Unsafe Cladding: Protecting Tenants and Leaseholders

It is wrong and unjust for leaseholders to have to shoulder unfair costs to fix historical safety defects that they did not cause. That is why the Government have already set aside £1.6 billion in funding for cladding remediation. The funding was put in place precisely to ensure that the most dangerous types of cladding were removed as quickly as possible without imposing crippling bills on leaseholders. However, public funding does not absolve industry from taking the responsibility for the failures that led to unsafe cladding in the first place by putting materials on buildings that should not have been there.

We have seen many developers and building owners rightly taking responsibility for correcting those defects. They have done so in more than half of the high-rise private sector buildings with unsafe cladding. We absolutely expect developers, investors and building owners who have the means to pay to do the right thing and cover the costs of remediation of other unsafe cladding themselves without passing on the cost to leaseholders. However, in many cases, building owners or their managing agents have simply passed on significant remediation costs to leaseholders without regard to the affordability of those measures. That is why we have been accelerating the work to develop a financial solution to protect leaseholders from such costs. There is no quick fix. If there were, we would have done it long ago. It is complex and it involves many parties: leaseholders with different leases, developers, warranty holders, the insurance industry, the mortgage lenders, and the owners themselves. We have to find a solution that is right and proper, that demands of owners and developers that they put right the problems and defects they caused, that is fair to leaseholders who should not have to carry unfair costs for problems that they did not cause or envisage, and that is fair to the taxpayer, who is already shouldering a significant burden in remediating many buildings.

I can assure hon. Members that we will be making a further announcement on this important work “very shortly”, as my right hon. Friend the Prime Minister said at PMQs last week. We must recognise that Government funding alone cannot solve some of the deep-rooted issues surrounding building safety. As Dame Judith Hackitt concluded in her review, it is vital that we reform the entire building safety regime, and that means a fundamental change in the regulatory framework, in industry and in its culture.

We are committed to bringing forward the most significant building reform in almost 40 years, with two landmark pieces of legislation: the forthcoming Building Safety Bill that will create a more accountable system, and the Fire Safety Bill, currently before the House, which clarifies the Regulatory Reform (Fire Safety) Order 2005. Taken together, these measures will improve the safety of residents in blocks of flats of all heights.

It may be worthwhile if, before I conclude, I comment on some of the amendments tabled to the Fire Safety Bill, particularly those tabled by my hon. Friend the Member for Stevenage (Stephen McPartland) and by my hon. Friend the Member for Southampton, Itchen (Royston Smith), who is in his place. We fully understand what our hon. Friends are attempting to achieve in their amendments. We entirely understand that they want to remove or reduce the burden on leaseholders, and we wish to do the same. However, having looked at their amendments closely, it is clear to us that their scope, as currently drafted, would mean they would apply only to residents and leaseholders who have had a fire risk assessment undertaken, and not to residents who have suffered an incident or had works done for any other reason.  Nor are the amendments drafted in such a way as to allow them to be introduced without significant change both to the primary legislation and to the secondary legislation that must follow. As a result, the amendments would significantly impair the Bill’s progress through the House—they would delay it—and so, having looked carefully at my hon. Friends’ amendments, I encourage them to withdraw them.

The Building Safety Bill is the best mechanism to achieve my hon. Friends’ aims, which are to introduce a new and stronger regulatory regime for building safety in buildings of 18 metres or more in height, and for all construction products. The Bill will establish a new building safety regulator in the Health and Safety Executive, sitting at the heart of the reformed building programme. It will place clear legal duties on those who build and manage buildings in scope of the new regime to manage any risks that they create and, crucially, it will enable the regulator to enforce those laws.

In conclusion, high-rise buildings in this country should never have been fitted with dangerous or unsafe cladding. Successive Governments have failed to confront this issue, but it is this Government who are resolving it once and for all, making homes safer and protecting the residents from crippling costs, and at a pace that the severity of the situation demands. That is what we have already achieved: almost 95% of buildings identified at the beginning of last year with unsafe ACM cladding have now completed or are in the process of completing their remediation; we are advancing applications for the building safety fund; we are appointing specialist consultants to increase the pace of remediation; and we are introducing our additional landmark legislation. We will not let up. This work will be going on long after this Opposition day is over and long after the Leader of the Opposition has issued his tweet. We will not let even the pandemic, which is affecting our country and the world, slow us down. We will work to restore the inalienable right of everyone in this country to live somewhere that is decent, secure and, above all, safe—a place that they can rightly and proudly call home.

Guidance is now even affecting properties below the 11-metre and the 18-metre mark. Again, while this currently applies only to England and Wales, insurance companies in Scotland are also following these recommendations, thus affecting Scottish homeowners and tenants. Surely the UK Government and the Minister can see that it is completely unfair that residents and leaseholders are burdened with the costs of removing cladding that they had no say in installing. There are certainly reports of residents in England facing huge and very unfair repair bills, while the housing firms that own the at-risk buildings are having their costs recovered.

I recently heard the story of Sophie Grayling, a mother who was so proud to buy her first home in 2017. However, the flat that she bought was part of a building clad in ACM cladding—the exact same type, as we know, used on Grenfell Tower. Ms Grayling’s building is under the 18-metre threshold for the fund offered by the UK Government to remove the cladding, and with cladding remaining in place she has seen the sale of her home fall through, is facing a bill of thousands to fix the block’s issues and, most importantly, every night puts her child to bed with the knowledge that her building is covered in the same material that saw 72 lives lost in the inferno at Grenfell.

It is clear that that is unjust. Homeowners like Ms Grayling now face a Catch-22 situation: they either pay out of their own pocket to fix a problem that is not their fault or stay stuck in an unsellable flat that risks their safety. That story is not unique. More than 1 million people are still unable to remortgage or sell their properties because of the cladding. However, the frustration does not even end there: the UK Government are attempting to silence homeowners currently waiting for support, demanding that they do not speak to the media.

Homeowners applying for the fund to help to pay to remediate buildings will not be able to talk to a journalist. I know that the Minister said earlier that people should not listen to petty officialdom, but in order for petty officialdom to come to the fore at some point a Minister was not doing their job in terms of signing this off. People who are stuck in that incredibly tough position—unable to sell their house and facing massive bills because of the UK Government’s policy—must be able to speak to the press and expose the reality of how the cladding scandal is being dealt with.

In Scotland, cladding has been handled differently. As I said, housing and local government are devolved, so the removal of cladding is within the remit of the Scottish Government. That has enabled Scotland to require buildings to be constructed in a way that aids in the prevention of fires, which has contributed to Scotland having only a handful of properties—albeit, in my view, still too many—with Grenfell-style cladding compared with more than 450 in England.

However, even with that lower number, the Scottish Government are avoiding being complacent on cladding through the Building Standards Futures Board, and are continuing to improve building standards across all of Scotland. They are looking at other issues related to fire outside of cladding, such as holistically addressing high-rise buildings to make them safer, leading to requirements that will soon be introduced for sprinklers to be installed in new-build social housing and flats.

The UK Government should similarly address the cladding scandal by placing a focus on those who own and rent properties with unsafe cladding. The people most affected by the dangers of cladding should be at the centre of the discussion. Instead, the UK Government are burdening them with huge costs and the inability to sell or remortgage their flats.