Enforcement of Tribunal Awards for Somerford Grove Tenants

Summary

That this House notes that 46 tenants of Simpson House, Olympic House and St John's Court in Somerford Grove, Hackney, who successfully obtained Rent Repayment Orders and associated awards totalling £258,558.73 against companies ultimately beneficially owned by Mr John Christodoulou, remain wholly unpaid; further notes that ownership of the relevant properties was transferred to connected companies under the same beneficial ownership after the First-tier Tribunal had been assured that there was no intention to dispose of them, and that the companies against which the awards were made entered liquidation days after payment fell due; further notes that the tenants had previously restored those companies to the register at their own expense; expresses concern that existing insolvency and company law may allow corporate restructuring to frustrate the enforcement of tribunal awards; recognises the hardship experienced by tenants who successfully pursued lengthy legal proceedings only to remain without redress; welcomes investigation by the Insolvency Service and relevant professional regulators into matters arising from these cases; calls on the Government to review the enforcement of Rent Repayment Orders to ensure that awards cannot be defeated through transfers between connected companies or subsequent insolvency arrangements including measures to enable recovery from persons with significant control where beneficial ownership remains unchanged; and calls on the beneficial owner and directors of the companies concerned to pay the awards in full.

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Timeline

1. 2 September 2026

   Early Day Motion

   That this House notes that 46 tenants of Simpson House, Olympic House and St John's Court in Somerford Grove, Hackney, who successfully obtained Rent Repayment Orders and associated awards totalling £258,558.73 against companies ultimately beneficially owned by Mr John Christodoulou, remain wholly unpaid; further notes that ownership of the relevant properties was transferred to connected companies under the same beneficial ownership after the First-tier Tribunal had been assured that there was no intention to dispose of them, and that the companies against which the awards were made entered liquidation days after payment fell due; further notes that the tenants had previously restored those companies to the register at their own expense; expresses concern that existing insolvency and company law may allow corporate restructuring to frustrate the enforcement of tribunal awards; recognises the hardship experienced by tenants who successfully pursued lengthy legal proceedings only to remain without redress; welcomes investigation by the Insolvency Service and relevant professional regulators into matters arising from these cases; calls on the Government to review the enforcement of Rent Repayment Orders to ensure that awards cannot be defeated through transfers between connected companies or subsequent insolvency arrangements including measures to enable recovery from persons with significant control where beneficial ownership remains unchanged; and calls on the beneficial owner and directors of the companies concerned to pay the awards in full.

   Source: Early Day Motion

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Sponsors

• Diane Abbott · Labour · Primary sponsor

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