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My Lords, eight years after the Grenfell tragedy, the Public Accounts Committee in the other place reported that 3 million people are still living in unsafe buildings, unable to sell their properties and move on with their lives, facing high service charges and high insurance premiums, and in some cases facing repossession. The Minister’s own department says that this ordeal will not be completed until 2035, 10 years away. These leaseholders are the innocent victims of negligence and, as the noble Lord, Lord Rooker, has said, of greed. Do they not deserve a better deal?
My Lords, eight years after the Grenfell tragedy, the Public Accounts Committee in the other place reported that 3 million people are still living in unsafe buildings, unable to sell their properties and move on with their lives, facing high service charges and high insurance premiums, and in some cases facing repossession. The Minister’s own department says that this ordeal will not be completed until 2035, 10 years away. These leaseholders are the innocent victims of negligence and, as the noble Lord, Lord Rooker, has said, of greed. Do they not deserve a better deal?
My Lords, the noble Lord speaks with great expertise and makes a very important point. This Government have been taking decisive action to address the building safety crisis so that residents do not need to wait a day longer than necessary to feel safe in their homes. We continue to work closely with industry, local authorities and residents to accelerate remediation efforts while ensuring that those responsible for unsafe buildings cover the costs. On the important point of insurance, work has been ongoing to reduce building insurance premiums for leaseholders. On lending, we have seen improvements for leaseholders who previously found themselves unable to sell or remortgage their homes, but we will remain vigilant and continue to hold the 10 major lenders to account following their commitment to lend on properties even if remediation is not yet complete.
To ask His Majesty’s Government what progress has been made on the remediation of high-rise buildings with safety defects.
To ask His Majesty’s Government what progress has been made on the remediation of high-rise buildings with safety defects.
My Lords, before I answer the noble Lord’s question, I pay tribute to all the campaigners and survivors of Grenfell who have moved this along, following seven years when little progress was made. Now, over half of 18 metre-plus buildings identified with unsafe cladding have started or completed remediation. On 2 December last year the Deputy Prime Minister announced the remediation acceleration plan, which sets out key measures to get buildings with unsafe cladding fixed faster, identify remaining buildings still at risk and ensure that residents are supported through the remediation process. This Government have been clear about our intention to deliver remediation faster, with more action from freeholders and developers.
My Lords, I am grateful for that Answer. Since this Question was tabled, the Public Accounts Committee in another place has published a further progress report on remediation that is highly critical of this Government
and indeed the last one. It points out that, of the 5,000 buildings known to the Minister’s department to require treatment, work has started on half, and that 3 million people are living in unsafe buildings, are unable to sell their flats and face exorbitant insurance claims. It also points out that the contract with developers did not require them to remedy all the safety defects. In the meantime, not a penny has been paid by the manufacturers of unsafe cladding. The PAC says that the date of 2029, by which all treatment should have been completed, is unrealistic. Surely we can do better than this.
My Lords, I am grateful for that Answer. Since this Question was tabled, the Public Accounts Committee in another place has published a further progress report on remediation that is highly critical of this Government
and indeed the last one. It points out that, of the 5,000 buildings known to the Minister’s department to require treatment, work has started on half, and that 3 million people are living in unsafe buildings, are unable to sell their flats and face exorbitant insurance claims. It also points out that the contract with developers did not require them to remedy all the safety defects. In the meantime, not a penny has been paid by the manufacturers of unsafe cladding. The PAC says that the date of 2029, by which all treatment should have been completed, is unrealistic. Surely we can do better than this.
The noble Lord is right to say that we can do better, which is why we have introduced the remediation acceleration plan. The plan’s targets provide greater certainty to residents, a significant acceleration in pace and much greater certainty about when cladding remediation will be resolved. We have never had targets like these before. This Government have put in place a plan to deliver; it is now up to those responsible for making their buildings safe to do so. The plan has been criticised by campaigners for not being ambitious enough and by industry for being too ambitious and unachievable. All plans like this must strike a balance; we believe this plan gets the right balance and is ambitious but also achievable.
To ask His Majesty’s Government what progress has been made on remediating flats with dangerous cladding.
To ask His Majesty’s Government what progress has been made on remediating flats with dangerous cladding.
My Lords, I wish the noble Lord better—I know he is not feeling so great today. The pace of remediation has been far too slow, with only 50% of identified buildings beginning or completing works, and just 29% fully remediated. This has caused untold distress and expense for all those concerned. Further strong measures will be detailed in
the forthcoming remediation acceleration plan. As set out by the Prime Minister, we are willing to legally require those responsible to assess their buildings and promptly enter remediation schemes. We will bring the full power of government to bear on this task.
My Lords, I am grateful for that reply. In the debate on Grenfell on Friday, the Minister’s colleague, the noble Lord, Lord Khan, said:
“Yesterday the Ministry of Housing, Communities and Local Government published its monthly remediation statistics. They show that, of the 4,834 residential buildings 11 metres and over in height with unsafe cladding that the department is monitoring … 50% … have still not started remediation
”.—[Official Report, 22/11/24; col. 431.]
That is 250,000 families living in buildings that are not safe, in flats which they cannot sell, and who are confronted with high insurance premiums and service charges; and some of them are also confronted with unlimited remediation costs.
None of these leaseholders are responsible in any way for the difficulties they find themselves in. The NAO has now said that it may take until 2037—20 years after the Grenfell fire—for all the dangerous cladding to be put right, and we still have not identified all the dangerous buildings. I appreciate that the Minister has come to this relatively recently, but does she accept that if we do not get a grip on it, it will be the next major national scandal?
My Lords, I am grateful for that reply. In the debate on Grenfell on Friday, the Minister’s colleague, the noble Lord, Lord Khan, said:
“Yesterday the Ministry of Housing, Communities and Local Government published its monthly remediation statistics. They show that, of the 4,834 residential buildings 11 metres and over in height with unsafe cladding that the department is monitoring … 50% … have still not started remediation
”.—[Official Report, 22/11/24; col. 431.]
That is 250,000 families living in buildings that are not safe, in flats which they cannot sell, and who are confronted with high insurance premiums and service charges; and some of them are also confronted with unlimited remediation costs.
None of these leaseholders are responsible in any way for the difficulties they find themselves in. The NAO has now said that it may take until 2037—20 years after the Grenfell fire—for all the dangerous cladding to be put right, and we still have not identified all the dangerous buildings. I appreciate that the Minister has come to this relatively recently, but does she accept that if we do not get a grip on it, it will be the next major national scandal?
My Lords, I am very glad to say that we now have a Government, and a Deputy Prime Minister who is responsible for this area, who take this incredibly seriously. We will soon be publishing a remediation acceleration plan, which outlines the specific measures we are going to take to increase the pace of remediation, to find all the at-risk buildings quicker and to ensure that the residents at the heart of this terrible issue are supported in the process. There is no longer any excuse for those responsible failing to fix dangerous cladding on their buildings. The message is clear: use the routes we have created to get buildings fixed, and get on with the job.
The Deputy Prime Minister recently held a national roundtable with mayors, regulators and national building safety bodies to press home the urgency of this work, and most developers have now signed up now to the plan that she set out. But please be assured that we will not hesitate to use enforcement measures, and we have provided local authorities with funding to undertake the enforcement necessary.
To ask Her Majesty's Government how many buildings have been assessed as needing remediation under the provisions proposed in the Building Safety Bill; and on how many of these have agreements been reached with the construction industry to carry out the necessary remediation.
To ask Her Majesty's Government how many buildings have been assessed as needing remediation under the provisions proposed in the Building Safety Bill; and on how many of these have agreements been reached with the construction industry to carry out the necessary remediation.
Information on the number of high-rise (over 18 metres) residential and publicly-owned buildings with ACM cladding systems unlikely to meet Building Regulations is available in the Building Safety Programme data release here: https://www.gov.uk/guidance/aluminium-composite-material-cladding#acm-remediation-data.
For high-rise residential buildings with unsafe non-ACM cladding, the Department is continuing to work with building owners to progress applications for the Building Safety Fund at pace so more remedial works can begin as swiftly as possible. Information on the Building Safety Fund can be found here: https://www.gov.uk/guidance/remediation-of-non-acm-buildings#building-safety-fund-registration-statistics.
We have begun a pilot data collection project for 11-18m residential buildings to identify materials in use and to inform the design of a wider national 11-18m data collection exercise. We will publish further details in due course.
We have asked developers to provide comprehensive information on all buildings over 11m which have historic fire-safety defects and which they have played a part in constructing in the last 30 years. We are reviewing this data, alongside other data we have received, to ensure fire safety issues in these buildings are identified and addressed as quickly as possible.
The principle of protecting leaseholders living in their own homes is paramount.
It is fundamentally unfair that innocent leaseholders, most of whom have worked hard and made sacrifices to get a foot on the housing ladder, should be landed with bills they cannot afford to fix problems they did not cause.
We have been in intensive talks with the housebuilding sector to come forward with proposals on how it will make right its historic mistakes by taking responsibility for fixing the stock of unsafe buildings which have been built over decades.
To ask Her Majesty's Government, further to the statement on building safety by the Secretary of State for the Department for Levelling Up, Housing and Communities on 10 January (HC Deb col 288), whether leaseholders who are buy-to-let landlords will be covered by the "protection for leaseholders" referred to.
To ask Her Majesty's Government, further to the statement on building safety by the Secretary of State for the Department for Levelling Up, Housing and Communities on 10 January (HC Deb col 288), whether leaseholders who are buy-to-let landlords will be covered by the "protection for leaseholders" referred to.
As set out in our statement to Parliament on Building Safety on 10 January 2022, building owners and industry should make buildings safe without passing on costs to leaseholders, and leaseholders living in their own medium rise buildings should not pay a penny to remediate historic cladding defects that are no fault of their own. We have clarified that we have no intention of excluding leaseholders who have moved out and sublet from the protections that will be in place (including those in shared ownership) for buildings below 18 metres in England. We will explore whether this support should extend to other leaseholders, such as buy-to-let landlords.
My Lords, I welcome the very positive statement that my noble friend has just made, and his personal role in making the progress that has just been announced. On 10 January, the Secretary of State said in another place:
“First, we will make sure that we provide leaseholders with statutory protection—that is what we aim to do and we will work with colleagues across the House to ensure that that statutory protection extends to all the work required to make buildings safe.”—[Official Report, Commons, 10/1/21; col. 291.]
Can my noble friend confirm that that is the case and that protection extends beyond cladding replacement?
My Lords, I welcome the very positive statement that my noble friend has just made, and his personal role in making the progress that has just been announced. On 10 January, the Secretary of State said in another place:
“First, we will make sure that we provide leaseholders with statutory protection—that is what we aim to do and we will work with colleagues across the House to ensure that that statutory protection extends to all the work required to make buildings safe.”—[Official Report, Commons, 10/1/21; col. 291.]
Can my noble friend confirm that that is the case and that protection extends beyond cladding replacement?
My Lords, I do not want to pre-empt 14 February, but it is very clear that, from Florrie’s law, which sought to protect leaseholders from high-cost building safety and remedial works, there will be a principle which protects leaseholders. I thank my noble friend for raising this issue.
Has my noble friend read Inside Housing for April? It reports that buildings are being issued with a succession of different EWS ratings after a sale has taken place. How can inspectors sign off forms, expressed to be valid for five years, but change them later to the disadvantage of the purchaser?
Has my noble friend read Inside Housing for April? It reports that buildings are being issued with a succession of different EWS ratings after a sale has taken place. How can inspectors sign off forms, expressed to be valid for five years, but change them later to the disadvantage of the purchaser?
My noble friend raises an important issue about the inconsistency of the application of EWS1 forms by professionals. I point out that we are working with the British Standards Institution to produce a publicly available specification, known as PAS 9980, which is a code of practice designed to ensure greater consistency in these assessments.
My Lords, I welcome the substantial support that the Government have provided to deal with the cladding crisis but, on its own, it is clearly not enough to deal with the problem and with hardship. In February, the Government announced a new tax on future high-rise development, but would it not be fair to complement that with a levy on those developers who built these substandard homes?
My Lords, I welcome the substantial support that the Government have provided to deal with the cladding crisis but, on its own, it is clearly not enough to deal with the problem and with hardship. In February, the Government announced a new tax on future high-rise development, but would it not be fair to complement that with a levy on those developers who built these substandard homes?
Of course it is right that the polluter pays. That is why we have announced not only a building safety levy on future high-rise developments as part of the building safety Bill, but a tax on developers that is aiming to raise some £2 billion over 10 years.
To ask Her Majesty's Government what plans they have to suspend repossession of leasehold properties until potentially dangerous cladding in such properties has been replaced.
To ask Her Majesty's Government what plans they have to suspend repossession of leasehold properties until potentially dangerous cladding in such properties has been replaced.
The Government has announced a globally unprecedented investment in building safety and hundreds of thousands of leaseholders will be protected from the cost of replacing unsafe cladding on their homes.
On 10 February the Government announced it will provide an additional £3.5 billion grant funding for removal of unsafe cladding on buildings over 18 metres, which brings the total investment in building safety to an unprecedented £5 billion.
Lower-rise buildings between 11 and 18 metres, with a lower risk to safety, will gain new protection from the costs of cladding removal through a generous new financing scheme. As part of this financing scheme, no leaseholder will pay more than £50 per month towards the cost of cladding remediation.
This builds on steps already taken to support leaseholders, including £1.6 billion of funding to remediate unsafe cladding, the £30 million waking watch fund to help end excessive costs and new legislation in the Building Safety Bill which will ensure homes are made and kept safer in future.
The schemes will be launched in due course, and we will publish more details on how these will work as soon as we are in a position to do so.
The Government has worked with the lending industry and the regulators to prevent both homeowners and landlords from facing unaffordable bills or repossession if they canât work, or if their tenants canât pay rent due to the impact of coronavirus.
Mortgage holidays have been extended, with applications open to 31 March 2021. Borrowers that have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six-month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.⯠Current FCA guidance states all mortgage holidays must end by 31 July, so while no one can have more than a six-month deferral, any consumer applying now for their first payment holiday will not be able to take the full six months. Information on mortgage payment holidays is set out on the FCA website: https://www.fca.org.uk/news/press-releases/fca-confirms-support-mortgage-borrowers-impacted-coronavirus
The FCA has been clear that for borrowers who have taken six monthsâ holiday and continue to face ongoing financial difficulties, firms should continue to provide support through tailored forbearance options. This could include granting new mortgage payment holidays. Mortgage customers in this situation should speak to their lender to discuss their options.
A mortgage holiday is not the right solution for everyone, and a prolonged payment deferral may not be in a consumerâs best interest - it is important to remember that whilst someone takes a payment holiday, they will still owe the amount they donât pay during the deferral period, and interest will continue to accrue. Where consumers can afford to re-start mortgage payments, it is in their best interest to do so.
As my noble friend Lady Neville-Rolfe rightly says, this problem has dragged on too long. We need a solution that avoids the costs and delays of the courts. Should the package of measures not include further support from the Government, as with PRC houses in the 1980s, and a major contribution from the developers, as was just implied by the noble Baroness, Lady Kennedy, which have a moral responsibility and should be subjected to a levy?
As my noble friend Lady Neville-Rolfe rightly says, this problem has dragged on too long. We need a solution that avoids the costs and delays of the courts. Should the package of measures not include further support from the Government, as with PRC houses in the 1980s, and a major contribution from the developers, as was just implied by the noble Baroness, Lady Kennedy, which have a moral responsibility and should be subjected to a levy?
My Lords, I think the solution will include a levy on the development community, but I also want to talk about construction products. Look at the margins made by those who sold some of the construction materials used on high-rises such as Grenfell Tower. They made astronomical profits. Profits have been made and the result was products that are not fit for purpose. We have seen total regulatory system failure and construction practices that require significant regulatory change. As Buildings Safety Minister, I am committed to that.
To ask Her Majesty's Government what plans they have to reduce the reliance on interim measures such as waking watch and evacuation management plans by residents of high-rise buildings awaiting remediation for building safety defects.
To ask Her Majesty's Government what plans they have to reduce the reliance on interim measures such as waking watch and evacuation management plans by residents of high-rise buildings awaiting remediation for building safety defects.
The most effective way to make buildings with unsafe cladding safe and eliminate the need for interim measures and associated costs is to have the unsafe cladding removed as quickly as possible. That is why we are prioritising £1.6 billion public subsidy on remediation of unsafe cladding. However, we recognise residentsâ concerns about the cost of waking watch measures and the lack of transparency of these costs. That is why we have collected and published information on waking watch costs. This will enable those that have commissioned it to make comparisons and challenge providers on unreasonable costs. The data is available at: www.gov.uk/government/publications/building-safety-programme-waking-watch-costs
The Government also welcomes the National Fire Chiefs Council update to its guidance on Simultaneous Evacuation published in October (available at: www.nationalfirechiefs.org.uk/Simultaneous-evacuation-guidance). We have asked the Fire Protection Board to advise Fire and Rescue Services on how best to operationalise the revised guidance including looking into other measures such as installing building-wide fire alarm systems to reduce the dependency on waking watches wherever possible.
My Lords, we are continually assessing progress on removing dangerous cladding from high-rise buildings and publish data on this every month. Progress has been made. Almost three-quarters—74%—of buildings with unsafe aluminium composite material cladding are either completed or in the process of remediation.
I am grateful to my noble friend for that reply and for the funds the Government have made available to deal with the problems following the Grenfell tragedy, but the PAC report last week and the Sunday Times article reveal the scale of the problems that lie ahead. Only one-third of buildings with Grenfell cladding have had it replaced with safe alternatives. There are 186,000 other privately owned high-rise flats where the leaseholders are trapped with high service charges, unaffordable repairs and, in some cases, fire patrol costs of £750 a month. Then there are 1.5 million other flats that leaseholders cannot sell because they cannot get the certificates that lenders are now insisting on. Will my noble friend convene an urgent meeting of freeholders, leaseholders, valuers and lenders to come up with a comprehensive and time-limited plan which both ensures safety in these flats and removes the blight?
I am grateful to my noble friend for that reply and for the funds the Government have made available to deal with the problems following the Grenfell tragedy, but the PAC report last week and the Sunday Times article reveal the scale of the problems that lie ahead. Only one-third of buildings with Grenfell cladding have had it replaced with safe alternatives. There are 186,000 other privately owned high-rise flats where the leaseholders are trapped with high service charges, unaffordable repairs and, in some cases, fire patrol costs of £750 a month. Then there are 1.5 million other flats that leaseholders cannot sell because they cannot get the certificates that lenders are now insisting on. Will my noble friend convene an urgent meeting of freeholders, leaseholders, valuers and lenders to come up with a comprehensive and time-limited plan which both ensures safety in these flats and removes the blight?
My Lords, my noble friend should rest assured that we are focused on the pace of remediation. The Secretary of State or I will be speaking to building owners, local authorities and fire and rescue services to press them to accelerate this pace. We are also looking at the interventions that we may need to take as a Government to deal with this blight. We will obviously continue our engagement with all the stakeholders he mentioned in the course of that endeavour.
Lords statement on the publication of Dame Judith Hackitt's final report following her independent review of building regulations and fire safety.
Lords statement on the publication of Dame Judith Hackitt's final report following her independent review of building regulations and fire safety.