Almacantar Centre Point Nominee No.1 Ltd & Anr v De Valk & Ors [2025] UKUT 298 (LC)
In September 2025, the Upper Tribunal (the "Tribunal") held that a landlord was barred from recovering through service charges the cost of replacing a deteriorating 1960s timber-frame façade on the basis it constituted “cladding remediation” within paragraph 8 of schedule 8 of the BSA. The building in question, Centre Point House near Tottenham Court Road, London, had a hardwood timber-framed window façade and a sealed system with limited ventilation, leading to severe timber decay caused by water ingress. This compromised its structural integrity. The façade was found to be inherently defective from its design and construction in the mid-1960s and not merely out of repair, but unsafe. The landlord proposed remediation works and the tenants challenged the recovery of those costs via service charge based on Schedule 8 of the BSA.
Section 122 and schedule 8 of the BSA contains a framework of protections for leaseholders. Paragraphs 2 – 7 of schedule 8 mitigate the costs for qualifying leaseholders of “relevant measures” taken by the landlord to address “relevant defects" (broadly, this means a building defect arising from works carried out in the 30 year period ending 28 June 2022 which causes a building safety risk). Paragraph 8 provides that qualifying leaseholders do not have to pay service charge for cladding remediation, being the removal or replacement of any part of a cladding system that forms the outer wall of an external wall system and is unsafe.
The landlord's defence was that paragraph 8 must be read in the context of the package of leaseholder protections in schedule 8, where “relevant works” and “relevant defects” are key to its interpretation – accordingly, they argued it should only apply to protect qualifying leaseholders from having to pay for remediating “unsafe cladding” in buildings constructed or worked on after 1992.
However, the Tribunal preferred the leaseholders' interpretation of schedule 8 and decided that paragraph 8 operates independently of the other protections in schedule 8, meaning any unsafe cladding system—regardless of age, hazard type, or when it became unsafe - falls within its scope. The landlord was therefore unable to recover the remediation costs of the 1960's cladding through the service charge. This decision, whilst consistent with the policy of the BSA that qualifying leaseholders would not pay a penny to fix dangerous cladding, rejects the contrary view suggested in the explanatory notes to the BSA. The Court of Appeal in the Adriatic case (see below) considered the use of these explanatory notes in the task of statutory interpretation, but they decided that the notes do not hold any special legal status as they did not exist when the BSA was enacted. Whilst the explanatory notes may show the understanding of the Department for Levelling Up, Housing and Communities, and possibly what it wished the BSA meant, the notes cannot have informed Parliament's decision-making.
Importantly, this judgment exposes a gap in the remediation scheme for unsafe cladding. Whilst it is good news for leaseholders that landlords cannot recover through the service charge their remediation costs for dealing with unsafe cladding installed prior to 1992 (assuming there have not been works carried out after that date which made it unsafe), leaseholders cannot apply for a remediation order to compel their landlord to do those works, as the legal test for imposing a remediation order uses the definition of a relevant defect which applies the 30-year limitation period ending June 2022. Leaseholders would have to consider what other avenues exist to enforce remediation works, such as the landlord's covenants in the lease. It also means that a landlord will not be able to apply for a remediation contribution order to recover costs from developers or their associates for the defect, as they also use the 30-year limitation period.
The Court of Appeal is due to hear the landlord's appeal by 13 October 2026.