Insurance money runs dry after 18 months of funding alternative housing
PA Housing said it can no longer afford to cover the cost of temporary housing for residents evacuated from a fire-hit shared ownership building in May 2025.
In a recent update issued after the blaze in Addlestone, Surrey, the landlord said the decision to cease funding alternative accommodation was “difficult” but it “couldn’t have envisaged the extent of the remediation work needed until we had completed our structural investigations”.
With the properties now needing to be demolished and rebuilt, PA Housing said it “cannot continue to fund alternative accommodation beyond the initial 18 months” given that this work is due for completion in early 2028.
According to the landlord, all residents affected by the fire had their rents frozen and were offered fully funded alternative accommodation until 30 September 2026 as well as financial assistance with day-to-day essentials in the weeks after the incident.
It also said it offered to buy back the homes of all affected homeowners at full market value with support towards legal fees and stamp duty.
PA Housing has accepted no liability for the fire, which is understood to have started accidentally after a solar panel connector overheated.
It stated its insurer has met its full contractual obligations.
PA Housing manages over 24,000 homes across the Midlands, London, and the South East.
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