get the leaking bathroom sorted, actually moved out before it was done, and was told no compensation would be forthcoming.

Cakeguts

boongywoongy wrote: »

To be fair, they have been accommodating in letting builders in (dropping their keys to the concierge etc) and have moved their furniture away from the affected wall whilst the investigation and repair has been ongoing (4.5 - 5 months). They have said that they have avoided inviting guests to stay for the entire period.

I don't see why they should ask for compensation for not being able to invite guests to stay in your property.

boongywoongy

Thanks for the interesting set of replies.

I have acted as swiftly as possible but owing to things beyond my control e.g. the root cause investigation took a long time by the contractors as three properties were involved, getting quotations from the lessee's and then managing the repairs (which had to be redone), the whole process has taken a rather long time for the tenant to resolve.

The actual cost the of repairs are paid for by the insurance claim so there isn't any cost to me. My main gripe is that despite (in my view) that I have done nothing wrong and have tried to conclude everything swiftly, it will be me that is coughing up money for compensation. It seems that the builder won't have any liability for putting together a ropey new build (there are others in the block with complaints) which I find morally wrong.

Thrugelmir

boongywoongy wrote: »

They have said that they have avoided inviting guests to stay for the entire period.

That was their personal choice.