Homeowner Fury Erupts Over Aberdeen City Council's Decision to Offer Undervalued Compensation for RAAC-Affected Properties

Wilson and Hannah Chowdhry with a series of questions raised with Stephen Booth

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Aberdeen, 15 August 2024 – Aberdeen City Council's recent report on the future of homes constructed with Reinforced Autoclaved Aerated Concrete (RAAC) in the Torry area has come under intense scrutiny, following revelations about the Council's proposed handling of property acquisitions. Wilson Chowdhry, Chairman of the UK RAAC Campaign Group, has condemned the Council's decision to offer only current market values for affected properties, a move he describes as a “betrayal” of homeowners, particularly young individuals like his 19-year-old daughter, Hannah Chowdhry.

Hannah, a student who purchased her home just four months before Aberdeen City Council declared her roof was constructed using RAAC, now faces insurmountable housing debt. “It’s sickening to see how the Council has turned its back on the very people it’s meant to protect,” said Wilson Chowdhry. “Hannah will now be burdened with a mortgage for a property that no longer exists and growing student loans. This decision will leave her, and others like her, grappling with large debts while their homes are demolished.”

Aberdeen City Council’s report, set to be discussed at the next full council meeting, outlines a plan to acquire properties voluntarily at market value. The report states:

• The Council will negotiate with private homeowners to purchase their properties at the current market value, a figure that reflects the diminished value due to the presence of RAAC. This approach aligns with the principles of Compulsory Purchase Orders (CPOs).

• The Council will cover reasonable legal and professional costs, along with home loss and disturbance payments, but only within the constraints of market value assessments.

• A rehoming program is being developed for affected residents, but those who refuse “reasonable offers” may face legal action to vacate their properties.

Read full report (here)

This strategy has sparked outrage among affected residents. “This is tantamount to another Scottish Clearance,” said Hannah Chowdhry. “We trusted our Council to find a solution that would help us, but instead, we feel abandoned and betrayed.”

Many unsuspecting homeowners have been holding out hope that Aberdeen City Council (ACC) would offer fair prices for their properties. Unfortunately, many failed to heed the warnings shared by Mr. Wilson Chowdhry after his private meeting with Stephen Booth, Chief Officer - Corporate Landlord for the Council. In the meeting, Mr. Chowdhry highlighted the Council's intention to undervalue homes affected by RAAC.  Read the outcomes of the meeting with Stephen Booth and John Wilson (here).

Local residents, unaware of these implications, completed surveys distributed by ACC, not realizing that their responses could lead to a voluntary agreement that might significantly undervalue their properties. Crucially, such information should have been included in the surveys themselves, so residents understood what they were indicating a preference for. This lack of transparency has left many homeowners in an even more precarious position, as they now face the prospect of accepting far less than their homes are worth.

Aberdeen City Council has been attending meetings and receiving guidance on how to apply Compulsory Purchase Orders (CPOs) correctly through working groups established by the Scottish Government and local councils. However, despite this knowledge, the Council has chosen to offer no meaningful assistance to affected homeowners. Instead, they have tightened the screws on those already in a vulnerable position, effectively forcing them to accept a pittance for their hard-earned properties.

"Officers of the council are ignoring the devastating impact they're having on local residents, essentially profiting by purchasing our homes at undervalued prices to pave the way for large new housing complexes." said Hannah Chowdhry, echoing the sentiments of many Torry homeowners who feel betrayed by the council they trusted to find a fair solution.

Wilson Chowdhry warned that this appalling decision will only exacerbate the homelessness crisis. “The impact of this failure by both the council and the government will reverberate for years to come. It’s shocking that neither the UK nor Scottish Government has had the decency to respond to the several letters we’ve hand-delivered to them,” he said.

This lack of response, combined with the council’s hardline approach, has left affected residents feeling abandoned and disillusioned, with the long-term consequences on the community likely to be severe.

Wilson Chowdhry also highlighted the contrasting approach taken by Clackmannanshire Council, which is offering homeowners pre-RAAC-announcement prices, a move he describes as “a healthier and more just way of dealing with the crisis.”

To address these concerns, Mr. Chowdhry and his daughter have registered for a deputation at the upcoming full council meeting. They intend to convince councillors to acknowledge and utilize the powers granted to them under Section 71 of the Housing (Scotland) Act 2006, which allows the Council to assist homeowners through a range of options, including grants. “The Council has the authority to do more, and we’re asking them to step up and protect the residents they serve,” said Wilson Chowdhry.

In parallel, the UK RAAC Campaign Group has launched an online petition through the Scottish Parliament Petitions website, which has already garnered more than 800 signatures. The petition calls on the Scottish Government to establish a national fund to support affected homeowners and to implement laws that will protect against similar housing failures in the future.

We urge everyone to sign and share this petition to help trigger a debate in the Scottish Parliament and push for a fair and just resolution. Your support is crucial in ensuring that no one is left behind during this crisis.

Sign the Petition Here

Aberdeen City Council is expected to bring back a further report in late 2024 or early 2025, detailing options for compulsory acquisition of private properties to facilitate the demolition and redevelopment of the affected site. However, the current proposal has already left a deep scar on the Torry community, with many residents fearing the long-term repercussions of this crisis.

A protest has been arranged by the UK RAAC CAMPAIGN GROUP before the August Full council Meeting.  Details as follows:

Aberdeen City Council Protest organised by UK RAAC Campaign Group:
Date: 21st August 2024

Time:  9am - 10am before marching into Town House
Location: Marischal College, Broad Street, Aberdeen AB10 1AB
Event: Protest for fair deal for RAAC Homeowners in Torry including a pre-RAAC-alert valuation for properties.  Hannah and Wilson Chowdhry will be leading a deputation the same day.

We list some relevant sections of the report below:

2.6 Instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer Finance to take forward negotiations with private owners to acquire their properties voluntarily at Market Value, noting that this will be a valuation of the property at the current date and be on the same basis as the CPO process. In addition to Market Value the council will be willing to meet reasonable legal and professional costs along with home loss and disturbance payments. 

2.7 Instruct the Chief Officer Corporate Landlord in consultation with the Chief Officer Housing as part of the negotiations with private owners to assess the housing options available for each individual owner to identify any support that can be offered in rehoming. 

2.8 Instruct the Chief Officer Corporate Landlord in consultation with the Chief Officer Governance to bring back a report to Council in late 2024/ early 2025 on options available to the Council to compulsorily acquire private properties to assist the delivery of the recommended option where required. . 

2.12 Note that any private tenants (as well as private owners) can be added to the RAAC Impact housing list as per decision of the Urgent Business Committee held on 29 February 2024. 

3.24 In order to deliver demolition across the entire site it is considered that the majority of owner occupied properties would require to be included in the scheme as there would be significant deliverability issues of alternatives in isolation. It has been accepted that there would need to be detailed negotiation and agreement reached with private owners to deliver this option due to the complexity of the tenure arrangements across the affected area. This said there are some ‘pockets’, within the wider site where there is no council interest and owners may be able to pursue their own solutions. 

3.25 This option will create significant issues for owners which are highlighted further within the report as in order to meet ‘best value’ criteria the council would only be able to offer ‘Market value’ for properties which will be significantly below the property value prior to the RAAC presence being identified. 

3.35 As noted in paragraphs 3.6 – 3.9 the rehoming programme is continuing, however with a decision now being made on the future of the properties there is a need now to progress this at a quicker pace. Officers would advise that if some residents continue to refuse reasonable offers of accommodation, then officers will be required to use legal powers to ensure residents vacate the property. Further advice on next steps are noted within Section 5 of this report. 

3.36 As highlighted above in order to deliver the preferred option a demolition and redevelopment of the site, properties that are interlinked would have to be acquired from private owners to deliver the option. There is an economy of scale in works being taken forward across the site at the same time and efficiencies from a construction perspective along with complications that derive from works being undertaken around properties that make this the least disruptive option. However some stand-alone property owners may wish to move forward with their own solution. 

3.37 It is proposed that Aberdeen City Council will make efforts to purchase all the RAAC affected private properties to ensure ease of demolition delivery and a degree of equity and equality for all homeowners. Initially efforts would be made to acquire properties on a voluntary basis at their current Market Value this reflecting the principles of a compulsory acquisition process. 

3.41 The Council should also be aware that Market Value would be at the Date of Valuation and any Market Valuation would therefore reflect the presence of Page 100 13 RAAC in the property and the cost of remediation solution. In some circumstance this will be less than the price paid for properties and will create negative equity situations for owners and their mortgage providers. There is no national scheme of support available for owners in these circumstances. 

3.42 As the project is advanced there are potential impacts on residents in the wider Balnagask area and within the Torry community. As the number of void properties increases the risks around anti-social behaviour and vandalism will need to be carefully managed. A programme is in place to manage properties as they become empty. 

3.43 This aspect is particularly sensitive to the people who reside in properties which are located in close proximity to the RAAC affected properties. Hence officers are seeking options which may enable a phased methodology for carrying out demolition works of the surrounding RAAC affected properties. This will assist mitigating the risks associated with anti-social behaviour and vandalism. 

3.44 The reduction in the numbers of people living in the area in the short to medium term will also have a detrimental potential impact on local businesses and well as the healthcare and school facilities in the area.