Prohibition on passing remediation costs onto leaseholders and tenants

Part of Fire Safety Bill – in a Public Bill Committee am 3:30 pm ar 25 Mehefin 2020.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Kit Malthouse Kit Malthouse Minister of State (Ministry of Justice and Home Office) 3:30, 25 Mehefin 2020

Notwithstanding the fact that the hon. Member for St Albans obviously recognises that this blunt instrument, as she put it, might result in unintended consequences, not least driving a coach and horses through the notion of privacy of contract, which is a fundamental part of our economy and legal system, I recognise her aspiration and the obvious concern and distress that there has been across the country among people who have been caught in the nightmare. As the hon. Member for Croydon Central knows, as Housing Minister for 12 months I wrestled with that issue and lobbied the then Chancellor of the Exchequer with increasing ferocity that the Government should step in to assist, which we have now done. My efforts, along with those of my right hon. Friend James Brokenshire, who was then the Secretary of State for Housing, Communities and Local Government, managed to secure the first £600 million of the £1.6 billion now pledged for remediation of various types of cladding.

I should point out that the funding does not absolve the industry from taking responsibility for any failings that led to unsafe cladding materials being put on buildings in the first place. We still expect developers, investors and building owners who have the means to pay to take responsibility and cover the cost of remediation themselves without passing on the cost to leaseholders. We committed in a recent Government response to the building safety consultation to extend the ability of local authorities and the new regulators to enforce against building work that does not comply with the building regulations from two years to 10 years. Further details will be set out in the draft building safety Bill when it is published next month. The new regime in that Bill is being introduced to prevent such safety defects from occurring in the first place in new builds and to address systematically the defects in existing buildings. Moreover, as part of any funding agreement with Government, we expect building owners to pursue warranty claims and appropriate action against those responsible for putting unsafe cladding on the buildings. In doing that we are not only ensuring that buildings are made safe and that residents feel safe, and are safe, we are ensuring that the taxpayer does not pay for the work that those responsible should fund or can afford.

I appreciate the intent of the new clause, particularly to protect leaseholders from the very high cost of removing and replacing cladding. That is why we have made £1.6 billion available to cover the costs, particularly where experts say that they represent the highest risk, and we are working with industry to identify what funding structures would be most appropriate to help cover the cost of further remediation work. Leaseholders should not have to face unmanageable costs. The Secretary of State for Housing, Communities and Local Government will provide an update on the work when he presents the draft building safety Bill to Parliament before the recess. I ask that Members recognise the complexity of this policy area, which cannot be solved, I am afraid, through the new clause. Indeed, it would make owners who, in some cases, would include leaseholders, responsible for funding any and all remediation work. For example, service and maintenance charges would at present meet the costs of safety work required as a result of routine wear and tear, such as worn fire door closers. Under the new clause, those costs would fall to building owners. I hope that hon. Members will agree there are more effective ways of achieving the same aim, which we all share, and I therefore hope this clause can be withdrawn.