This is a fantastic story and one of my all-time favourites. Dredd rarely does horror but this is a superb execution. This was released about the time the Amityville Horror films were on VHS and Tales of the Unexpected was on TV. You can see both influences and possibly something of Richard Matheson’s Hell House too.
There are plenty of established horror tropes, such as the bleeding walls, but because they are new to Dredd they feel fresh and chilling as opposed to cliché. The reason for the horror is believable and forms a nice twist at the end.
We get to learn more about Psi Division, meet our first Sikh Judge and get another peek into how the Judge system works on a practical level. This kind of world-building is always welcome. It also helps anchor the supernatural premise and makes it believable for the reader.
The art is good with the manifestations feeling visceral and threatening. There are a couple of disembodied heads/ badges for dialogue which does break the mood somewhat but the action and horror certainly make up for it. Ewins does a great job of conveying a creeping menace in static panels.