With permission, Mr Speaker, I wish to make a statement on the remediation of private sector residential buildings with aluminium composite material cladding.
In the wake of the tragic Grenfell Tower fire, the Government acted urgently to address the serious fire and public safety risks exposed by the tragedy. Throughout, the safety of residents has remained our priority. We have from the outset sought expert advice, which together with our own testing programme has highlighted the unparalleled fire risk posed by ACM cladding of the type believed to be present on Grenfell Tower. The Government are clear that the type of ACM cladding believed to be on Grenfell Tower, and present on hundreds of other high-rise buildings, is not safe. This type of ACM is exceptional owing to the high risk it poses as an accelerant of fire. It did not comply with building regulations and should never have been put up.
For many years, building regulations have included a requirement that exterior walls be constructed to resist the spread of fire. Since the Grenfell tragedy, we have taken action to put that beyond doubt. We have amended the law to explicitly ban combustible materials from use in the exterior walls of all high-rise residential buildings, as well as in hospitals, residential care premises, dormitories in boarding schools, and student accommodation over 18 metres. That ban applies to all new buildings in these categories and to those buildings when major works to the exterior walls take place. The long-standing requirement that exterior walls should adequately resist the spread of fire continues to apply to all other high-rise buildings, including commercial buildings, being developed or undergoing major works to exterior walls.
With the support of local authorities and fire and rescue services, we have identified a total of 433 high-rise residential and other buildings with unsafe ACM cladding. All these buildings have been assessed by fire and rescue services and interim safety measures are in place where necessary, and these measures are kept under review by fire and rescue services, but we recognise that residents will have true peace of mind only when unsafe cladding has been removed and replaced with safe materials. In those buildings owned by local authorities and housing associations, we are making strong progress. We have made £400 million available to pay for the remediation of ACM cladding, and remediation has started or been completed in 87% of social sector buildings, with plans and commitments in place to remediate all remaining buildings.
We have also seen some progress in the private sector. Some building owners have acted swiftly and responsibly to put plans in place for full remediation of the cladding on their buildings and committed to protecting leaseholders from bearing the costs. This progress has been supported by the work of a remediation taskforce chaired by Ministers. In addition, where necessary, the Government are supporting local authorities to use their enforcement powers to ensure that building owners take the required action.
That said, too many building owners have failed to take responsibility. Many building owners have been too slow to co-operate to enable the prompt identification of buildings with unsafe ACM cladding and have since dragged their feet in planning for remediation. The result is that, almost two years on from the Grenfell tragedy, an unacceptable number of residents are still living in buildings that, while benefiting from additional safety measures in the interim, will not be remediated fully within an acceptable timescale.
Moreover, many leaseholders face unfair, and often substantial, costs. The Government believe this to be completely unacceptable. Leaseholders find themselves in this position through no fault of their own, and this is not morally defensible. The Housing Minister, my officials and I have all met residents affected by these issues and heard their personal concerns. We all appreciate their anguish and we pay tribute to their resilience and strength. I also want to acknowledge the continued work of Grenfell United, the UK Cladding Action Group and others. Many people told us they lived in constant fear—fear for the safety of their home; fear of the possibility of having to find tens of thousands of pounds for remediation; fear that they could no longer sell their properties and may have to forfeit them if costs are not met.
Where building owners have failed to step up, it is now imperative that the Government act. We must ensure the long-term safety of the people living in these buildings. The Government are therefore announcing today a new fund to unblock progress in remediating private sector high-rise residential buildings. First and foremost, this fund is about public safety. It will allow remediation to happen quickly, restore peace of mind and allow residents living in these blocks to get on with their lives. It will also protect leaseholders from bearing the cost. Building owners or those responsible for fire safety should prioritise getting on with the work necessary to make their buildings permanently safe. The new fund, which is estimated at £200 million, will cover the full cost of remediating the unsafe ACM cladding systems in privately owned high-rise residential buildings. This funding is being provided entirely for the benefit of the leaseholders in the buildings.
Important reforms of leasehold and implementing the Hackitt review’s recommendations on the safety of high-rise residential buildings are already in train. I will update the House on implementation in the coming weeks. When the new system is in place, it will help to prevent leaseholders from being confronted with unaffordable one-off charges.
Several developers and freeholders have already agreed to fund the costs of remediation and not to pass them on to leaseholders. Many of them have already agreed to maintain their commitment. The owners or developers who have made those commitments include Taylor Wimpey, Legal & General, Mace Group, Lendlease, Barratt Developments and Aberdeen Standard Investments. I commend them for the responsible and moral position that they have taken.
The fund does not absolve industry from taking responsibility for the failures that led to the ACM being wrongly put on buildings. As a condition of funding, we will stipulate that building owners must pursue warranty and insurance claims and any appropriate action against those responsible for putting unsafe cladding on the buildings, with moneys to be repaid to the Government.
We will write to all potential fund applicants by the end of next week to start engaging them in preparation for formal applications. We will also make funding conditional on the building owner or responsible person agreeing a contract to start remediation works within a set period. We will provide further details on the application process; I urge those who intend to apply to start developing ACM remediation proposals and costings so that applications can be made and processed promptly.
Everyone has a right to feel safe in their home. We want to see building owners acting to ensure that unsafe ACM is replaced without delay. That is why we are taking this exceptional step today. I commend this statement to the House.