Teesside Property Firm Goes Bust Following Prosecution...
- Dec 30, 2025
- 3 min read
Prosecuted, Fined, Insolvent: The Downfall of Asset Property Management North East Ltd as the company prepares to be liquidated following prosecution.
30th December 2025
A Property Management Company with a string of complaints regarding the condition of the homes they were letting out to tenants is set to be liquidated in the coming months with no signs it will ever be able to repay its creditors
Asset Property Management North East Ltd collapsed into insolvency in June 2025 where a Statement of Affairs from the liquidators paints a picture of a business that was financially unsustainable following serious regulatory breaches and an eventual criminal prosecution.
The downfall of the Hartlepool-based property management company can be traced directly back to a fire at a block of flats at Tower Chambers, Tower Street, in the early hours of the 2nd of February 2021—an incident that exposed systemic failures in fire safety, ultimately leading to enforcement action by Cleveland Fire Authority.
The fire at Tower Chambers resulted in seventeen residents being evacuated, with five people rescued by Cleveland Fire Brigade, two of whom had to be brought to safety using a fire service ladder. The seriousness of the incident immediately raised concerns about whether the building was being managed in compliance with fire safety legislation.
Following an investigation, Asset Property Management North East Ltd pleaded guilty to four separate offences at Teesside Crown Court under the Regulatory Reform (Fire Safety) Order 2005:
Failing to provide adequate general fire precautions
Failing to carry out a suitable and sufficient fire risk assessment
Failing to provide adequate fire doors to protect escape routes
Failing to maintain fire safety facilities, specifically the fire detection and warning system
Contractors, Sub-Contractors, and a Breakdown in Responsibility
The case also exposed serious flaws in how fire safety responsibilities were delegated.
Asset Property Management had contracted the business Total Safety Events Ltd to complete the required fire risk assessment. That company, in turn, subcontracted the work to Mr Justin Morgan.
Both Total Safety Events Ltd and Mr Morgan pleaded guilty to offences relating to the failure to carry out a suitable and sufficient fire risk assessment. Mr Morgan also admitted failing to cooperate and coordinate his activities with other responsible persons.
The prosecution highlighted a recurring issue in the property sector: responsibility being passed down the chain, with no effective oversight at the top.
Fire Authority: “We Will Prosecute Where Necessary”
Cleveland Fire Authority made clear that this was not a borderline case.
“Where individuals responsible for building fire safety completely disregard their duty and place people at risk, Cleveland Fire Authority will not hesitate to use all of its powers and prosecute offenders where necessary.”
The Financial Fallout
As the complaints over poor property standards kept coming & following the firms prosecution and subsequent conviction, Asset Property Management North East Ltd’s financial position deteriorated rapidly.
The company’s Statement of Affairs, submitted as part of the insolvency process, shows a business burdened by significant liabilities and insufficient assets, leaving no realistic prospect of continuing to trade. The document also confirms that creditors are unlikely to be paid in full, if at all, and that the company was no longer viable as a going concern..
While insolvency can occur for many reasons, the timing is telling. Regulatory enforcement, legal costs, reputational damage, and the loss of confidence from clients and partners often prove fatal to small and medium-sized property management firms.
The collapse of Asset Property Management North East Ltd however raises some uncomfortable questions. Residents were placed at considerable risk long before the fire occurred. Enforcement action only followed once the worst had occurred. By the time the courts became involved, the company was already on a path towards financial failure with the £25,000 fine handed down to the business never repaid.
For those affected by the fire, & the sub-standard properties the business was marketing insolvency brings little comfort. Criminal convictions do not automatically translate into compensation, and unsecured creditors—including leaseholders and service users—are often left with nothing when a company collapses.
A Warning to the Industry
As 2026 is set to bring in sweeping new regulations designed to protect renters through the Renters Rights Bill, the case stands as a stark warning to property managers and landlords across Teesside and beyond.
Fire safety compliance is not optional, and it is not something that can be delegated away without oversight. Ultimately, responsibility sits with those who control and manage buildings. When that responsibility is ignored, the consequences can include prosecution, financial ruin, and corporate collapse.
Cleveland Fire Authority has made clear it will continue to enforce the law where necessary. However, the insolvency of Asset Property Management North East Ltd demonstrates what can happen when enforcement arrives too late for those whose safety was already compromised.
