It was an Autumn afternoon in Manchester city centre when videos on social media emerged showing shards of shattered glass on the ground.
Scattered beneath Deansgate’s iconic Beetham Tower, cars could be heard crunching over the pieces as fire service tape stretched over the pavement in September 2023.
‘Danger falling glass. Please use the other pavement’ a sellotaped paper sign read.
Emergency services had been called out to the residential tower, then also the home of the swanky Hilton Deansgate Hotel, to reports of falling glass.
‘Danger falling glass'(Image: MEN)
Thankfully, nobody suffered injuries after the glass pane broke, with video footage showing how the panel had dropped from several stories above ground.
Workmen on cranes were later seen fixing the broken pane, which appeared to have shattered from one of the windows belonging to the hotel.
However, the drama came some years after defects with the panels outside the building’s dazzling all-glass exterior were first uncovered and reported extensively on by the Manchester Evening News.
It was the catalyst that sparked major investigations, a highly publicised High Court battle and implications that ‘trapped’ leaseholders are still reeling from today.
They’ve faced mental health struggles. Others have fears of plunging into bankruptcy.
A judge, following the 2019 court case involving the iconic building’s then-owners, demanded work be completed to permenantly fix issues with the exterior glass panel fixings within a period of 18 months. Yet, the work was never actually carried out.
The towering structure was instead sold off for a ‘nominal fee’ to a ‘mystery buyer’. It lumbered their successor, later revealed to be a billionaire property developer, with the burden.
Beetham has towered over Manchester since 2006(Image: Sean Hansford | Manchester Evening News)
‘Temporary’ fixes put in place some twelve years ago still remain attached to the exterior. Plates with screws surround the gaps between the panes.
Manchester City Council said leaseholders ‘bought into a dream’ but are now in ‘perpetual limbo’. Meanwhile, Manchester Central MP Lucy Powell told the M.E.N she has raised the issue with Homes England and is ‘committed to finding a resolution’ to end the ‘nightmare’.
Its owners maintain the building is ‘not considered unsafe’, with the exterior inspected and maintained by specialist cladding contractors. They have slammed the ‘underinvestment’ from the previous freeholder.
The measures put in place 12-years-ago were never intended to be permanent.
And now, following a Manchester Evening News investigation, it seems a turning point may finally be in sight.
The scene of many firsts
The grand opening of Beetham Tower marked a huge milestone for the city. It arrived and meant business.
The 170 metre, 47-storey hotel and residential building has long been regarded as a major catalyst for the ever-evolving Manchester skyline we know today. It offered more than just height. It brought its own proud identity.
Beetham during its construction (Image: Getty Images)
It may now be dwarfed by the uber-plush Deansgate Square towers, but in 2006 the towering glass structure became instantly iconic.
Upon its completion, it became the tallest building in the UK outside of London, surpassing the CIS Tower by over 50 metres, and it held onto that accolade until 2018.
It was the scene of many firsts. It marked a significant milestone as Manchester’s first true skyscraper, led the way for the boom in modern inner-city living and introduced a new era to the city’s nightlife with the Cloud 23 bar offering breathtaking panoramic views.
It was symbolic of Manchester’s ballooning growth. After decades of post-industrial decline, and coming a decade after the 1996 Manchester bombing, Beetham was a bold statement. After two years of construction, the city was firmly rebuilding itself as a modern, globally-recognised destination.
Apartments went up for sale. There was prominent ‘Live above the city’ messaging. Developers cashed in on the tower’s unrivalled views across the city and beyond. It offered a slice of London in the north and was erected on a previously underwhelming plot of land beside the Deansgate pub.
At the time, real estate developer Beetham Organization was leading a trend in the UK towards the mixed-use skyscraper concept. The idea brought to life a merger of a deluxe hotel and high-rise, high-end living for affluent professionals.
It was the tallest building outside of London(Image: Getty Images)
And there was a huge buzz. An estimated 90 per cent of its luxury apartments and penthouses sold off-plan before construction was even completed. A mix of one and two bed apartments first hit the market in 2008 and ranged from between £160,000 and £350,000.
Behind the façade
Inside is home to penthouse apartments with panoramic views. To outsiders, the tower is home to affluent renters and leaseholders who moved in to soak up all that modern city living had to offer. Manchester was booming, and they had a front row seat.
Meanwhile, on the outside and behind the impressive exterior, cracks began to emerge. It was as early as 2014 that a ‘serious problem’ was uncovered.
The bond provided by the structural sealant was failing in various cases. An investigation was launched by Carillion Construction Limited, then the main contractor that built the tower.
Enquiries showed that the cause of the failure was linked to the bond between the structural sealant and the polyester powder coating which had been applied to the glass frames. It affected an estimated 1,350 panels on the tower block, then owned by North West Ground Rents Limited.
The failing sealant raised public safety concerns about the security of glass panels on the 47-storey building. The defect related to single-glazed insulated shadow box units on the exterior.
They encircle the building to create an outer layer beyond the interior windows, protecting against the weather and reflecting the sunlight.
The need for externally visible fixings had been avoided during its construction, with the panels attached to the frame by the structural sealant, in place to prevent them coming loose. But it was that very sealant that was failing.
A decision was made to use screw-stitching pressure plates to hold the panels in position safely. As a short-term solution, they were used while a full probe took place to source a permanent remedy.
The stitch plates fixed to the exterior(Image: Sean Hansford | Manchester Evening News)
However those inquiries crumbled years later when Carillion plunged into liquidation. Drawn-out investigations had failed to complete by January of 2018. The folding of Carillion after unsuccessful Government bailout pleas left them with crippling debts.
Thousands of jobs were lost as suppliers, sub-contractors and lenders faced mounting financial losses. Over the eight years from December 2009 to January 2018, the total owed by Carillion in loans increased from £242 million to an estimated £1.3 billion, according to official figures.
The collapse of the construction firm, a major supplier to the UK’s public sector delivering hundreds of Government contracts to the likes of hospitals and schools, halted discussions about the Beetham Tower.
It is some 12 years after their discovery that exhausted leaseholders claim that those very defects render them stuck, unable to sell their once highly sought-after apartments for market value and paying high service charges. Permanent works to fix the problem have still not been completed.
The Manchester Evening News began investigating. Its current owners, Deansgate Freehold Limited, have told the M.E.N that Beetham Tower is ‘not considered unsafe’ because the stitch plates are inspected and maintained regularly by a qualified cladding safety company.
They also argued that mortgage lenders ‘should not have concerns’ about apartments in the building. They claimed that multiple leaseholders have in fact been able to sell their flats in recent years.
It may be a safe enough fix, but leaseholders are not out of the woods. They say they have seen the value of their properties plummet, and claim they are grappling with climbing service charges out of their control.
Apartments are in most cases being advertised to cash-buyers. Some leaseholders claim they have had new rates refused by mortgage brokers, and that estate agents are undervaluing the properties and citing the façade defect as the reason why.
Landlords and resident leaseholders have also spoken of crippling debts due to increases in service charge fees slammed as ‘completely unaffordable.’
Leaseholders say they are struggling to sell their apartments(Image: Sean Hansford | Manchester Evening News)
The owners have said service charge fees have risen ‘proportionately’ and say this is due to the age of the building, and ‘major works’ needing to be carried out following ‘under investment and insufficient accumulation of reserves’ from the previous owner.
However the Manchester Evening News can reveal that the Building Safety Regulator (BSR) is investigating concerns raised about the building. These same concerns have been sent in letters from residents to local MP Lucy Powell and the city council.
Beetham Tower had its building assessment certificate refused by the BSR in August of last year. The certificates demonstrate whether a building meets specific legal duties relating to their safety, including the risk of fire or structural failure. It’s understood the application was refused because the BSR were not satisfied that the relevant statutory duties were being complied with.
This point was put to the owners, who said: “The lack of a building assessment certificate does not mean the building is unsafe. Further information required by the Building Safety Regulator after 14th August 2025 was provided by the company to the Building Safety Regulator and the company awaits guidance on the next steps from the Building Safety Regulator.”
Beetham Tower also has an EWS1 form with an A1 rating, which is a document for residential buildings certifying that a qualified professional has assessed the external cladding for fire safety.
The Manchester Evening News contacted the BSR to ask what the scope of the investigation was but they were unable to confirm this. A spokesperson said: “We can confirm that the Building Safety Regulator has received a complaint relating to Beetham Tower, Manchester, and is considering the matters raised.
“As this work is ongoing, it would not be appropriate to comment further on the details of the case, including the status or scope of any investigation, or any potential regulatory action”.
We contacted the owners and building management with our findings on Monday. The following day, the dial shifted. Residents were then told that a consultant had finally been appointed to ‘identify the appropriate measures to be taken’ to resolve the façade issues.
A building ‘in disrepair’
It was in 2019 that Beetham Tower was found to be ‘in disrepair’. The iconic skyscraper was deemed to need multi-million pound works to the thousands of glass panels.
The Beetham Tower building was often referred to as the Hilton Tower. Famed for the hotel previously acquiring the lower floors and home to the Cloud 23 restaurant and bar, the site remains the location of swanky private parties and events.
But the building’s former owners were dragged through a High Court battle in 2019 when a solution and permanent fix for the sealant faults still hadn’t been reached.
The collapse of Carillion and stalling of discussions meant vital and longer term works had not yet been carried out.
Blue Manchester Hotel Ltd, which owned a lease of the 22 floors occupied by the Hilton Hotel took freeholder North West Ground Rents Ltd to court with a significant legal claim.
They argued that temporary arrangements to the shadow box units were ‘adversely affecting the appearance of the tower’ and that there were ‘real concerns as to the safety’ of the glass panels wrapped around the exterior.
It was in 2019 that Beetham Tower was found to be ‘in disrepair’. (Image: Sean Hansford | Manchester Evening News)
It was put to the court that the issues had not been permanently fixed and that the temporary stitch plates harmed the building’s appearance and the reputation of the hotel. North West Ground Rents Ltd argued that it was not in breach of repair obligations because the temporary plates kept the building safe to a satisfactory standard.
They called for non-immediacy in finding a permanent solution to allow time to recover costs from third parties, such as insurers and contractors. However, this was thrown out when the case, presided over by Judge Stephen Davies found there was clear evidence that glass panels had failing bonds and that the building was still in a state of disrepair.
It was ordered that a permanent repair should be carried out within around 18 months, along with a payout of damages including costs to Blue Manchester Ltd. It was estimated at the time that repair costs would be in the region of £9m.
But just two years later, it was revealed that the troubled tower had been offloaded. The site had been sold for a ‘nominal’ but undisclosed sum. Solutions hadn’t been reached due to disputes over responsibility.
It is now controlled by British Cypriot-born billionaire property developer John Christodoulou, who is listed as director of Deansgate Freehold Limited. The owner of Yianis Group, he runs the privately held company with a portfolio of residential properties and hotels. Rendall and Rittner are instructed as the building management company.
Yet, as of 2026, the permanent works have still not been completed. Some 12 years after the defects were first uncovered, no long-term solution has yet been reached, leaving tenants and leaseholders in a bind.
A 2024 commissioned report into the façade issues found that remedial options involved the possible replacement of the glazing affected or the temporary stitch plates becoming a permanent solution.
“The current regular maintenance and inspection regime for the temporary stitch plates appears to be suitable, since the number of loose fixings identified is not excessive,” it read.
A 2023 email seen by the Manchester Evening News from management company Rendall and Rittner later indicated that the replacement of the shadow box units was predicted to be ‘£23m+’.
After the Manchester Evening News started investigating and made contact with Deansgate Freehold Limited and Rendall and Rittner, leaseholders received a timely notification through their online portal.
It was simply titled: “Façade update.”
On April 28, they were told that Stace LLP had been appointed as the landlord’s consultant to identify the measures needed to fix the external façade issues with the building.
Leaseholders ‘trapped’
David Baddeley bought his two-bedroom apartment for £250,000 back in 2013. No longer living at the flat and instead renting it out to try and offset his costs, the business owner says he is now facing bankruptcy.
“I remember when I first found out about it. There was a man in abseiling gear going down the side of the building,” he explained, remembering the encounter. “Then he told me the windows were falling out.”
David told the Manchester Evening News he is in thousands of pounds worth of arrears due to service fees and high mortgage rates on a property he has been told he would only be able to sell for way below market rate.
David Baddeley cannot afford to live in the apartment(Image: Sean Hansford | Manchester Evening News)
“I’ve been told I could even be lucky to get over 200 grand for it now, which is mental,” he said. “Estate agents have told me a lot of lenders won’t go near the building because of what’s happened, so there’s nothing I can do. Without the façade issues, I was told it would be worth nearly £400k.
“I tried to put it on the market and it had some interest, but when people discovered the problems with the building, they’d run a mile.
“My mortgage was due to be renewed and I shopped around, but I realised nobody would accept so my existing provider put me on a much higher rate mortgage which was much more expensive. I just couldn’t afford to live there anymore.”
The Manchester Evening News has seen recent correspondence with three different estate agents regarding David’s apartment.
One told him in March this year that his flat could be marketed in the region of £200-210k, around £50,000 less than he purchased it for in 2013, and that this would be to cash buyers. Without the defect, the estate agent predicted his property would instead be worth in the region of £390,000.
Another said that although there was still high demand for apartments in Beetham Tower due to its central location, there is ‘limited mortgage lending’ on the property and that uncertainty around service charges ‘put buyers off’. They also said the building defects had ‘had a huge impact on price and reputation’.
A third estate agent based in the city centre refused to take on the property at all, adding that ‘even with the EWS1 certificate, work is needed on the glass to make it fully sellable. They said: “Lenders will not currently lend on the development. We wouldn’t be best suited to market the property to cash-buyers only.”
Deansgate Freehold Ltd have since told the M.E.N that ‘mortgage lenders should not have concerns’, citing: “Multiple leaseholders have been able to sell and remortgage their flats in the last 5 years”.
There are currently one-bed apartments up for sale online in Beetham Tower. All of them are priced below £200,000 and advertised to cash-buyers only or via auction.
David hasn’t paid his service charge fees since 2023(Image: Sean Hansford | Manchester Evening News)
David hasn’t paid his service charge fees since 2023 in protest over the façade works and says they were becoming ‘completely unaffordable’. In 2019, his yearly service charge costs amounted to £393 a month. As of 2024, they had risen to £587.
“I had to move out and try to rent it out,” he said. “I couldn’t afford to live there, it was crippling me. The service charges were going through the roof. The rent doesn’t even cover my mortgage amount without the additional charges, it’s all been such a nightmare.
“I feel trapped. I can’t sell my property, or if I do it’s for much less than it’s worth. Charges just kept going higher and higher. It’s been a never ending conveyor belt of charges.
“I know some people are in a really bad place because of these issues. That’s been the biggest eye opener in all of this, how it’s really affecting people.
“I may have to file for bankruptcy next year if this isn’t resolved. I lost my business in Covid and my dad fell ill and I was becoming a full time carer, and all my costs just kept going up because of the building’s issues.
“People are emotionally scarred by it and don’t know what to do. We are exhausted and just absolutely worn out by it all.”
David was among other residents also sent a letter in 2019, by Rendall and Rittner, requesting a sum towards the fixing of the façade issues. The Manchester Evening News has seen the letter, requesting £20,077.75, which he also refused to pay.
‘If I had a crystal ball, I never would’ve bought it’
Business-owner Richard Girgis, 36, owns three apartments between the 29th and 35th floors in Beetham Tower. His brother is a tenant in one of them, and the other two are rented out. He did previously live in the tower after buying his first flat there aged 18.
“When it first opened, there was nothing like it,” he told the M.E.N “I thought by now they’d obviously be worth a fortune. It had amazing views, was the heart of the city, and thought I’d be able to just rent it out eventually for profit.
“The properties are all paid off and owned by me, but I still don’t make much on them. I know other people in much worse situations that can’t even afford their mortgages anymore.”
Business-owner Richard Girgis, 36, owns three apartments between the 29th and 35th floors
Richard claimed he was previously also among those sent a letter including large sums of money towards the façade repairs, as well as increasing service charge fees that he says have risen ‘horrendously’.
He currently pays £1,830 per property, per quarter, in service fees. This has risen from a figure of £1,544 last year.
“I have never experienced anything like it. The service charges just go up horrendously,” he said. “I think a lot of people are scared about it and don’t know what to do. If they can’t pay the service charges, they get letters and don’t want to lose everything. It’s been going up and up and people have no choice.”
Deansgate Freehold Limited refuted that service charges had ‘skyrocketed’ and cited that the increase was due to major works on the building which resulted from ‘under investment and insufficient accumulation of reserves’ from its previous owner. They also added that the ‘maintenance costs have increased proportionately’ and that the age of the building is a factor.
Richard added: “It’s like being trapped. I wouldn’t want to sell mine now if I’d get so little for them. I am having to keep them, keep paying and just have tenants in.
“I’m just haemorrhaging money and giving it away and forced to pay for repairs. I wouldn’t have ever thought a flat I bought 18 years ago would be worth the same or less now. If someone would have said that, I’d have thought they were mad.
“I couldn’t imagine how I could make any money at all if I had a mortgage on any of them. It’s just been a constant rise of costs going up. I know people are really struggling and it just adds to the stress.
“I don’t understand how it’s been all these years and nothing has been done to fix the panels. I don’t think it should be our responsibility as leaseholders to throw money at it. I own a care home and have inspectors come every year and if we fail in any aspect, we have to make those improvements straight away, yet this is still here. None of it makes sense.
“I pay everything I need to, on time. I always have. Even though the charges have just increased through the roof.
“I remember being 18 and thinking ‘wow, how could this ever go wrong’. £250,000 that long ago was a lot of money, but I’m adventurous and thought it was worth it.
“If I could sell them for what they are worth, I’d be sitting very happy right now. But if I had a crystal ball, I never would’ve bought them.”
‘It’s been such a burden. Every month I was on the poverty line’
Abdul Khan owns three flats in Beetham Tower and told of how the additional costs of being a leaseholder left him ‘on the poverty line’ following his divorce. The 55-year-old currently rents the properties out to private tenants for around £1,700 per month. But it is far from all profit.
“The issues came at the beginning of Covid-time,” he said. “I was trying to settle up with my ex partner and wanted to get rid of the flats, but everywhere I went I was told the mortgage couldn’t be valued due to the defect.
“It was only when I tried to remortgage one of the properties and I got back an ‘unfit for mortgageable purposes’ response from them. We were told the issues would be fixed but years on, we are still here.
“It’s all been such a burden. I am still picking up the pieces from it financially now.”
Abdul said his additional debt due to the charges on the properties amounted to over £15,000, with him also continuing to pay the mortgages on the apartments. After previously falling behind into arrears, he was forced to sell additional properties elsewhere in an attempt to catch up.
“At one point when I was going through it, I was at my lowest,” he explained. “It’s such a financial burden, and it was a constant cycle when I was behind on service charges and receiving letters from solicitors.
“I couldn’t keep up with it all. I ended up selling another property to cover it. Every single month I was left on the poverty line surviving month to month, and that’s the reality.
Beetham Tower is an iconic building, but is still grappling with the façade issue(Image: Sean Hansford | Manchester Evening News)
“When you’re automatically behind on service charges, it’s passed onto solicitors. I was in a cycle where I had gone from being up to date to being in debt constantly.
“I wrote them an email begging them to stop because they knew I was already in arrears, but they just kept adding charges.
“This is not small amounts of money we are talking about, they want thousands from us in charges. We are all paying it and are tied to it in contracts.
“Everyone is so emotional over this. The previous owners went to court and were told the work had to be carried out, but we are still here after all these years and it hasn’t been fixed.”
“Leaseholders bought into a dream”
A Manchester City Council spokesperson said: “For many years, particularly following the Grenfell tragedy, we have been urging building owners to take their responsibility to their tenants and leaseholders seriously and act in their best interests. They are not simply an income stream – they are people who deserve a safe and secure home and should be able to live without the threat of rising costs creating financial instability.
“The story of the Beetham Tower is a case in point where leaseholders bought into a dream – an apartment in one of Manchester’s iconic properties. But they’ve been left in a perpetual limbo, through no fault of their own, unable to sell their homes because of a building defect that should’ve been rectified some years ago.
“We would encourage leaseholders that are affected to lodge their issue with the Government’s Leaseholder Advisory Service that will provide support and advice about their rights as a leaseholder, including information about potentially unfair service charges. And if you have an ongoing concern with a residential building over 18metres high, which isn’t being addressed, you can also escalate a complaint to the Building Safety Regulator.
“Our message to the building owner is simple. End this nightmare for these leaseholders, do the necessary work to the building and give some peace to the many residents who are bearing the brunt of the impact of their inaction.”
Meanwhile Manchester Central MP Lucy Powell told the Manchester Evening News: “This is a horrendous situation and my heart completely goes out to the residents whose lives have been made a living hell.
“I have met with residents several times and have been supporting them since the issue was first brought to my attention. I have now escalated this to Homes England who are now looking into what can be done to find a resolution. I remain available to residents and I am committed to finding a resolution that ends their nightmare as soon as possible.”
What the owners and management company say
After being approached by the Manchester Evening News, a spokesperson for Rendall and Rittner commented: “We are working closely with the freeholder, who is currently undertaking the required steps for the remediation works, with the aim of keeping costs as low as possible for residents. We appreciate that the uncertainty is unsettling for residents, and we remain fully committed to supporting them throughout this process and working to bring this matter to a resolution as swiftly as possible.”
And a statement in full issued by Deansgate Freehold Limited, said: “We would like to clarify that the freeholder, Deansgate Freehold Limited (“DFL”), is not a subsidiary of the Yianis Group, nor was it involved in the construction of the building. DFL only stepped in because of its belief that the previous owner was going to go into liquidation that would have resulted in the freehold reverting to the Crown, which would have been detrimental to all stakeholders.
“By way of background, proceedings were issued by Blue Manchester Limited (leaseholder) against North West Ground Rents Limited (“NWGR”), as well as a specialist design and build contractor Bug Alu-technic Gmbh and the main contractor Carillion plc, together with the architects, SimpsonHaugh Architects Ltd.
“Beetham Tower is not considered unsafe because the stitch plates are inspected and maintained regularly by a qualified cladding safety company who are also certified SafeContractor contractors. Under the regulations of the Building Safety Act 2022, the building also has an FRAEW and an EWS1 form with an A1 rating.
Owners Deansgate Freehold Limited have spoken out
“An EWS1 A1 rating is the best possible outcome for a building’s external wall system assessment, indicating that no combustible materials are present, no remedial work is required, and mortgage lenders should not have concerns. In fact, EWS1 certificates are accepted by mortgage lenders in accordance with the UK Finance Mortgage Lenders guidelines. Multiple leaseholders have been able to sell and remortgage their flats in the last 5 years.
“With regards to interest rates, these are of course outside the control of the freeholder. The Bank of England’s base rate was 0.5% in 2013 and peaked at 5.25% by early 2024. Such changes will naturally impact on the affordability of mortgage payments and subsequently property values. We are unable to comment further on this.
“General service charges have not skyrocketed; they have increased due to the major works in the building which have resulted from under investment and insufficient accumulation of reserves by previous owners since construction. After DFL acquired the building in August 2021, multiple major works projects have been consulted on and completed to improve the building’s systems including but not limited to replacement of boilers and Vitualic joints throughout the building.
“Rendall and Rittner have been transparent about the scope and costs for each project. Apart from the major works, given the age of the building, maintenance costs have increased proportionately. Leaseholders are provided with budgets and reconciled accounts for each year.
“The landlord has consulted CBRE on possible solutions to the façade and has appointed independent experts to appraise the remedial options with a view to taking the project forward, including appointing a project manager. A tender process will be carried out to determine a suitable contractor to carry out the necessary remedial works. DFL has approached the government with regards to funding support for the works at Beetham Tower to reduce leaseholder liability, for which it is yet to receive a response.”