Dudley Council faces near £18,000 expense for mould repair
Warranty claim contributes £62,651 towards total repair costs
Dudley Council will pay nearly £18,000 from its Housing Revenue Account to fix damp and mould issues at a council-owned property on Messiter Way.
The property, built in 2017 and rented out as affordable housing, has experienced significant construction defects according to the council.
The council secured a £62,651 settlement from the National House Building Council (NHBC) following their warranty claim.
The total cost of repairing the defects, including lost rent during works, is estimated at £80,636.
Kathryn Jones, group director of housing, said, “The shortfall will be met from a contingency budget held within the HRA assets revenue subcontractor budgets, which are specifically maintained for unforeseen circumstances such as this.
“There is sufficient budget available within this provision to cover the cost.
“The council may be liable for additional non-construction related costs, such as disturbance allowance paid to the resident or settlement of a legal claim as a result of this.
”The shortfall of £17,984 will be covered by a contingency budget within the HRA assets revenue subcontractor budgets."
Under the Social Housing (Regulation) Act, social housing providers like Dudley Council are required to swiftly address damp and mould due to health risks.
The relevant section of the act, known as Awaab’s Law and effective from 2025, honours Awaab Ishak, a two-year-old who died in 2020 from prolonged exposure to black mould.
Jones emphasised the council's statutory duty to resolve Category One hazards promptly, irrespective of receiving the NHBC settlement.
She noted that the successful NHBC claim has significantly reduced costs borne by the HRA.