Luxury New Build on the Brink of Collapse and Worthless

A Dream Home Turned Nightmare

Alexandra Druzhinin and Daniel Bruce are experiencing a constant sense of movement beneath their feet, as if they are on a ship in rough waters. However, this is not the luxury cruise they had imagined—this is the reality of living in their "luxury" new build apartments. Together, the two properties cost nearly £2 million but have now been deemed worthless due to a series of serious issues.

The block of seven new flats on Agar Grove in Camden, north London, was marketed as a desirable option for affluent buyers looking for a dream home. However, these properties are now valued at zero because of extensive defects that make them both unmortgageable and uninsurable.

“I am scared for my life,” Ms. Druzhinin said. “The building is crumbling beneath us, and I’m terrified our homes could collapse at any time. I’m petrified because the building is timber-framed and isn’t insured. There are so many cracks, and every loud bang makes me jump.”

Ms. Druzhinin moved into her £900,000 three-bedroom leasehold apartment with her 17-year-old daughter after her divorce. She viewed the property multiple times, and everything seemed fine. The flat was brand new, and she had a survey done. She believed that new flats would be better built, following new standards and strict regulations.

However, shortly after moving in, she noticed the smell of damp but couldn’t find the source. When she tried to redecorate, more issues were uncovered. Her electrician found multiple wiring problems, and while replacing the lights in her daughter’s bedroom, water gushed out of a socket.

The freeholder and developer initially denied there was a problem, but eventually, she hired people to take the ceiling down. It turned out that the entire ceiling cavity was damaged by water ingress. Black water gushed out and ran for days, with the whole cavity covered in mold.

Mr. Bruce, who bought his nearby duplex apartment for £850,000, soon discovered similar issues: constant leaks, mold, cracks, and poorly fitted fixtures and fittings. Both neighbors found rotted joists and feared the timber-framed building might collapse. They can feel vibrations when a lorry or train passes by, and they can even put their hands between the gaps in the brickwork.

A structural engineer who monitored the building over six months concluded that the best remedial action was to demolish it and rebuild.

Fighting for Justice

Ms. Druzhinin and Mr. Bruce have spent years dealing with the freeholder, developer, warranty provider, and insurer for their flats without success. They have spent a staggering £400,000 on legal fees so far and fear the fight will eventually bankrupt them.

“It is quite cruel because everyone who buys a new home believes they are protected by a warranty and by the law,” said Mr. Bruce. “When you buy a home, you should get the home you think you are buying. Buying a home now is like playing roulette.”

He compared buying a new home to buying a TV, which comes with a warranty. “If I bought a PlayStation and it was faulty, I would take it back and get my money back. But in this case, the manufacturer has gotten away with all our money, and we are taking the hit.”

Despite the risk of losing even more money, they are determined to go to court. “I am so incandescent at the injustice, I am willing to take that risk,” explained Mr. Bruce. “What we want is to be made whole—get our purchase price back, our stamp duty back, and our legal fees back.”

Long Lasting Repercussions

The ongoing battle has taken a toll on both individuals. Ms. Druzhinin suffers from sleepless nights and shooting chest pains due to stress. While she doesn’t have a mortgage, she has had to borrow money to fund her legal fight. “Seven years on, I am trapped in a home that is worthless,” she said. “I am trapped financially, personally, and emotionally.”

For Mr. Bruce, the anguish has led to hair loss and stress-induced conditions such as psoriasis. “It has absolutely destroyed me,” he said. “I used to be a confident and fearless person and built a business. I don’t know if I would be able to do that again because I am now nervous of everything.”

Political Failures

Mr. Bruce is particularly angry with his local MP, who is also the Prime Minister. He argued that when Sir Keir Starmer was in opposition, he called for people in their situation to be put back in the position they would have been in if their homes had been built correctly. “Politicians have failed us—and our MP is now the leader of the country. When he was in opposition, he said one thing, and now that he is in power, he has taken no substantive action.”

A spokesperson for the Prime Minister said he is committed to supporting his constituents and that his constituency office will continue to work on the Agar Grove case.

New Builds Are Not Worth the Risk

“We don’t know anyone who hasn’t had significant issues with a new build, even when they have bought luxury ones,” said Ms. Druzhinin. “When you buy an older home that has stood there for 50, 60, or 100 years, at least you know it has stood the test of time.”

The freeholder and developer, Prime Metro Properties, said the company that built the development, Cite Construction, has now gone into liquidation. “We continue to do what we can both legally and otherwise to bring this matter to a fair conclusion,” Prime Metro said.

Acasta European Insurance Company Limited, the insurer for the building, said it has underwritten structural defects insurance for the apartments at Agar Grove. A spokesperson said court proceedings are now active, so they are constrained in providing specific information but remain committed to fulfilling their obligations.

Buyers Have More Rights Buying a Kettle

More homes are needed in the UK, and new builds are essential to meeting that demand. However, the way new homes are being delivered is broken, according to Paula Higgins, CEO of HomeOwners Alliance.

“We hear from people every week who regret buying a new build. Some homes are well designed and energy efficient, yes—but far too many are riddled with defects, handed over incomplete, or come with hidden costs and long battles for redress.”

Higgins emphasized that buyers have fewer rights when purchasing a new home than when buying a kettle or a toaster. “New build buyers will continue to be let down unless there is an overhaul of the system, which is central to our Campaign for Better New Build.”

On the Agar Grove flats, Higgins said, “This utterly unjust situation is exactly why we’re calling for a comprehensive overhaul of the warranty system. It’s simply not right that victims—Camden leaseholders—are forced into a legal battle to seek accountability and compensation.”