Homeowners stuck in £400k homes riddled with problems after developer went bust

13 February 2024 , 15:58

1168 0

The homes were left unfinished due to the developer going bust (Image: Getty Images/iStockphoto)

Homeowners who bought new build properties that were left unfinished due to the developer going bust remain trapped in homes riddled with problems.

Developer Stewart Milne Homes, responsible for several housing projects across the north-west, collapsed in January, leaving hundreds of customers in shock. Homeowners are now questioning if the faults in their homes, including cracked walls and leaky windows, will ever be fixed.

They also fear the ongoing issues will significantly decrease the value of their new homes, leaving them in a negative equity trap - as they anxiously wait to find out who will be completing all the outstanding work. Nasser Murtza, a buyer from Preston, said "the stress is unbelievable" after discovering £135,000 worth of issues in his property.

The 57 year-old civil servant and his wife Masooma Murtza, 56, an AA employee, bought their home at the Broughton Park development for £400,950 in October 2022. The couple snapped up the five-bedroom newbuild to avoid the hassle of renovating their period house in Stockport, but instead, an external surveyor revealed the home has £135,000 worth of issues.

Mr Murtza told MailOnline: "The windows have no insulation on the side and the hinges have not been fitted properly. All the windows and doors have to be replaced. The roof work is significant, it needs work as wind, rain and insects can get through it."

Teachers, civil servants and train drivers walk out in biggest strike in decade

He added: "They have used the wrong mortar for our home, which is classed to be in a severe weather zone - we get a lot of wind and rain not being far from the coast - which means the home is not structurally sound. There are gaps in the brickwork as well. But even though we have explained this to them, they do not care. All these issues were identified to the house builder which they seemed to ignore."

Residents have been left in the dark about who is going to be completing the work (Getty Images)

While dozens of tradesmen visited the family in a bid to fix the issues, including a patio that continues to flood, Mr Murtza said there have been no improvements, and he has had no choice but to take legal action against the housebuilder. But just two days after he filed his claim on January 9, Stewart Milne's north-west branch went bust.

The family is now seeking answers from both the company's administrator BDO and the National House Building Council (NHBC) about who is responsible for the unfinished work. He said: "I would never be able to sell this home to somebody knowing what I know now, it's not in my nature, so the only option I have is to chase the NHBC to see if they can get it resolved. Of course I am annoyed because there is no one to support us anymore but there's nothing we can do."

Meanwhile, a doctor who moved onto the estate in 2021 and asked not to be named, added: "I emailed them a few times about all the problems but they were quite reluctant to come and fix the problems. I got in touch when we first moved in and I still have some problems, for example the outside path has flooding.

"The company said they would send someone to have a look but no one ever came. There also cracks on the outside world and the upstairs floor is creaking,' one resident complained. It's frustrating, we paid more than £300,000 for the house and there was a snagging list but they didn't sort everything and there are still some major things that need to be fixed."

IT consultant Steve McCririe, 42, bought his property for £390,000 two years ago and said while he hasn't experienced any major issues, he has been left in the dark about the future of the estate. He said: "My only concern really is that I haven't had any communication about what is happening to the estate.

"Obviously the road needs to be done and part of the plans there was supposed to be a playpark so I am not sure what is happening with that. I'm not so bothered about the park but I would like at least the road to be done. They haven't contacted us about it yet but it's tricky as maybe they don't know yet."

Homeowners have been left with flooding, leaks and holes in the walls (Getty Images)

Beth, a 25 year old project manager who moved in last summer said the roads were her main priority. She added: "Our dining room window has started leaking and we have reported it to the NHBC who are looking into it. It was reported before they went into administration but because it was Christmas time it was delayed. It then went into administration. They have done most of our snagging but it's just little bits here and there that need to be sorted."

The decision to put Stewart Milne into administration follows a rocky few years since the pandemic began, with two attempts to sell the company, including one from its former chairman Stewart Milne, being turned down by the firm's bank. Mr Milne, who started as an electrician before building his company into a giant, delayed his retirement to try and save the company when it started facing difficulties. He confessed last month that he was heartbroken by the collapse of the company he founded in 1975 and was 'struggling to accept it'.

A spokesperson for the NHBC said: "Following the collapse of the Stewart Milne Group, we can confirm that we are in dialogue with the administrators. We appreciate this is a difficult time for residents and buyers of Stewart Milne homes and we will assist affected NHBC policy holders under the warranty and insurance cover we provide."