Why are these £6m council flats still standing empty?

When Dunstable's First and Last pub was demolished after serving its last pint in 2017, people living nearby watched as a new four-storey block of flats began to appear on the site.

Against the background of a housing shortage, 35 new apartments in Birch Court looked like a step forward.

Central Bedfordshire Council bought the block for £6.25m in 2022, but four years later, it is still empty.

So, what happened and why?

Records of the First and Last Pub in Church Street date back to the 19th Century.

After it closed in 2017, the building was boarded up before being demolished in 2020.

Signs on the wooden fence around the site indicated that it was being developed by London-based S2 Estates, and then by Raybridge Corporation.

The building was acquired in 2022 from Raybridge Dunstable Ltd by Central Bedfordshire Council, and Raybridge Dunstable was dissolved in 2025.

In September 2023, the then Mayor of Dunstable was told: "The first two flats have been released to our lettings team."

The council said some people had already expressed an interest in living at Birch Court, and one had even signed a tenancy agreement.

Two months later, officials said some work was still required to communal areas "which does not stop occupation".

But, a whole year later, the building was still empty and remains so.

At the time of purchase, the council said there were "several areas of concern – primarily relating to fire safety, but also build quality" that would have to be rectified before flats were occupied.

Documents seen by the BBC show that, in September 2023, the council had identified "recent regulatory changes [which] required Central Bedfordshire Council to achieve higher standards than were specified when the building was originally planned".

It said progress had been hampered by a limited supply of contractors with the right experience, and material shortages.

By November 2023, the council said pre-occupation works were "almost complete".

Three months later, councillors were told by a housing officer that "we identified several areas of specific concern – primarily relating to fire safety matters, but also build quality".

A further update in November 2024 is understood to have identified:

• The building did not meet fire safety requirements
• Persistent roof leaks were impacting structural integrity
• Windows and doors failed to meet safety and operational standards

At around this time, the council made an insurance claim, which remains unresolved.

Councillors were told: "It is not possible to provide a date of when the insurance company will settle, or when works will be completed, or when occupation can happen."

In short, no.

The BBC has asked how the decision was made to buy the property, who signed off the deal, how much it cost and what checks were carried out prior to the purchase.

We have also asked for an update on the insurance claim.

Steven Watkins, the Independent executive member for assets, business and housing, said building controls approvals, warranties, insurance and other documents were checked before purchase.

But he added: "It was only after taking possession of the building we were able to carry out more detailed and intrusive inspections of Birch Court, which identified significant construction defects."

The council insists the decision to buy was made by the council's executive of senior councillors through its "formal decision-making process".

However, this did not involve a report from the council's officers to inform councillors before they made a decision, as would normally be the case.

The authority has confirmed that no-one has ever lived in the building, and it costs £190 per week for security.

That means almost £40,000 has been spent on keeping the premises secure since 2022.

With about 3,000 households on its waiting list for housing, there is a clear reason why the district needs these flats to be occupied as soon as possible.

Chris Bailey, director of policy and campaigns for Action on Empty Homes, said: "Birch Court is representative of everything that's wrong, really, with building in recent years.

"We've seen an awful lot of buildings with an awful lot of problems, and unfortunately this is resulting in more emptiness.

"We shouldn't have a situation where newbuild buildings are sitting empty, particularly buildings which are offering to provide much-needed social housing."

Richard Reid, who owns the antiques shop next door to Birch Court, said it was "terrible" that "such a lovely building [is] just sitting there vacant".

He added: "It's not good for the town; it's not good for the shop.

"I'd like to see it resolved, either pulled down or put residents in."

Richard Stone, a Dunstable-based construction consultant, said: "Building control look at very specific, very tightly grouped things.

"They don't look at a broader picture and they don't look behind the scenes at lots of different things in terms of fire strategy and structural safety."

Stone believes it is reasonable to expect a council which is proposing to spend millions on a building to do more.

He said: "If you're going to buy an asset like this that's £6m, common sense would reasonably dictate that you would do some investigative searches and actually look at the structure and how it's actually put together before you exchange contracts.

"It's not difficult to do, especially on a building which is unoccupied".

Central Bedfordshire Council said: "We fully understand why people are frustrated to see Birch Court remain empty, and we share that frustration.

"However, the building is not safe to occupy, and we cannot and will not move residents into a building that is not safe."

The authority added that it was "actively pursuing an insurance claim in relation to the issues.

"We have provided all the information requested and are now awaiting a response from the insurance company."

Until that response comes, it seems that Birch Court will remain empty.

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