Did you invest in X1 Manchester Waters or X1 Media City? You may have a professional negligence claim.

Article written by Neil Stockdale, Partner, and Sophie-May Lewis, Solicitor, in our Financial Mis-Selling team. 

We act for hundreds of investors across six X1 property investment schemes and are investigating potential professional negligence claims arising from failed off-plan developments.

Those schemes include X1 Manchester Waters, X1 Michigan Towers, X1 Media City, X1 Cheltenham Place, X1 Landmark, and X1 Chatham Waters.

Our current focus is on investors who purchased units in X1 Manchester Waters and X1 Media City, both of which entered administration in June 2026.

X1 Manchester Waters was an apartment development at Pomona Island, Manchester. We understand that 336 units across Towers D and E were sold to investors, with approximately £25.7 million received by way of deposits. X1 Manchester Waters Limited entered administration on 4 June 2026.

X1 Media City Tower 4 was a proposed 27-storey development comprising 275 apartment units. X1 Media City Limited entered administration on 15 June 2026, with the administrators’ proposals indicating that the company owed approximately £20 million to creditors.

Both schemes were marketed as off-plan property investment opportunities offering assured rental returns, commonly described as a 6% net rental yield assured for five years. Investors were generally required to pay a £5,000 reservation fee, followed by a 25% deposit on exchange of contracts and a further 10% payment six months later, with the balance payable on completion.

Under the proposed arrangements, investors would usually be granted a 975-year lease on completion and enter into a property management agreement providing for assured rental payments for a fixed period.

What has gone wrong?

Investors have raised concerns that the developments have not progressed as represented when they were marketed.

The administrations have created significant uncertainty for investors who paid reservation fees, substantial deposits and further staged payments before completion.

Many investors are now concerned that the sums they paid may not have been adequately protected and may not be recoverable following the administration of the relevant development companies.

Investors have also raised concerns about the nature of the assured rental return arrangements, including whether those returns were properly explained and whether sufficient advice was given about the risks of relying on payments from the relevant special purpose vehicle.

Unregulated collective investment scheme concerns

Our clients allege that the X1 Manchester Waters and X1 Media City investment arrangements may have constituted an unregulated collective investment scheme.

UCIS arrangements are subject to significant regulatory restrictions because they often involve investors contributing money into a wider commercial venture while relying on others to manage the investment and generate returns.

Solicitors acting on such transactions should carefully consider whether the investment structure gives rise to regulatory concerns and whether additional advice ought to be provided to investors before exchange of contracts.

Where appropriate advice is not given, investors may have grounds to pursue professional negligence claims against the solicitors who acted on their purchases.

You can read more about the warning signs associated with mis-sold property investments and Unregulated Collective Investment Schemes in our related article: The Warning Signs of a Mis-sold Property Investment.

Can investors bring a claim?

Every case will depend on its individual facts and circumstances.

However, investors may have potential claims where the solicitors who acted on their purchases failed to provide adequate advice regarding:

• the risks associated with buying an off-plan investment property;
• the nature of the Unregulated Collective Investment Scheme;
• regulatory concerns affecting the structure of the investment;
• the payment, release and protection of substantial deposits; and
• the risk of developer or special purpose vehicle insolvency;

Compensation may be available where investors have suffered losses as a result of negligent advice.

Why choose us?

We have been at the forefront of investigating X1-related claims and are committed to pursuing the best possible outcomes for our clients.

Our Financial Mis-Selling team has extensive experience acting for groups of investors affected by failed property investment schemes and Unregulated Collective Investment Schemes.

We are continuing to hear from other investors who may have been affected and would encourage anyone who invested in X1 Manchester Waters or X1 Media City to contact our team for a confidential, no-obligation discussion.

We are representing X1 clients on a conditional fee basis (no win, no fee) meaning our legal fees are only payable if the claim is successful.