Persimmon cheated flat-buyers

THE brochure promised a 'head-turning' Docklands development. But as soon as the residents of the Icon moved in, they knew they had been sold short.

Buyers discovered their flats were substantially smaller than property company Persimmon's brochure had promised.

Among those who consulted their lawyers were Antonella Montresori and Philip Madams, who measured their £290,000 flat and found the floor space was about 10% smaller than stated. Although the flats had the same number of rooms, some had been reduced in size.

The couple found three other residents in the same situation and when Persimmon refused to pay compensation, they complained to Tower Hamlets trading standards.

In what is thought to be a legal first, the company has now been convicted of selling flats that were smaller than their description - by the size of a double bedroom.

Persimmon (City Developments) Ltd pleaded guilty to four offences of misdescribing flats in the Icon development and was fined £1,000 for each offence and ordered to pay costs. The company now faces multiple actions by residents for damages.

Ms Montresori, 35, and Mr Madams, 40, both computer programmers, are delighted by the verdict. She said: 'We measured our flat and found that it was 11% smaller than th esize that appears in the legal documents. It was meant to be 108.5 square metres but is less than 96.8 square metres.

'Andrew Storey of Persimmon first tried to deny it, but then conceded and said he would offer compensation. But nothing happened.

'We finally met Mr Storey face to face in January 2003, but he said he would not accept a payment 11% smaller than agreed to reflect the true size of the flat.

'We think that at least a third of the flats at the Icon are smaller than the buyers thought.

'We helped two other buyers measure their flats and found both were smaller by around 12 square metres, which is the size of a double bedroom.'

The dispute over the size of the 151 flats was not the only problem at the L-shaped development of interlocking 10-sided towers in Westferry Road on the Isle of Dogs.

The flats, which cost between £275,000-£750,000 and included many with double-height windows and balconies or roof terraces, were sold in 2001.

Buyers had been told by Persimmmon to expect to move in before the end of the year. But they were faced with a succession of delays, followed by the discovery of a series of major defects.

These included faulty lifts, missing front doors, plumbing left unconnected, unfinished walls and exposed electrical wiring. The Icon also failed to comply with important building regulations.

Persimmon said in a statement: 'Following the inclusion of factually inaccurate information within certain Icon literature, we pleaded guilty for this mistake and apologised fully.

'An independent expert's report presented to court and accepted by the prosecutor clearly demonstrates that there was no diminution in value caused by our misrepresentation.'