SUMMARY

Progress had been made on cladding remediation and developers had six weeks to sign up to the latest contract, MPs heard.

Bringing a ministerial statement on building safety, Housing Secretary Michael Gove:

• Said there had been a “collective failure” both from Government, constructors, those who made checks and those who shirked obligations.
• Said it was a basic requirement of a civilised society that people felt safe in their homes but for too long this had not been the case
• Said leaseholders and tenants were “blameless” and it was right that these people were protected through the Building Safety Act.
• Stated that those who bared the blame must shoulder the burden.
• Said leaseholders were no longer hostages of their mortgage arrangements due to the protections in the Building Safety Act and from Government or developer remediation schemes.
• Stated that they had reopened the Building Safety Fund and they were piloting the Medium Rise Fund, paid for from a levy on developers.
• Said they would use powers to force owners to fix unsafe buildings and there would be “significant consequences” for those who failed to comply with their legal obligations.
• Said today they made further progress on delivery.
• Noted the housebuilders pledge from April 2022 and said developers had committed to reimbursing the taxpayers and in the summer the draft contract had been published.
• Thanked all those who had signed up to the pledge and the Home Builders Federation.
• Announced that today they were publishing the final contract that he expected housing developers to sign.
• Called for developers to sign the contract within the next six weeks by 13 March, including all those who signed the pledge and those who had not done so.
• Called for a “binding commitment” to help secure their credibility.
• Announced that for those who failed to step up, he would lay regulations this spring to create a new responsible actor’s scheme, which would set out which developers could be members and to join the scheme they would have to sign the contract.
• Added that those who failed to sign the contract would be prohibited from carrying out future development and would not receive building control sign off.
• Said to all developers he was putting them on notice.
• Announced he would be consulting on how he would expand the scheme.
• Estimated developer remediation to be worth £2 billion investment.
• Said all developers who signed the pledge would take a big step to restoring confidence in the construction sector.
• Said his Department had a Recovery Strategy Unit (RSU) which relentlessly targeted those that did not do the right thing and had active investigations underway including contractors and construction product manufacturers.
• For freeholders, said if they were holding back work when Government money had been made available, they would take action through the courts.
• Added that those trying to use service charges had to scrap previous invoices and ensure all new ones complied with the law.
• Pointed to the FCA investigation on insurance measure for buildings waiting for remediation, he was concerned greatly by the findings.
• Confirmed that he would ban property managing agents, landlords and freeholders from receiving commissions from insurers and brokers with more transparent processes.
• Was pleased the FCA would be investigating broker practices and consult on further regulatory changes for leaseholders.
• Welcomed worked from within the insurance industry to reduce the premiums.
• Called for a “culture of high standards” putting standards and safety first.
• Said the Building Safety Regulator would help oversee a culture of higher standards and in the coming year the ministerial team would bring secondary legislation to set the regulator on firmer foundations.

Responding for the Opposition, Shadow Housing Secretary Lisa Nandy:

• Welcomed the statement and some of the measures announced today.
• Said the reality was that five and a half years after the Grenfell tragedy things were still not fixed.
• Said only 7% of flats at fire risk had been fixed.
• Questioned the remarks that leaseholders were no longer hostages of their mortgages.
• Said the developers had been given another six-week deadline.
• Said the date that mattered for many was the deadline when cladding would be removed and to her understanding no deadline had yet been set.
• Asked if it was right that no new action was being announced today on product manufacturers and building owners, noting that if it was true it was an “unhelpful” and “immoral” omission.
• Asked how many cases pursued through the courts had been successful.
• Asked how cases could be referred to the Recovery Strategy Unit.
• Asked why foreign developers were off the hook.
• Noted reports that some contractors were only signing today because the contract had been watered down.
• Asked if he received legal advice on the implications of these changes.
• Called for the abolishment of leasehold and was encouraged to hearing his sentiment on it yesterday.
• Announced that Labour would support any legislation that would ban leasehold on new build and the phasing out of leasehold for common hold tenure.

In reply, Mr Gove:

• Said the contract was the result of negotiations with developers but noted there were rejections as well during the negotiations.
• Welcomed that developers had already begun on work.
• Said work would be undertaken by the RSU and they had secured change from freeholders and had was pursuing construction product manufacturers.
• Added that foreign developers would be under the brief of the RSU and they would be happy to share that work with the opposition where possible.
• Said they would be bringing legislation forward “shortly” on leasehold.