Ipswich homelessness fears over tallest building concerns

Funds to maintain a troubled development could run out by early next year after administrators were forced to pay off a creditor for the building's freeholder.

The Mill development, on the waterfront in Ipswich, includes the tallest building in Suffolk, which has structural and fire safety issues.

Flat owners have been told alternative funding was being looked at.

Administrators RSM UK said the safety of all residents was its priority.

The original developer went into administration in 2010 and the freehold was taken on by RSM UK.

The tower block was later deemed unsafe after gale force winds tore cladding away.

Fire hazards identified following the Grenfell Tower disaster have also yet to be rectified.

RSM UK said £15m received in a settlement over the cladding had now been paid to creditors, the National Asset Management Agency (NAMA).

Administrators said a lack of further cash meant the process of moving the development into liquidation would begin.

A reserve fund for some fire safety measures and insurance costs had been secured but was likely run out in early 2024, RSM UK said.

Belinda Cross, who owns two flats on the development, said all the leaseholders had been left with flats "worth nothing".

She said with NAMA being repaid "there's no money left" and tenants and leaseholders had been left in a "terrible situation" and "very concerned about safety".

"Ultimately the only thing left that can help is for the government to step in because these people are going to end up homeless if not and that can't happen.

"There are too many places people are being asked to leave now in Ipswich and there isn't the accommodation to go around," she said.

St Francis Tower and Cardinal Lofts in Ipswich have also been affected by cladding and fire safety issues.

Chris Howlett, from letting agents Goddard and Co, said the rental market in Ipswich was in such high demand it would not be able to accommodate those from affected tower blocks.

He said: "When we've got the situations with the cladding issues, with the potential of new people needing new houses, where are they coming from? We just don't have them."

RSM UK said it was "actively seeking assistance from central government to help us access further funds" and looking at options for a potential buyer for the development.

A Department for Levelling Up, Housing and Communities spokesperson said it was working with administrators, Ipswich Borough Council and Homes England to find a "long-term solution".

The council and Suffolk Fire and Rescue Service have deemed the building safe for current usage but it is being kept under review, the spokesperson added.

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