residents of The Exchange vs Notting hill Genesis and United Licing

SummaryResidents of The Exchange, a mixed-tenure multistorey development in Bermondsey, south London, have successfully won £550,000 in compensation from their landlord and contractor after legal action over cladding and fire safety defects — a rare fully public and non-confidential outcome in the UK cladding crisis. The case concluded with housing association Notting Hill Genesis (NHG) and builder United Living completing extensive remediation works at their own cost and agreeing to pay damages to affected residents, without passing remediation costs on to leaseholders or future residents.
Background

• The Exchange consists of five residential and mixed-use buildings built for NHG and completed in 2014.
• Following the 2017 Grenfell Tower disaster and nationwide safety reviews, it emerged that the development had widespread issues including:
• aluminium composite material (ACM) cladding
• combustible insulation
• inadequate cavity barriers and other passive fire protection defects.

Legal Action and Residents’ Identity

• The residents brought legal proceedings in 2020 to ensure that fire-safety remediation works would be carried out and that they would not be charged for these works.
• The claim was brought collectively by residents of The Exchange, including shared-owners, private tenants and social housing tenants living on the estate. While they were not formally named as a specific group in much of the press, their campaign was supported by occupier advocacy and legal representatives who framed the action as claimants seeking redress for unsafe homes and living disruption.

Outcomes and Compensation

• £550,000 in compensation was agreed as damages and costs awarded to 76 leaseholders and independent freeholders connected to The Exchange.
• The compensation covers:
• legal and expert fees
• inconvenience and distress caused by living with unsafe building conditions
• prolonged disruption due to cladding remediation works.
• Crucially, terms of the settlement prohibit any future costs for remediation or legal expenses being passed on to current or future residents — a major protection for home-owners and leaseholders.

Remediation and Safety Works

• NHG and United Living completed major remedial safety works at their own expense to address the fire safety defects identified at The Exchange, restoring compliance with fire safety expectations.
• NHG publicly confirmed it does not recharge leaseholders for costs of external wall remediation or balcony safety works considered a risk for fire spread.

Resident Perspectives

• Residents described the experience as stressful and exhausting. Many were concerned that they might be asked to pay significant sums for remediation of defects that pre-dated their occupation.
• One resident, Kyle Taylor, emphasised that the transparent nature of this settlement was important for public confidence, hoping it would encourage others in similar situations to pursue redress.

Significance

• This case offers a rare insight into a successful resident-led legal outcome in the UK cladding crisis without confidentiality clauses, providing a publicly visible example of how leaseholders and tenants can obtain compensation for defective building safety conditions.
• It demonstrates that landlords and developers can be held financially responsible for unsafe cladding without burdening residents with remediation costs.
• The result has been highlighted by legal advisers as a potential precedent for similar claims involving multi-tenure residential developments affected by combustible cladding and fire-safety defects.