Fire Safety Bill

After Clause 2

Prohibition on passing remediation costs on to leaseholders and tenants

I beg to move, That this House disagrees with the Lords in their amendments 4B, 4C, 4D and 4E.

I thank all right hon. and hon. Members for engaging in this very important debate, both now and throughout the passage of the Bill. I particularly thank my hon. Friends the Members for Kensington (Felicity Buchan), for Ipswich (Tom Hunt), for Rochester and Strood (Kelly Tolhurst) and for Wimbledon (Stephen Hammond), and Members across the House, for the keen interest they have shown in this matter. I will keep my opening remarks short, as I know that many Members are keen to contribute, and I shall wind up later on.

The Government remain steadfast in their commitment to delivering the Grenfell Tower inquiry phase 1 report’s recommendations. This Bill is an important first step in delivering those recommendations. The Government have always been clear that all residents should be safe and feel safe in their homes. That is why we will be providing an additional £3.5 billion to fund the removal and replacement of unsafe cladding on residential buildings.

Will the Minister give way?

I will give way to the hon. Gentleman later on; let me conclude my initial remarks.

This will be targeted on the highest-risk buildings—that is, those buildings over 18 metres tall that have unsafe cladding. The scale of this investment should not be underestimated, with over £5 billion of taxpayers’ money, and more when the developer levy and the developer tax are taken into account. We have an ambitious timescale to ensure that remediation of unsafe cladding is completed at pace. We are also now seeing tangible progress from the Royal Institution of Chartered Surveyors revising its guidance on EWS1 forms, lenders committing to adhering to RICS guidance, and more developers now allocating significant funds for remediation.

As parliamentarians, we have a duty to implement a clear framework and transparent legislation to support fire and building safety reform. I am afraid to say that, despite the best intentions of these Lords amendments—I absolutely accept the sincerity with which they have been posited—they are unworkable and impractical. They would make the legislation less clear, and they do not reflect the complexity involved in apportioning liability for remedial defects. I have had extensive conversations about the effects that the amendments might have with my hon. Friend the Member for Rochester and Strood, who has pressed me hard on this, as have others. These amendments would also require extensive redrafting of primary legislation, resulting in delays to the commencement of the Fire Safety Bill and to our overall programme. They could also have unintended and possibly perverse consequences for those that the amendments are intended to support, and we would still be no further forward in resolving these issues.

I shall give way to the hon. Member for Cardiff South and Penarth (Stephen Doughty) when I return to speak later, but let me say in concluding my opening remarks that we cannot accept these Lords amendments and we encourage the House to vote against them and for the Government amendments.

I am pleased that so many Members have put in to speak today. I will keep my remarks fairly brief, but I want to make three points. First, thank goodness I am not standing at this Dispatch Box again and pleading with the Government to agree at the very least a timetable to implement the vital fire safety measures from the first phase of the Grenfell inquiry. I am pleased that the Government have agreed in the other place to Labour’s suggestion of a timetable. Before the second anniversary of the Grenfell phase one recommendations, the Government have committed to regulations to implement them, and that will be by October this year. They said that this would delay the Bill, that it would be too complicated and that it would be too hard to do, but they have now agreed to a version of it. It is not quite what we wanted, but it is something close.

I have lost count of the number of times we have voted on the Grenfell recommendations and the number of times we have been pushed back, and it is quite extraordinary that the Government have taken so long to get us here. Labour’s previous amendment, which the Government have now agreed on a timetable to deliver, would do four things: the owners of buildings that contain two or more sets of domestic premises would share information with their local fire and rescue service about the design and make-up of the external walls; they would complete regular inspections of fire entrance doors; they would complete regular inspections of lifts; and they would share evacuation and fire safety instructions with residents and the fire service. These measures are straightforward and are supported by key stakeholders.

In the Minister’s letter that sets out details of the Government’s concession, he wrote that the Government would lay regulations to make responsible persons produce and regularly review evacuation plans for their building. The Grenfell recommendation, and our amendment, said more than that. They said that that information should also be shared with local fire and rescue services and residents. I would like the Minister to clarify in his closing remarks who these evacuation plans will be shared with and how this will be enforced, but I am grateful to him for seeing sense and heeding our calls to do the right thing, because it has been ages.

I wholeheartedly agree with my hon. Friend on that point, as she well knows, because of the leaseholders who are affected in my constituency. While the Welsh Government have put forward an additional £32 million in their new Budget for this very issue, leaseholders in Wales are still in the dark from the Government’s announcements about what moneys there will be for Wales and how the levy and tax will work. Does she agree that the Government should sit down with the Welsh Government Housing Minister and sort this out for the benefit of all leaseholders?

I thank my hon. Friend for that intervention. I have a sense of déjà vu, because we have been saying all this for some time, as have Members across the House. Of course the Government should sit down with the Welsh Government and work out whether any of this funding will go to Wales and how that will work.

My hon. Friend is making a powerful point about the needs of leaseholders. Does she agree that, as well as dealing with the gaps in the support so far announced, it is vital that there is much more clarity on what leaseholders should be entitled to—particularly those in shared ownership arrangements, where the quality of work done and the relationship with the social landlord can vary? This is causing them great confusion and anxiety and, indeed, great difficulty in selling their properties.

My hon. Friend makes a very good point. The plight of people in shared ownership properties is dire and needs to be looked at by the Government, as does the plight of the many thousands of people who are still trapped in unsafe buildings or buildings they cannot sell, who face extortionate bills for remediation work or who face huge increases in insurance and waking watch costs and other costs that they simply cannot afford. People are going bankrupt.

We cannot feel it in this place, but every time we have a debate or a vote on this issue, thousands of people write to all of us and say, “We are hoping against hope that you do the right thing this time.” We have people writing with heartfelt pleas. Their stories are stark, and every time we have this conversation, people’s hopes are raised, and there is a groundswell on social media and in our inboxes of people saying, “Maybe now the Government are going to do the right thing.” They are watching us now, hoping that we are going to do the right thing. It is very sad that the Government are indicating at the moment that they are not going to take this issue seriously.

This is taking a heavy toll on people’s mental health and putting millions of lives on hold. Leaseholders have been trapped in this impossible position for too long. Throughout the passage of the Bill, we have continually campaigned on this issue, and we welcome the latest amendment from the Bishop of St Albans. Like Labour’s previous amendments and those tabled by Members on both sides of the House, this amendment would prohibit the cost of replacing unsafe cladding being passed on to leaseholders or tenants.

In February, the Housing Secretary told thousands of people across the country that they will be locked into years of debt to fix fire safety problems that were not their fault, and we hear that the Government have decided to lay a motion to disagree with the Bishop of St Albans’s amendment. That is a direct and deliberate betrayal of the promise that Ministers have made over 17 times that leaseholders should not be left to foot the bill. Over the weekend, I wrote to Members of Parliament across the House who have constituents affected by this, urging them to back the amendment, and I sincerely hope that together we will stand up for the rights of leaseholders today and all Members will do the right thing. Given the risk of fire and looming bankruptcy, we cannot wait while the Government delay with inaction and failed proposals to keep leaseholders out of debt.

A three-minute limit is being imposed now on all contributions. Apologies to those Members who are on the call list and simply will not get in because there will not be enough time.

There is not the time to say what the Government have done for leaseholders. The Fire Safety Bill, in the form the Government want to return it to, if they get the House to reject the Lords amendments, would place an automatic, unchallengeable financial burden on residential leaseholders in building safety remediation costs, even in circumstances where a lease may have excluded such an obligation. I refer the Minister, if he has time, to the article by Martina Lees in The Sunday Times “Home” section about some of the building costs that are not justified.

The bishops’ amendments are intended to protect leaseholders from being solely responsible for the costs. The Bill strengthens the landlords’ and freeholders’ legal rights over leaseholders. The amendments provide for more balanced liability for costs. These Lords amendments should not be overturned. The alternative, which the Government are asking us to agree, wrongly and disproportionately disadvantages innocent leaseholders. Many are unable to pay, and they are frightened.

This is a Home Office Bill, and the Home Secretary gave this as her reason for rejecting previous Lords amendment 4:

“Because the issue of remediation costs is too complex to be dealt with in the manner proposed.”

I say, and I think people on both sides agree—and probably the Minister does so privately—that what is being proposed cannot be supported. It is too simple: it loads costs on leaseholders, who are the only people who cannot be responsible for putting right a building that they do not own and will never own, and of which in legal terms they are only the tenants.

I ask the Minister to ask his colleagues to let him agree to accepting these Lords amendments, and to set the leaseholders free.

I support the Lords in the message it has sent back. The Lords is proposing very important changes to the Government’s position. First, not just leaseholders but tenants should not have to pay. For example, in a block where the social housing provider is the freeholder, according to the Government’s proposals, leaseholders would not have to pay, but social housing tenants—if it is not ACM cladding that is being removed—would have to pay through their rents for the removal of cladding. That tenants have to pay and leaseholders do not simply cannot be right.

We are not quite sure what costs leaseholders in blocks under 18 metres will face, because there is still an awful lot of vagueness and lack of clarity about what the Government’s loan scheme will actually mean. When the Minister for Building Safety and Communities came to our Housing, Communities and Local Government Committee recently, he said that leaseholders would not be responsible for paying the loan, but neither would freeholders; the charge would be on the building. A building cannot be legally responsible for a charge on a loan placed on it. Some organisation or some individual has to be responsible. Is it the freeholder? Is it the leaseholder? There is an awful lot of unclearness about that, and about how we limit leaseholders’ charges to £50 a month. There is a great deal of confusion. The Government are still working that through, so as things stand there cannot be an absolute assurance that leaseholders will not have to pay on blocks of under 18 metres.

Finally, there are issues other than cladding. It is not just that cladding will have to be taken off; very often, the cost of doing other fire safety work on blocks of flats is greater. Again, we were told that if the other work is associated with the removal of cladding, it will be covered by the Government’s financial help. If insulation is a composite part of a building’s structure along with the cladding, presumably it can be removed, as it is associated with the cladding. However, if the insulation is completely separate and distinct from the cladding, the Government funding might pay for the cladding removal but not the insulation removal. Very often, leaseholders simply cannot afford to pay for that, but the Government will not allow any of their funding to go ahead unless the leaseholders can find the additional costs.

I thank the Lord Bishop of St Albans and the Lord Bishop of London for ensuring that we have the opportunity to vote on the amendments today. It gives us the chance to divide the House on whether leaseholders should be responsible for paying for historical fire safety costs. I urge the Minister and the Government to accept the amendments or, if there is something wrong with them, to table their own. They should work with us and with leaseholders to try to resolve this issue.

It is unacceptable that people feel that we want taxpayers to pay. Leaseholders do not want taxpayers to pay and Members across the House do not want taxpayers to pay; we want those who are responsible to pay—the developers, the insurance companies and the building regulators who said that these properties were safe over the past 20 to 30 years, when many of the leaseholders who will be forced to pay these bills were in primary school or not even born. It is not acceptable, it is not fair and it is not right. What we are doing today is shameful.

The amendments would maintain the status quo with regard to the costs of remediation. I understand the Minister’s point that this is a small Bill and not the right place to deal with the costs of remediation. I agree with him, but it is he who is transferring the liability to leaseholders in this Bill. The status quo is that leaseholders are not responsible for the costs of anything to do with external walls or doors. It is this Bill that amends the legislation. It is this Bill that will make leaseholders responsible for paying for historical fire safety defects. Again, that is not fair.

I was at a building today and it became clear very quickly that the estimated costs of remediation are greater than the value of the properties within it. Can the Minister give me an answer? What will happen in cases where the costs of remediation are greater than the value of the building and the properties within it? Will the building be written off, like an insurance company would write off a car? Will those people be made homeless? We know that if the Bill goes through, even more leaseholders will face bankruptcy and huge issues of homelessness.

At the moment, the interim costs are bankrupting leaseholders up and down the country. Leaseholders are screaming for help; they are screaming in pain. And what are we doing? Today, we are saying to them, “Thanks for paying the interim costs. Once you’ve finished that, we’re going to load you up with the remediation costs on top.” That is tens of thousands of pounds that people just do not have.

We are nearly four years on from Grenfell, and it appears to me that the Government have given up on those who should be responsible for paying and are pushing the costs on to leaseholders. It is morally unacceptable.