An insurance firm has been placed under investigation by the Financial Conduct Authority (FCA) after buyers of a crumbling block of flats spent 'hundreds of thousands of pounds' trying to force it to pay out.

Acasta European Insurance Company Ltd provided a ten-year warranty on 53 Agar Grove, a new-build block of luxury apartments in Camden Town.

But the block became the subject of scandal after the flats began falling apart.

Walls have cracked, ceilings have collapsed and the buyers - some of whom paid more than £900,000 for the flats - have suffered constant leaks and floods.

An expert surveyor has said the building is so compromised that it may be best to just demolish it.

But three buyers claim they have spent over £300,000 between them in legal fees, trying to get Acasta to pay out.

The Department for Levelling-Up, Housing and Communities (DLUHC) has previously called the insurer “unreasonable” and said its response was “simply not good enough”.

A government source has now told the Ham&High that the insurer has been placed under investigation by the FCA.

The FCA press office said its policy was not to confirm or deny ongoing investigations – but a source at the watchdog did confirm that it was aware of the issue and actively engaging with Acasta.

The FCA has the power to ban firms from engaging in regulated activities, which include advising on insurance contracts.

It can also issue fines and apply for winding-up orders.

“It’s about time,” said buyer Daniel Bruce.

“There’s no way companies should be allowed to sell insurance policies that, when someone tries to claim on them, it takes years of their lives and costs them hundreds of thousands of pounds.”

Ham & High: Daniel Bruce bought his apartment in Agar Grove for £850,000. When the Ham&High visited earlier this year, his walls were bowed, his window frames were cracked and there were holes in his ceiling. His master bedroom and ensuite were uninhabitable due to foul-smelling rotDaniel Bruce bought his apartment in Agar Grove for £850,000. When the Ham&High visited earlier this year, his walls were bowed, his window frames were cracked and there were holes in his ceiling. His master bedroom and ensuite were uninhabitable due to foul-smelling rot (Image: Charles Thomson)

The first buyer moved into 53 Agar Grove in 2019.

Problems began to appear in 2020.

Water began pouring in through the roof. Terraces started leaking rainwater into properties beneath. Doors and windows stopped opening and closing. The lift became permanently out-of-service.

When the Ham&High visited earlier this year, some walls were bowed.

Buyers, who have collectively spent millions of pounds on the properties, now have two expert surveyor reports which found evidence that the building is moving.

Acasta did not respond to a request for comment on the FCA investigation.

It has previously said: “We take these concerns very seriously and are committed to fulfilling any obligations under the relevant insurance policies.”