Developers must pay, says Gove

Developers must pay, says Gove

Gove announces that developers of unsafe blocks who “can afford to pay” will be forced to cover the costs of removing dangerous cladding from buildings.

The housing secretary, Michael Gove, has announced proposed changes to building safety legislation and commented that developers are “continuing to profit” while families in leasehold properties struggle to pay for remediation works.

Clauses have now been added to the Building Safety Bill to ensure that leaseholders in blocks above 11 metres are not responsible for paying for cladding remediation. The clauses cover legal powers to block developers that refuse to pay from further development, by refusing them planning permission and building control sign-off in future.

Where building owners cannot afford to pay, leaseholders’ bills, including non-cladding costs, such as “waking watch” fire patrol charges, will be capped at £15,000 in London and £10,000 outside the capital, including any costs that leaseholders have paid in the past five years.

Courts will also be given powers to close developer loopholes such as the setting up and closing of subsidiary companies, in order to hold developers fully accountable.

The plans also include “cost contribution orders” for manufacturers who have been successfully prosecuted for breaching regulations, forcing them to contribute to the cost of fixing unsafe buildings.

Building owners and landlords will now be able to take legal action against manufacturers that used defective products on homes built in the last 30 years.

Leasehold campaigners have welcomed the news but raised concerns that those affected would not be protected from all non-cladding costs, such as for flammable balconies, combustible insulation, faulty fire breaks, fire patrols and insurance.

The End Our Cladding Scandal Campaign commented to the Times, raising concerns over the costs:

Finally, nearly five long years after the Grenfell tragedy, the penny seems to have dropped with the government that leaseholders are the innocent party and that the polluters who caused this crisis must be the ones to pay to fix it.

Last month the housing secretary said in the Commons that leaseholders should not have to pay to fix buildings they don’t own — but here we see some may have to. How can this be described in any way as fair?

The government’s proposals follow the news that developers have suggested Gove is acting unlawfully, by forcing them to pay for remediation.

It is reported that housebuilder, Persimmon, has taken legal advice from Lord Pannick QC over whether Gove is breaking the law by demanding that developers pay to fix fire-safety problems, or be shut out of the property market. Other housebuilders are also threatening legal action. The Home Builders Federation sent a letter to Gove’s department this week expressing their concerns.

Annie Simmons

Leave a Reply

Your email address will not be published. Required fields are marked *