High Court ruling on claim over defective Victoria Square apartments highlights failings in law, owners claim

Legislation must be introduced to to help owners of apartments in Belfast city centre with structural defects after their High Court action against the property builders was dismissed, it has been claimed.

The defects at Victoria Square Apartments were discovered in 2019 and were so significant that residents were forced out of the properties, but were still required to fork out for rates, building insurance, maintenance costs and mortgage repayments.

Owners began legal action against builders Farrans and Gilbert Ash, seeking compensation for losses arising from the structural defects and loss of value to their apartments.

However, the case was dismissed on Wednesday, primarily on the basis that by the time the defects were discovered it was too late for the residents to bring a claim in respect of them.

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Judge Mr Justice Huddleston expressed sympathy for the 30 owners, which include a charity, but said the court was obliged to apply the law as it currently stood and found for the contractors and others in their argument regarding timing.

However, the court was told that future claims could be made by owners or the management company running the development if suitable legislation was passed in the north.

James Turner of O’Reilly Stewart Solicitors said the owners “and are now victims twice over as a result of the failure of the Legislature to act quickly to give home owners in Northern Ireland the same basic protection against dangerous buildings as homeowners enjoy in England and Wales”.

“In those regions, the government has moved to protect owners and residents by extending the time they have available to get those responsible for building defects and their insurers to put things right.” he said.

“The Victoria Square apartment owners will now take time to consider the High Court judgment and consult with all relevant parties to assess their options going forward.”

In a statement, the management company, whose shareholders are the apartment owners, said: “This has been a difficult, expensive and personally stressful experience for the apartment owners who will now take time to consider the High Court judgement, and their potential next steps.”

The statement added: “With Stormont now restored, the management company and the apartment owners are hopeful that legislative amendments can be secured that offer a legal remedy to a wider range of property owners in Northern Ireland who have experienced damage to their homes and suffered financial loss as a result of construction defects.”

SDLP MLA Matthew O’Toole, who chairs Stormont’s finance committee, called on finance minister Caoimhe Archibald to work with Executive colleagues on introducing legislation that will help owners be compensated.

“These people were forced out of their homes with no notice and have thus far received zero compensation, which has left the lives of many affected in limbo as they fight to see this situation resolved,” he said.

“I understand the limitations facing the court today, but when you consider that homeowners in England and Wales have 30 years in which to make similar claims after issues arise then it’s clear that people in the north are not receiving the protections they need when it comes to properties like these.”

The Department of Finance was approached for comment.