In East London, leslieholders say they are "stuck in unsellable homes" due to a £850,000 debt owed by the developer to Hackney council, unpaid for eight years.

17 leslieholders living in the Upper Clapton apartment block have appealed to the council for help, including a request for a meeting, but their plea has been ignored.

Rick Bell, 38, is one of the owners. He had been expecting to move out of his one-bedroom apartment last year, as he struggled with his first child. He was "quite advanced" in the process of selling, but it was halted when lawyers discovered a problem.

It was found that the developer, Restoration Hackney, had failed to pay £850,000 in Section 106 contributions (payments between developers and local authorities to mitigate the impact of new developments) and community infrastructure levies. The unpaid debt meant that if Restoration Hackney went bankrupt, the leslieholders in the building would be responsible for the tax.

Bell said his lawyers were "quite confident" for a long time that it was "just an administrative error" but "it soon became clear that it wasn't an error and it was the reality." At this point, Bell's potential buyer's lawyers advised him that he could not take a mortgage on the property because of the liability risk due to the debt.

Other leslieholders in the building are also unable to sell their homes, as mortgage providers are unwilling to lend on any of the apartments in the building. Bell said his neighbors, including families, are "actually stuck in unsellable homes" due to the council's inaction.

"We're in this situation where we're stuck in the building because of the actions of the developer, but the situation is made even more complicated by the council's inaction," Bell said.

The debt was paid in June 2017, after the 14th apartment in the building was sold, according to the terms of the agreement between Hackney council and Restoration Hackney. The council issued a debt collection notice in October 2018, but did nothing for almost six more years, issuing another notice in February 2024. The bill remains unpaid. "The council has refused to explain why they have been unable to collect this debt," Bell said.

The leslieholders in the building have appealed to Hackney council to give a guarantee that they will not be pursued for the debt of the freeholder, allowing them to sell their apartments. The council has so far refused to give such a guarantee. It has also refused to meet with the affected leslieholders. "We're begging the council to help us on a human level and they're refusing to help us," Bell said.

Bell is still stuck in his one-bedroom apartment with his wife and two-year-old son. "We believe we need more space. We're still sharing a bedroom with him, but we really want to give him his own. It's having a big impact on our family life and our ability to make the choices we want to make in our lives," he said.

The situation is affecting Bell and his family. "We've been quite keen to have a second child, but we can't have two children in a one-bedroom apartment. It just won't work. It's having a big impact on our family life and our ability to make the choices we want to make in our lives," he added.

He also said: "I just find it quite infuriating that the actions of this developer and the council mean that I can't give my child a bedroom. It's just quite infuriating."

Bell said it "illuminates to what extent the leasehold system can trap people in very strange ways. Who would expect to buy an apartment and then find out it was completely unsellable for reasons beyond their control?"

A spokesperson for Hackney council said: "We understand the frustration felt by leslieholders who are struggling to sell their properties due to the previous and current freeholder not paying significant contributions to the council."

"We have a commitment to ensure that all developers building in our city pay, to help maintain the services and infrastructure relied upon by residents. Neither the previous nor the current owner has paid, despite us contacting and meeting with both."

"We will support residents as much as we can. Unfortunately, we cannot guarantee the debt of a private freeholder as it could set a precedent for other developers to avoid paying debts in the future."

"We are exploring further legal options to ensure the unpaid charges are paid."

Restoration Hackney did not respond to a request for comment.