Faulty concrete homeowners refuse purchase scheme

BBC A group of about 20-30 people standing on a pavement, holding a protest in Aberdeen. One banner reads Justice for HomeownersBBC
Homeowners affected by faulty concrete staged a protest outside Aberdeen City Council's offices earlier this year

Dozens of Aberdeen residents whose homes are affected by potentially dangerous concrete are refusing to take part in a voluntary purchase scheme until they receive a guarantee that repair costs will not be deducted.

Nearly 140 private owners in the Torry area of the city live in homes where reinforced autoclaved aerated concrete (Raac) has been discovered.

Aberdeen City Council is offering the market value of the homes and home loss payments of up to £15,000 – but minus the cost of repairing the Raac roof panels.

The local authority said the valuation should reflect the current condition of the properties including the presence of Raac panels.

The council has decided to demolish Raac-affected council properties.

For those who who own their homes, it has written a letter asking if they want to engage in a voluntary acquisition process.

Homeowner John Meiklejohn said a decision to refuse this, due to the "Raac penalty", was made at a mass meeting of residents last week.

"Ultimately, where we have this sticking block is the council were insistent on effectively deducting the cost of making the Raac panels good,” he told BBC Scotland News.

"We believe this will run into tens of thousands of pounds, leaving everyone in negative equity on their properties.

"The majority of people have agreed not to engage with the voluntary acquisition process until we receive written confirmation from Aberdeen City Council that the cost of making good the panels will be disregarded from the valuation of our homes."

John Meiklejohn, a middle aged man dressed in a dark coloured hoodie, looks at the camera with a rendered wall of his home in the background.
John Meilkejohn is worried owners will have repair costs running into tens of thousands of pounds deducted from valuations

Mr Meiklejohn said that indicative costs from the council for removing and replacing the Raac panels were between £40,000 and £71,000 per property.

Recent valuations suggest that some of the properties could be worth up to £130,000, so deducting in the theoretical cost of repairs would have a significant impact on how much money owners would receive.

"I’m waking up at ridiculous times of the night and finding it difficult to get back to sleep," he said.

"My head keeps going over this, and the fact that I am going to effectively be knocked off the property market, with little to no chance of getting back onto it."

A row of homes affected by the Raac issue. They are of brick construction with white painted render on one side. The roof of the homes is flat.
Aberdeen City Council plans to demolish homes which have Raac roof panels

There are also about 350 council homes in the city which contain the concrete.

Aberdeen City Council said only a "general form" of correspondence was currently taking place, and it continued to liaise with both council and private residents.

In a statement it said: "The council agreed to purchase private properties by voluntary agreement to allow demolition to proceed safely and smoothly across the affected area.

"This was to be on the same basis as the CPO [compulsory purchase order] process.

"As a result, the valuation should reflect the current condition of the property, including the fact that the roof is constructed with Raac panels. 

"Owners will be offered reasonable legal costs, and home loss and disturbance payments."