Committee publication · Correspondence · 29 April 2026
Letter from Spectrum Residents Association to the Chair dated 22 April 2026 in response to the Residential Freehold Association's letter of 31 March
From: Housing, Communities and Local Government Committee
Inquiry: Pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill
Summary
Spectrum Residents Association responds to the Residential Freehold Association's 31 March evidence letter, rejecting claims that building safety caused their freeholder's insolvency. They detail how poor management by Arinium Ltd's director—including underinsurance, refusal to seek competitive quotes, and high loss assessor fees—caused the company's collapse after receiving a full insurance payout in October 2025. The association criticizes the RFA for factual carelessness and raises concerns about regulatory breaches including a padlocked fire exit.
Key findings
- Arinium Ltd's insolvency resulted from poor freeholder management and a demand from fixed charge holders after receiving full insurance payment in October 2025, not building safety issues.
- The building was underinsured due to the broker's failures and the freeholder's refusal to seek competitive insurance quotes despite a leaseholder director offering better deals.
- No Reinstatement Cost Assessment appears to have been conducted since the freeholder acquired the freehold in January 2020, contrary to RICS guidance.
- A loss assessor contract without a preparation of loss clause, negotiated at high cost, contributed to the freeholder's insolvency.
- London Fire Brigade and Building Safety Regulator are investigating whether the freeholder breached fire regulations; a fire exit was padlocked during the August 2024 fire, forcing residents to escape over a fence.
Tone
AdversarialTopics
Key actors
Spectrum Residents Association, Residential Freehold Association, Florence Eshalomi MP, Arinium Ltd, PK Partnership, London Fire Brigade, Building Safety Regulator, Margaret Mullane MP
Notable line
“… the insolvency had nothing to do with building safety. The company went insolvent because the freeholder, like many other freeholders …”
Key Quotes
“… the impact on leaseholders when we found out that our freeholder had entered administration was terrifying. We had no home, mortgages, and the freeholder had vanished.”
“The building was underinsured because the broker failed to do their job properly. The freeholder had always used the same broker, PK Partnership.”
“The freeholder got paid the full insurance payment in October 2025. No one told leaseholders.”
“In late October 2025, the freeholder received a demand from fixed charge holders demanding repayment.”
“… one of the exits was padlocked shut leaving residents having to escape over a fence helped by members of the emergency services.”
Source · parliament.uk record ↗