Dudley Council is set to spend almost £18,000 to fix damp and mould problems caused by latent construction defects in a council-owned property on Messiter Way, built just six years ago in 2017. The council initially received a £62,651 compensation payment from the National House Building Council (NHBC) following a warranty claim to address these issues.
The property, which has been used as affordable housing, required extensive repairs after specialist inspections uncovered significant defects causing damp and mould on the ground floor. According to Kathryn Jones, Dudley’s Group Director of Housing, a claim was submitted to the NHBC in 2025 after thorough site investigations confirmed the severity of the construction-related problems.
The total cost of repairs, including the loss of rental income during the remedial work, is estimated at £80,636. While the NHBC payment has substantially offset these expenses, the council still needs to find £17,984 to complete the repairs. This shortfall will be covered by the council’s Housing Revenue Account (HRA), specifically from a contingency budget reserved for unexpected circumstances.
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Jones emphasized that the council is legally obligated under the Social Housing (Regulation) Act—specifically the section on damp and mould known as Awaab’s law—to promptly address hazards that pose risks to residents' health. This law was enacted in 2025 following the tragic death of two-year-old Awaab Ishak from prolonged exposure to black mould.
She noted, “The council has a statutory duty to act swiftly to remediate Category One hazards within defined timeframes, regardless of the NHBC settlement. The successful warranty claim has significantly reduced the financial burden on the HRA.”
Additional costs, including disturbance allowances or potential legal claims from residents, may still arise as the council completes these urgent repairs.