Building Safety: Remediation and Funding
Housing, Communities and Local Government Committee
Closed
Inquiry
The purpose of this inquiry is to examine the effectiveness and impact of the Government’s planned measures to make developers and industry cover the costs of remediation, to scrutinise whether the Secretary of State’s approach goes far enough to finally fix this crisis, and to examine what the funding arrangement …
Read more
16
Recommendations
5
Conclusions
1
Report
3
Oral sessions
10
Letters
3
Events
Activity timeline 18 events
17 May
2022
2022
17 May
2022
2022
22 Mar
2022
2022
11 Mar
2022
2022
Report published
9 Mar
2022
2022
8 Mar
2022
2022
8 Mar
2022
2022
1 Mar
2022
2022
1 Mar
2022
2022
22 Feb
2022
2022
22 Feb
2022
2022
Oral evidence sessions 3 sessions
21 Feb 2022
View on parliament.uk
Oral Evidence
Rt Hon Michael Gove · Department for Levelling Up, Housing and Communities
2 Feb 2022
View on parliament.uk
Oral Evidence
Charles Roe · UK Finance
Cllr Rachel Blake · Local Government Association
Geeta Nada · Metropolitan Thames Valley
James Dalton · Association of British Insurers (ABI)
Kate Henderson · National Housing Federation
Richard Collins · Royal Institution of Chartered Surveyors (RICS)
31 Jan 2022
View on parliament.uk
Oral Evidence
Andrew Bulmer · Institute of Residential Property Management
Ben Beadle · National Residential Landlords' Association
Ben Beadle · National Residential Landlords Association
David O'Leary · Home Builders Federation
John Mulryan · Ballymore
Liam Spender · UK Cladding Action Group
Peter Caplehorn · Construction Products Association
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Seventh Report - Building Safety: Remediation and Funding | HC 1063 | 11 Mar 2022 | 21 | Responded |
Recommendations & Conclusions
21 results
1
Recommendation
Acknowledged
Seventh Report - Building Safety: …
We repeat our previous calls for further mental health support for those affected by the...
We repeat our previous calls for further mental health support for those affected by the building safety crisis.
Government Response
The government recognises the negative effect of the building safety crisis on residents' mental health and is working to ensure people get the help and support they need.
Ministry of Housing, Communities and Local Government
View details
2
Recommendation
Deferred
Seventh Report - Building Safety: …
In the absence of PAS-79 guidance which was withdrawn in August 2021, it is imperative...
In the absence of PAS-79 guidance which was withdrawn in August 2021, it is imperative that the British Standards Institute publish its new standard as soon as possible. We urge the Government to report on its consultation on Personal Emergency …
Read more
Government Response
The government redirects responsibility for PAS guidance to the British Standards Institution and states it will publish its response to the PEEPs consultation alongside the commencement of the Fire Safety Act 2021 in May 2022.
Ministry of Housing, Communities and Local Government
View details
3
Conclusion
Accepted
Seventh Report - Building Safety: …
The Secretary of State said the Government would protect leaseholders from remediation costs, but too...
The Secretary of State said the Government would protect leaseholders from remediation costs, but too many leaseholders will fall through the cracks of the Government’s piecemeal measures. As the Government’s proposals currently stand, the only leaseholders who will not pay …
Read more
Government Response
The government states that they have delivered robust protections for leaseholders and outlines these protections in detail.
Ministry of Housing, Communities and Local Government
View details
4
Conclusion
Accepted
Seventh Report - Building Safety: …
Leaseholders are no more to blame for non-cladding defects than they are for faulty cladding...
Leaseholders are no more to blame for non-cladding defects than they are for faulty cladding on homes they bought in good faith. Buy-to-let landlords are no more to blame than other leaseholders for historic building safety defects, and landing them …
Read more
Government Response
The government states it has already delivered robust protections for leaseholders, reversing the presumption that they are responsible for historical building safety defects.
Ministry of Housing, Communities and Local Government
View details
5
Recommendation
Rejected
Seventh Report - Building Safety: …
Our longstanding view is that leaseholders should not pay a penny to rectify faults not...
Our longstanding view is that leaseholders should not pay a penny to rectify faults not of their doing and to make their homes safe. The amendments tabled to the Building Safety Bill show that the Government does not share that …
Read more
Government Response
The government has rejected the recommendation to scrap the cap on non-cladding costs for leaseholders, citing existing protections for leaseholders.
Ministry of Housing, Communities and Local Government
View details
6
Recommendation
Accepted in Part
Seventh Report - Building Safety: …
We do not agree with the Government’s proposal that only buy-to-let landlords with one other...
We do not agree with the Government’s proposal that only buy-to-let landlords with one other property should be included in the statutory protections for leaseholders. Should the Government continue to treat buy-to-let landlords differently to other leaseholders there are other …
Read more
Government Response
The government extended the number of protected properties from two to three, meaning leaseholders living in their own home and those with up to three UK properties in total will be protected; all leaseholders will be protected where the building owner is connected to the developer.
Ministry of Housing, Communities and Local Government
View details
7
Conclusion
Accepted
Seventh Report - Building Safety: …
Our preferred option would be for the Government to table amendments to the Building Safety...
Our preferred option would be for the Government to table amendments to the Building Safety Bill to ensure that all leaseholders in buildings of any height have statutory protection from future costs for remediating historic building safety defects, both cladding …
Read more
Government Response
The government believes there is no systemic fire safety issue in buildings below 11 metres and that leaseholders in these buildings have access to protections through warranties and redress measures introduced through the Building Safety Act.
Ministry of Housing, Communities and Local Government
View details
8
Recommendation
Rejected
Seventh Report - Building Safety: …
Instead of its piecemeal method of funding remediation according to building height and type of...
Instead of its piecemeal method of funding remediation according to building height and type of defect, the Government should implement our previously recommended Comprehensive Building Safety Fund. The fund should cover the costs of remediating all building safety defects on …
Read more
Government Response
The government rejects the recommendation for a Comprehensive Building Safety Fund, stating it would drive unnecessary remediation works and negatively impact the housing market and does not agree that overseas building owners should not be eligible for remediation funding.
Ministry of Housing, Communities and Local Government
View details
9
Recommendation
Accepted
Seventh Report - Building Safety: …
It is completely unacceptable that, nearly five years after the Grenfell tragedy, the Government still...
It is completely unacceptable that, nearly five years after the Grenfell tragedy, the Government still does not seem to know how many buildings have unsafe cladding or other historic building safety defects. We commend the Secretary of State for finally …
Read more
Government Response
The government states it is committed to publishing information in data releases as soon as it is appropriate to do so and currently publishes monthly data on progress with remediation of unsafe ACM cladding, quarterly updates on Building Safety Fund funding, and monthly data related to the Building Safety Fund.
Ministry of Housing, Communities and Local Government
View details
10
Recommendation
Accepted
Seventh Report - Building Safety: …
We commend the Government for finally taking action to require industry players to remediate and...
We commend the Government for finally taking action to require industry players to remediate and pay for faults of their own doing, and we commend those organisations who have already done so. However, developers and manufacturers are not the only …
Read more
Government Response
The government agrees that those responsible should contribute to remediation costs and will hold construction product manufacturers accountable, using powers in the Building Safety Act and pursuing firms through the courts. They will continue to fund cladding remediation through the Building Safety Fund for buildings above 18 metres and provide funding for 11-18 metre cladding removal through the building safety levy.
Ministry of Housing, Communities and Local Government
View details
11
Recommendation
Rejected
Seventh Report - Building Safety: …
Governments share responsibility for the building safety crisis on account of their regulatory failings.
Governments share responsibility for the building safety crisis on account of their regulatory failings. Everyone involved would instantly have more funds to spend on remediation if the Government played its part by removing VAT on building safety activity, which would …
Read more
Government Response
The government rejects the recommendation to remove VAT on building safety activity, stating that the supply of fire safety equipment is already eligible for VAT relief and that there is no guarantee savings would be passed on to leaseholders and that tax policy is a matter for HM Treasury Ministers.
Ministry of Housing, Communities and Local Government
View details
12
Recommendation
Acknowledged
Seventh Report - Building Safety: …
While insurance premiums for leaseholders have gone up, buildings have become safer as a result...
While insurance premiums for leaseholders have gone up, buildings have become safer as a result of remediation works that have been carried out. The risk to insurers has reduced as a result. Insurers should be required to contribute to funds …
Read more
Government Response
The government has asked the FCA and CMA to review buildings insurance premiums for medium and high-rise blocks of flats and is awaiting their recommendations.
Ministry of Housing, Communities and Local Government
View details
13
Conclusion
Accepted
Seventh Report - Building Safety: …
Product manufacturers found to have been criminally responsible for defective products extending back 30 years...
Product manufacturers found to have been criminally responsible for defective products extending back 30 years must be legally required to automatically replace faulty materials free of charge, including compensating others who have already paid to replace the materials in question.
Read more
Government Response
The government states that the Building Safety Act introduces provisions for construction products companies to contribute to remediation costs, including a new cause of action and powers to make costs contribution orders, and that it is establishing a Recovery Unit to pursue firms that have failed to do the right thing.
Ministry of Housing, Communities and Local Government
View details
14
Recommendation
Accepted
Seventh Report - Building Safety: …
The Government rightly proposes to take strong action against UK firms, however its options against...
The Government rightly proposes to take strong action against UK firms, however its options against overseas firms who have also contributed to the building safety crisis are more limited. The Secretary of State told us that to reveal its options …
Read more
Government Response
The government states they are already engaging with overseas developers and firms to provide a funded solution for the remediation of unsafe cladding. They also point to the powers in the Building Safety Act 2022 that allow the Secretary of State to prohibit developers from commencing new development or obtaining building control sign-off, regardless of ownership structures, and the High Court's power to apply a Building Liability Order to a company based overseas.
Ministry of Housing, Communities and Local Government
View details
15
Recommendation
Rejected
Seventh Report - Building Safety: …
As they stand, the Government’s proposals create a bizarre lucky dip in which some leaseholders...
As they stand, the Government’s proposals create a bizarre lucky dip in which some leaseholders may see their costs capped at £10,000 (£15,000 in London); some, because they have not yet paid for cladding remediation, may pay nothing at all; …
Read more
Government Response
The government states that this information has not been collected systematically and the department does not have plans to collect it from leaseholders.
Ministry of Housing, Communities and Local Government
View details
16
Recommendation
Accepted in Part
Seventh Report - Building Safety: …
The Government should table new amendments to the Building Safety Bill to ensure that, where...
The Government should table new amendments to the Building Safety Bill to ensure that, where the “polluter(s)” still exist, industry players must compensate leaseholders for remediation and interim costs already paid out and must pay for works that have been …
Read more
Government Response
The government will not repay leaseholders for work already undertaken, but states that the Building Safety Act makes it a legal requirement for building owners to exhaust all other routes to fund essential building safety work before passing costs onto leaseholders. It states that caps for leaseholder contributions to non-cladding costs will take into account costs that leaseholders have already incurred.
Ministry of Housing, Communities and Local Government
View details
17
Recommendation
Accepted
Seventh Report - Building Safety: …
The Government must stop pitting the building safety crisis against the housing crisis.
The Government must stop pitting the building safety crisis against the housing crisis. Without access to funds for remediation where social tenants live, residents of social housing are paying the price through the diversion of funds from maintaining their homes …
Read more
Government Response
The Government states that social housing providers have access to the £400m Social Sector ACM Cladding Remediation Fund and were eligible for the Building Safety Fund for other combustible cladding types and can submit claims to the Building Safety Fund for the proportion of eligible works which would otherwise be chargeable to residential leaseholders.
Ministry of Housing, Communities and Local Government
View details
18
Conclusion
Deferred
Seventh Report - Building Safety: …
Social housing providers must be exempt from the Building Safety Levy and any other taxes...
Social housing providers must be exempt from the Building Safety Levy and any other taxes or levies connected to building safety remediation. Social housing providers must be exempt from requirements to fund and undertake necessary remediation on buildings they played …
Read more
Government Response
The government is considering an exemption from the levy for affordable housing and will consult on the levy, with possible exemptions to be considered as part of that consultation before a final decision is made.
Ministry of Housing, Communities and Local Government
View details
19
Recommendation
Accepted
Seventh Report - Building Safety: …
The Government must commit to protecting the Affordable Homes Programme at its current level should...
The Government must commit to protecting the Affordable Homes Programme at its current level should it fail to recover sufficient funds from industry. (Paragraph 51) Guidance on building safety
Government Response
The Government is confident that funding from industry will cover the cost of remediation of unsafe cladding in buildings between 11-18 metres and will not be required to provide additional funding beyond that which it has already committed.
Ministry of Housing, Communities and Local Government
View details
20
Recommendation
Accepted in Part
Seventh Report - Building Safety: …
Given that the introduction of the PAS 9980 will not result in the elimination of...
Given that the introduction of the PAS 9980 will not result in the elimination of EWS1 forms, we remain concerned that uncertainty will remain about the safety of buildings and will continue to stymie those trying to sell their homes. …
Read more
Government Response
The government is committed to a state-backed professional indemnity insurance scheme for EWS1 assessors, is assessing the fire risk assessor market, and has funded RICS to train assessors; but does not directly commit to monitoring and reporting back to the committee on the impact of PAS 9980 or the number of qualified fire risk assessors.
Ministry of Housing, Communities and Local Government
View details
21
Recommendation
Rejected
Seventh Report - Building Safety: …
The evidence we received clearly indicates that it should be the regulator—and not building owners—who...
The evidence we received clearly indicates that it should be the regulator—and not building owners—who decides whether a building needs a fire risk assessment. As such, we recommend that the Building Safety Regulator decides whether a building needs a fire …
Read more
Government Response
The government rejects the recommendation, stating that the Responsible Person under the Fire Safety Order should determine the need and timing of fire risk assessments. The Building Safety Regulator will focus on higher-risk buildings and will assess safety risks including the spread of fire.
Ministry of Housing, Communities and Local Government
View details
Correspondence 10 letters
17 May 2022
To committee
Letter from the Secretary of State to the Chair dated 7 May 2022 concerning building safety remediation
Parliament page
22 Mar 2022
To committee
Letter from the Chair to the Association of British Insurers dated 22 March 2022 concerning building insurance premiums
Parliament page
9 Mar 2022
To committee
Letter from the Association of British Insurers to the Chair dated 8 March 2022 concerning the inquiry into Building Safety: Remediation and Funding
Parliament page
8 Mar 2022
To committee
Letter from G15 to the Chair dated 4 March 2022 following up evidence given before the Committee on 2 February concerning Building Safety
Parliament page
8 Mar 2022
To committee
Letter from the British Standards Institution dated 2 March 2022 concerning the Committee's inquiry into Building Safety: Remediation and Funding
Parliament page
1 Mar 2022
To committee
Letter from the Construction Products Association to the Chair dated 17 February 2022 following up evidence given before the Committee on 31 January concerning Building Safety
Parliament page
1 Mar 2022
To committee
Letter from the National Residential Landlords Association to the Chair dated 22 February 2022 concerning Building Safety: Remediation and Funding
Parliament page
22 Feb 2022
To committee
Letter from Ballymore to the Chair dated 11 February 2022 concerning evidence given before the Committee on 31 January on Building Safety
Parliament page
22 Feb 2022
To committee
Letter from the Secretary of State to the Chair dated 21 February 2022 concerning the UK Shared Prosperity Fund and cladding
Parliament page
22 Feb 2022
To committee
Letter from the Home Builders Federation to the Chair dated 16 February 2022 concerning evidence given before the Committee on 31 January on Building Safety
Parliament page