All 12 contributions to the Building Safety Act 2022 (Ministerial Extracts Only)

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Wed 21st Jul 2021
Building Safety Bill
Commons Chamber

2nd reading & 2nd reading
Wed 19th Jan 2022
Building Safety Bill
Commons Chamber

Report stage & Report stage
Wed 2nd Feb 2022
Building Safety Bill
Lords Chamber

2nd reading & 2nd reading
Mon 21st Feb 2022
Building Safety Bill
Grand Committee

Committee stage & Committee stage
Thu 24th Feb 2022
Mon 28th Feb 2022
Wed 2nd Mar 2022
Tue 29th Mar 2022
Building Safety Bill
Lords Chamber

Lords Hansard - Part 1 & Report stage: Part 1
Tue 29th Mar 2022
Building Safety Bill
Lords Chamber

Lords Hansard - Part 2 & Report stage: Part 2
Mon 4th Apr 2022
Building Safety Bill
Lords Chamber

3rd reading & 3rd reading
Wed 20th Apr 2022
Building Safety Bill
Commons Chamber

Consideration of Lords amendments & Consideration of Lords amendments
Tue 26th Apr 2022
Building Safety Bill
Lords Chamber

Consideration of Commons amendments & Consideration of Commons amendments

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
2nd reading
Wednesday 21st July 2021

(2 years, 8 months ago)

Commons Chamber
Building Safety Act 2022 Read Hansard Text

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Robert Jenrick Portrait The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)
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I beg to move, That the Bill be now read a Second time.

Today marks the next significant step on our path to a robust but proportionate building safety regime that delivers high standards of safety for people’s homes, particularly those that are high rise, while providing reassurance to leaseholders, residents and the market that the vast majority of homes in this country are safe. In February, I announced our five-point plan to support leaseholders and address building safety issues: a plan to remove unsafe cladding where it is necessary and proportionate to do so; to provide certainty to leaseholders in the significant minority of buildings that require works; to make industry pay its fair share for its failures and poor practices and ensure a change in the broader culture and attitude of the industry to quality and safety; to create a world-class building safety regime; and to inject confidence and certainty into this part of the housing market, which has been suffering from market failure, with significant detrimental effects for many homeowners across the land.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will do so in a moment, and I will also give way to my right hon. Friend the Member for North Somerset (Dr Fox).

The Bill delivers on our promise to create that world-class building safety regime, but one that is sensible and proportionate, reflecting the true level of risk that living in these buildings poses and thereby safeguarding the broader interests of homeowners and residents.

Today I will set out the key measures in the Bill and update the House on the progress of our plan, including providing further detail on a written ministerial statement that I have just published, representing a significant intervention by the Government and lenders in response to expert advice on building safety in medium and low-rise blocks of flats and the use of EWS1 forms that I commissioned earlier in the year.

Liam Fox Portrait Dr Fox
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Does my right hon. Friend accept that we have to get away from the term “cladding” as a generic issue and start to focus on genuine fire risk? There is a real danger of us creating unnecessary anxiety and cost where there is little or no increase in fire risk and, what is worse, using taxpayers’ money to remedy non-fire risks that should be the responsibility of the building industry.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I could not agree more with my right hon. Friend. That is exactly the approach that we now need to follow as a country. I hope that the written ministerial statement, which I will come on to explain in a moment, will provide further reassurance to him.

Stephen Doughty Portrait Stephen Doughty
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I note the provisions in the Bill for working with the Welsh Government on the levy, the charges and so on, but it is my understanding—I have checked with them today—that the Secretary of State and the Treasury have yet to confirm to the Welsh Government, despite repeated requests, what the consequential will be of the funding announcement that he made many months ago? My residents are deeply concerned, and until the Welsh Government have clarity on the money they are going to get from the UK Government, they cannot proceed with their own building safety fund to deal with these many issues.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I understand the important point that the hon. Gentleman raises. That is really a matter to be directed to my right hon Friends the Chancellor and the Chief Secretary to the Treasury, which is responsible for the management of the Barnett consequentials. I would just point out—this is not a criticism of the hon. Gentleman, who is understandably standing up for his constituents—that the Welsh Government have yet to bring forward a scheme that would use the funding they have already been given by the United Kingdom Government. I appreciate that they would always like to have further funding, but they have not yet spent the money that the Government have already given them.

After the tragic fire at Grenfell Tower, the Government appointed Dame Judith Hackitt to review the current building safety regime and to recommend reform. Her findings were clear. Too often, regulations and guidance were misunderstood or misinterpreted. There was ambiguity around who is actually responsible for the safety of buildings, with insufficient oversight and enforcement. She called for an overhaul of the system, and her recommendations underpin the Bill before this House. We have tested these measures through consultation with industry, with regulators, with local government and with the public, and we have also taken on board many of the recommendations made following scrutiny of the Bill by the Housing, Communities and Local Government Committee. I am grateful to the Select Committee for the work that—

None Portrait Several hon. Members rose—
- Hansard -

--- Later in debate ---
Eleanor Laing Portrait Madam Deputy Speaker
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I thank the hon. Gentleman for that point of order. Would the Secretary of State care to clarify the matter?

Robert Jenrick Portrait Robert Jenrick
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I would be delighted to, Madam Deputy Speaker. A written ministerial statement will be laid shortly, which is market-sensitive. It is difficult to suggest that there is no scrutiny, because I am here before the House to explain that statement in the context of the wider debate. [Interruption.] If the hon. Member for Manchester Central (Lucy Powell) will give me a few moments, I will be very happy to set out, in the remarks I am about to make, exactly what we have agreed with lenders and the position we have come to.

--- Later in debate ---
Eleanor Laing Portrait Madam Deputy Speaker
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Order. The Secretary of State has explained that the reason for the specific timing of the laying of the statement is that it is market-sensitive. If the Secretary of State says it is market-sensitive then I accept that it is market-sensitive. I trust that it will be available very shortly?

Eleanor Laing Portrait Madam Deputy Speaker
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Very shortly. I am quite sure that we will be able to facilitate Members holding the Secretary of State to account for the contents of that written statement when it becomes available, because he is here in the Chamber. I trust that it will become available before the Secretary of State concludes his opening remarks.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

Absolutely. Thank you, Madam Deputy Speaker. I chose to make the statement directly to the House of Commons and I will come on in a moment to set out the contents of it. The written ministerial statement merely summarises that.

In the actions we have taken and those we take today, we have always prioritised public safety. As I said earlier, the Bill before us will create a strong regulatory regime for all new high-rise buildings. However, it is also important that we put the risk of a fire, and in particular the risk of a fatal fire, into context. It is very low for all buildings of all heights. Dwelling fires have reduced by more than a quarter over the last decade and are now at an all-time low. It is right that we address safety issues where they exist and are a threat to life, but we must do so in a proportionate way guided by expert advice. That is why, through the Bill, we are drawing a very clear line at 18 metres for the enhanced regulatory regime. That is on the advice of building and fire experts that those are the buildings that pose the greatest safety risks in the event of fire spread or structural failure, albeit even there the risk should not be overstated given the low occurrence of fires and the even lower occurrence of fatalities. We are also including hospitals and care homes that meet the height threshold during their design and construction.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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The Secretary of State mentioned discussions with the industry. What can he say to companies in the Glasgow South West constituency, such as Bell Building Projects Ltd, that cannot get the appropriate indemnity insurance because insurance companies will not provide it? That company specialises in cladding. What discussions has the Secretary of State had with insurance companies to enable that company to do cladding across the UK?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I have been working intensively with those in the insurance sector and it is incumbent on them to bring forward products. We do not believe that it is the role of the state to step in and correct the market failure in its totality, but we are bringing forward a product—I will say something more about this later in my remarks—with particular reference to professional indemnity insurance for those assessors who are conducting EWS1 forms or equivalent. That is designed to give them the confidence to take the most proportionate risk-based approach to those assessments, which some are not able to do today.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I spoke to the Secretary of State beforehand. The charity Electrical Safety First, which promotes sustainable electrical safety, was brought to my attention, and probably to that of a few others in this House. It states that 54% of electrical fires are caused by an electrical source of ignition. Has the Secretary of State had the chance to speak to the Electrical Safety First charity to ensure safety is paramount in the Bill? If not, could he come back to me on that, please?

Robert Jenrick Portrait Robert Jenrick
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I would be happy to speak to the organisation the hon. Member refers to or ensure that my officials do so if they have not done so already. Of course, we take the risk of electrical fires very seriously, and the Government have taken a number of steps, particularly in the private rental sector, to ensure higher standards than there are today.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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Will the Secretary of State give way?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will give way to the right hon. Gentleman, and then I must make some progress.

Hilary Benn Portrait Hilary Benn
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I am extremely grateful to the Secretary of State for giving way. He made the point a moment ago that the risk of a fatal fire is very low. Can he therefore explain why thousands and thousands of leaseholders are paying for expensive waking watches, having been told by their local fire services that, unless there is a waking watch, the building will be closed down and all of them will have to leave? There is a clear contradiction between those two positions.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I think the right hon Gentleman makes an important point, and that is one element of the market failure we are seeing today. Waking watches are being used excessively. They can be rip-offs and, in many cases, they can be replaced by modern fire alarms. That is why I created the waking watch relief fund last year, which is assisting with the issue, but has not closed it down entirely. The National Fire Chiefs Council has now produced further guidance, which essentially says that waking watches should be used only in the most exceptional of circumstances, and where they are used, they should be used only for short periods. My right hon. Friend the Home Secretary is taking forward that work with fire and rescue services, and I would like to see most waking watches, barring the most exceptional of circumstances, brought to a close as quickly as possible.

The Bill will deliver improvements across the entire built environment. It will strengthen oversight and protections for residents in high-rise buildings. It will give those residents a greater say and will toughen sanctions against those who threaten safety. Its focus on risk will help owners to manage their buildings better, while giving the home building industry the clear, proportionate framework it needs to deliver more high-quality homes.

Karen Buck Portrait Ms Karen Buck (Westminster North) (Lab)
- Parliament Live - Hansard - - - Excerpts

Will the Secretary of State give way?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will make some progress, if I may, but I will return to the hon. Lady.

While strengthening fire safety requirements in all premises regulated by the Regulatory Reform (Fire Safety) Order 2005 and improving competence and oversight generally, the Bill rightly focuses the new more stringent requirements on those buildings and those issues that pose the greatest risk. It provides a framework to ensure that, during design and construction, defined duty holders have clear responsibilities and that compliance with building regulations occurs. They will have to clear a series of hard stops through the new gateway system for in-scope buildings. In occupation, every building in scope will have an identified accountable person with clear responsibility for safety matters. Importantly, it will be a criminal offence not to carry out these duties effectively, punishable by an unlimited fine and up to two years in prison.

If we are truly to build a world-class regime, then residents must be at its heart. That is why, as well as championing social housing residents through the social housing charter that I created last year, we are giving residents a stronger voice in the system through the Bill, making it easier for them to seek redress and to have their voices heard. The Bill will require an accountable person for a high-rise residential building to engage with their residents and establish a formal complaints process for residents to raise concerns.

These measures are strong, but fair, and they will be overseen by the new building safety regulator within the Health and Safety Executive. The regulator will be equipped with robust powers to crack down on substandard practices, and as I said earlier, it will ensure that proportionality is embedded within its operations.

Dame Judith’s review pointed to an industry that needed significant culture and regulatory change to be fit for purpose, and I am sure I am not the only Member who has been shocked by the recent testimony at the Grenfell inquiry. This has exposed a corrosive culture of corner cutting and at times a cavalier attitude to building safety. We await the findings of the inquiry, and indeed whether criminal proceedings will follow.

The Bill creates powers to strengthen regulatory oversight for firms that manufacture and sell construction products, overseen by the new national regulator for construction products. Crucially, the Bill will have powers to remove unsafe construction products from the market swiftly and to take action against those who break the rules.

Our new regime will help those living in high-rise residential buildings to raise these issues, but we need to expand legal safeguards for everybody, regardless of the type of property they live in. We are strengthening redress for people buying a new build home, through provisions for the new homes ombudsman, which will provide dispute resolution and resolve complaints involving buyers and developers. As Members of Parliament, we all know of examples of shoddy workmanship by developers and of cases where complaints about things ranging from snagging to much more serious issues have not been properly addressed. There will now be a forum where these issues can be settled and consumers provided with the outcome they deserve when making the biggest investment in their lives.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Parliament Live - Hansard - - - Excerpts

I thank the Secretary of State for the kind words he said about the Select Committee’s scrutiny of the legislation. On the new homes ombudsman, many of us have been shocked by what we have seen from developers of new housing and the cavalier attitude they have towards their developments. Will he confirm that the new homes ombudsman will have the powers to deal with the appalling practice of non-disclosure agreements which some people have been asked to sign in order to get builders who have not built their homes properly to put that right? Will he consider going a step further and requiring the builders of new homes which have faults to put right all similar faults in other homes, just as a car manufacturer would have to do?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

Those are two important points. I would like to see the new homes ombudsman be able to take the kind of action that the hon. Gentleman describes. I will have to revert to him on whether the powers exactly allow that. If they do not, that is the kind of issue we should progress during the passage of the Bill. I give way to the hon. Member for Westminster North (Ms Buck) and apologise for keeping her waiting.

Karen Buck Portrait Ms Buck
- Parliament Live - Hansard - - - Excerpts

Returning to the issue of waking watch and risk, London now has 900 waking watches, with the number having risen significantly. The London Fire Brigade says that there remain a number of buildings under 18 metres, or seven storeys, that in its view present equal or greater risks than those currently in scope. Will the Secretary of State tell us whether he believes that the LFB is wrong?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

As I understand it—I stand to be corrected if I have the wrong information—the 900 figure that the hon. Lady cites was a misinterpretation of the figures that were released earlier. None the less, the actual number is significant, albeit fewer than 900. We want to see waking watches used only in cases where they are absolutely necessary. The recent statement from the National Fire Chiefs Council has suggested that they are being used too often and that they can be reduced significantly. If she has constituents in that situation, as I am sure she does, in the first instance I would recommend that they make use of the waking watch relief fund to install a fire alarm, which can cut the costs very considerably.

This Bill takes an unusual step of retrospectively extending the period during which compensation for defective premises can be claimed—it more than doubles the current period, from six to 15 years. This significant step forward was requested and campaigned for by groups impacted by the cladding issue. We are going further, expanding the scope of the work for which compensation can be claimed also to include future major renovation work to buildings. These measures will not help everyone, but they do provide a step change in redress for raising issues. I hope that, in time, builders will extend their warranties to cover this period and provide the maximum amount of confidence to house purchasers.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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While my right hon. Friend is considering this point about the extension, will he please consider the point made by Robert Ayling, at Grosvenor Waterside, that the Building Act 1984 provision should be extended to six years after the plaintiff is aware of the defect? I am not asking for an instant answer, but such a measure would help to deal with the current situation very well.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will give that further thought and revert to my hon. Friend on it.

It was clear after the fire at Grenfell Tower that action was required to address safety concerns with respect to existing buildings, and my predecessors rightly took a safety-first approach, as I have also tried to do. We have provided expert advice and accelerated inspections of all high-rise buildings, and that work continues, with substantial progress having been made by the National Fire Chiefs Council on the building risk review, which is likely to be concluded by the end of the year. We have provided £5 billion in grant funding to carry out vital remediation work targeted at the buildings we know to be at the greatest risk from fire spread—those over 18 metres—and we have banned the use of combustible materials on the external walls of high-rise residential buildings, providing industry with a clear standard for the construction of new builds.

Some 474 buildings have been identified as having Grenfell-type ACM—aluminium composite material—cladding. We are now well on the way to remediating all of those buildings. Over 95% of the buildings identified at the beginning of last year have either completed or started remediation work; 70% of those have now been fully remediated, and that is rising every week. That means that around 16,000 homes have been fully remediated of unsafe ACM cladding, an increase of around 4,000 since the end of last year. Despite many building owners failing to provide adequate basic information, almost 700 buildings with other types of unsafe cladding are proceeding with a full application to the building safety fund. We have already allocated £540 million, which means that owners of 60,000 homes within high-rise blocks can be reassured that their remediation will be fully funded.

We currently forecast that over 1,000 buildings with non-ACM unsafe cladding will receive support of the same form through the building safety fund, providing a guide to the cohort of high-rise buildings where remediation is actually required. That is being progressed by a dedicated team in my Department and our two delivery partners, Homes England and the Greater London Authority. The Government have played their part: the unprecedented £5.1 billion we are providing gives assurance to leaseholders in eligible buildings that unsafe cladding on their blocks will be replaced at no cost to them.

I know that there will be strong feelings across the House about industry needing to fix and pay its fair share for problems that is has helped to cause. I recognise that some house builders have stepped up, too, thus far committing over £500 million for remediation since my statement in February. But some have not stepped up, or at least not in the way I expect them to. Ballymore, for example, has yet to commit to fully funding the remediation of its buildings.

The industry needs to go further. That is why we are introducing a new levy on high-rise residential buildings. We have published today a consultation document on the levy and I welcome views from all interested parties on its design. The levy will sit alongside a tax being developed by the Chancellor to raise at least £2 billion to contribute to the costs of historical remediation. This Bill also introduces the building safety charge to provide residents with clarity and certainty on the costs of building works, and we have listened and ensured that that charge only includes the cost of management of building safety in their building.

As I said at the outset, in bringing forward this new building safety regime we need to take a sensible, proportionate approach driven by expert advice. The Bill ensures that the building safety regulator will regulate in line with best practice principles, be proportionate and transparent, and ensure that the interests of leaseholders are protected. In 2020, only 9% of fires were in flats of four storeys or more. In 2019-20, only 7% of fires spread beyond the room of origin in such buildings. And, while every death is of course tragic, thankfully only 10 people died in 2020 as a result of a dwelling fire in flats of four storeys or more. We strongly believe that our proportionate approach is in line with these facts, ensuring that remediation works are undertaken only where absolutely required, and leaseholders should not be landed with bills for unnecessary work.

Unfortunately, that is not the position today and we need a significant reset. Too many people living in lower and medium-rise buildings have told us of feeling trapped in their properties, held back from selling their homes because of excessive caution in the lending, surveying, insurance and fire risk assessment markets. Understandably, this has caused residents to worry over safety and has led to unnecessary costs. I want to be clear that the vast majority of residents in all homes in this country, including blocks of flats, should not feel unsafe. Driven by these concerns, earlier this year I asked a small group of experts on fire safety to consider the evidence and advise me on the steps that should be taken to ensure a proportionate, risk-based approach to fire safety in blocks of flats. I thank them for their time and their expert advice, which I will publish later today.

The key finding of the experts’ advice is clear: we cannot and should not presume systemic risk of fire in blocks of flats. I quoted some of the statistics earlier, but let me repeat them. Dwelling fires are at the lowest point that they have been since we started to collect comparable statistics in 1981, despite the fact that in 2020 people spent significantly greater amounts of time in their homes as a result of covid restrictions. On that basis, the expert advice includes five significant recommendations to correct the disproportionate reaction that we have seen in some parts of the market. First, EWS1 forms should not be a requirement on buildings of less than 18 metres.

Robert Jenrick Portrait Robert Jenrick
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If I may, I will finish this point. I am also conscious of time, as many Members want to contribute to the debate.

Secondly, in the small number of cases where there are known to be concerns, these should be addressed primarily through risk management and mitigation.

Thirdly, there should be a clear route for residents and leaseholders to challenge costly remediation work, and to seek assurance that proposals are indeed proportionate and cost-effective.

Fourthly, the Government should work with the shadow building safety regulator to consider how to implement an audit process to check that fire risk assessments are following guidelines and not perpetuating the risk aversion that we are witnessing and which in some instances are taking unnecessary costs to leaseholders.

Finally, fire risk assessors and lenders should not presume that there is significant risk to life unless there is credible evidence to support that. This will ensure that they only respond to the evidence and adopt a far more proportionate and balanced approach.

This advice is supported by the National Fire Chiefs Council and the Institution of Fire Engineers. The Government support and will act on the recommendations. Delivering real change for leaseholders requires a concerted effort from all those actively involved in the market. The Government have in recent weeks been working intensively with lenders, valuers and fire experts in this regard. We welcome the expert advice and support the position that EWS1s should not be needed for buildings of less than 18 metres.

I am pleased that all major lenders have today welcomed this advice, with Barclays, HSBC, Lloyds and others agreeing that the expert advice and Government statement should pave the way for EWS1 forms no longer to be required for buildings below 18 metres, which will further unlock the housing market.

Robert Jenrick Portrait Robert Jenrick
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I will not.

I am extremely grateful to those in industry who have already engaged and shown the necessary leadership. This is a highly complex issue, but the Prime Minister and I expect that the appropriate next steps will be taken expediently. The market is shaped not only by the Government but by lenders, the Royal Institution of Chartered Surveyors, the fire and rescue service, and fire experts. All of us need to act to achieve a market correction and relieve the pressure on homeowners. There can be no bystanders in this action. I am hopeful that other lenders will follow soon, and that RICS will rapidly reflect on the expert advice and update its guidance accordingly. This concerted cross-market approach will open up the housing market for the remaining affected leaseholders.

Stephen Doughty Portrait Stephen Doughty
- Parliament Live - Hansard - - - Excerpts

Will the Secretary of State give way?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will not because I need to conclude my remarks now.

With the Health and Safety Executive, we will explore ways to deliver a fire risk assessment—

Stephen Doughty Portrait Stephen Doughty
- Parliament Live - Hansard - - - Excerpts

On a point of order, Madam Deputy Speaker. I regret to have to raise this matter as a point of order, but the written statement that the Secretary of State has laid makes no clarification about whether this approach applies to England only, to England and Wales, or indeed to the whole UK. Given that it is UK-wide and market-sensitive—there are many leaseholders who will be concerned in all parts of the UK—and given that it applies to UK-wide lenders, with significant financial implications, how can I get an answer from the Secretary of State for the leaseholders who will be watching this debate in other parts of the United Kingdom? It would be very helpful if the Secretary of State could just confirm that point or if he would take a simple intervention to clarify it.

--- Later in debate ---
Eleanor Laing Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

I thank the hon. Gentleman for that point of order and I reiterate it. I wonder whether the House authorities have done that—I do not know but I ask them to do so immediately.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

Thank you, Madam Deputy Speaker—

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I shall come to the hon. Gentleman, but in answer to the question posed by the hon. Member for Cardiff South and Penarth (Stephen Doughty), my domain as Secretary of State on these matters is within England, but of course the lenders will apply practices at their discretion throughout the whole United Kingdom, so I think his question is probably better directed to the lenders who, following this announcement, will no doubt set out in the coming days how they intend to amend their lending practices in different parts of the United Kingdom. I do not think it is for me to explain the lending practices that they choose to adopt, other than in respect of the quotations that the lenders have given, which I believe will be published later today.

I shall take an intervention from the hon. Member for Sheffield South East (Mr Betts) and then, if I may, I will conclude my remarks.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

This is a very significant statement, and it is difficult to read it quickly and grasp it, but it says that EWS1 forms

“should not be needed for buildings less than 18m. This position is a significant step and one supported by the National Fire Chiefs Council and the Institute of Fire Engineers.”

That is a significant step, so will the Secretary of State explain, if the form is not necessary for those buildings, whether he is saying that, in effect, apart from cladding removal, significant remediation works are not necessary on buildings below 18 metres? Is that what the Government are saying? Because that is a major step in this debate and the House needs a lot more explanation.

Robert Jenrick Portrait Robert Jenrick
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The expert advice that I commissioned has concluded that there is no systemic risk to life from purpose-built flats in this country and in particular—this was the question that I asked of the experts—from those flats that are low and medium-rise, meaning those of 11 to 18 metres. The experts’ advice, following on from that, is that they do not see a need for lenders to ask for EWS1 forms in the ordinary course of business. They also recommend that fire risk assessments are conducted in the usual compliance cycle, rather than on demand, in order to satisfy a market transaction such as purchasing or remortgaging a property. They do not conclude—as one would not expect them to do—that all buildings below 18 metres are safe. One can never say that, and there will be buildings that need remediation below that level, but because there is no systemic risk and the number of buildings is likely to be very small, it is not appropriate, in their opinion, which the Government have accepted, that lenders and other parties in the market should act as if there was a widespread and systemic issue. That is a subtle but important change of tone and one that I hope will lead—the initial support of the lenders suggests that this will happen—to a significantly different housing market.

Meg Hillier Portrait Meg Hillier
- Parliament Live - Hansard - - - Excerpts

Will the Secretary of State give way?

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I will, and then I would like to conclude my remarks.

Meg Hillier Portrait Meg Hillier
- Parliament Live - Hansard - - - Excerpts

On first reading, there are bits of this written ministerial statement that are very welcome, but it raises many questions. I put on record my regret that we have only had this chance to digest it. The Public Accounts Committee and our sister Committee, the Housing, Communities and Local Government Committee, have been looking at this issue, along with hon. Members in this House for several years. We have been making recommendations along these lines. Our constituents have been paying for safety works and dealing with the fear and anguish created by the very issues that our Committees have raised as problems. What the Secretary of State has come to the House with is a start, but why so late, when this issue has been raised by Members of this House and the Select Committee corridor for some time? I am just puzzled by the late timing.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

I do not agree with the hon. Lady in this regard. In the immediate aftermath of the Grenfell tragedy, advice was published by Government that sought to provide information to the market where there was a significant absence of expert opinion. The market in the years since then has reacted and taken what I have described as a safety-first approach.

In more recent times we have seen—Dame Judith Hackitt, our expert adviser, has used these words herself recently—extreme risk aversion, and that is leading to fear and anxiety above all for members of the public who have a sense of risk with respect to their homes that is not borne out by the evidence in terms of the number of fires or the likelihood of dying in a fire in a high-rise or a purpose-built flat. Secondly, that risk aversion is leading to other market participants, whether lenders, insurers, surveyors or assessors, seeking remediation of those buildings over and above what might seem to be absolutely necessary to achieve an acceptable level of life safety.

Earlier this year, as I have set out in my remarks today—Members will see this in the written ministerial statement, which merely summarises what I have already said to the House directly in somewhat more detail, which is why I chose to say it to the House directly, rather than simply via written ministerial statement—I asked a series of experts to conduct a serious review and analysis of this issue and to present their findings to me. That is what they have done today, and we are publishing them later. We have chosen to accept those and have worked very closely with as many market participants as we could, bearing in mind the market sensitivity of the issue.

I am pleased that a large number of those organisations have welcomed this step and have chosen in one form or another to support it. I do not want to overstate that, because this is a highly complex market and the Government are merely one player within it. It will now require all market participants to think carefully about what the consequences are for their own practices and organisations. I hope that in time they will strongly support the Government’s position, and that this will lead to a significant market correction to the benefit of all our constituents and the whole country.

I will conclude my remarks simply by noting a few other points within the written ministerial statement. With the Health and Safety Executive, we will explore ways to deliver a fire risk assessment audit process that ensures assessments are carried out in a risk-proportionate way, avoiding unnecessary and costly remediation works where they are absolutely not needed. We will explore options to provide a clear route for residents and leaseholders to challenge costly remediation work. That will be progressed alongside the steps we are taking to ensure a proportionate response to risk is embedded in the market, including: developing guidelines for fire risk assessors, such as, and principally, PAS 9980 and the withdrawal of the consolidated advice note; and launching a Government-backed professional indemnity insurance scheme for qualified professionals conducting external wall system fire risk assessments to help ensure there is sufficient capacity in the market to allow EWS1 forms to be completed in a timely manner, where they are necessary, and that those conducting them feel the confidence and security to be able to do so in the most sensible and proportionate manner.

Taken together, all these measures should provide a measure of reassurance to the market and to those living in blocks of flats of any height. I am hopeful that they will have a significant impact, but of course much depends on the willingness of the other market participants to show leadership and commitment and to work together through these complex challenges.

The fire at Grenfell tower was a terrible tragedy, and those who lost loved ones remain in our thoughts. The issues that became clear following the tragedy are multifaceted, and so our response must be as well. It is clear that the actions we have taken and will continue to take, and the world-class building safety regime delivered by this Bill, should deliver a robust but proportionate regime, meaning that people in this country should never feel unsafe in their home.

I commend this Bill to the House.

None Portrait Several hon. Members rose—
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--- Later in debate ---
Lucy Powell Portrait Lucy Powell
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Well, it is not actually legislation. The hon. Lady is wrong about that. Yes, of course, we would welcome that. The crucial words that she said there were “should not”, not would not, and that is a different thing entirely. We still need to know on what terms that will be enforced, what recourse would a leaseholder have, and to whom, and what teeth will they have in order to put that into effect. Is it legislation? [Interruption.] I think the Secretary of State is trying to tell me that it is going to be legislation. [Interruption.] Oh, it is just down to the lenders. I will give way to the right hon. Gentleman if he wants to explain.

Robert Jenrick Portrait Robert Jenrick
- Parliament Live - Hansard - - - Excerpts

The hon. Lady seems to misunderstand what an EWS1 form is. An EWS1 form is a product of the lenders and the Royal Institute of Chartered Surveyors. It is not the law and neither is it a product created by the Government.

Lucy Powell Portrait Lucy Powell
- Hansard - - - Excerpts

I am fully aware what an EWS1 form is, thank you. Its scope and its effect came about from the advice note that the Government issued in January 2020. If it is a matter for the lenders, what recourse do leaseholders have? There is nothing in the Secretary of State’s statement about recourse and accountability and where the buck stops. That is my central argument here. In the vacuum of leadership, everybody from insurers to mortgage lenders, risk assessors and others are too concerned about their liability, leaving thousands of buildings with endless fire safety requirements, some of which are potentially life threatening, but others are an unnecessary symptom of this crisis in confidence. Who is it that says which is which? Where does that sit? With whom does that lie? The Government cannot leave this to industry and the private sector to sort out. The market cannot sort this, because it is completely broken—the Secretary of State said today that the market was completely broken as if this was news to him. Yet he says that he will not intervene in that broken market. The power is with him to intervene if he wanted to. That is why we have been calling for a building works agency. I am talking about a crack team of engineers and experts appointed by the Government, going block by block, assessing the real fire risk and what remediation works are absolutely necessary; commissioning and funding those works from the building safety fund; and then, crucially, certifying the building as safe and sellable. This rigorous approach would also keep costs down, and the agency can then go after those responsible for costs. It has been done before in Australia and it can be done again here—if the Secretary of State was prepared to step up, lead and intervene rather than leave it to the broken market he describes.

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Christopher Pincher Portrait The Minister for Housing (Christopher Pincher) [V]
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This is the first and I trust the last time that I will have to speak from the virtual Dispatch Box, but I am afraid that self-isolation rules allow me no other option.

I begin by thanking all right hon. and hon. Members across the House for their contributions to this debate. I know that this is a highly emotive subject, and understandably so. I particularly want to pay tribute to my hon. Friends the Members for Blackpool North and Cleveleys (Paul Maynard), for Harrow East (Bob Blackman), for Bolton North East (Mark Logan), for Waveney (Peter Aldous), of course for Kensington (Felicity Buchan), and for Dudley North (Marco Longhi), my right hon. Friend the Member for Basingstoke (Mrs Miller) and the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), for their thoughtful contributions.

Mercifully, as my right hon. Friend the Secretary of State said in his introduction to the debate, the spread of fire in high-rise buildings is rare, and it is becoming more rare, but as he also made clear, it is all too clear what can happen when those responsible for designing, building and managing those buildings fail—tragedies such as Grenfell can happen. That is why it is this Government’s absolute priority to make sure that such a tragedy never happens again. The contributions from across the House firmly reiterate just how important it is to pass this Bill to restore confidence—confidence among residents in their own safety and confidence in the wider housing market. Safety is our paramount concern, and I can assure the hon. Member for Strangford (Jim Shannon) of that.

We see this as a landmark Bill. It represents the greatest improvement to building and fire safety in a generation. It is flagship legislation that will spearhead our wider safety programme to ensure the proportionate management of risk in buildings. It will require building owners to manage safety risks to the same high standards as the best do—it will be a system where there are clear safety responsibilities for those responsible for the design, construction, completion and occupation of high-rise buildings, where they must demonstrate that they have effective and proportionate measures in place to meet those responsibilities, and where they are accountable to the regulator and to their residents.

A number of colleagues across the House have made some very important points and, in the short time that I have, I would like to address a number of them. The first is proportionality, which was discussed by my hon. Friends the Members for Southampton, Itchen (Royston Smith), for Bassetlaw (Brendan Clarke-Smith) and for Orpington (Gareth Bacon), to name three. It is hugely important that we take a proportionate approach to the safety of tall buildings and all buildings. The industry must take note that risk aversion is causing unnecessary financial burdens to homeowners. Remediation works should only ever be undertaken where absolutely necessary. We must not spend taxpayers’ money where it is unnecessary to do so, or ask hard-pressed leaseholders to pay for works that do not need to be done. Our Bill takes a proportionate approach. It rightly focuses on mitigating and managing risk and targeting activity only where action is needed.

The new building safety regulator is being established in the Health and Safety Executive, precisely because of its experience overseeing safety case regimes and its record of delivering robust yet proportionate regulation. The requirements of the Bill will help to ensure that proportionality is embedded in its operations.

Building owners and managers, along with lenders and insurers, need to ensure that they, too, take a proportionate approach to risk in blocks of flats whatever the height. In line with the expert evidence that we have published today, EWS1 forms should not be a requirement on buildings below 18 metres. Lower-rise blocks should not need them, and lenders should not ask for them. The consolidated advice note, which was born out of the need for safety information in the aftermath of the Grenfell fire, will now be retired.

Any concerns that do exist about existing buildings should be addressed primarily through risk management and mitigation. For many thousands of people, the “computer says no” approach to risk and valuation has been hugely unfair and distressing. It must become much more proportionate. That is what our measures are intended to do—to get the market moving again, as my hon. Friend the Member for Beaconsfield (Joy Morrissey) called for. I hope that they will also address some of the concerns raised by my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning).

I want also to assure the House that the Bill in no way absolves the sector from responsibility for paying its way. Indeed, it will place more and greater duties and responsibilities on developers, construction companies, building owners and managers than ever before, embedding the principles of safe design and construction right from a building’s inception. The new regulator will have the skills and resources to pursue those who refuse to meet their responsibilities. We will strengthen criminal penalties throughout the Bill, making offences imprisonable for up to two years, and making directors and managers criminally liable if they decide that their companies should act unlawfully.

Those who can pay must pay. Through the Bill, we will further cement developers’ contributions to the cost of remediation, as well as increase the ability of building owners and leaseholders to seek redress. Specifically, part 3 of the Bill contains a provision to introduce a levy, which will apply to high-rise residential buildings and will be paid by developers. That complements the residential property developer tax that the Chancellor will bring forward. Together, those will contribute more than £2 billion for remediation.

I also want to respond to concerns raised by Members including my hon. Friend the Member for Bolton North East regarding the right of homeowners to seek redress. The Bill will give millions of homeowners new rights to seek redress for shoddy workmanship, extending the period during which they can claim from six years to 15 years. It will empower building owners, leaseholders and homeowners to take legal action, clamping down on rogue developers and their owners.

I urge all who have fallen victim to shoddy work to use the newly extended liability period to consider whether litigation is right for them and to explore who, or which group of them, can best take action. I trust that the Bill will also encourage developers and freeholders, aware of the new additional rights of their customers, to act responsibly and quickly to deal with concerns before they reach the courts.

As well as redress, the Bill will provide residents with a greater voice. It will strengthen the voice of residents and leaseholders through a statutory residents panel, while a formal complaints process will give residents the confidence to raise issues and escalate them where needed, including to the building safety regulator.

I am conscious that it is nearly 7 o’clock. I am conscious, too, that there will be plenty of opportunity in other debates in the House, in Committee and on Report to debate the Government’s proposals further. So let me conclude by saying that we are leaving no stone unturned in our pursuit of a regime that is both proportionate and comprehensive. We have tested, we have consulted, we have analysed and we have done it all at considerable length, and we have now produced a Bill that I believe we should all support—a Bill that will confront the building safety issues that no Government have dared to tackled before, and a Bill that will force industry to take collective responsibility for the safety defects that they have created and support a change in culture so that residents’ concerns are listened to, problems are identified and dealt with early, and tragedies such as Grenfell never happen again.

I thank everyone who has taken part in the debate and all those who have contributed to the development of the Bill. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

BUILDING SAFETY BILL (PROGRAMME)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Building Safety Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 26 October 2021.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(David T. C. Davies.)

Question agreed to.

BUILDING SAFETY BILL (MONEY)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Building Safety Bill, it is expedient to authorise the payment out of money provided by Parliament of:

(a) any expenditure incurred under or by virtue of the Act by the Secretary of State, and

(b) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(David T. C. Davies.)

Question agreed to.

BUILDING SAFETY BILL (WAYS AND MEANS)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Building Safety Bill, it is expedient to authorise:

(1) the charging of fees, charges and levies under or by virtue of the Act; and

(2) the payment of sums into the Consolidated Fund.—(David T. C. Davies.)

Question agreed to.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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I will now suspend the House, and suspension will be followed by a statement by Victoria Atkins on the strategy for tackling violence against women and girls.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Report stage
Wednesday 19th January 2022

(2 years, 2 months ago)

Commons Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: Consideration of Bill Amendments as at 19 January 2022 - large print - (19 Jan 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Christopher Pincher Portrait The Minister for Housing (Christopher Pincher)
- Parliament Live - Hansard - - - Excerpts

I beg to move, That the clause be read a Second time.

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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With this it will be convenient to discuss the following:

Government new clause 21—Amendment of the Government of Wales Act 2006.

Government new clause 22—Architects: Appeals Committee.

New clause 3—Remediation costs and Building Works Agency

“(1) The remediation costs condition applies where a landlord has carried out any fire safety works to an applicable building in consequence of any provision, duty or guidance arising from—

(a) the Housing Act 2004;

(b) the Regulatory Reform (Fire Safety Order) 2005;

(c) the Building Safety Act 2021;

(d) any direction, recommendation or suggestion of any public authority or regulatory body;

(e) such other circumstances or enactment as the Secretary of State may prescribe by regulations or in accordance with subsection (9), below.

(2) If the remediation costs condition is met, then the costs incurred by the landlord in connection with those matters may not be the subject of a demand for payment of service charges, administration charges or any other charge permitted or authorised by any provision of any long lease.

(3) Any demand for payment which contravenes this section shall be of no force or effect and will have no validity in law.

(4) Any covenant or agreement, whether contained in a lease or in an agreement collateral to such a lease, is void in so far as it purports to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant refusing, failing or declining to make a payment to which this section applies.

(5) The remediation costs condition applies to demands for payment before the landlord incurs the costs in the same way as it applies to demands for payment made after the costs have been incurred.

(6) The remediation costs condition does not apply where the landlord is a company in which the majority of the shares are held by leaseholders or where the landlord is an RTM company.

(7) Within six months of the day on which this section comes into force, the Secretary of State must create an agency referred to as the Building Works Agency.

(8) The purpose of the Building Works Agency shall be to administer a programme of cladding remediation and other building safety works, including—

(a) overseeing an audit of cladding, insulation and other building safety issues in buildings over two storeys;

(b) prioritising audited buildings for remediation based on risk;

(c) determining the granting or refusal of grant funding for cladding remediation work;

(d) monitoring progress of remediation work and enforce remediation work where appropriate;

(e) determining buildings to be safe once remediation work has been completed;

(f) seeking to recover costs of remediation where appropriate from responsible parties; and

(g) providing support, information and advice for owners of buildings during the remediation process.

(9) The Building Works Agency shall also have power to recommend that the Secretary of State exercises his power under clause (1)(e) in such terms and to such extent that it sees fit. If such a recommendation is made, the Secretary of State must, within 28 days, either—

(a) accept it and exercise the power under clause 1(e) within 28 days of acceptance; or

(b) reject it and, within 28 days of rejection, lay before Parliament a report setting out the reasons for rejection.

(10) In this section—

(a) ‘fire safety works’ means any work or service carried out for the purpose of eradicating or mitigating (whether permanently or temporarily) any risk associated with the spread of fire, the structural integrity of the building or the ability of people to evacuate the building;

(b) ‘applicable building’ means a building subject to one or more long leases on the day on which section comes into force;

(c) ‘service charge’ has the meaning given by s.18, Landlord and Tenant Act 1985;

(d) ‘administration charge’ has the meaning given by Schedule 11, Commonhold and Leasehold Reform Act 2002;

(e) ‘long lease’ has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

(f) ‘RTM company’ has the meaning given by section 113 of the Commonhold and Leasehold Reform Act 2002.

(11) This section comes into force on the day on which this Act is passed.”

New clause 4—Building Safety remediation and works: zero-rating for Value Added Tax purposes

“(1) The Value Added Tax Act 1994 is amended as follows.

(2) In section 35(1A)(b) at the end leave out ‘and’.

(3) In subsection 35(1A)(c) leave out the final full stop and insert ‘, and’.

(4) After subsection 35(1A)(c) insert—

‘(d) building safety remediation or building safety works of the type described in item 4A of the table in paragraph 1 of Group 5 of Schedule 8 to this Act.’

(5) After subsection 35(2) insert—

‘(2A) For the purposes of subsection (2), the Commissioners shall make regulations providing for a period of not less than 6 months to be open for claims for repayment of VAT in relation to supplies under subsection 35(1A)(d) where the date of supply is between 14 June 2017 and 31 July 2022.’

(6) In the table at paragraph 1 of Group 5 of Schedule 8, after existing item 4 insert new item 4A—

‘The supply in the course of—

(a) remediation of any defect in any external wall of any building containing two or more residential dwellings; or

(b) remediation of any defect in any attachment to any external wall of any building containing two or more residential dwellings; or

(c) the installation of a new or upgraded communal fire alarm system, other than to replace a communal system which has reached the end of its working life, or a communal system which has broken down as a result of failure to make reasonable repairs over time; or

(d) remediation of any internal or external defect other than a defect described in paragraphs (a), (b) or (c); or

(e) any building safety works carried out by an accountable person under section 86 of the Building Safety Act 2021

of any services related to the remediation.’

(7) In the table at paragraph 1 of Group 5 of Schedule 8, in item 4 replace ‘item 2 or 3’ with ‘item 2, 3 or 4A’.

(8) After note 24 insert a new note as follows—

‘(25) For the purposes of item 4A in the table above—

“defect” means anything posing any risk to the spread of fire, the structural integrity of the building or the ability of people to evacuate the building, including but not limited to any risk identified in guidance issued under Article 50 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541) or any risk identified in regulations made under section 59 of the Building Safety Act 2021;

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

“remediation” means any step taken to eradicate or to mitigate a defect, including employment of any person temporarily or permanently to assist in evacuation of any part of a building, and whether or not the defect in question existed at the date any dwelling in the building was first occupied. Remediation does not include anything required in consequence of omitting to effect reasonable repairs or maintenance to all or any part of the building over time, or anything which is the responsibility of the occupant of a dwelling in the building.’

(9) This section comes into force on 1 August 2022.”

This new clause allows recovery of VAT on building safety remedial works paid since 14 June 2017 and makes future supplies of materials, goods and services for building safety remediation projects zero-rated for Value Added Tax.

New clause 5—Fire safety defects and defective dwellings

“(1) The Housing Act 1985 is amended as follows.

(2) In section 528(1)(a) leave out the final ‘, and’ and insert ‘, or’.

(3) After section 528(1)(a) insert—

‘(aa) buildings in the proposed class are defective as a result of their external walls or any attachment to the external walls, whether as a result of the design or construction of the external walls or the attachment in question; or

(ab) buildings in the proposed class are defective as a result of anything which in the opinion of the Secretary of State poses a building safety risk or the ability of anyone to evacuate the building, whether or not the building is a higher-risk building, and’

(4) In section 528(1)(b) for ‘paragraph (a)’ substitute ‘paragraphs (a), (aa) or (ab)’.

(5) In section 528(1)(b) at the end insert ‘, or in the opinion of the Secretary of State is materially difficult to mortgage, insure or sell compared to non-defective dwellings.’

(6) After section 528(4) insert—

‘(4A) A designation may identify any part of a building or class of buildings, any design feature, any material used in the construction of that building, any error in workmanship or installation or anything missing from that building, whether or not it should have been included when the building was constructed.

(4B) A designation may be made if the defect requires the employment of any person, whether on a permanent or temporary basis, specifically to assist with the evacuation of that building or part of that building.’

(7) After section 528(6) insert—

‘(7) In this section—

“building safety risk” has the same meaning as in section 59 of the Building Safety Act 2021.

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541).

“higher-risk building” has the same meaning as in section 62 of the Building Safety Act 2021.’

(8) In section 559(1)(a) omit the final ‘, and’ and replace it with ‘, or’.

(9) After section 559(1)(a) insert—

‘(aa) buildings in the proposed class are defective as a result of their external walls or any attachment to the external walls, whether as a result of the design or construction of the external walls or the attachment in question; or

(ab) buildings in the proposed class are defective as a result of anything which in the opinion of the local housing authority poses a building safety risk or the ability of anyone to evacuate the building, whether or not the building is a higher-risk building, and’

(10) In section 559(1)(b) for ‘paragraph (a)’ substitute ‘paragraphs (a), (aa) or (ab)’.

(11) In section 559(1)(b) at end insert—

‘or in the opinion of the local housing authority materially difficult to mortgage, insure or sell compared to non-defective dwellings.’

(12) After section 559(4) insert—

‘(4A) A designation may identify any part of a building or class of buildings, any design feature, any material used in the construction of that building, any error in workmanship or installation or anything missing from that building, whether or not it should have been included when the building was constructed.

(4B) A designation may be made if the defect requires the employment of any person, whether on a permanent or temporary basis, specifically to assist with the evacuation of that building or part of that building.’

(13) After section 559(6) insert—

‘(7) In this section—

“building safety risk” has the same meaning as in section 59 of the Building Safety Act 2021;

“external wall” has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

“higher-risk building” has the same meaning as in section 62 of the Building Safety Act 2021.’

(14) This section comes into force on the day this Act is passed.”

This new clause is suggested before clause 126. This new clause amends Part XVI of the Housing Act 1985 (originally enacted as the Housing Defects Act 1984) to empower the government and local authorities to designate dwellings with cladding and fire safety defects as defective and to provide grant support for remediation.

New clause 6—Duty on the Secretary of State to report on designations under Part XVI of the Housing Act 1985

“(1) Within the period of six months beginning with the day on which this section comes into force, the Secretary of State must—

(a) consider the financial impact on leaseholders in England and Wales of building safety advice given by his department since 14 June 2017; and

(b) in conjunction with the Treasury and the Prudential Regulation Authority, consider the impact of building safety advice given by his department since 14 June 2017 on the supply of mortgage finance for leasehold flats in England and Wales; and

(c) publish a report setting out his determination, in light of the factors identified in paragraphs (a) and (b), as to whether designations under section 528 or section 559 of the Housing Act 1985 would improve conditions for leaseholders, or would improve the supply of mortgage finance for leasehold flats in England and Wales.

(2) If the Secretary of State’s report under subsection (1) concludes that designations under section 528 or section 559 of the Housing Act 1985 would improve financial conditions for leaseholders in England and Wales, or would improve the supply of mortgage finance for leasehold flats in England and Wales, then at the same time as publishing his report he must—

(a) make arrangements to provide all necessary funding;

(b) make the appropriate designations under section 528 of the Housing Act 1985; and

(c) advise local housing authorities to make appropriate designations under section 559 of the Housing Act 1985.

(3) Before making any regulations bringing into force any section in Part 4 of this Act, the Secretary of State must make arrangements for—

(a) a motion to the effect that the House of Commons has approved the report prepared under subsection (1), to be moved in the House of Commons by a minister of the Crown; and

(b) a motion to the effect that the House of Lords to take note of the report prepared under subsection (1), to be moved in the House of Lords by a minister of the Crown.

(4) The motions required under subsections (3)(a) and (3)(b) must be moved in the relevant House by a Minister of the Crown within the period of five calendar days beginning with the end of the day on which the report under subsection (1) is published.

(5) If the motion tabled in the House of Commons is rejected or amended, the Secretary of State must, within 30 calendar days, publish a further report under subsection (1) and make arrangements for further approval equivalent to those under subsection (2).

(6) The Secretary of State shall make a further report under subsection (1) at least every 90 calendar days beginning with the day of any rejection or amendment by the House of Commons under subsection (5) until otherwise indicated by a resolution of the House of Commons.

(7) In this section—

‘leaseholder’ means the registered legal owner of a long lease; and

‘leasehold flat’ means a flat owned by a leaseholder; and

‘long lease’ has the same meaning as in section 76 of the Commonhold and Leasehold Reform Act 2002.

(8) This section comes into force on the day this Act is passed.”

This new clause is suggested before clause 126. It places a time-limited duty on the Secretary of State to consider making designations under Part XVI of the Housing Act 1985 to provide funding for cladding and fire safety remediation and for Parliament to approve the plans for doing so.

New clause 7—Building Safety Indemnity Scheme

“(1) There shall be a body called the ‘Building Safety Indemnity Scheme’ (referred to in this Act as ‘the Scheme’).

(2) The purpose of the Scheme shall be to collect money from levies and to disburse the money raised from those levies in the form of grants to leaseholders to pay all or any part of the following types of costs—

(a) remediation of any defect in any external wall of any building containing two or more residential units; or

(b) remediation of any defect in any attachment to any external wall of any building containing two or more residential units; or

(c) remediation of any internal or external defect other than a defect described in paragraphs (a) or (b); or

(d) any building safety works carried out by an accountable person under section 86; or

(e) any other cost of a type specified by the Secretary of State in regulations made under this section.

(3) The Scheme may disburse money for the benefit of leaseholders in any type of building, whether or not a higher-risk building and whether or not the building was first occupied before the coming into force of this Act.

(4) The levy imposed by the Scheme shall be determined by reference to each of the following—

(a) the Scheme’s best estimate of the reasonably likely total cost of grants to cover any type of cost described in subsection (2);

(b) the Scheme’s best estimate of the costs of raising and administering the levy; and

(c) the Scheme’s best estimate of the costs of processing applications for grants to leaseholders and disbursing funds to leaseholders from monies raised by the levy.

(5) Members of the Scheme subject to levies shall include the following—

(a) any person seeking building control approval;

(b) any prescribed insurer providing buildings insurance to buildings containing two or more residential units, whether or not the buildings are higher-risk buildings;

(c) any prescribed supplier of construction products subject to regulations made under Schedule 9 to this Act;

(d) any prescribed lender providing mortgage finance in the United Kingdom, whether or not secured over residential units in higher-risk buildings; and

(e) any other person whom the Secretary of State considers appropriate.

(6) The Scheme is to consult with levy paying members before determining the amount and duration of any levy.

(7) The Scheme must provide a process by which leaseholders, or persons acting on behalf of leaseholders, can apply for grants for the types of costs specified in subsection (2).

(8) The Scheme must provide an appeals process for the Scheme’s decisions regarding—

(a) the determination of the amount of any levy; or

(b) the determination of any grant application.

(9) A building control authority may not give building control approval to anyone unless—

(a) the person seeking building control approval is a registered member of the Scheme, or that person becomes a registered member of the Scheme before the building control approval is given; and

(b) the person seeking building control approval pays all levies made on that person by the Scheme before the building control approval is given.

(10) The Secretary of State must provide that any regulations made under Schedule 9 to this Act provide, as a condition of approval of any regulated construction product, that any prescribed supplier of such a product—

(a) is a registered member of the Scheme, or that prescribed supplier becomes a registered member of the Scheme; and

(b) that the prescribed supplier pays all levies made on that person by the Scheme.

(11) Any liability to pay a levy under this section does not affect the liability of the same person to pay an additional levy under section 57 of this Act.

(12) Within a period of 12 months beginning with the coming into force of this section, the Secretary of State must make regulations providing for—

(a) the appointment of a board to oversee the Scheme;

(b) the staffing of the Scheme;

(c) the creation and maintenance of a public register of members of the Scheme;

(d) the preparation of the best estimates described in subsection (4);

(e) the amount, manner and timing of payment of the levies on members of the Scheme under this section;

(f) the process of joining the Scheme;

(g) the process of leaseholders applying to the Scheme for grants towards any of the types of costs specified in subsection (2);

(h) the process for handling any appeals against decisions of the Scheme on any levy or any grant;

(i) the Scheme to make an annual report to Parliament; and

(j) any other matters consequential to the Scheme’s operation.

(13) Regulations made under this section are to be made by statutory instrument.

(14) A statutory instrument under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(15) In this section—

‘building’ has the same meaning as in section 29;

‘building control approval’ has the same meaning as in paragraph (1B)(2) of Schedule 1 to the Building Act 1984;

‘building control authority’ has the same meaning as in section 121A of the Building Act 1984;

‘defect’ means anything posing any risk to the spread of fire, the structural integrity of the building or the ability of people to evacuate the building, including but not limited to any risk identified in guidance issued under Article 50 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541) or any risk identified in regulations made under section 59;

‘external wall’ has the same meaning as in Article 6 of the Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541);

‘higher-risk building’ has the same meaning as in section 59;

‘prescribed’ means prescribed by regulations made by the Secretary of State;

‘remediation’ means any step taken to eradicate or to mitigate a defect, including employment of any person to temporarily assist in evacuation of any part of a building, and whether or not the defect in question existed at the date any residential unit in the building was first occupied. Remediation does not include anything required in consequence of omitting to effect reasonable repairs or maintenance to all or any part of the building over time, or anything which is the responsibility of an occupant of a residential unit within the building;

‘residential unit’ has the same meaning as in section 29.

(16) This section shall come into force on the day this Act is passed.”

This new clause is suggested after clause 126, requiring the government to establish a comprehensive fund, equivalent to the Motor Insurers’ Bureau, to provide grants to remediate cladding and fire safety defects of all descriptions, paid for by levies on developers, building insurers and mortgage lenders.

New clause 8—Implied terms in residential building and residential renovation contracts

“(1) Every residential building contract is to be taken to contain terms that—

(a) the residential unit is fit for the purpose of ordinary residential occupation and is likely to remain so for a reasonable period if kept in appropriate repair;

(b) the residential unit in question is constructed in all material respects as described or stated on the approved plans;

(c) the residential unit is not subject to any building safety risk;

(d) the materials incorporated in the residential unit are as described in any approved plans;

(e) the materials incorporated in the residential unit are of satisfactory quality;

(f) the design of the residential unit is of a reasonable standard;

(g) the design of the residential unit is prepared with reasonable care and skill;

(h) all works in connection with the construction of the residential unit are executed with reasonable care and skill; and

(i) the residential unit complies in all material respects with all applicable statutory requirements and with all applicable building regulations in force as at the date of completion.

(2) Every residential renovation contract is to be taken to contain terms that any renovation works—

(a) do not render the unit unfit for the purpose of ordinary residential occupation;

(b) do not create any building safety risk;

(c) do not involve the incorporation of materials in the residential unit which are not as described in any approved plans;

(d) do not involve the incorporation of materials in the residential unit which are not of satisfactory quality;

(e) are executed with reasonable care and skill; and

(f) do not render the residential unit materially non-compliant with any applicable statutory requirement or with any applicable requirement of building regulations in force as at the date of completion.

(3) For the purposes of subsections (1) and (2), where the residential unit forms part of a building consisting of two or more residential units, the internal and external common parts of that building necessary for the reasonable occupation of any of the residential units are also to be taken to be subject to the same terms.

(4) A residential unit is fit for the ordinary purpose of residential occupation if it would be regarded as such by a reasonable person and taking into account—

(a) the ordinary costs of repair and maintenance of that residential unit by reference to that unit’s location and specific characteristics;

(b) any marketing materials provided before the sale of the residential unit in question; and

(c) whether that unit was marketed, designed or intended to be occupied by any particular class of persons, whether by age, by gender or by physical or mental disability.

(5) For the purposes of this section—

(a) a matter is material if it would be considered material if known or discovered by a reasonable purchaser of that residential unit before completing a purchase of that residential unit on ordinary commercial terms;

(b) a design is of a reasonable standard if a designer of average competence would have produced the same or a similar design;

(c) a material is of satisfactory quality if it would meet the requirements for satisfactory quality of goods under section 9 of the Consumer Rights Act 2015; and

(d) a material is as described if it would meet the requirements for description of goods under section 11 of the Consumer Rights Act 2015.

(6) The terms taken to be included in any residential building contract or residential renovation contract are enforceable by any owner of the residential unit provided or renovated under the contract in question.

(7) A term of a residential building contract or a residential renovation contract is not binding on the owner of a residential unit provided or renovated pursuant to that contract if it would exclude or restrict any liability in relation to the terms implied by this section.

(8) The reference in subsection (7) to excluding or restricting a liability also includes preventing an obligation or duty arising or limiting its extent.

(9) An agreement in writing to submit present or future differences to arbitration is not to be regarded as excluding or restricting any liability for the purposes of this section.

(10) In this section—

‘approved plans’ means any document submitted as part of obtaining building control approval;

‘building control approval’ has the same meaning as in paragraph (1B) of Schedule 1 to the Building Act 1984;

‘building safety risk’ has the same meaning as in section 59, whether or not the residential unit is in a higher-risk building;

‘higher-risk building’ has the same meaning as in section 62;

‘owner’ means the registered legal owner of the residential unit from time to time, including any trustee holding a beneficial interest on behalf of a third party and any transferee or assignee of the original owner;

‘residential unit’ has the same meaning as in section 29;

‘residential building contract’ means a contract made in the course of business involving work on or in connection with the construction of a residential unit (whether the dwelling is provided by the erection or by the conversion or enlargement of an existing building);

‘residential renovation contract’ means a contract made in the course of business involving work on an existing residential unit, except where it is expected that, on completion of the work, it will have ceased to be a residential unit or will otherwise have ceased to exist.”

This new clause, proposed to be inserted after clause 128 strengthens consumer rights for future buyers by implying terms that houses and flats are built, and are renovated, to reasonable standards of quality and compliant in all material respects with the law and with building regulations.

New clause 9—Implied terms: limitation

“(1) The Limitation Act 1980 is amended as follows.

(2) After section 5 insert—

‘5A Time limit for actions related to breach of implied terms in residential building contracts and residential renovation contracts

An action in respect of the breach of the term implied into a residential building contract or a residential renovation contract by section (Implied terms in residential building and residential renovation contracts) of the Building Safety Act 2021 may not be brought after the expiration of 25 years from the date on which the cause of action accrued.’”

This new clause provides for a 25 year limitation period for breaches of the terms implied by the amendment proposed above.

New clause 10—Implied terms: mandatory insurance

“(1) No member of the new homes ombudsman scheme created by this Act may offer for sale or sell any residential unit unless —

(a) every potential purchaser is provided on request with an accurate written summary of the terms of a prescribed policy applying to the residential unit when completed; and

(b) in accordance with any relevant regulation made under this section, or under section 131, or under section 132, the person offering for sale or the seller of the residential unit arranges a valid prescribed policy and provides a copy of a valid prescribed policy given to the purchaser of the residential unit on the day of the transfer to the purchaser of legal title in the residential unit.

(2) Any person in the course of business providing a residential unit under a residential building contract or renovations to a residential unit under a residential renovation contract must obtain a valid prescribed policy.

(3) No term of any residential building contract or residential renovation contract is enforceable unless a valid prescribed policy is in force in respect of such a contract.

(4) Within a period of six months beginning on the day this section comes into force, the Secretary of State must make regulations prescribing insurance terms for the purposes for this section, including—

(a) the creditworthiness of any insurer or warranty scheme under this section;

(b) the name of any warranty scheme which in the opinion of the Secretary of State achieves the purposes of this section;

(c) the minimum terms of any insurance or warranty under this section;

(d) that any policy or warranty scheme also provides reasonably adequate cover for any claim under sections 1 and 2A of the Defective Premises Act 1972 and section 38 of the Building Act 1984;

(e) a policy term or a warranty term of not less than the limitation period for making claims under any term implied into a residential building contract or residential renovation contract by this Act; and

(f) to bring into force section [Implied terms in residential building and residential renovation contracts] and section [Implied terms: limitation].

(5) Regulations made under this section are to be made by statutory instrument.

(6) A statutory instrument under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(7) In this section—

‘new homes ombudsman scheme’ means the scheme established under section 129;

‘prescribed’ means prescribed in regulations made by the Secretary of State, whether under this section, or under section 131, or under section 132;

‘residential building contract’ has the same meaning as in section [Implied terms in residential building and residential renovation contracts];

‘residential renovation contract’ has the same meaning as in section [Implied terms in residential building and residential renovation contracts]; and

‘residential unit’ has the same meaning as in section 29.

(8) This section shall come into force on the day this Act is passed.”

This new clause provides that members of the New Homes Ombudsman Scheme may not sell any new flat or house unless they provide insurance for 25-years to cover breach of implied terms as to quality.

New clause 11—Limitation Period for claims under section 38 of the Building Act 1984

“(1) Section 38 of the Building Act 1984 is amended as follows.

(2) In section 38(4) after ‘includes’ insert ‘economic loss,’.

(3) After section 38(4) insert—

‘(5) No right of action for damages for economic loss under this section shall accrue until any person to whom the duty is owed has actual knowledge of breach that duty.

(6) Notwithstanding anything in subsection (5) or any regulations made under this section, an action for damages for economic loss under this section shall not be brought after the expiration of twenty-five years from the date the breach of duty occurred.

(7) For the purposes of subsection (6), where there is more than one actionable breach of duty causing economic loss and the breaches in question occurred on different dates, then time runs only from the date of the last such breach.

(8) Any right of action under this section other than a right of action for damages for economic loss shall be subject to section 11 and section 14A of the Limitation Act 1980.’

(4) This section shall come into force at the end of the period of two months beginning on the day on which this Act is passed.”

This new clause proposed for the Building Act 1984 enables claims for recovery of monetary damages (economic loss) and provides that the time limit for claims start when a resident becomes aware of a breach, subject to a 25-year longstop date.

New clause 12—Abolition of the rule preventing recovery of economic loss in certain actions relating to damage or defects in buildings

“(1) In any prescribed statutory action for damages, there is no bar to recovering economic loss.

(2) In any action for damages for negligence in relation to the construction or renovation of any residential unit, other than an action for damages to which section 11 or section 14A of the Limitation Act 1980 applies, there is no bar to recovering economic loss.

(3) This section shall apply to any right of action accruing on or after the day this section comes into force.

(4) For the purposes of this section —

‘prescribed statutory action for damages’ means any action for damages for breach of section 1 or section 2A of the Defective Premises Act 1972.

‘residential unit’ means any dwelling or other unit of residential accommodation, including any internal or external common parts of any building necessary for the occupation of that residential unit.

(5) This section shall come into force at the end of the period of two months beginning on the day on which this Act is passed.”

This new clause abolishes the rule preventing the recovery of economic loss from developers and other professionals in claims for negligence and in claims under the Defective Premises Act 1972.

New clause 13—Leaseholder Costs Protection

“(1) This section applies to a relevant building where a landlord has carried out any fire safety works to a building in consequence of any provision, duty or guidance arising from—

(a) the Housing Act 2004;

(b) the Regulatory Reform (Fire Safety Order) 2005;

(c) this Act;

(d) any direction, recommendation or suggestion of any public authority or regulatory body; and

(e) such other circumstances or enactment as the Secretary of State may prescribe by regulations.

(2) If any of the conditions in subsection (1) are met, then the costs incurred by the landlord in connection with those matters may not be the subject of a demand for payment of service charges, administration charges or any other charge permitted or authorised by any provision of any long lease.

(3) Any demand for payment which contravenes this section shall be of no force or effect and will have no validity in law.

(4) Any covenant or agreement, whether contained in a lease or in an agreement collateral to such a lease, is void insofar as it purports to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant refusing, failing or declining to make a payment to which this section applies.

(5) This section applies to demands for payment before the landlord incurs the costs in the same way as it applies to demands for payment made after the costs have been incurred.

(6) This section does not apply where the landlord is a company in which the majority of the shares are held by leaseholders or where the landlord is an RTM company.

(7) For the purposes of this section, a relevant building is any building containing one or more residential dwellings let on a long lease.

(8) In this section—

‘administration charge’ has the meaning given by Schedule 11 to the Commonhold and Leasehold Reform Act 2002; ‘fire safety works’ means any work or service carried out for the purpose of eradicating or mitigating (whether permanently or temporarily) any risk associated with the spread of fire, the structural integrity of the building or the ability of people to evacuate the building;

‘long lease’ has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

‘residential dwelling’ means any dwelling or other unit of residential accommodation, including any internal or external common parts of any building necessary for the occupation of that residential unit;

‘service charge’ has the meaning given by section 18 of the Landlord and Tenant Act 1985;

‘RTM company’ has the meaning given by section 113 of the Commonhold and Leasehold Reform Act 2002.

(9) This section comes into force on the day on which this Act is passed.”

This new clause prevents the costs of any fire safety or building safety remedial works being passed on to leaseholders.

Amendment 2, in clause 126, page 133, line 17, at end insert—

“(d) In respect of remediation works completed before the coming into force of this section, apply for any refund of VAT due under section 35(1A)(d) of the Value Added Tax Act 1994 and credit the whole amount of any such refund received to leaseholders pro-rata in accordance with the terms of the lease.”

This amendment is consequential on NC4. Where works have already been carried out, this new subclause requires the landlord to obtain any retrospective VAT refund and to credit the whole amount of that VAT refund to leaseholders.

Amendment 5, in clause 127, page 135, line 29, leave out

“at the time the work is completed”

and insert

“when any person to whom the duty under this section is owed has actual knowledge of breach of that duty.”

This amendment provides that time to make a claim in respect of building renovations under section 2A of the Defective Premises Act 1972 only runs from the date a resident has knowledge of the breach, subject to a 25-year longstop.

Amendment 6, in clause 127, page 135, line 33, at end insert—

“(9) Notwithstanding anything in subsection (8), an action for damages for breach of the duty in this section, insofar as that action relates only to the original work in question, shall not be brought after the expiration of twenty-five years from the date the work in question is completed.”

This amendment provides that time to make a claim in respect of building renovations under section 2A of the Defective Premises Act 1972 only runs from the date a resident has knowledge of the breach, subject to a 25-year longstop.

Amendment 4, in clause 128, page 136, line 1, leave out “15 years” insert “25 years”.

This amendment proposes a longer period for claims under the Defective Premises Act 1972 and the Building Act 1984 considering the recent history of cladding and fire safety related defects and retrospective guidance issued by the government.

Government amendment 41.

Amendment 7, in clause 128, page 136, line 11, at end insert—

“(2A) In section 1(5) of the Defective Premises Act 1972 for ‘time when the dwelling was completed’ substitute ‘time when any person to whom the duty under this section is owed has actual knowledge of breach of that duty’.

(2B) After section 1(5) of the Defective Premises Act 1972 insert—

(6) Notwithstanding anything in subsection (5), an action for damages for breach of the duty in this section, insofar as that action relates only to the original construction of the building in question, shall not be brought after the expiration of twenty-five years from the time the dwelling is completed.’”

This amendment provides that time to bring a claim for damages under section 1 of the Defective Premises Act 1972 only runs from the date a resident has knowledge of a breach, subject to a 25-year longstop in relation to claims related to failures during the original construction.

Government amendment 42.

Amendment 8, in clause 128, page 136, line 19, leave out subsection (5).

The Human Rights Act 1998 already protects defendants’ rights in relation to retrospectively extended limitation periods. Removing subsection (5) removes the material risk a court may construe clause 128 in a way that means it has no practical benefit and will lead to years of costly litigation for leaseholders.

Amendment 9, in clause 128, page 136, leave out line 27 and line 28.

This amendment is consequential to Amendment 8 because the defined term “Convention Rights” is no longer required.

Government amendment 43.

Amendment 10, in clause 128, page 136, line 29, leave out “90 days” and insert “2 years”.

This amendment allows a period of up to 2 years, instead of 90 days, to obtain the necessary expert evidence required to issue viable claims under the Defective Premises Act 1972.

Government amendments 44 to 55.

Amendment 3, in clause 132, page 139, line 17, at end insert—

“(f) require members of the scheme under paragraph (a) to obtain policies of insurance that meet the requirements of section (Implied terms: mandatory insurance).”

Government amendments 56 to 58.

Government new schedule 2—Amendments in connection with the new homes ombudsman scheme.

Government amendment 71 and 72.

Government amendment 59.

Government amendment 62.

Government amendments 65 to 69.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

It is a great pleasure to report to the House, to move the Government’s new clauses and to be able listen to the important debate that we will have on the Bill’s remaining stages. Over the past few months, the Bill has been subject to scrutiny and debate not only in Committee but through ongoing debate in this House, in the other place and, indeed, throughout the country.

Only last week, my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities updated the House on our progress in addressing the ongoing issues and protecting leaseholders. We have brought the Bill forward on Report because we are clear that it needs to move forward, but we are conscious that further work needs to be done to it and look forward to working with parties from across the House and with interested parties to ensure that it is further improved in the other place.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
- Parliament Live - Hansard - - - Excerpts

Will the Minister confirm that the Government intend to table amendments in the other place to implement the statutory protection for leaseholders announced last week by the Secretary of State? By the time that the Bill is debated there, can we expect amendments to have been published so that we can consider them?

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I am grateful to the right hon. Gentleman for his question. As I said, we are introducing the Bill at this stage because we are conscious that it is very important, and we need to get it through both Houses. However, as my right hon. Friend the Secretary of State said in his statemen on 10 January, we want to ensure that we look closely to improve the appropriate legislative and statutory protections for leaseholders, and we will have to do that in a parliamentary way, which will of course include the other place.

None Portrait Several hon. Members rose—
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Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

Crikey. I give way first to my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill).

Robert Neill Portrait Sir Robert Neill (Bromley and Chislehurst) (Con)
- Parliament Live - Hansard - - - Excerpts

I am grateful to my right hon. Friend for the undertaking to bring forward such matters in the other place and for listening to colleagues’ representations on a number of important issues. Given the pressures on business in the other House, will he assure us that there will be time properly to debate the amendments and that they will include important issues such as clarifying the position on internal developer fire safety defects—where there has been a defect that is the fault of the developer and/or regulatory failure and not anything else—just as much as external defects, and consequential costs that stem from those failures such as waking watch? Those are important issues, so I hope he will ensure that we have a proper debate and clarification on them in the other place.

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I am grateful to my hon. Friend. Of course, the time made available for debate in the other place is for the other place to determine, but I am sure that the business managers in both Houses have heard his points. I certainly want to ensure that there is adequate time to debate properly what are somewhat technical and detailed matters so that, working across party and with members of the Select Committee on Levelling Up, Housing and Communities, we can properly get the Bill right.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
- Parliament Live - Hansard - - - Excerpts

Further to the answer given to my right hon. Friend the Member for East Ham (Stephen Timms), will the Minister explain why the statutory protection that the Government are considering will apparently not extend to leaseholders not living in their flats? I know of at least one constituent of mine who was forced to leave his flat and rent it out as that was the only way he could raise the money to pay for the waking watches and insurance bills. Given that he is just as much a victim as those still living in their flats, why should protection against unreasonable costs not be extended to people such as him?

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I am grateful to the right hon. Gentleman. He will know, as the House does, that building safety and the challenges that leaseholders face are very complicated. The House will also know that we have committed to help those in shared ownership, for example, by making it easier for them to rent out their properties if that is a means of ensuring that they can pay their mortgages. I assure him that we will look closely and work collegiately and collectively across parties, and with other interested parties, to ensure that such issues are effectively and appropriately debated and addressed.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
- Parliament Live - Hansard - - - Excerpts

My right hon. Friend has done a stoic job in taking the Bill through its various stages. The other place is under incredible pressure in dealing with Government legislation, as my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) mentioned. It is clearly up to business managers there how much time they allocate to amendments and so forth, but will he commit that when the Bill comes back to us with the Lords amendments, we will get a chance to debate them—and, if necessary, correct them and improve them—rather than just a 60-minute debate where hardly anyone gets an opportunity to debate the issues?

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I am grateful to my hon. Friend. The business managers in this House, if not the other House, will have heard his points—he has got a pretty loud voice—and will want to ensure that appropriate, adequate debating time is made available to deal with these technical and detailed issues. As I said, I believe that business managers will have heard what has been said by him and by right hon. and hon. Members and will react accordingly.

None Portrait Several hon. Members rose—
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Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I will give way to the Chairman of the Select Committee on Levelling Up, Housing and Communities, and then I probably ought to make a little more progress, having thus far read out only one paragraph of my opening remarks.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Parliament Live - Hansard - - - Excerpts

It was very well read, though.

I re-emphasise the point raised by the hon. Member for Harrow East (Bob Blackman). The Select Committee will have a very short but very thorough inquiry into the issues that the Secretary of State rightly raised in his statement to the House last week and the follow-up, but debating time in this place is an issue. The Minister’s answer is very helpful because the Lords will have lots of time, and then it is normal for us to have one hour to consider their amendments. The Bill needs a full-day debate because the amendments that the Government intend to make, following consultation with industry, are key to resolving the issue. I appreciate what the Minister said, and I hope the business managers are as supportive when they come to allocate time.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

The hon. Gentleman and others remind me of what is often said of politics: even though everything that can be said has been said, not everybody who could say it has said it. He has just spoken for the entire House, and it is of course for the usual channels to determine the time allocated for debating and disposing of business, but the point of view of both sides of the House has thus far, very early in the debate, been heard.

None Portrait Several hon. Members rose—
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--- Later in debate ---
Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I will make a little progress before giving way, if I may.

I have been delighted to talk to colleagues on both sides of the House, following the statement by my right hon. Friend the Secretary of State. I draw the House’s attention to the comments of my hon. Friends the Members for Southampton, Itchen (Royston Smith) and for Ipswich (Tom Hunt), who cannot be with us today because they are on parliamentary business elsewhere. They commissioned me to tell the House that they are very pleased with the direction of travel set out by my right hon. Friend the Secretary of State. They are pleased with the Government’s commitment to continue working with parliamentarians to protect leaseholders and to hold to account those responsible for building defects. If they were here, they would support the Government in the Lobby this afternoon.

I am sure we will address some difficult and challenging questions in this debate. Before we do, I am keen to introduce a group of Government amendments that I trust will be welcomed.

Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
- Hansard - - - Excerpts

The Minister is generous in giving way. Could he reassure leaseholders in the Roundway in Wood Green that, after several years of lobbying both me and the Government, not only will the whole of the cladding costs be covered under this arrangement but their mortgage issues will be resolved?

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

The hon. Lady is a doughty campaigner on behalf of her constituents in the Roundway and elsewhere. I do not want to speak about specific buildings, which probably would not be appropriate because I do not know the detail, but we certainly want to make sure that we agree proper leaseholder protections across political parties and with interested parties. We will make amendments to that effect, as well as a suite of non-statutory interventions to make sure the people who ought to pay do pay.

None Portrait Several hon. Members rose—
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Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I will give way a little more later. I am conscious that I have already spoken for a little while, and there are a number of new clauses and amendments that the House will want to debate and on which Members will want to make their views plain.

The Government are committed to improving redress and consumer protection for home buyers in new buildings. I am therefore pleased that we have introduced access to the new homes ombudsman scheme. Amendments 49, 50 and 72 introduce several changes to the new homes ombudsman provisions to enable them to work practically in Wales and Scotland, and to ensure that the scheme includes provision of information to Ministers in the devolved Administrations.

In addition, amendments 47, 48 and 71 and new schedule 2 remove barriers to enable the new homes ombudsman to work jointly with existing ombudsman schemes and clarify provision of co-operation between the ombudsman and other redress schemes. To ensure that the provisions work for home buyers across our nations, any differences in law and custom and practice will be respected.

Amendments 45, 56 and 57 include requirements for the Secretary of State to consult the devolved Administrations before making arrangements for the scheme. We want that consultation to be meaningful and our intention is to make sure that consideration is given to the views of the devolved Administrations at an appropriate time and before key decisions are taken about the ombudsman regime.

Amendments 54 and 55 confer a power on the relevant national authority for England, Scotland and Wales to add the meaning of the term “developer” in the new homes ombudsman provisions, through regulations as appropriate and following a discussion with other relevant national authorities.

New clause 20 makes provision for how Welsh and Scottish Ministers may exercise that power. New clause 21 makes sure that the devolved Administrations are not restricted from bringing forward legislation to alter the ombudsman’s statutory functions in relation to that territory’s future by disapplying a restriction in the Government of Wales Act 2006.

Finally, our intention is for the new homes ombudsman to work jointly with the other redress schemes and ombudsmen, and the amendments clarify that intention, removing barriers in existing legislation.

Janet Daby Portrait Janet Daby (Lewisham East) (Lab)
- Parliament Live - Hansard - - - Excerpts

Will the Minister say how he will keep his promises to leaseholders to ensure that they will not bear the cost of the building safety crisis?

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

As I have already said, we want to work across the parties to make sure that leaseholders are properly protected and that those who should properly pay the costs of defective fire safety work bear that cost. I have said it from the Dispatch Box, and, on 10 January, the Secretary of State made the same commitment. We will work through the passage of the Bill to make sure that those protections are in place.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I give way to the hon. Gentleman and then I shall make some further progress.

Jonathan Edwards Portrait Jonathan Edwards
- Hansard - - - Excerpts

I am extremely grateful to the Minister for giving way. I welcome the ombudsman. Uncompleted estates have been a big issue in my constituency, and I welcome the consultation with the Welsh Government. May I take him back to the intervention from the right hon. Member for Leeds Central (Hilary Benn) about people who are landlords and leaseholders in one property and the need to include them in the scheme. In the spirit of that consultation—whatever compensation scheme comes forward will be administered in Wales by the Welsh Government—can he tell me what discussions he is having with the Welsh Government about that specific group of people who are very worried about the situation at the moment?

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I am grateful to the hon. Gentleman for his support for the proposals in general. I can assure him that my officials work closely with officials in the devolved Administrations and we will continue to do so, again, as an example of working with interested parties to make sure that issues are properly addressed.

New clause 22 relates to appeals against registration decisions made by the Architects Registration Board. The new clause gives applicants for registration the opportunity to appeal a decision made by the board or the registrar to remove or refuse to enter or re-enter a person’s name onto the register. Without that, registrants removed under the new competence regime, to be introduced with clause 137, and first-time registrants will only have recourse to the High Court. The costs of an appeal made to the High Court could be prohibitive.

Amendment 58 will allow the board to delegate its prescription responsibilities to the prescription committee, giving it greater flexibility while maintaining oversight of the prescription of qualifications. Amendments 65 and 69 are consequential to that change.



I now turn to our proposed amendments on redress. The Bill Committee debated section 1 of the Defective Premises Act 1972 in significant detail; I recall that the hon. Member for Weaver Vale (Mike Amesbury) made several concise and incisive interventions. Section 1 allows a claim for compensation to be brought through the civil courts when a dwelling was “not fit for habitation” on completion. The limitation period in that Act currently stands at six years, which means that a claim must be brought within that period following the completion of the defective works.

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Matt Rodda Portrait Matt Rodda (Reading East) (Lab)
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I ask for the Minister’s further reassurance on some points of detail that relate to these amendments. First, around half of the buildings in my constituency that have difficulties associated with them have non-cladding-related problems. Those include internal compartmentalisation that has been improperly finished. Indeed, in Queens Wharf in Reading town centre, the building owners estimate that nearly £1 million of work needs to be carried out. These are often very large sums. In other cases, the problem is wooden cladding, wooden balconies or a range of other things. Do the amendments relate to these problems, or to flammable cladding only?

Christopher Pincher Portrait Christopher Pincher
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The Defective Premises Act has been in effect since 1972, so there is a significant body of case law that those wishing to bring an action, and indeed the courts, will be able to refer to, to determine whether a premises is defective and therefore whether an action should be successful. I am happy to write to the hon. Gentleman with further detail, but I can assure him that the Act is of long standing and has been well used, and there is a body of case law that can be applied.

John Redwood Portrait John Redwood (Wokingham) (Con)
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Is there any right of redress to the regulatory authorities in local government, such as building inspectors and others, who were responsible for signing off on these schemes?

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

We certainly want to ensure though the Bill, that the building control mechanism and the industry are improved. I think that a suite of measures, including the introduction of better building control measures, the retrospection of the Defective Premises Act and further work that we may choose to do, working across parties, will help ensure that a very complicated and detailed set of challenges, which have emerged recently but have been developing over many years, are properly addressed.

Mike Penning Portrait Sir Mike Penning (Hemel Hempstead) (Con)
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I want to clarify, should I be lucky enough to catch Madam Deputy Speaker’s eye later, where my speech might be going. This is retrospective legislation, and that is fantastic—if we can track down the freeholder, the developer and the insurer. If they cannot be tracked down, where does that burden come? Surely we can find a way—I may suggest this in my speech, but I wonder whether the Minister has thought of a way—by which the unfairness of the impact of what we are now prescribing in the Minister’s legislation on those in cases where we cannot find them, as opposed to where we can, can be resolved.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I am grateful to my right hon. Friend for the forewarning of what his speech may contain. I would say to him that quite apart from the body of case law that exists with respect to the 1972 Act, and quite apart from the fact that even if a company has become defunct directors can still be held liable for the decisions made, as it were, “on their watch”, the challenges that he has described are the sorts of things that we will want to discuss in this place and in the other place, across parties, to ensure that such challenges are addressed.

Christopher Pincher Portrait Christopher Pincher
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I will give way to the hon. Gentleman in a moment, but I am conscious that I have been speaking for 22 minutes and that there are one or two other remarks that I ought to make before the House has an opportunity to debate the new clauses and amendments.

Since the introduction of the Bill, it has become clear that a number of buildings affected by cladding and other serious fire safety defects were completed prior to 2007. We have listened to hon. Members from across the House who wanted a route to redress for those buildings. I pay tribute to my hon. Friends the Members for Stevenage (Stephen McPartland), for Kensington (Felicity Buchan), for Bromley and Chislehurst (Sir Robert Neill) and for Wimbledon (Stephen Hammond) and my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning), as well as a great many Opposition Members.

That is why we tabled Government amendment 41, which will retrospectively extend the limitation period for section 1 of the 1972 Act to 30 years, meaning that there will be access to this route of redress for buildings completed from mid-1992 onwards. That represents a substantial extension beyond the current six years. I recognise that changing the law in this way is unusual and that 30 years represents a long limitation period. However, I consider that the exceptionality of the current circumstances in respect of cladding and other serious fire safety defects warrants the longer retrospective limitation period of 30 years.

None Portrait Several hon. Members rose—
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Christopher Pincher Portrait Christopher Pincher
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I shall give way to the hon. Member for Blackley and Broughton (Graham Stringer) and then to my hon. Friend the Member for Stevenage.

Graham Stringer Portrait Graham Stringer
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The Minister is being extraordinarily generous with his time. The Government have moved a good distance to get all-party support for what they are doing and to take the burden away from leaseholders. However, I suspect that in many cases, the people responsible for the defects will have liquidated themselves and will no longer be there. Is not one possible solution that a charge be put against the land, so that neither the leaseholder nor the taxpayer has to pay? Has he considered that?

Christopher Pincher Portrait Christopher Pincher
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We will consider all proposals that are put to us to see whether they work and to ensure that leaseholders are protected. As the Secretary of State said in his statement, we will conduct a series of summits with the sector to put people on notice that they must pay for the problems they have caused. If they will not do it voluntarily, we will find a means of requiring them to do so.

The hon. Gentleman was wrong to say that I am being generous with my time. In fact, I am being generous with the House’s time. I propose to be less generous in future, but not before I have allowed my hon. Friend the Member for Stevenage to intervene.

Stephen McPartland Portrait Stephen McPartland (Stevenage) (Con)
- Hansard - - - Excerpts

I would like to thank the Minister on behalf of a number of leaseholders around the country, because our amendments asked for only 25 years and the Government have gone further with 30 years. I put on the record my thanks to the Government for that.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I am grateful to my hon. Friend. I assure him that the 30-year retrospection is what we decided on; it is not a typo and it should not read 25 years.

The prospective limitation period will remain at 15 years, as is currently proposed, which still represents a substantial extension beyond the existing six years. In a small number of cases, the retrospectively extended limitation period will expire very soon following the commencement of the provision. We believe that it is important that the extended limitation period is of practical benefit in the case of all buildings that fall within scope. That is why we have proposed adding section 4B(4) to the Limitation Act 1980 through clause 128, which will ensure that there is always a minimum amount of time to lodge a claim under section 1 of the Defective Premises Act for buildings whose limitation periods will be revived for a very short period of time.

As introduced, the Bill provided for an initial period of 90 days in which action relating to defective premises could be taken when the extension was about to run out. I agree with several of my hon. Friends that 90 days is an insufficient amount of time to take the necessary advice and lodge a claim, which is why we are bringing forward amendments 42 and 43 to extend the initial period to one year. That means that those in any buildings completed between mid-1992 and mid-1993 will always have one full year in which to lodge their claim, once this Bill and its provisions apply. These amendments will ensure that the retrospectively extended limitation period can be of practical benefit in the case of all buildings in scope, and I trust that the House will support them.

Clause 127 expands the scope of the Defective Premises Act to include refurbishment works, and a technical amendment in the next group will ensure that this commences two months after Royal Assent, ensuring that this important new safeguard against shoddy workmanship is taken up as soon as possible. This was a debate that we had, and agreed about, in Committee. I am grateful to my right hon. and hon. Friends, and indeed to colleagues across the House, for debating these matters and for tabling amendments in this area, but I hope that in the light of what I have said from the Dispatch Box they will feel able to withdraw their amendments.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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I want the Minister to clarify one last thing before he sits down, because although other hon. Members have raised it, I am still not entirely clear what reassurance there is for our constituents who are leaseholders experiencing problems that are not related to cladding. Others have raised the issues of internal partitions, roof spaces and so forth, and the Minister has referred to other legal channels that may be available, but can he tell me clearly now what reassurance there is for leaseholders who are not facing cladding problems but are facing other fire defects? Will the legal protections that he is offering extend to them?

Christopher Pincher Portrait Christopher Pincher
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We will work with parties across this House—across both Houses—and with interested parties to ensure that these issues are properly understood and debated.

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

No, I will not.

We want to ensure that these matters are properly debated and properly agreed. We also want to ensure, through a suite of mechanisms such as the extension of the Defective Premises Act and working with the sector to ensure that it pays for the defects it has caused, that this issue for leaseholders, which has gone on for far too long, is finally put to bed. This group of Government new clauses and amendments make key improvements to the Bill and extend its benefits to include the whole of Great Britain. I hope therefore that Members across the House will feel able to support the new clauses and the new schedule and allow them to stand part of the Bill.

Matthew Pennycook Portrait Matthew Pennycook (Greenwich and Woolwich) (Lab)
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It will not have escaped your notice, Madam Deputy Speaker, that I have taken on this Bill in its final stages, so I must begin by thanking my hon. Friends the Members for Manchester Central (Lucy Powell) and for Weaver Vale (Mike Amesbury) for their prodigious efforts during its earlier stages. I also want to thank my hon. Friends the Members for Liverpool, West Derby (Ian Byrne), for Brentford and Isleworth (Ruth Cadbury), for Luton South (Rachel Hopkins), for Jarrow (Kate Osborne) and for St Helens South and Whiston (Ms Rimmer) for so ably scrutinising it in Committee.

The issues covered by the Bill have been extensively set out in debates on Second Reading and in Committee. I have no intention of seeking to reprise them this afternoon, but before I turn to part 5 of the Bill and the consideration of the amendments related to it, I feel it is incumbent on me briefly to restate why we believe this legislation is so important. As the House knows, on 14 June 2017, 72 men, women and children lost their lives in an inferno fuelled by the highly combustible cladding system installed on the outside of their 24-storey tower block in north Kensington. That tower block was also compromised by a range of other fire safety defects. I put on record once again our admiration for the survivors and the bereaved of the Grenfell Tower fire and for the wider Grenfell Tower community, who continue to seek not only justice for their families and neighbours but wider change to ensure that everyone is safe in their home.

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Shabana Mahmood Portrait Shabana Mahmood (Birmingham, Ladywood) (Lab)
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I shall speak to Opposition new clause 3 and to the amendments that, although they will not be pressed to a vote this evening, would protect leaseholders from the costs of not only cladding removal, but the remediation of non-cladding defects.

I can hardly believe that it is four and a half years since the horrific fire at Grenfell, and still we are fighting for the robust legal protection that leaseholders in my constituency and across the country need and deserve. It is too easy to assume that removing cladding is the beginning and end of the scandal; the costs of remediating non-cladding fire safety defects are just as ruinous, and blameless leaseholders should not be picking up those costs. I have seen for myself the extent of fire safety defects at various buildings in my constituency, including the Brindley House development, where the scale of the missing firebreaks and other defects was truly shocking. The people who were responsible for putting up that building were grossly negligent and, in my opinion, complete cowboys.

The regulatory failure whereby buildings were declared fit for human habitation when they contained defective or inappropriate fire safety measures, or when those measures were wholly absent, is staggering. When there were negligent and dishonest practices, the costs of remediation should not fall at the feet of my constituents. A commitment to full legal protection for leaseholders from all costs—both for the removal of dangerous cladding and for the remediation of all other fire safety defects—should have been added to the Bill today, because those issues are not new and have been the subject of intense debate for years.

Ministers and their officials know full well the contours of the debate and the issues at stake, so it is not good enough that the Government did not make such amendments today. Instead, we will have to wait to see whether full legal protection is made available when the Bill goes to the other place. We may understand parliamentary procedure and the different staging posts of a Bill, but to my constituents watching from the outside, every single staging post feels like a slap in the face when they are not given the full protection that they need and deserve.

I associate myself with the comments that have been made about insurance, particularly professional indemnity insurance, but I want to mention the increased insurance premiums that many of our constituents have faced across the country. I have been writing to the Government, the FCA and others for more than two years to ask for action against the insurance industry for the huge increase—the hike—in premiums that our cladding-affected leaseholders have faced. That increase bears no resemblance to the mitigations that our constituents have paid for to decrease the risks in their buildings.

People have paid hundreds of thousands of pounds for new fire alarm systems and internal compartmentation to try to bring the risk down in their buildings, yet that is never reflected in the insurance premiums that they have to pay. That is unconscionable. There are big questions for the wider insurance sector to answer, in addition to the buildings industry. It seems to me that someone who has profited from, for example, charging a building in my constituency an insurance premium of £700,000 in total, which has never come down, has some big questions to answer.

I hope that when the Minister brings the Bill back to this place, we get the time for adequate debate and the further amendments that we need. I hope that we take action on insurance and perhaps even—God help us—implore the FCA to do its job and stand by our constituents, who deserve the regulator’s protection. When the Bill comes back, I hope that it addresses all those issues, as it is high time that the Government did right by leaseholders.

Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I congratulate right hon. and hon. Members on their contributions to this important debate and to the amendments that we are debating. In the short time that I have, I will say that I entirely agree with my hon. Friend the Member for Stevenage (Stephen McPartland) and the hon. Member for Birmingham, Ladywood (Shabana Mahmood), who raised the terrible plight faced by her constituents at Brindley House, as did the Mayor of the West Midlands, Andy Street. Too many people, for far too long, have been far too worried. We have to end this scandal.

Several hon. Members asked whether we intend to bring forward legal protections in the House of Lords. I assure the House that we do. We certainly want to ensure that all leaseholders in medium and high-rise buildings, who live in them or who used to live in them but have had to move out and sub-let because of the situation in which they find themselves, will have put in place the robust legal protections to which my right hon. Friend the Secretary of State referred. We want to work cross-party and with interested parties to ensure that those robust protections are right.

We believe that leaseholders should not be asked to pay anything further until those legal protections are in place, as was raised by several hon. Members on both sides of the House. I encourage any hon. Member who is aware of demands from freeholders that their leaseholders pay to make me or my officials aware of that demand.

I am also grateful for the points raised by my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) and my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) about the, shall we say, peculiarities of the insurance system. Some of those are wider issues that go beyond the Bill, but I am happy to discuss how we can resolve such issues with them.

I will certainly work collaboratively with the hon. Member for Reading East (Matt Rodda). I am conscious that my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) is right that there are limitations through mitigation, but the law can change the culture. That is part of the point of bringing forward the Bill—to change the culture of the sector.

We will instigate a summit with the sector to ensure that it pays what it owes, and if it will not pay voluntarily, we will introduce appropriate mechanisms to ensure that it does. I am conscious that the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), referred to the Defective Premises Act 1972. I may have misheard him, but I think he suggested that that Act is not available for use by leaseholders. That is not correct. Leaseholders are able to avail themselves of the Act, as may any freeholder.

I am conscious, Mr Deputy Speaker, that I have only 14 more seconds in which to speak. Let me reassure Members that we want to work across the House to bring forward sensible legal protections in amendments in the other place, and we will do that as soon as may be.

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16:01

Division 165

Ayes: 181


Labour: 158
Liberal Democrat: 12
Independent: 4
Alba Party: 2
Plaid Cymru: 2
Social Democratic & Labour Party: 1
Alliance: 1
Green Party: 1

Noes: 301


Conservative: 294
Democratic Unionist Party: 4

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Brought up, and read the First time.
Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

I beg to move, That the clause be read a Second time.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
- Parliament Live - Hansard - - - Excerpts

With this it will be convenient to discuss the following:

New clause 1—Review of payment practices and building safety

“(1) The Secretary of State must, within 60 days of the day on which this Act is passed, establish a review of the effects of construction industry payment practices on building safety in general and on safety in high-risk buildings in particular.

(2) The review must, in particular, consider—

(a) the extent to the structure of the construction market incentivises procurement with building safety in mind,

(b) the extent to which contract terms and payment practices (for example, retentions) can drive poor behaviours, including the prioritisation of speed and low cost solutions and affect building safety by placing financial strain on supply chain,

(c) the effects on building safety of other matters raised in Chapter 9 (procurement and supply) of Building a Safer Future, the final report of the Independent Review of Building Regulations and Fire Safety, published in May 2018 (Cm 9607),

(d) the adequacy for the purposes of promoting building safety of the existing legislative, regulatory and policy regime governing payment practices in construction, including the provisions of Part II of the Housing Grants, Construction and Regeneration Act 1996, and

(e) recommendations for legislative, regulatory or policy change.

(3) The Secretary of State must lay a report of the findings of the review before Parliament no later than one year after this Act comes into force.”

This new clause would put an obligation on the Secretary of State to review the effects of construction industry payment on practices on building safety and to report the findings to Parliament.

New clause 2—Building regulations: property protection

“(1) The Building Act 1984 is amended as follows.

(2) In section 1 (Power to make building regulations), after subsection (1)(f), insert—

‘(g) furthering the protection of property’.

(3) In Schedule 1 (Building Regulations), in paragraph 8(5A)—

(a) after ‘1(1)(a)’ insert ‘(d), (e) and (g)’;

(b) after ‘flooding’ insert ‘and fire’.”

This new clause would add “furthering the protection of property” to the list of purposes for which building regulations may be made under the Buildings Act 1984, and extends the purposes for which persons carrying out works on a building may be required to do things to improve building resilience.

New clause 15—Duty of social landlords to undertake electrical safety inspections

“(1) A social landlord of a residential dwelling in a high-rise building must—

(a) hold a valid Electrical Installation Condition Report (EICR) for that dwelling;

(b) provide to the tenant of the dwelling, including any new such tenant—

(i) a copy of that EICR, and

(ii) a document explaining the provisions of this Act;

(c) handle any valid complaint about the safety of the electrical installations of the dwelling in accordance with subsection (5).

(2) A person who fails to comply with a duty under subsection (1) commits an offence.

(3) A person guilty of an offence under this section is liable on summary conviction to a fine.

(4) A complaint is valid if—

(a) it relates to the safety of the electrical installations of the dwelling;

(b) it is made in writing by, or on behalf of, the tenant of the dwelling; and

(c) it is not frivolous or vexatious.

(5) The landlord must investigate any valid complaint within 28 days of receiving that complaint.

(6) If such an investigation shows that the electrical installations are unsafe, the landlord must rectify the situation using a qualified and competent person within 28 days of the completion of the investigation.

(7) If the landlord believes that a complaint is not valid they must write to the tenant within 28 days of receiving that complaint explaining why they do not think it is valid.

(8) In this section—

a ‘valid Electrical Installation Condition Report’—

(a) is dated within the last five years;

(b) covers the whole fixed electrical installation of the dwelling;

(c) has a satisfactory outcome;

(d) was completed by a qualified and competent person; and

(e) is based on the model forms in BS 7671 or equivalent;

‘social landlord’ has the same meaning as in section 219 of the Housing Act 1996.”

This new clause requires social landlords to ensure the safety of electrical installations in high rise buildings and is intended to reduce risk of spread of fires between flats.

New clause 16—Duty of leaseholders to undertake electrical safety inspections

“(1) A leaseholder of a residential dwelling in a high-rise building must—

(a) hold a valid Electrical Installation Condition Report (EICR) for that dwelling; and

(b) provide a copy of that EICR to a person specified by the Secretary of State.

(2) A person who fails to comply with subsection (1) shall—

(a) initially receive a written request from the specified person to provide the EICR; and

(b) if he or she fails to comply with such a written request, be liable to a civil penalty.

(3) The Secretary of State shall, by regulations, nominate who the specified person shall be.

(4) In this section a ‘valid Electrical Installation Condition Report’—

(a) is dated within the last five years;

(b) covers the whole fixed electrical installation of the dwelling;

(c) has a satisfactory outcome;

(d) was completed by a qualified and competent person; and

(e) is based on the model forms in BS 7671 or equivalent.”

This new clause requires leaseholders to ensure the safety of electrical installations in high rise buildings and is intended to reduce risk of spread of fires between flats.

New clause 17—Staircase standards

“The Secretary of State must, within 6 months of the day on which this Act is passed, consult on regulations requiring staircases in all new build properties to comply with British Standard 5395-1.”

New clause 18—Property flood resilience

“(1) The Secretary of State must, before the end of the period of six months beginning on the day this Act is passed, use the power under section 1 of the Building Act 1984 to make building regulations for the purpose in subsection (2).

(2) That purpose is to set minimum standards for the safety of new build public and private properties in England for—

(a) property flood resilience,

(b) flood mitigation, and

(c) waste management in connection with flooding.

(3) The Secretary of State must by regulations establish—

(a) a certification scheme for safety improvements to domestic and commercial properties in England made in full or in part for flood prevention or flood mitigation purposes, and

(b) an accreditation scheme for installers of such improvements.

(4) The scheme under subsection (3)(a) must—

(a) set minimum standards for the improvements, including that they are made by a person accredited under subsection (1)(b), and

(b) provide for the issuance of certificates for insurance and assurance purposes stating that improvements to properties have met those standards.

(5) The scheme under subsection (3)(a) may make provision for the certification of improvements that were made before the establishment of the scheme provided those improvements meet the minimum standards in subsection (4)(a).

(6) In setting minimum standards under subsection (4)(a) the Secretary of State must have regard to the minimum standards for new build properties under subsection (1).

(7) The Secretary of State and local authorities in England must take all reasonable steps to make data about flood prevention and risk relevant to building safety publicly available.

(8) The duty under subsection (1) extends to seeking to facilitate use of the data by—

(a) insurers for the purpose of accurately assessing risks to buildings, and

(b) individual property owners for the purpose of assessing the need for property flood resilience measures.”

This new clause would establish minimum standards for property flood resilience measures in new build properties and in improvements to existing building designed to increase safety protections for flood prevention and mitigation purposes, and require local and national government to make data available to support this.

New clause 23—Building control: independent appointment

“In section 47 of the Building Act 1984 (giving and acceptance of initial notice), in subsection (1)(a) after ‘approved inspector’, insert ‘who has been chosen by a system of independent appointment, prescribed by regulations made by the Secretary of State.’”

This new clause, along with Amendment 73, is intended to remove choice of building control body from those carrying out all building work.

New clause 24—Building Safety and Local Authorities

“(1) The duties performed by the regulator under section 31 of this Act in respect of relevant buildings must be performed by the local authority that exercises building control functions in the area in which the building is located.

(2) In this section ‘relevant building’ means a building—

(a) under 18 metres in height, and

(b) comprising more than one dwelling.”

New clause 25—Building Safety Regulations for multi-occupancy dwellings

“The Secretary of State must by regulations amend paragraph 1 of Schedule 1 to the Building Act 1984 to apply to all buildings that comprise more than one dwelling.”

Amendment 1, in clause 3, page 2, line 13, at end insert—

“(aa) furthering the protection of property, and”.

This amendment would require the building safety regulator to exercise its functions with a view to furthering the protection of property, which is intended promote longer term protections for occupant safety and reducing fire damage and cost.

Amendment 74, in clause 30, page 18, line 17, at end insert—

“(3A) In making regulations under this section, the Secretary of State must have regard to the ability of residents to evacuate a building, taking into account the vulnerability of residents and the number of means of egress.”

This amendment is intended to ensure the Secretary of State has regard to the ability of residents to evacuate a building when revising the definition of higher-risk building.

Amendment 73, page 60, line 7 leave out clause 45.

This amendment, along with NC23, is intended to remove choice of building control body for those carrying out all building work.

Amendment 75, in clause 57, page 79, line 23, at end insert—

“(5) The regulations must exempt any relevant application made by or on behalf of a registered social landlord for the provision of social housing as defined under section 68 of the Housing and Regeneration Act 2008.

(6) A ‘relevant application’ under subsection (5) means an application of a description specified in regulations made by the Secretary of State.”

Government amendments 11 to 40.

Government amendments 60 and 61.

Government amendments 63 and 64.

Government new schedule 1—Special measures.

Government amendment 70.

Christopher Pincher Portrait Christopher Pincher
- Hansard - - - Excerpts

I am happy to set out this group of new clauses and amendments that I hope will be non-contentious as they relate to special measures.

Let me briefly remind the House that special measures orders are a last-resort regulatory intervention that will be invoked if there has been a serious failure or multiple failures by the accountable person to meet their duties under part 4 of the Bill. The new clauses and amendments, beginning with new clause 19, provide for the special measures regime to operate in high-risk buildings across all housing tenures. They also ensure that a special measure order cannot be circumvented by a recalcitrant accountable person, including in respect of a situation in which an accountable person sells their interest in the building and tries to avoid being bound by the special measures order.

New clause 19 introduces new schedule 1, which will encompass the special measures provisions and replace clauses 104 to 113. I shall refer to the paragraphs in the schedule as I address the House. Proposed new paragraph 9 is a new provision that provides for a financial management proposal. This will detail how the accountable person will fund the relevant building safety expenses across both leasehold and rented buildings that are subject to special measures. The financial management proposal sets out the estimated expenses, the measures that they will fund and the special measures manager will undertake, and the apportionment of payments if there is more than one accountable person.

Proposed new paragraph 10(3)(b) ensures that for commonhold buildings a special measures manager may carry out the functions of a receiver of commonhold building safety assessments. This aligns with the provisions on the building safety charge and ensures that the manager is remunerated and can carry out their functions for such a tenure of building. Amendments 33 to 35 are supporting provisions for special measures in common-hold buildings.

Proposed new paragraph 12 is a new provision that ensures financial propriety and provides that any payments received by a manager further to the proposal are deposited into an account to be held on trust. Proposed new paragraph 16 gives power to the Building Safety Regulator to provide financial assistance to the special measures manager to enable it to carry out its functions.

Proposed new paragraph 18 provides for a proactive regulator who will review key aspects under the special measures order and, where necessary, apply to vary the order if the regulator considers that any of the functions or terms require amendment.

Proposed new paragraphs 20(7) to 20(9) provide that on the discharge of a special measures order, the tribunal must direct the special measures manager to prepare a reconciliation of those accounts held on trust and may direct final payments from the manager or accountable persons as appropriate.

Proposed new paragraph 22 creates provisions that ensure that while it is in force the terms of a special measures order will be binding against an incoming accountable person, while the outgoing accountable person remains liable for any contraventions under the order and any debts that may have been incurred prior to the transfer of ownership.

A swathe of Government amendments—Nos. 11, 12, 16 to 28, 31 and 32, 36, 40, 61, 63 and 70—are consequential amendments that make changes relating to special measures due to the provisions now appearing in new schedule 1. Amendments 33 to 35 provide for changes to provisions to ensure that special measures operate effectively for commonhold, high-risk buildings. Together, these amendments and new provisions will ensure that a special measures intervention will operate effectively across buildings, regardless of tenure.

Amendments 14 and 15 are, again, minor technical changes to the process of registration of high-risk buildings. Amendment 14 simply clarifies the meaning of registration, while amendment 15 makes it clear that the building safety regulator has the powers to update the register of high-risk buildings beyond the initial registration application. The amendment will therefore make sure that the register is kept up to date and is fit for purpose. Amendments 29 and 30 are on the protection from forfeiture and amend clause 122. They amend it so that leaseholders can be assured that they have the same protections against forfeiture of a lease as those that already exist in relation to the service charge. They are consequential amendments that ensure that statutory protections against forfeiture apply to relevant leases where there is a requirement to pay a building safety charge. We want the same procedural rights to apply to the building safety charge regime as apply to the service charge. The amendment extends service charge protections for leaseholders who default on payments or challenge the reasonableness of a charge to the building safety charge.

Finally, the Government have tabled another small batch of minor or technical amendments that are either consequential to other changes or correct clauses in the Bill. Four technical amendments are consequential to amendment 1, which I introduced earlier, relating to the new homes ombudsman. Amendments 59 and 62 remove the regulation-making power to add the description of “developer” for the purposes of the new homes ombudsman provisions from the scope of the general provision about powers to make regulations. This is because new clause 20, in respect of the regulations, means that we can ensure that Scottish and Welsh Ministers, as well as the Secretary of State, have bespoke powers. Amendments 66 and 67 adjust the territorial extent of the provisions about the new homes ombudsman scheme now that that the scheme will operate across Great Britain, and territorial extent issues are also dealt with in new schedule 2, which contains a consequential amendment related to the new homes ombudsman. [Interruption.]

Finally, I heard from my right hon. Friend the Member for Beckenham (Bob Stewart), who has not yet risen—

Christopher Pincher Portrait Christopher Pincher
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He has risen—I am doing your work for you, Mr Deputy Speaker—and I will give way to him.

Bob Stewart Portrait Bob Stewart
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I thank my very good friend for being so nice to me—decent of him. In sum, all these special measures are devices to ensure that, once people are identified as culpable to fix the problem, they are pinged and have to do it. Is that correct?

Christopher Pincher Portrait Christopher Pincher
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My right hon. and gallant Friend, as ever, is on or near the money. The point of the changes is to make sure that the accountable person is indeed accountable, so they do what it says on the tin.

Amendment 13 makes it clear in the Bill that an accountable person who allows occupation of a single residential unit or more in part of a higher risk building, as defined in clause 62, without a relevant completion certificate has committed a summary offence, and the guilty person is liable for conviction up to a maximum summary term. Amendment 60 allows regulations made under clause 71 to be subject to the affirmative procedure. Clause 71 sets out the parameters of the part of the building for which an accountable person is responsible. Amendment 64 provides that the consequential amendments in schedule 5 relating to the Parliamentary Commissioner Act 1967—an Act we all know well—and the Freedom of Information Act 2000 extend to all of England, Wales, Scotland and Northern Ireland. Amendment 68 provides that clause 127 is automatically commenced two months after Royal Assent.

The amendments, while hardly scintillating, will help to improve the Bill and make it ready for scrutiny by our colleagues in the other place. I trust that my hon. Friends and Opposition Members have listened closely, with care and attention, have absorbed all the points I have made, and that they will support the amendments.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Before I call Matthew Pennycook, I ask colleagues who are trying to catch my eye that they please make sure that they address the new clauses and amendments in the group before us, not those in the previous group.

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Margaret Ferrier Portrait Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
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I rise to speak in support of new clauses 1, 2, 15, 16 and 23. The events at Grenfell Tower were devastating, with the tragic loss of 72 lives, which shocked us all. Words will never adequately describe the pain felt by the families and friends of the victims. Later, though, as light was shed on the extensive preventable failings that led to the disaster, justifiable anger followed.

I am glad to see the Bill progress through this place, but it should not have taken almost five years. I welcome the Secretary of State’s recent announcement that leaseholders in England will not face the astronomical costs of remediating unsafe cladding. I am pleased that the Government have taken a moral stance on the issue.

Unfortunately, there are still gaps that must be plugged, and I hope that the Minister’s promise of statutory protection against all building safety defects will materialise. For my constituents, I hope that the Government will engage in a constructive dialogue with the Scottish Government to ensure that leaseholder protection can be extended across the UK fully funded.

There is still a glaring lack of clarity and the Government must facilitate funding being available across the devolved Administrations to achieve an equal standing. Although much of the Bill has limited territorial extent, there are some key areas that apply across the UK and in Scotland, such as the testing and inspection of construction products.

Early last year, it was announced that the independent panel on the safety of construction materials would review the testing system and how it can be strengthened so that product safety confidence can be restored. The industry is still awaiting the report’s publication, which prompts the question of how we can fully scrutinise the Bill’s measures without knowing what the review found. Can the Minister provide a definitive date for when it will be available? Will he also provide an update on the establishment of a national regulator for construction products?

As it stands, there are a limited number of private product testing companies, and fewer still of the accredited bodies’ testing sites, which means limited access to the furnaces that are used to test all combustible building materials and products. Subsequently, there are huge delays in products moving through the testing system.

Some companies are reporting delays of up to six months to test their products. The accredited sites are managed by private sector companies, and as demand increases and supply decreases, the price set by those bodies climbs. Concerns have been raised that that model incentivises the maximising of profit over the quality of testing.

The Government must also be cautious not to create widespread quality disparity between existing buildings and new ones of any height. While preservation of life is of course the most key consideration, the lifespan of buildings must be protected too. Buildings such as schools, hospitals and care homes, which hon. Members have mentioned, should have a mandatory requirement for sprinklers. By making such buildings as safe and resilient as possible, human life is protected, yes, but many other things too. Schools are pillars of the community. Where do those students go to learn if their school burns down, or for a hospital, where do the patients go? What delays will essential services suffer?

The Bill is a mammoth piece of legislation and it is easy to look at each single part in turn to make it digestible, but a key finding in Dame Judith Hackitt’s review was that there needs to be a holistic, whole-building approach to fire safety. We ought to apply that principle here and take a whole-Bill approach, to truly understand how it will work in practice.

Christopher Pincher Portrait Christopher Pincher
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I am grateful to all Members across the House for their contributions to the debate. I will speak in response to the non-Government amendments first and then, as I progress through my remarks, pick up the points that have been raised about the Government’s amendments.

New clause 1 was tabled by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), who is not in her place; we wish her a swift recovery. I thank her for raising the matter, and I recognise that the issue that she has embedded in her amendment is intended to address the fact that the poor adversarial practices in the way that payments are charged and made within the built environment can lead to unsafe, low-quality building safety outcomes as well as poor value for money.

I assure all hon. Members that we agree that the issue is important. There is already work across Government to ensure that fair and prompt payment practices are addressed with industry—such as the construction playbook, which captures commercial best practice and specific sector reforms, outlining the Government’s expectations of how contracting authorities and suppliers, including in the supply chain, should engage with each other. That is resetting the relationship between the construction industry and the Government. It is focused on delivering a more sustainable, modern industry, better able to deliver high-quality built assets for its clients.

We published guidance as a result of work set up with the Construction Leadership Council and the procurement advisory group, alongside our recent announcement. We will now work with industry to implement the principles of that guidance as widely as we can. We support industry to lead its own important culture change to deliver the very significant changes being brought forward in the Bill. There is existing legislation—part II of the Housing Grants, Construction and Regeneration Act 1996—that aims to create a framework for a fair and prompt process of payment through the construction supply chain and the resolution procedure for disputes. The intention in that framework is to ensure that it is implemented throughout the construction contract.

Turning to new clause 2 and amendment 1, tabled by my hon. Friend the Member for Waveney (Peter Aldous), our assessment is that the new Building Safety Regulator has the right two objectives to deliver this critical mission, and adding a further objective around property protection would not be necessary or beneficial.

The Bill provides the Building Safety Regulator with a broad statutory objective to improve the standard of buildings, which enables it to consider the overall performance of buildings. Meeting this objective could involve the regulator looking at such specific areas highly relevant to property protection such as security, resilience and fire safety. Therefore, we do not believe that an additional objective is necessary. Adding a specific Building Safety Regulator objective on property protection would also confuse and dilute its mission—that issue was raised in Committee. I think there was agreement across the Committee that we do not want to confuse or obfuscate the responsibilities of the Building Safety Regulator as it is set up and beds in. We want a proportionate regulatory regime that avoids putting undue and unnecessary pressures on leaseholders, but we also want to make sure that the regime builds in and beds in effectively, so I hope my hon. Friend will feel able to withdraw his amendments.

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Christopher Pincher Portrait Christopher Pincher
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I beg to move, That the Bill be now read the Third time.

This Bill represents the biggest overhaul of building and fire safety legislation in a generation, and today’s proceedings represent a significant staging post on our shared journey towards a regime that is more robust and more proportionate. In a modern liberal democracy, living in a home where you feel safe should be a basic human right, but sadly, for thousands of people up and down our country, this most reasonable of expectations does not tally with their current experience. This Bill is going to right that wrong by replacing an outdated building system with one that is attuned not just to where we are in 2021 but to how we protect people in 2031, 2041 and for many years beyond. We recognise from the outset the need for new legislation to be based on the solid foundations of independent and objective expertise, which is why, as Members across the House will know, we are delivering on the recommendations set out by Dame Judith Hackitt in her independent review of building regulations and fire safety.

It will not have escaped the House’s attention that while we have been scrutinising the Bill line by line in Committee and on Report, my right hon. Friend the Secretary of State has been pressing ahead with wider reforms on issues that have plagued this sector for years. My right hon. Friend the Prime Minister and the Secretary of State have set about restoring much-needed common sense to our building safety regime, through the Secretary of State’s statement on 10 January and the Prime Minister’s remarks earlier during Question Time.

There has been progress since the Grenfell Tower tragedy, but our view in Government is that the pace of rectifying high-rise buildings with dangerous and unsafe cladding has not married up to the gravity of the situation, so we must move more effectively and more quickly. That is why we have brought the Bill to the House today to complete its remaining stages, so that it can progress smoothly and quickly to the other place where the robust legislative protections that we have outlined in previous statements can be properly and sensibly made. The Bill can then come back to this House for proper scrutiny, and I am sure that the business managers—the usual channels—will ensure that appropriate time is made available for it to conclude. We must complete this Bill. It has been on the stocks for far too long. Too many people have suffered too much, and we must, through this legislation and through the suite of measures the Secretary of State announced in his statement on 10 January, right the wrong that has been done to too many people. I commend the Bill to the House, not as the end but as the end of the beginning.

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Christopher Pincher Portrait Christopher Pincher
- Parliament Live - Hansard - - - Excerpts

Given all I said previously, I would not want to be accused of detaining the House and the swift passage of the Bill, beyond simply saying thank you to everyone at the Department for Levelling Up, Housing and Communities, particularly my officials who are in the Box and several who are not, and Lord Greenhalgh, who have worked so assiduously to bring the Bill to its current stage, where we can all agree to it today. I also wish to thank the Chairman of the Select Committee, the hon. Member for Sheffield South East (Mr Betts), for his help and support, and we look forward to further collaboration with the Committee.

I congratulate all Members from across the House for their campaigning zeal: the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley); my hon. Friend the Member for Stevenage (Stephen McPartland); my hon. Friend the Member for Eastbourne (Caroline Ansell); the right hon. Member for Leeds Central (Hilary Benn); the hon. Member for Vauxhall (Florence Eshalomi); and many others who have worked so very hard to on behalf of their constituents to make sure that their concerns are addressed. I am glad that we are able to support the Bill tonight, and I wish it well on its swift passage to the statute book.

Question put and agreed to.

Bill accordingly read the Third time and passed.

Business of the House (Today)

Ordered,

That, at this day’s sitting, the Speaker shall put the Question necessary to dispose of proceedings on the motion in the name of Mr Jacob Rees-Mogg relating to Committee on Standards not later than one hour after the commencement of proceedings on the motion for this Order; proceedings relating to the motion on Committee on Standards may continue, though opposed, after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Amanda Solloway.)

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
2nd reading
Wednesday 2nd February 2022

(2 years, 1 month ago)

Lords Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: Consideration of Bill Amendments as at 19 January 2022 - large print - (19 Jan 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That the Bill be now read a second time.

Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
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My Lords, it is a privilege to open the Second Reading debate of this landmark Bill today. I will never forget the events that led us to this moment, nor the 72 people who lost their lives in the most appalling circumstances in the largest loss of life in a residential fire since the Second World War. The fire at Grenfell Tower in the early hours of 14 June 2017 should never have happened. The legislation we are bringing forward today is part of our wider reform to make sure that something like this tragedy can never happen again.

We cannot bring back those who lost their lives on that terrible day, and nothing can undo the errors that led to their deaths. Yet, if anything is to come from this disaster, it must be the lessons that we have learned from the mistakes that were made. That is why the Government appointed Dame Judith Hackitt to review the current building safety regime and recommend wholesale reform. Her findings were unequivocal and clear. Too often, regulations and guidance were misunderstood or misinterpreted. The drive to do things quickly and cheaply—the noble Earl, Lord Lytton, mentioned the concept of value engineering—meant that concerns were ignored and safety was not prioritised. There was ambiguity around who is actually responsible for the safety of buildings, with insufficient oversight and enforcement.

Dame Judith called for a complete overhaul of the system, and her recommendations underpin the Bill, with a golden thread that will ensure that, henceforth, people remain safe in the homes that we build for them. The Bill is unapologetically ambitious, creating a world-class building safety regulatory regime that holds all to the same high standard. The Fire Safety Act, which we will commence shortly, was the first legislative step towards delivering meaningful change following that dreadful tragedy. The Building Safety Bill represents the next step, delivering significant improvements to both the regulatory framework and industry culture, creating a more accountable system.

The Bill will deliver improvements across the entire built environment. It will strengthen oversight and protections for residents in high-rise buildings and give them a greater say, and will toughen sanctions against those who threaten their safety. Its focus on risk will help owners manage their buildings better, while giving the homebuilding industry the clear, proportionate framework it needs to deliver better, higher-quality homes. It is proportionate and strengthens fire safety requirements in all premises regulated by the fire safety order. It rightly focuses the new, more stringent requirements on those buildings and issues that pose the greatest risk.

To that end, we are strengthening our regulation of high-rise residential buildings which are over 18 metres or above six storeys in height, whichever is reached first; those buildings pose the greatest safety risks in the event of a spreading fire or structural failure. We are including hospitals and care homes that meet the height threshold during their design and construction. We will establish a robust link between safety, design, construction and occupation, with stringent duties to ensure safety throughout the building’s life cycle.

The Bill provides the framework to ensure that, during the design and construction, defined duty holders have clear responsibilities for compliance with building regulations, including fire and structural safety. They will have to clear a series of hard stops, through the new gateway system for in-scope buildings.

In occupation, every building in scope will have an identified accountable person with clear responsibility for safety matters. Their duties include registering the building with a new regulator, building an evidence and risk-based safety case, and the continued evaluation of potential hazards. Importantly, it will be a criminal offence not to carry out these duties effectively, punishable by an unlimited fine and up to two years in prison.

We are giving residents a stronger voice in the system through the Bill, making it easier for them to seek redress and raise concerns. The Bill will require an accountable person for a high-rise residential building to engage with their residents and establish a formal complaints process for residents to raise concerns. Both the accountable person and the responsible person for premises regulated by the fire safety order will be required to provide residents with access to key building safety information.

These measures will be overseen by the new building safety regulator within the Health and Safety Executive. The regulator will be equipped with robust powers to crack down on substandard practices. It will oversee the safety and standards of all buildings and will provide important independent advice to government on building safety and standards. It will support a significant improvement in the performance and competence of industry and building control professionals.

The Bill ensures that the regulator will regulate in line with best practice principles, being proportionate and transparent and targeting activity where action is needed. Crucially, it will act to ensure that proportionality is embedded within its operations and in its work with accountable persons to assess buildings.

I turn now to construction products. The testimony we have heard at the Grenfell Tower Inquiry has been shocking to say the least and has exposed a culture of corner-cutting, Spanish practices and disgraceful behaviour by an industry that has compromised building safety. We intend to put a stop to this. Following the Grenfell Tower fire, we banned the use of combustible materials on the external walls of high-rise residential buildings. The Bill creates powers to strengthen regulatory oversight for firms that manufacture and sell construction products and, crucially, powers to remove unsafe construction products from the market and take action against those that break the rules. The Bill will improve the standards of our construction products oversight regime.

The polluter must pay; developers and construction product manufacturers must be held to account. Residents must be protected against substandard materials, workmanship and practices that make homes unsafe. Our new regime will help address these issues for high-rise residential buildings, but we need to expand legal safeguards for residents wherever they live. That is why the Bill retrospectively extends the period during which compensation for defective premises can be claimed by over double the current period—from six to 15 years prospectively and by 30 years retrospectively —to make sure that the failures of the past can be addressed. This is a significant step forward, and we are going further, expanding the scope of the work for which compensation can be claimed to include future renovations.

We are also strengthening redress for people buying a new-build home through provisions for the new homes ombudsman scheme that will provide dispute resolution and resolve complaints involving the buyers of new-build homes and developers.

We also know that we must go further to protect innocent leaseholders, who are the victims, from bearing the financial burden of this crisis. I thank your Lordships, in particular my noble friends Lord Blencathra and Lord Young of Cookham and the noble Lord, Lord Stunell. I could not forget the noble Lord, Lord Kennedy, as well for being ever so helpful during these debates. I also thank the noble Earl, Lord Lytton, the noble Baroness, Lady Pinnock, and, of course, the right reverend Prelate the Bishop of St Albans, who has been an inveterate campaigner on behalf of leaseholders. This is a hugely important issue; it is important that we continue to do our best collectively to protect leaseholders.

The Secretary of State in the other place has been unequivocal in his determination that leaseholders living in their own flats in medium and high-rise buildings will not pay a penny to remediate unsafe cladding. We have scrapped proposals for loans and long-term debt for medium-rise leaseholders. We have allocated a further £27 million to help bring the misuse of waking watches to an end, and we are working towards making sure that leaseholders are protected from the risk of forfeiture relating to historical building safety issues, until a new industry-developed system is in place. But we know that more is needed. We will also explore further statutory protections for leaseholders and we will bring forward proposals for this House to consider at the earliest opportunity. I look forward to working with your Lordships on the Opposition Benches, with the Liberal Democrats, with the Cross-Benchers, and even with my own awkward squad, to ensure that this 143-clause Bill perhaps adds the odd extra clause and is the best possible Bill that we can take forward and get on the statute book.

The Government have accepted their share of responsibility and made significant financial provision—over £5 billion—through the ACM remediation programme and the building safety fund. Some developers have already done the right thing and provisioned or are funding remediation works. We are also seeing that among registered providers. But too many others have failed to live up to their responsibilities; in some cases, they are not engaging at all with government. We cannot keep looking to the taxpayer to keep bailing out this failing industry: we must get the polluters to pay.

We have already announced a £2 billion tax on the biggest residential developers through the residential property developer tax and a further levy on developers building tall buildings through the Building Safety Bill, and we are now engaged with industry to ensure that it pays its fair share for fixing cladding problems, rather than the leaseholders. I point out that where both private developers and social housing organisations have developed land, they are equally culpable if they put up unsafe buildings and they must pay. Our expectations are clear: industry and the owners of land, such as registered providers, should fix the buildings they were responsible for. They need to contribute to a wider fund to ensure that remaining buildings are remediated to protect leaseholders.

In a round table held with the Secretary of State, senior executives from the country’s biggest developers agreed that leaseholders should not pay. We continue to engage with them on how they will deliver a fully funded action plan by early March. We are also acting directly to make sure that those who manufactured dangerous products, built unsafe buildings and knowingly put lives at risk are also properly held to account. We have had a similar meeting with construction products manufacturers. I was shocked that Arconic, one of the manufacturers of the material used on Grenfell, did not show up; that is completely unacceptable. We have been clear in our intent: industry needs to develop real proposals to fund this crisis. If it does not agree a solution soon, we will, if necessary, impose one in law.

The Bill represents the most radical revision of our building safety regime in generations. It is a complete overhaul of safety management, putting residents’ safety at the absolute heart of our reform. I commend the Bill to the House.

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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I really enjoy the tutorials I get from the noble Lord, Lord Kennedy. I shall do my best to start at a high level because this is a serious debate. There have been a lot of expert contributions and I have, as noble Lords will know, listened carefully to them all. I should start by saying that when I joined the Government I was told that I could have any job I wanted and was then assigned building safety and fire. The offer changes as one goes through the process.

It means that I have spent some time thinking about the root causes of the Grenfell Tower tragedy. I like to think about things and today we are addressing two of the fundamental root causes. That is why the Bill has the support of this House. We saw a corrosive construction industry culture that needs addressing and the Building Safety Bill seeks to do that. That is why it is so important. We also have, as admitted by my right honourable friend the Secretary of State in the other place, a building safety regulatory system that is, frankly, broken. That is why we need the Bill and we are all keen to make sure that it gets on to the statute book. That is important.

I also want to respond as Fire Minister to the comments of the noble Lord, Lord Kennedy, about the ordinary firefighter and the Fire Brigades Union. I engage; I met Andy Dark and Matt Wrack last week and will engage with them again. However, it is important to reflect that, as regards the Manchester Arena attack and the night of the Grenfell Tower tragedy, there are lessons to be learned for fire and rescue services. We must not mistake the need for reform, which should get widespread support from this House. As Fire Minister, I am about to publish a White Paper that will seek to reform professionalism and ensure that we get better people into the fire and rescue service. The paper will also look to improve governance. It should not prove particularly controversial and will, I hope, have widespread support. However, the reform agenda does not take away from the fact that the ordinary firefighter goes forward into danger, rescuing people’s lives. They certainly have my support and, I am sure, the support of everybody in this House.

It is virtually impossible to respond to the contributions of 32 speeches in the time available. We are then going on to Committee, where the Bill will be debated in depth in the unfortunately slightly less well-lit Moses Room—although it is now dark in here without natural light. We will, however, have an opportunity to debate these matters at length during the passage of the Bill.

First and foremost, we need to understand the issues around scope. This Bill affects the whole built environment. The new building safety regulator will be responsible for building regulations, looking at standards and competence and working with the British Standards Institution to set the competence of the professionals involved in the development of all the built environment.

I want noble Lords to realise that it is important to set the high-risk regime at an appropriate level. If we say we want everything in the high-risk regime then, frankly, the building safety regulator will fail. There are 12,500 high-rise and 77,000 medium-rise buildings—the lower one goes, the more buildings there are. It is very important to have an appropriate scope for the high-risk regime and not ask too much of a new fledgling regulator who exists in shadow form. I hope noble Lords will be patient about scope. This does not mean that it will not widen over time, but we need to start in the right place.

I really enjoyed the valedictory speech of the right reverend Prelate the Bishop of Winchester. I do not think I have heard the right reverend Prelate speak before, but I listened to almost every word. While I do not think the Palace of Westminster is an example of remediation at pace, I completely agree that “caring for building safety is caring for the health of our nation.” That is absolutely right. It is one of the reasons why I am passionate about this ministerial brief. It is very important that we get this right, and I thank the right reverend Prelate for raising it in that way.

As someone who loves history, I recognise that the Victorians did not get everything right, but they got the built environment right. They worked off pattern books. They built some of the finest homes that—like the Romans’—will probably last for a thousand years. We must get back to those principles of quality that the Victorians pioneered and that the Edwardians followed. Somewhere along the way, we lost the culture of building quality in this country.

I also single out my noble friend Lady Fox of Buckley—although she is not my noble friend because she is not on these Benches. She raised a very important point. The proportionality needs to be right in both council homes and social housing, as well as in private housing. There are people who profiteer from this stuff; they create a disproportionate approach and people pay for that. I was approached, not about a council home, but about Saxon House—a home in Sutton—where, essentially a cowboy did an EWS1 form and failed it. This caused untold stress and misery. A young man, called George Martin, managed to challenge it. It is important that we stop in their tracks those who are not acting properly. I involved the police in that case and supported the leaseholders in Saxon House. It is important to have a greater sense of proportion when approaching this crisis. We must remember that some people simply want to profiteer from a problem that has effectively been built up over 30 years. It is shameful to see such instances.

I was given a list of everyone who referenced protecting leaseholders and the polluter pays principle. I could spend the next 40 minutes reading out everybody’s names. In trying to answer all the questions, I will pick out those from my noble friends Lord Blencathra and Lord Young. In essence, we have made a commitment to protect leaseholders and make the polluter pay. Voluntary contributions can go so far, but we want this in law. From my noble friend Lord Blencathra I have learned about a framework—a toolkit in my language—for protecting leaseholders and getting the polluter to pay. The Government will bring forward amendments—I think the deadline for Committee is Valentine’s Day, 14 February. We will be ready to debate many of these amendments at the next stage of this Bill, although some may not be ready. Some are not government amendments. I have been working very hard and listening very carefully to Steve Day, whom the noble Earl, Lord Lytton, has been championing. I have put him in touch with lawyers with real expertise. Professor Susan Bright of Oxford, a land lawyer of the highest quality, has been helping to draft an amendment —now known as the Bright-Day amendment, which is better than the dark night amendment. I hope that this will be ready for noble Lords to consider, although it has not yet gone through government processes. We want every tool in the toolbox to make sure that we protect leaseholders and make the polluter pay.

The comments from the noble Baroness, Lady Warwick of Undercliffe, were very interesting. I want to find out more about the statistic she quoted. It is staggering to think that many registered providers put £6 billion towards remediating their own housing stock. The leading developers have made provision of no more than £1 billion for their share of this crisis. I therefore pay tribute to the registered providers who are doing the right thing and making their buildings safe and not relying entirely on the probably £300 million or £400 million of taxpayers’ money that has gone towards remediation. However, that is a small fraction of the amount of money that the noble Baroness referred to. That is a very useful contribution toward resolving this crisis, because of the balance sheets of the G15, whose shoulders are considerably broader than the average leaseholder and shared owners who live in their homes. That is a tribute, and I look forward to having a summit with the National Housing Federation and leading registered providers to see how we can move forward in that vein.

I was a little disappointed when I saw a tweet that a small number of registered social landlords were effectively engaging a lobbying agency to try to promote ways to stop leaseholders being able to pursue claims. That is not the way to go. We have to recognise that there are people who are doing the wrong thing, and we have to encourage them—whether they are developers or registered providers—to do the right thing by leaseholders.

I thank the noble Baroness, Lady Grey-Thompson, for sharing her speech, but it got to me quite late; it really struck me, and stopped me in my tracks. I got to know some disabled leaseholders who are leading the campaign, Claddag. Sarah Rennie and Georgie Hulme are incredible people, and I want to be pointed to some other examples. When it comes to public procurement —I declare my interest as someone who has been in local government for 20-odd years, although I never became a vice-president of the LGA; I do not know what I did wrong—it is important that we look at that. However, public procurement has the potential for litigation and there are all kinds of things that, as a Minister, I cannot do. I hear what the noble Baroness says, and there is an intention to do all we can to help disabled people to live safely in their home, whether in high-rises or medium-rises. I want to give her that assurance as the Minister responsible.

I have known the noble Lord, Lord Best, for a long, long time. He asked around 15 questions about the new homes ombudsman. I spent the weekend talking to my honourable friend Natalie Elphicke, who is interim chair of the New Homes Quality Board. She assured me that the governance is clear—although they seek contributions from developers to pay for this scheme, they have no say in how it is run. I was reassured by her clear explanation. While the detail of the scheme is going to follow this legislation, I can confirm that the Bill explicitly allows the new homes ombudsman scheme to expel members—that is one assurance that I can give. The scheme must also include provision about the enforcement of determinations made by the ombudsman that may include expulsion from the scheme, alongside setting out the circumstances in which an expelled member would be able to rejoin the scheme. I hope that gives some assurance.

The noble Lord, Lord Shipley, and the noble Baroness, Lady Hayman of Ullock, wanted to know about information for residents. Existing leaseholders and landlord-owners of flats will be able to request building safety information from the accountable person and to share this with prospective purchasers and tenants. Transparency is an essential way of getting this new system to work.

I have not had the benefit of the British Woodworking Federation information about fire doors, but I am pretty shocked by the numbers that have been quoted in this debate. I am aware, of course, that some of the newer fire doors perform far less well than some of the older ones. In many cases, the older the fire door, the better it performed. There is a real fundamental issue with the construction products testing regime carried out by the BRE or the BBA—we have to recognise that it is broken. That is why the previous Secretary of State asked for a construction products testing review. We are not that far away from having the report. We have a draft; I do not know how long it will be, but it is not miles away from being made public. We are looking at it very closely in draft form, but the usual phrase is “in due course”.

I was very struck by the speech of my noble friend Lady Sanderson, someone who has been a community adviser to the Grenfell bereaved and survivors and lived this since the night of Grenfell, along with Nick Hurd, the Prime Minister’s adviser on Grenfell; it is a fantastic way of staying connected with the community. It was a buck-passing culture and a pass-the-parcel approach that led to a lot of the tragedies we have seen. No one takes ownership or responsibility; frankly, that is why we need this Bill. My noble friend rightly questioned whether we should continue to build high-rises with a single staircase. That is a very important point that we need to look at and find out how to address.

The noble Lord, Lord Shipley, and I have one thing in common: we were at Procter & Gamble. I was there in the 1980s and 1990s, but he was probably there in the 1960s.

None Portrait Noble Lords
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Oh!

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am only joking; that is not fair.

Lord Shipley Portrait Lord Shipley (LD)
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It was the 1970s.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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The 1970s, okay. One of the things it taught you was to really distil your arguments down and to learn things over time. The noble Lord specifically asked whether we could review this on an ongoing basis. I take that suggestion as a very sensible one. Any Government—this Government in particular—need to do things and then see whether they work, review and reflect, and try to take that on board. I do not know whether I have overstepped the mark as a Minister, but I think that is a very sensible suggestion.

We will ensure that we improve competence. One of the things we must recognise is that, to improve competence, which was raised by the noble Lord, Lord Shipley, you need to establish what competence is. That is one of the things we are doing very carefully; it is being done by officials and the shadow building safety regulator. You then have to find out how the accreditation will work, and I know that UKAS and others want to step forward and do that. That will all happen as a result of this Bill.

The noble Lord, Lord Aberdare, gave a really thoughtful speech on something that was new to me, so I appreciate his contribution on cash retention. The Government continue to work with industry on the future of retention payments in the construction industry. However, I am told that there is not a clear consensus as to what may replace the practice, so there is more work to be done. I thank the noble Lord for raising an important issue.

The noble and learned Lord, Lord Etherton, raised Part 5 and the duty on landlords, and asked whether we were going to cause litigation by setting unreasonable demands on landlords. He also came up with a solution. I really appreciate him raising that issue; leaseholders need as much protection as possible. We are requiring landlords to seek claims only where reasonable, but we note the noble and learned Lord’s suggestions for the guidance, and we will take them on board as we continue with the passage of the Bill.

The noble Baronesses, Lady Jolly and Lady Young of Old Scone, the noble Lord, Lord Jordan, and my noble friends Lady Eaton and Lord Naseby all mentioned the Safer Stairs campaign. As someone who has an elderly father—sadly, my mother did not survive the first wave of Covid—I worry. The thing I worry most about, as someone gets frailer, is staircases. I almost have to declare a personal interest. It is important that we look at staircase standards and recognise how best to achieve that end point, so that new builds have the right level of minimum standard. That does not mean it has to be enshrined as a maximum standard, but we have to work out what we would be proud of as a minimum standard in regulations. I thank noble Lords for raising this issue.

I think it is ironic that one of the sponsors of this campaign is Berkeley homes, because Richmond House, which someone mentioned, is of course a Berkeley build, as is Worcester Park, which really was a shoddy building, although luckily there was no loss of life there. Some developers who normally build good stuff have built things that they should be ashamed of. It is ironic that Berkeley is sponsoring what is a very noble campaign—none the less, I support it.

The noble Lord, Lord Foster, raised electrical safety. I am sure we will work through some of his suggestions—along with pretty much everything else he is interested in—in Committee. I have the briefing and I understand the issue; it is something that we have debated many times.

The noble Baroness, Lady Pinnock, raised building safety managers, and I have the note that was prepared by ARMA and IRPM on this. I hear the concerns about cost, and we take those concerns extremely seriously. There is not a one-size-fits-all approach, and if you are not prescribing how you do it, we do not see why you cannot have a property manager continue to discharge the functions of a building safety manager, going to the expertise only when it is needed. Think of the equivalent in healthcare: you typically go to a GP but see the specialist only when required. I have some sympathy with the issue, but I think that we are not being prescriptive about it, and so it should not be used as an excuse by managing agents to whack up the prices for leaseholders.

I welcome the clear cross-party support from so many noble Lords. There is broad support for the principles set out in a Statement by my right honourable friend the Secretary of State in the other place, on 10 January. We will continue to work with your Lordships —even the noble Lord, Lord Kennedy—and by working together we will ensure that homes are safe for future generations. It is a worthy ambition. I commend the Bill to the House.

Bill read a second time and committed to a Grand Committee.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Committee stage
Monday 21st February 2022

(2 years, 1 month ago)

Grand Committee
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 98-I(b) Amendments for Grand Committee (Supplementary to the Marshalled List) - (21 Feb 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

I was going to ask the same question that the noble Baroness, Lady Grey-Thompson, asked about when we are likely to see a response to the consultation on personal emergency evacuation plans. It would be extremely helpful if the Minister could provide an update on that. Does he also have any information as to whether the Government will commit to making PEEPs statutory requirements for any buildings covered by the fire safety order for residents who would have difficulty self-evacuating? With that, I hand over to the Minister.
Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
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My Lords, I was not expecting to be in what the Romans called a frigidarium for this stage of the Bill. It is positively bracing. I am sure that as the week wears on we will get a slightly more normal temperature. It is already slightly better, so it clearly just takes a bit of time.

I will try to capture each group of amendments in three words or fewer. I am going to call this group the “widening the scope” group of amendments—that is three words. I will go through each amendment in turn. In practice, I have sympathy with every idea that has been put forward. However, I would like noble Lords to consider that the more we widen the scope, the greater the risk that we will actually fail in the first duty of any Government, which is to keep people safe. Our focus has to be based on what it is reasonable to expect from a new regulator in the Health and Safety Executive. So, although I have sympathy, I will resist this group of amendments, because, when we talk about high risk, the scope has to be necessarily tight in order to give the HSE the chance to grow as a regulator and to implement this regime properly.

However, I thank noble Lords for their contributions to this first group of amendments. I believe that this is a landmark piece of legislation and a necessary one. I can feel the broad support that it has from all sides of the House, and I look forward to further debates in Committee. There has already been good discussion in this grouping, and I am grateful for the commitment from all noble Lords to improve the Bill and to reform building safety more generally. I have listened to the concerns raised by noble Lords and I thank them for their helpful contributions. As I said, I will respond to them all in turn.

I start by talking about the fire which the noble Lord, Lord Foster of Bath, mentioned. It is true that it was a staggeringly awful fire, even though there was no loss of life, and the noble Lord captured that very well in his speech. I have spent quite a bit of time trying to learn the lessons of the near misses, if you like, so I have met Geeta Nanda, chair of the G15, who I have known for some time. She is also the chief executive of the Metropolitan Thames Valley housing association, which manages Richmond House within Worcester Park, which consists of 23 households of shared owners. I have also met Dean Summers—on Zoom; I have not met him in person—who took over from Sean Ellis, and I had a meeting with him as the new managing director of St James.

It is fair to say that Richmond House, which was built in 2011 by the Berkeley Group—St James is part of the Berkeley Group—was built in a shockingly bad way. It was built without internal compartmentalisation and certainly would never have passed the building regulations at the time. There was also inadequate fire-stopping, which is one of the reasons why the fire spread so quickly. Candidly, it is absolutely right that the Berkeley Group pays for its replacement and addresses all the losses suffered by the shared owners. I am very interested in that, and I have asked for a report from the housing association and Berkeley on progress on doing precisely that. The building was not built in line with building regulations, so it should not have happened. It is a four-storey building and is under 11 metres, which, according to the building regulations, should not have been able to happen, so we have an example of someone having signed off a building that should never have been signed off. That is the lesson of Richmond House.

Sometimes regulation does not work. That, for me, is the lesson. The other lesson is that fire is a tragedy, not just when you lose lives but in the opportunities lost. This Bill does a lot to make housing overall safer, and we will have much better housing stock over the next 30 years than we have had in the previous 30 years.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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Another problem at Worcester Park might have been the failure to implement the building regulations. I have found building regulation enforcement very patchy. There has been a lot of very aggressive enforcement of building regulations in my lovely county, yet here there has obviously been a disaster with building regulations. Is enforcement of the regulations not also important, and will that be improved by our work here?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I think we need to ensure the competence of enforcement and that it works, and the competence of the people who assess buildings and sign them off as fit for human habitation. In the same way with crime where we want an absence of crime, we want an absence of these problems. Yes, we need to improve enforcement and there needs to be the strong arm of the law. That is why we want to have a strong regulator in this new regulator under the HSE. We have Housing Act powers for local authorities to intervene. The fire service has powers under the fire safety order. There are lots of powers and lots of regulators that can step in and do something about it. In this case, they all failed. Yes, we need to strengthen them. We understand a lot more about the inadequacies of some of the built environment, but my noble friend is right that we also need to strengthen enforcement.

I thank the noble Lord, Lord Foster of Bath, for his amendments. On Amendment 1, I hope noble Lords will agree that the regulator should exercise its functions in line with its first objective: to secure the safety of people in and around buildings. I am concerned that adding additional objectives for the new building safety regulator could distract from this mission. The Bill provides the regulator with a broader objective to improve the standard of buildings. Achieving this could involve the regulator improving regulatory standards relevant to property protection, such as security, resilience and fire safety, so the regulator’s remit already extends to considering these issues.

Adding a specific objective for property protection would have two main downsides. First, it would put property protection on a par with resident safety as a priority for the regulator. The Government believe that the regulator should prioritise residents’ safety and do not want the regulator to be distracted from that. There is a risk that a specific requirement always to consider property protection would result in the regulator favouring solutions that go beyond what is required for residents’ safety. The second downside is that this amendment risks skewing the building safety regulator’s oversight function. The Government intend the regulator to use evidence to identify emerging issues with the safety and performance of buildings and to make recommendations to Ministers on regulatory changes where needed. A property protection objective would distract the regulator from using evidence to identify and rectify the most pressing issues, which might, for example, relate to net zero and sustainability rather than property protection.

The pre-legislative scrutiny committee considered property protection but found that the existing objectives are a sensible starting point—I emphasise “starting point”. The committee suggested that the Government keep this under review. We are committed to doing this through the provision in Clause 135 for a regular independent review of the effectiveness of the regulator and the wider regulatory system.

Turning to Amendment 12, there are already powers for building regulations to cover specific aspects of building resilience. We believe that it is better that building regulations are targeted on specific issues rather than open-ended requirements. However, we recognise that, for residential buildings, further research into property protection is warranted. The impact of the loss of a home is significant, so we are taking this forward as part of the technical review of approved document B on fire safety. I thank the noble Lord for suggesting these amendments and respectfully ask him to withdraw Amendment 1.

--- Later in debate ---
None Portrait Noble Lords
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Oh!

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am the Minister with responsibility for fire as well as for building safety, and I will ensure that it is published in weeks and not months or years. Noble Lords will know that we have consulted twice now on PEEPs. I am pretty clear about the way forward, and it is about time that we as a Government came forward with a response. I recognise the pressure to do so sooner rather than later, and thank the Committee for raising the issue.

I recognise the concerns that have led to noble Lords laying these amendments and assure them that the Bill makes provision for the building safety regulator to consider a wide range of factors that influence the level of risk in categories of building before making recommendations or providing advice as to which categories of buildings should be considered higher risk.

I thank noble Lords for their contributions, and I hope I have given reassurance to enable them to withdraw and not press their amendments.

Lord Foster of Bath Portrait Lord Foster of Bath (LD)
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My Lords, we are at a very early stage of consideration in Committee of this Bill, but I have to say that it is following a pattern that I have experienced on many occasions during the passage of other Bills. It was summed up beautifully by two comments. The first was from the noble Lord, Lord Crisp, who said in his excellent speech, proposing an excellent amendment, that the Bill cannot do everything but that there are some issues that we simply cannot ignore. Some of those issues have already been raised. For example, the noble Baroness, Lady Grey-Thompson, made an excellent speech, backed up by my noble friend Lady Brinton, in which she talked about the need to give disabled people more protection than is currently the case.

My proposal relates to the inclusion in the Bill of the protection of property, and the proposal from the noble Lord, Lord Crisp, relates to the need for safety considerations to include health and well-being. I say to the noble Lord that, later on, I will move Amendment 121, which concerns one such health and safety issue, the improving of the energy efficiency of existing buildings—something I desperately wish could be implemented immediately because, like everybody else, I am absolutely freezing at the moment. Sadly, 13 million homes in this country are so badly insulated that a lot of people suffer every day, and it is not just the odd inconvenience like the one we face today.

The second comment that shows how typical this pattern is was from the noble Baroness, Lady Grey-Thompson. At the end of her remarks, she said that she is expecting sympathy but not much movement. That is what we have just heard from the Minister today: a lot of sympathy and a clear understanding of the issues, along with probably a personal desire to do far more, but, in reality, a resorting to the usual things that Ministers—I am guilty of having done it myself—say from the Dispatch Box. Excuses were used, such as that we should not extend the scope because that would cause confusion. I ask the Minister to look at what the Government are doing in relation to Ofcom, the one regulator the Government never say cannot have its scope extended, with 300 additional staff having just been added to deal with the internet safety Bill. The other excuses are that this will be kept under review and that something will be available in the coming weeks.

The Minister has asked us not to press our amendments and that I withdraw mine. I cannot speak for other people, but these are all important issues to which I am sure we will return at future stages of our deliberations in Committee. I beg leave to withdraw the amendment.

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Lord Thurlow Portrait Lord Thurlow (CB)
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My Lords, I want to say a few words on PDR. It has been well exercised. First, I should declare my interests: I have practised for many years as a chartered surveyor and have two buy-to-let properties.

PDR is mentioned specifically by the noble Lord, Lord Shipley, in Amendment 135 and in Amendment 43 by the noble Baronesses, Lady Hayman of Ullock and Lady Pinnock. I think that PDR is a time bomb, I am afraid; I am sorry to say that. Conversions of redundant office buildings allowed as of right led to poor-quality developments. They are multi-let properties with many risks involved, and they are very recent conversions. They are taking place as we speak with little supervision. Developers who ignore the simple standards of fenestration, minimum square footage for a decent life, thermal insulation and other such things, as is happening today, are unlikely to respect building safety issues. PDR was hasty legislation. It was poorly thought through, then there was a scramble to tighten it up as it was extended. It is essential that this Bill addresses the PDR problem. I started by saying that it is a time bomb. If the Bill does not address it, it will go off. There will be tragedies as a result of PDR and those in society who are least able to defend themselves often end up as the tenants.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I think I should start by dealing with something that probably relates to the previous group. I am sorry that so many noble Lords have had such arduous journeys to get to the Moses Room today and then, having journeyed so far and so slowly, come to a Room that is so positively chilling. It is quite arduous at the best of times.

Just for clarification, in answer to the noble Baroness, Lady Pinnock, the high-risk regime includes hospitals and those care homes of six storeys and above. Essentially, it is those around 18 metres—there or thereabouts—but not in occupation, because different regimes apply to them, although the fire safety order applies to the whole built environment. I hope that gives clarity on the current scope.

I set myself the task of trying to encapsulate quite a varied set of amendments in each group in three words or fewer. I have called this the “strengthening building regulations” group: I will try and get three words down to two the next time I have to do this. I thank noble Lords for their contributions to what has been an interesting debate. I will respond to each amendment in turn.

I thank the noble Lord, Lord Stunell, for his amendment giving the building safety regulator the power to make building regulations under paragraphs 4A and 4B of Schedule 1 to the Building Act 1984, as inserted by the Sustainable and Secure Buildings Act 2004. However, I am afraid that the Government will not be able to accept this amendment as his intention has already been met in the Bill. We are introducing a more stringent regulatory regime in design and construction for higher-risk buildings, as defined in Part 3. The higher-risk regime will be the responsibility of the building safety regulator. We are also making wider changes to the Building Act 1984 that will apply to all buildings.

I point out to your Lordships that Sections 8 and 9 of the Sustainable and Secure Buildings Act 2004, referred to in the amendment, insert paragraphs 4A, under “Certification of work”, and 4B, under “Appointed person and management of works” into Schedule 1 to the Building Act 1984. As part of our improvements to the 1984 Act, the Bill repeals those paragraphs and replaces them with more effective powers via Clauses 32 and 33. These are more effective, stronger and wide-ranging powers. Clauses 32 and 33 provide powers for building regulations to set procedural requirements relating to building control, the issue of notices and certificates and requirements regarding appointments. They include setting out duties to be imposed on relevant persons in relation to building work. We also consider that the power to make building regulations should remain with the Secretary of State. This will ensure a consistent approach to all buildings; the Bill already provides that the building safety regulator will be able to advise the Secretary of State should it consider changes to the building regulations to be necessary. I thank the noble Lord for suggesting these amendments and respectfully ask him not to press them.

I always get worried—this is a new combination, as they say—when an amendment brings the noble Baronesses, Lady Hayman and Lady Pinnock, together. On Amendment 11, it is the Workington warrior and the Yorkshire terrier combined. I am trembling in my boots at the thought of Amendment 11 but let us look at it carefully. I thank the noble Baronesses for raising this important matter but I am afraid that the Government will not be able to accept this amendment. The Bill takes a proportionate approach to building control. In the new system, all building inspectors, regardless of whether they work for local authorities, the building safety regulator or registered building control approvers, will need to register with the building safety regulator. As part of the registration process, they will have to demonstrate their competence by meeting certain criteria.

A new framework of operational standards rules will define the minimum performance standards that building control bodies must meet, and the building safety regulator will monitor and analyse the performance of building control bodies to drive up standards across the sector. Registered building control approvers and building control authorities will need to obtain and consider the advice of a registered building inspector before carrying out certain building control functions and use a registered building inspector to undertake certain activities. This greater scrutiny and accountability will provide greater incentive to ensure all buildings, including non-higher-risk buildings, are safe. With that explanation, I respectfully ask the noble Baronesses not to press their amendment.

I turn to Amendment 43. I thank the noble Baroness, Lady Hayman, for raising this important matter. I am afraid the Government will not be able to accept the amendment, as our assessment is that it would not achieve its intended effect. I assure the noble Baroness that paragraph 1 of Schedule 1 to the Building Act 1984 already allows for the making of provision in the building regulations for all categories of buildings, as do the new powers that we are taking in Clause 32.

We are introducing a more stringent regulatory regime in design and construction, led by the building safety regulator, for high-rise residential buildings, care homes and hospitals that are 18 metres or more in height, or at least seven storeys, known in the Bill as “higher-risk” buildings. Those buildings to which this more stringent regime applies have been chosen to ensure that the regulation is proportionate to the level of risk, should a spreading fire or structural failure occur. We do not think it appropriate to apply the entire regime to all buildings. However, where appropriate, we intend to make elements applicable to all buildings, such as the duty-holder and competence requirements, which will apply to all building work where building regulations apply.

I turn to Amendment 127. I again thank the noble Baroness, Lady Hayman of Ullock, for raising matters relating to flood resilience. I appreciate the passion with which she outlined her desire to get this issue addressed, particularly in new homes, but I am afraid the Government will not be able to accept this amendment. I assure her that there is already a well-established regulatory system in place to ensure new homes have necessary flood-mitigation measures in place. The National Planning Policy Framework is clear that inappropriate development in areas at risk of flooding should be avoided. Where development is necessary, it should be made safe and resilient without increasing flood risk elsewhere. Policies in that framework must be taken into account in preparing the local authority’s development plan and are a material consideration in planning decisions.

The new clause that the noble Baroness, Lady Hayman, has proposed would require flood resilience measures to be introduced into the building regulations. Statutory guidance to the building regulations, in approved document C, already promotes the use of flood-resilient and resistant construction in flood-prone areas. Part H of the regulations also sets requirements for the rainwater and surface water drainage of individual buildings. The main sewerage system for a development is governed by the sewerage undertaker for the area—for example, Thames Water. The sewerage undertaker has the ultimate responsibility for ensuring that drainage systems for new developments are built to a resilient standard that minimises flooding, and these duties sit outside the building regulations system.

I thank the noble Baroness for suggesting the amendment. I hope I have reassured the Committee that the Government already have well-established means of making sure that consideration of flood risk and flood mitigation is thoroughly accounted for in the planning system, and that approved document C already promotes flood-resistant and resilient construction. For these reasons, we believe that introducing new requirements into the building regulations is not necessary.

I thank the noble Lord, Lord Shipley, for reminding me that I should probably declare my commercial and residential property interests—none of which has any cladding issues—as set out in the register, specifically on the amendment around permitted development rights because I have benefited from those in the past, though probably will not do so in the future. I recognise the risk that he has outlined and that is why I thought I should declare those interests.

Amendment 135 seeks to ensure that homes delivered under permitted development rights—PDR—for change of use to residential meet the provisions of this Bill. I thank the noble Lord, Lord Shipley, for raising this important matter, but I am afraid the Government will not be able to accept this amendment. This is getting quite repetitive, really, is it not? However, the noble Lord is raising an important point and I assure him that planning permission, whether granted by a permitted development right or following an application to the local planning authority, does not remove the need to comply with other legal requirements. That means all new homes and buildings must meet, for example, the relevant building regulations and fire safety requirements, as well as any other legal requirements required under other legislation, regardless of whether they are permitted through a permitted development right or following an application for planning permission.

We introduced a number of new requirements into the planning system, called planning gateway 1, from 1 August 2021. These ensure that fire safety matters as they relate to land-use planning are incorporated at the planning stage for schemes involving a relevant high-rise residential building. For schemes that use permitted development rights, a similar requirement has been introduced. Through new prior approval processes, proposals to create a relevant high-rise residential building under the rights require submission of a statement about the fire safety design principles, concepts and standards that have been applied to the development. Consultation by the local planning authority with the Health and Safety Executive is required for residential buildings of 18 metres or more in height or seven or more storeys, whichever is reached first.

Once again, I thank noble Lords for this interesting debate. I hope that I have given some reassurance on each amendment, and that noble Lords will now withdraw or not press their respective amendments.

Lord Shipley Portrait Lord Shipley (LD)
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Can the Minister give us clarification on Amendment 135? He said that new homes and buildings are covered by existing legislation and will be covered by this Bill when it becomes an Act, but does the wording “new homes and buildings” include the conversion of offices, which are old buildings, to residential? I understand that this is a complex area but I wonder whether the Minister is willing to write on this point so that it is on the record.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I thank the noble Lord for giving me that get-out. He is absolutely right that this is a complicated matter. You often have an old office building from which you create a new residential dwelling. We will check whether that is included in the purview of this Bill, and I will write to the noble Lord on that matter.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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Permitted development rights are not about just the conversion of offices into homes. Where I live, many old mill buildings have been converted. Some of them, particularly the one called Titanic Mills, are very large. There are additional risks in those buildings. Will the elements in this Bill apply to those conversions as well?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I will combine the letter for the noble Lord, Lord Shipley, and the noble Baroness, Lady Pinnock. Essentially, they want an answer to this question: “If you take a non-residential building, whether it is an office block or a Yorkshire mill, and you create a residential dwelling, will that be in scope when it comes to a new build?” The start point does not matter—it is non-residential—so is it included? I will answer both noble Lords in writing and lay a copy in the Library.

Lord Stunell Portrait Lord Stunell (LD)
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My Lords, we have had an interesting debate. It might be summarised by the Minister saying, “Don’t worry, it’s already all in the Bill and everything’s in hand.” I say to the Minister that we shall want to look very carefully to see the extent to which it is, or is not, in the Bill.

On the interaction between the two clauses to which the Minister referred—Clauses 32 and 33—with Clause 30, which is entitled “Higher-risk buildings etc”, the essence and nub of my amendment on this aspect is to ensure the capacity for the building safety regulator to get straight in as necessary with every building, not simply higher-risk buildings. The Minister seemed to tell me that Clauses 32 and 33 achieve this. I will look carefully at that. If that is the case, I will be absolutely delighted, but if it is not, I shall come back again.

I beg leave to withdraw the amendment.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, Amendments 6 and 149 in the name of the noble Lord, Lord Stunell, draw attention to timing and delivery. For example, his Amendment 6 would ensure that safety is dealt with in a timely fashion. If we consider that this spring it is five years since the Grenfell tragedy and that progress on that has been painfully slow, with leaseholders waiting many years for any kind of justice to be done, people need to know that with the passing of this Bill there will be no further delays. We agree with the noble Lord and would certainly strongly support a regulator’s assessment within a two-year period that would aim to improve safety.

Amendment 149 looks at a requirement for regular reporting to ensure transparency and accountability to Parliament of the enhanced building regulations regimes. Again, we very much support it; it is similar to Amendment 134 in my name, which would force the Government to publish annual reports on data collected as part of the implementation and monitoring of this Act, when it is passed, as well as steps to increase transparency. I am sure all noble Lords would agree that transparency, accountability and monitoring are important to instil confidence and deliver the ambition in this Bill.

The noble Lord, Lord Foster of Bath, spoke to his Amendment 129. Having heard from him, it is very much in the same spirit as my Amendment 127 on flood resilience, which we debated in an earlier group. Of course, his amendment would force the Government to publish an assessment of the impact of climate change on building safety, including coastal erosion and flooding, both of which are huge concerns where I live in west Cumbria. I am sure he will not be remotely surprised to know that I am extremely pleased to offer our very strong support on this amendment.

Looking at the amendments in my name, first, Amendment 89 would force the Secretary of State to publish an estimate of how much leaseholders have spent on building safety remediation work each year for the past 10 years. We have tabled this because it is disappointing that there is still no robust legal protection for leaseholders who face ruinous costs for remediating historical cladding and non-cladding defects. We know that, despite the long catalogue of people and organisations who can be held to blame for many of the failings on building standards, up to now the leaseholder has been expected to foot the bill. These bills, as the Minister knows, involve huge sums on many occasions.

During Committee in the other place, evidence was taken from some of those who have been badly affected: Alison Hills, Stephen Day and End Our Cladding Scandal. They all talked about the enormous bills they face and the fact that they simply cannot afford to pay them. If we are to resolve this issue so that affected leaseholders are properly compensated, we need to know how out of pocket they really are. My Amendment 89, by forcing the Secretary of State to publish this estimate, would provide information and enable us to properly give full recompense.

My Amendment 126 would force the Government to publish an assessment of the effectiveness of the Homes (Fitness for Human Habitation) Act 2018, plus proposals to increase the number of homes which would comply with that Act. We need to ensure that all homes, existing and new build, are of the highest standards. We have heard many examples from people in our discussions and debate today where this simply is not the case and has not happened.

We think it is important that the Government should publish an assessment of the effectiveness of that Act. I hope that the Minister would in particular be sympathetic to this amendment because his Government brought in that important legislation, and any legislation has to be complied with to be truly effective. This amendment would provide that reassurance and remind rogue builders that minimum standards simply must be met, so I await the Minister’s response with great interest. I hope I will see him tearing up his speech to prove the noble Lord, Lord Foster of Bath, completely wrong.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, we come to the—I am sorry, it is the turn of the noble Baroness, Lady Pinnock.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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The Minister is far too eager.

During the course of the debate on this group of amendments, it has struck me that the challenge of this Bill is that it is primarily in response to a terrible tragedy. That has meant that the scope of the Bill is quite narrow, in response to the terrible Grenfell fire—perhaps rightly so but then, from what we have heard, opportunities to improve building safety do not come round that often. So it is not surprising that noble Lords across the piece are trying to say, “Why don’t we include this?” An opportunity to do so will not come again for a long time.

The passionate argument made by my noble friend Lord Foster is a case in point. Climate change is the most serious challenge facing all of us. If we do not address the building regulations to deal with the challenges it poses, we are definitely missing an opportunity. I apologise for my cough; it must be all this sitting and standing on crowded trains. Excuse me; I am okay. There is an opportunity for the Government to think about including the issues of the particular challenges of climate change as they relate to buildings during the debates on the Bill, otherwise it is an opportunity lost.

On Amendments 6 and 149 in the name of my noble friend Lord Stunell, who has spoken on them and to which I have added my name, building safety is not just about construction; it is about the safety of people once they live in them. Having been a councillor for a long time, I have heard about a number of issues from private sector and housing association tenants. The dangers of stairways in particular often come up. That is the reason for Amendment 6 in my name and that of my noble friend. We need to consider those risks and how they are going to be addressed. If people are concerned about them, what are we going to do about it? There is no obvious way of doing that at the minute.

Any new system—such as the one we have now, which is quite complicated in parts—ought to be reviewed. There is a huge gulf between theoretical improvements to building safety and actual improvements. Does the new system work? I bet that parts of it will not; that is almost inevitable. So let us agree to Amendment 149. I know that the Minister is going to stand up and say, “All the others I have said no to, but this one is such a good idea that we will agree to it”.

Obviously, I agree with Amendment 89 in the name of the noble Baroness, Lady Hayman, because, as the Minister will know, I have consistently and persistently gone on about the costs of building safety remediation that currently lie with leaseholders. I know that the Bill will alter that but some leaseholders have paid. It would be really helpful to the discussion on this Bill to understand the extent of those payments and the number of those who, worse still, have chosen to become bankrupt —I know at least one person has—to avoid the burden of huge, unwarranted bills for safety remediation that is not of their doing, as I know the Minister agrees. The least we can do is pursue this and find out how much leaseholders have already paid out—over and above waking watch, insurance and higher service charges—for structural improvements, which they should not have done. That is now the view of the Government, which is good. Let us find that out and see whether there are ways in which they can receive compensation for work done that they have paid for but which was clearly not their responsibility. This is a question of justice and I shall pursue it.
Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I am getting used to the free-wheeling nature of these debates. I apologise that I stood up before the noble Baroness, Lady Pinnock, had her say.

There is no doubt that a large part of this is focused on high-risk, high-rise residential buildings, not least because of the tragedy of Grenfell, which followed the tragedies in Lakanal House and Garnett Court. We have also had near misses, such as the Bolton Cube, which was just under 17 metres and is one of the reasons why we talk about the cut-off being six storeys or more as it was a very big near miss.

There is that focus but, equally, it is fair to say that the Building Safety Bill also encapsulates building regulations for the entire built environment and makes a contribution to increasing competence among key actors, such as approved inspectors, duty holders, the accountable person and the building safety manager, to ensure that buildings in occupation remain safe. There are contributions around competence that will have wider benefit but what the noble Baroness said is right: this is very much part of our response to a broken regulatory system that we need to fix. I think that we recognise the need to do precisely that collectively in this Committee.

I thank noble Lords for a lively debate. This group of amendments is essentially around new reporting requirements. I shall respond to each amendment in turn.

The noble Lord, Lord Stunell, opened this short debate with Amendment 6 and the noble Baroness, Lady Brinton, spoke on it. I thank them for raising this important matter but I am afraid that the Government will not be able to accept the amendment. I pay tribute to my noble friend Lady Neville-Rolfe with her background as a civil servant who took that expertise to play a leading role in a supermarket. She did not mention which one but I know it was Tesco—every little helps—because I remember when she was in that position. It is important to reflect on when we can hold the Civil Service to account, as she put it. I understand where my noble friend is coming from, even if I do not accept it on this occasion.

Our assessment is that this amendment would unnecessarily prescribe issues to which the regulator must attend. I must also point out the unintended effect that this amendment would have in effectively restricting the regulator’s work to a limited list of subjects. Such prescription could unwittingly narrow the scope of the regulator’s focus and efforts. Furthermore, the imposition of a time limit could have the perverse effect of constraining the assessments being sought only to factors that can be determined within the timescales afforded.

I assure the noble Lord and the noble Baroness, Lady Brinton, that their intention to ensure that major safety issues are reviewed and assessed by the regulator has been met through the measures in the Bill. The building safety regulator will have a duty to keep the safety and standard of buildings under review and to be transparent about its work, reporting annually on the delivery of its functions under the Health and Safety at Work etc. Act 1974, and Clause 3 stipulates that it must be transparent.

I can also assure your Lordships that the specific areas of building safety identified in the proposed amendment are actively being considered by the Government under research projects being undertaken with the help of academia and stakeholders. These projects include the technical review of approved document B, which includes research on means of escape in blocks of flats, including stairways and ramps, and means of escape provisions for people with disabilities. As I am sure the noble Lord and the noble Baroness are aware, the Government have already conducted an assessment of the effectiveness of sprinklers as a means of fire suppression and, in 2020, we changed the statutory guidance so that sprinklers should be provided in all new residential buildings more than 11 metres in height, as opposed to the previous 30-metre threshold. I want to thank the noble Lord and the noble Baroness for raising this important matter and hope that I have been able to assure them that all aspects of building safety are of importance for the Government.

Before turning to Amendment 89, I pay tribute to Alison Hills and Steve Day, who were mentioned by the noble Baroness, Lady Hayman of Ullock. I got to know Steve Day in particular, but also Alison Hills. They worked very hard on constructive amendments which will help the thinking around getting the polluter to pay, because they are victims. In the case of Steve Day, it is a sign of triumph, because he is part of a group of people who, in their spare time, without pay, essentially fought a big developer to get it to pay for the remediation of their building, bit by bit. We need to pay tribute to these heroes who work tirelessly on behalf of their fellow residents to get the polluter to pay; they are people for whom I have huge fondness and regard. It is right that some people have shelled out huge costs and have not been able to get the polluter to pay, and there are many orphaned buildings—if you like—for which we cannot easily find out who is liable to pay. The question is, how do we deal with that? That is something that we as a Government recognise that we need to have an answer to, but let us leave that until a later part of this Committee stage. I am sure we will return to it on Report.

Turning to Amendment 89, on which the noble Baroness, Lady Hayman of Ullock, spoke, I thank her for raising this important matter, but I am afraid that, again, the Government will not be able to accept this amendment. The Government remain committed to ensuring that those responsible are held to account to protect leaseholders from unaffordable costs, but our assessment is that the amendment would not constitute an appropriate use of the Government’s time and resources. The amendment would require the Secretary of State to quantify the impacts for any leaseholders who may have carried out remediation of cladding and fire safety defects over the past 10 years, regardless of the nature and scale of the works.

I draw the attention of the noble Baroness to the amendments tabled on 14 February, which make clear that freeholders with links to developers and those with the resources to fund remediation in full must do so. In other cases, the contributions of leaseholders will be subject to a legal cap. The new schedule to be inserted before Schedule 9, tabled on 14 February, also provides the Secretary of State with the power to make regulations providing for the recovery of sums due that have not been paid. These amendments ensure that leaseholders will no longer be susceptible to large costs. The supplementary requirements that would be introduced by Amendment 89 would therefore present an unnecessarily onerous task that would increase costs and burden to the Government, where resources could be better employed. I thank the noble Baroness for raising this important matter and assure her that this Government are committed to ensuring that those responsible are held to account to protect leaseholders from unaffordable costs.

Turning to Amendment 126, I again thank the noble Baroness, Lady Hayman, for raising this important matter. Unfortunately, the amendment would have the effect of unacceptably increasing the burden on the Government at a time when we are concentrating on our programme of reform and raising standards in rented homes.

The 2018 Act built on the existing regulatory framework and empowered tenants, for the first time, to take action in the courts for breach of contract if their home was unfit to live in. That is why we supported it. It is right that this is in addition to, but separate from, enforcement of standards by local authorities, which we also strengthened in 2016. There is therefore limited benefit in requiring officials to spend time interrogating court records when we are, at the same time, concentrating on building on the 2018 Act and further raising the standard of rented homes, higher even than the requirement introduced by the Act. We will do this by consulting on introducing a legally binding decent homes standard in the private rented sector and by reviewing the decent homes standard itself, and we will provide more detail in due course.

I now turn to Amendment 129. I wish the noble Lord, Lord Foster of Bath, had provided my speaking notes as he has such command of detail. It is quite incredible and testament to his long-term passion, commitment and interest in the subject. I certainly learned a lot about the almost dystopian future that certainly my children—probably not me—will to have to deal with. It is probably why school-age kids are so nervous about this. It is horrendous. Amendment 129 raises a very important issue and while the Government will not be able to accept this amendment, I hope to reassure the Committee that Clause 5 already makes appropriate provision for this and that risks to buildings as a result of climate change are already being dealt with through existing locally driven action.

Clause 5 places a duty on the building safety regulator to keep under review the safety and standards of all buildings. This would include advising industry and government on research into new or emerging risks, such as those presented by climate change. The regulator will also advise on and prepare proposals for changes to building regulations. Climate change mitigation and adaptation are intrinsic components of the building regulations and will remain so. We also recognise the importance of ensuring local authorities work with their communities to understand the risks buildings may face as a result of climate change. However, the amendment would duplicate existing locally driven action; for example, the requirement on lead local flood authorities to assess flood risks across their area through the local flood risk management strategy or the requirement for local authorities to develop the best approaches to managing the risk of coastal erosion and flooding through shoreline management plans and local planning policies.

I turn now to Amendment 134 and will respond to Amendment 149 at the same time. I thank the noble Lord and the noble Baronesses for raising how we monitor the effectiveness of the Bill and hope to reassure them that the Bill makes appropriate provision for monitoring. Dame Judith Hackitt’s independent review recommended that we ensure that the new system works through regular independent reviews. Clause 135 requires that these reviews happen at least every five years and that the resulting report must be published. In addition, the building safety regulator must report annually on the performance of its functions under the Health and Safety at Work etc. Act 1974. Clause 3 further stipulates that the regulator must be transparent and accountable. The Government intend that the regulator’s published strategic plan, required by Clause 17, will set out further detail on what it must report on.

Finally, the Bill ensures that crucial aspects of the new system are included in the regulator’s annual reporting, notably engagement with residents under Clause 19 and mandatory occurrence reports, which can help industry track safety issues, under Clause 20. Further reporting requirements risk duplication, complexity and additional bureaucracy. Amendment 149 would also require the Government to report on the exact number of certified building safety managers and fire risk assessors when certification is not a function of government under the Bill. In light of the strong existing provisions, I hope that I have provided sufficient reassurance and that your Lordships will be content that the Government have fully addressed the concerns raised in the amendments.

Baroness Blower Portrait Baroness Blower (Lab)
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I have a question about flooding in London. I am sure the noble Lord is aware of an article in the Observer yesterday—I declare an interest in that I live in Shepherd’s Bush, where a month’s worth of rain fell in one day in July last year. The point of this article was that in London very many people live in basements, which are at serious risk of flooding, and it suggests that people may drown in their own homes if there is flash flooding. The further aggravating point is that no one seems to be aware how many people live in such basements.

I simply ask the noble Lord whether there is any intention to take a strategic look across London; there are clearly responsibilities on local authorities but, at the London-wide level, there seems to be no requirement to look at this. I would be very interested to know what he thinks, particularly in light of Hammersmith and Fulham having been afflicted so badly.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I have some experience of this, having led the council that includes Shepherd’s Bush and Hammersmith and Fulham for six years. Even in that time, there were significant incidents of flooding in basements and quite serious concerns. It did not just happen in Shepherd’s Bush, but from Hammersmith and Fulham right up to Old Oak, and it is the same for many inner London boroughs that have basements as well. It was a very significant issue for local authorities, but I think it is quite proper that the mayor, as the first port of call, should have strategic oversight of how we develop the built environment in our capital city. I expect the mayor to take a lead role on this, if I were to pick any level of government. At a national level, I am the Resilience Minister and am happy to take away anything else we need to do to address the specific concerns the noble Baroness has raised, because it is important we recognise that this is a real risk to our built environment, which will get worse in the coming years.

Lord Stunell Portrait Lord Stunell (LD)
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My Lords, I listened carefully to what the Minister had to say. Here we are, on the first day in Committee, with one set of amendments dismissed for one set of reasons and an absolutely contrary set of reasons given to deal with this one. Previously, the case was that we should not add any extra duties to the list of requirements of the building safety regulator because it would confuse it; now the risk is that, by listing only four things, we are limiting the scope of the building safety regulator to take on additional things.

I would have thought that, if in two years we had reports before us on what to do about fire suppression systems and whether the safety of buildings would be enhanced—and, if so, to what effect—by making some changes to the current regulatory environment; if we had a similar thing on the safety of stairways and ramps, on which a number of noble Lords spoke eloquently at Second Reading; if we had the certification of electrical equipment and systems properly analysed by the building safety regulator, with the expertise it can bring, and a proper evaluation of their importance, or lack of importance, brought back to us; if we had provision for people with disabilities, which the noble Baroness, Lady Grey-Thompson, and my noble friend Lady Brinton spoke about so eloquently earlier; if all those matters could be brought back in two years, the building safety regulator would have done a real service to the safety of homes in which people live and would have answered many of the questions and put in train solutions to many of the concerns that noble Lords raised at Second Reading.

I absolutely do not believe that that limits the subjects the building safety regulator might be able to get to grips with. In case it did, the amendment goes on to say that it should also

“give notice of such other matters relating to safety of people in or about buildings that they determine require further examination.”

That is the “and anything else” requirement to go with those four. I do not accept that the Minister’s criticisms of this amendment are right—there may or may not be other criticisms he could have made, but he did not choose to do so. Although I will withdraw this today, I give notice that this will certainly come back at a later stage.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

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Thursday 24th February 2022

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Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 98-III Third marshalled list for Grand Committee - (24 Feb 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, we were waiting for the government Minister to introduce his amendments, so that we can then respond.

Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
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Sorry, my Lords, I am just learning as we go, as they say. I really admire this House because, obviously, this is the day following the night when Ukraine, a sovereign state, was invaded by Russia, and yet the serious business of government continues, as we consider this group of amendments. I always distil groups of amendments into three words or fewer, and I can do this one in two: these are “technical amendments”—it is not that hard really.

Before introducing the government amendments, let me start by saying that I have listened to speeches from two of my favourite speakers—everyone should have favourites. I have known the noble Lord, Lord Best, for some time; let us say that I was in my prime when we first met—a young man, with a future ahead of me—and we went off for a retreat in Windsor Castle, where Richard—the noble Lord—and I thought about big thoughts. I have a lot of sympathy for what the noble Lord said, but I shall read out my speech. However, the bottom line is that he has raised important points about how we can strengthen the new homes ombudsman—indeed, we need to make sure that the complaints process works across all types of housing and all type of tenures.

I should say to the noble Lord that we are probably going to look at this in a different way, so if I come across in any way negative, it is not because I do not agree with him, but we need to find the right vehicle to do this, which is probably, as I said before, through improved warranties. It is an absolute shocker that the warranty system for housing, which is the single biggest expenditure for an individual, is so poor—a point that the noble Lord, Lord Kennedy, has brought up on a number of occasions—and I have met with the warranty providers. We need to ensure that we extend the period of coverage that is available when you buy your own home. The period is slightly longer for public or social housing, where it is 12 years, but it is 10 years for private housing—and that in itself is odd, as these are still homes, whether they are social homes or private homes. So I thank the noble Lord, Lord Best, for his thinking.

My absolute favourite rhetorical speaker is my noble friend Lord Blencathra. To be honest, I always remember to declare my interests because he always starts off by declaring his interests, so I declare all my interests—residential and commercial property interests—as set out in the register. I follow my noble friend in doing that. Also, I love the passion with which he says that, actually, it is important that people who break the law are penalised. Effectively, he is saying that what they have done is a crime and they should pay a lot of money for it, and I completely agree with those sentiments. If I in any way seem to be resisting in my speech, he will know—he has been in government and understands these things—that I am with him in spirit.

I will now speak to my amendments, which are government Amendments 17, 18, 19, 20, 22, 27 and 29. These technical amendments make changes to Clause 41 and Schedule 5, to create an information sharing gateway between the regulatory authorities of the building control profession in England and Wales. The information sharing gateway also extends to a person to whom the regulatory authority has delegated registration functions under new Section 58Y.

Some registered building control approvers and building inspectors will operate in both England and Wales. These amendments will ensure that, if the regulatory authority in one nation identifies that a cross-border registered building control approver or building inspector has breached professional conduct or operational standards rules, it can share this information with the regulatory authority of the other nation, if appropriate. The regulatory authority of the other nation may then wish to take investigatory action to discern whether similar breaches are taking place by the same registered building control approver or building inspector in their jurisdiction. These amendments will therefore ensure that regulatory bodies can share information with one another to effectively regulate the building control profession.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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Could the Minister slow down a little? I do not know where I am any more. Could he start that group again? I am trying to make some notes on what he is saying.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am sorry; I will slow down. Amendment 23 is a drafting change to Clause 52 and should be read alongside Amendment 26, which amends the same section of the Building Act 1984. Amendment 26 is a tidying-up amendment and is consequential on the repeal of Section 16 of the Building Act 1984, provided for by paragraph 20 of Schedule 5.

Amendment 133, to Clause 135, relates to the requirement for a regular, independent review of the building and construction products regulatory system, which must cover the effectiveness of the building safety regulator. This minor amendment defines the regulator’s functions to be covered by this review, using the same definition of those functions as in Part 2 of the Bill.

I turn to government Amendments 21, 25, 30, 41, 42, 61, 138 and 146. They do three things. First, they extend the application of the Building Act and building regulations to work on Crown buildings and by Crown bodies. The Government believe that the ownership of a building should not determine whether the new building safety regime, or building regulations requirements, should apply. There should be a consistent approach in how building safety legislation operates across the whole life cycle of a building.

Parts 2 and 4 of the Building Safety Bill apply to the Crown by virtue of Clause 137. The arrangements during the design and construction stages are being implemented by way of changes to the Building Act and, in due course, through building regulations. To apply the requirements for gateways and the golden thread to Crown buildings, the Building Act and the building regulations will need to be applied to work on Crown buildings. This new clause does that.

There is an uncommenced provision in Section 44 of the Building Act which would allow the substantive requirements of building regulations to be applied to the Crown. The drafting of that section has limitations, however, so we consider it better to start afresh by repealing and replacing Section 44. There are also some necessary exclusions to reflect that the Crown cannot be subject to criminal sanctions.

Secondly, the amendments make provision about the application of the Building Act and building regulations to work on the Palace of Westminster and other buildings on the Parliamentary Estate. At Second Reading, the right reverend Prelate the Bishop of Winchester asked in his valedictory speech that the building regulations should apply to the restoration of the Palace of Westminster. This change to the Building Act will ensure that happens.

Finally, this new clause provides that if, in future, a building on the Parliamentary Estate came within scope of Part 4 of the Bill, that part would apply, subject to equivalent exclusions to those which affect how the Building Act and building regulations are being applied to the Crown and Parliament. These new sections of the Building Act and the Bill therefore ensure a consistent approach to building safety for Crown and parliamentary buildings.

Finally, I turn to government Amendments 90, 91, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 142 and 143, which relate to the new homes ombudsman provisions and expand them to Northern Ireland. These provisions have already been expanded to Scotland and Wales, so this ensures that new-build home buyers will have improved protection when things go wrong, no matter where they live in the UK.

Amendments 97 and 98 enable the provisions to work practically in Northern Ireland as a consequence of extending the scope of the provisions. Amendments 90, 91, 100, 103, 104, 105 and 106, include consultation requirements so that the Secretary of State must consult the relevant department in Northern Ireland designated by the First Minister or Deputy First Minister acting jointly before exercising powers concerning the scheme, or consult the Executive Office in Northern Ireland when a department has not been designated. The Secretary of State must consult the Northern Ireland Executive before making arrangements for the scheme, before making regulations requiring membership of the scheme, and arranging for that requirement to be enforced, and before a developers’ code of practice is issued, revised or replaced, either by the UK Government or by a third-party scheme provider with the Secretary of State’s approval.

Amendment 99 confers a power on the relevant national authority in Northern Ireland to add to the meaning of the term “developer” in the new homes ombudsman provisions in relation to homes in Northern Ireland, through regulations as appropriate, and following consultation with the other relevant national authorities. Amendments 95 and 96 include provision so that any externally run new homes ombudsman scheme involves the provision of information to the department in Northern Ireland designated by the First Minister and Deputy First Minister acting jointly.

I hope that your Lordships will be pleased that the government amendments in my name today will help to deliver the effective implementation of the new regulatory regime, as well as providing redress for homeowners across the union.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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After that rapid run-through of about 40 amendments in this group, I shall respond to all of them as follows.

The first three amendments are in the name of the noble Lord, Lord Blencathra, and I have to say that I have a lot of sympathy with what he said. Too many times, when new homes are built in the ward where I live and which I represent—and I declare again my interest as a councillor in Kirklees—roads are not completed to adoptable standards, because that is a good way of saving money. You sell the homes and move on quickly, and it is then really hard for enforcement to be effective, especially when the fines imposed are paltry in relation to the costs of enforcement. So I have a lot of sympathy with what the noble Lord, Lord Blencathra, has said, and I hope that the Government could look again at that element of the building safety regime.

The next amendments referred to are those in the name of the noble Lord, Lord Best, Amendments 94A, 94B and 97A, about the new homes ombudsman. I agree completely with what the noble Lord, Lord Best, has said—and the Minister is nodding, so I assume that he does too, and will make changes at Report. That is excellent. It is especially about the issue in relation to Amendment 97A, about extending the time limit to six years. People buy a new home, starry-eyed, and move in—excited, obviously—then one or two snagging issues arise; they try to get them resolved, they fail to do so, time runs out, the two years has gone and they have nowhere to go. So it is an excellent move to extend that to six years.

In my capacity as a local councillor, I have had to try to help people, and I have to say that I have failed, because we did not have these powers in place at the time, to do with people for whom simple things like plumbing was not done adequately. Their kitchens were being flooded out, and nobody would take on the responsibility because their time had run out. So I totally endorse the views expressed, and the hope expressed by the noble Lord, Lord Best, that the timeframe for the new homes ombudsman should be six years.

I heard what the Minister said before he introduced his great long list of amendments: that the Government were considering extending the warranties for new homes from 10 years. The trouble with warranties, unless they are really tightly worded, is that developers can find a loophole. You end up with a new home owner on their own trying to get recompense from a powerful business—often a David and Goliath situation and, in this case, David often does not win. That is why I support the move of the noble Lord, Lord Best, to give the new homes ombudsman—him or her; would it not be good if it was a woman?—power to deal with defects in new homes.

That brings us to the many government amendments that the Minister introduced, which he called technical. I always worry when Ministers call amendments technical. It is like saying, “Don’t worry about these. We will rush them through, nobody will notice and you might regret what we have to say.” I am pleased that he was very clear that the building safety regime will apply equally—I hope this is what I heard—to all buildings, regardless of where they are in the UK, be they Crown buildings or, indeed, the Palace of Westminster. I would love to have a discussion about the impact that will have on the restoration project.

Extending the scope of the Bill to include the devolved Governments has been rather rushed over. I have here the Welsh Government’s legislative consent memorandum on the Bill, in which the Senedd says that its consent is required to Clause 126, to which the Government have an amendment, about remediation and redress. I seek from the Minister some explanation that the Government will not ride roughshod over the powers of the Senedd. We have devolved Governments in three parts of the UK, and we need to respect their powers and work with those Governments. I am sure they would work with the Government as long as they do not try to act quickly, not get their consent but try to rush over them. That is no way to work.

I have here a long paper, which I am sure the Minister has seen, which outlines exactly what the Senedd hopes the Government will do. I am sure his civil servants will be able to give him a form of words which will enable me to reassure those of my colleagues who are concerned about Welsh affairs that the Government do not intend to intrude on the powers of the Senedd. With those words, I look forward to the Minister’s response.

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Lord Thurlow Portrait Lord Thurlow (CB)
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Forgive me butting in at the end but before the Minister responds, I thought that I should make a further point in connection with the amendments of the noble Lords, Lord Blencathra and Lord Best.

It is a reminder that the property development industry, when undertaking projects of blocks of flats or groups of houses—projects of medium size upwards—used to employ a clerk of the works. I am not sure whether it has been a mandatory appointment within the chain of building command, but the clerk of the works was defined as someone onsite who inspected workmanship, its quality, the safety of the work being done and, importantly, reported to senior managers and clients.

Inevitably, lack of mandatory appointment requirements and fewer and fewer clerks of works on projects led to shortcuts and poor workmanship. A clerk of the works might cost between £50,000 and £100,000 a year. For the employer, that could be significantly more, given all the on-costs. On many projects, that adds up to millions of pounds,. So of course those appointments became redundant in the eyes of the bean counters. That simply underlines the importance of the ombudsman’s role, its independence from the industry in absolute terms and the period of time limitations within which claims can be brought.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I had not thought that this debate would take quite so long, but it has been worth listening to every second of every minute. I thank the noble Lord, Lord Thurlow, for that late intervention because we have unlearned a lot of the practices that led to a higher quality of build. We would not be in the mess we were in if we had not unlearned some of the things that we did so well during the Victorian period, when there was a way of building using pattern books. Everything was essentially a process, which the Edwardians developed further. Somewhere along the line we have lost that desire to build quality. Just imagine if the Romans came back from the dead to look at what we were building over the past 30 years in the 90s, the noughties and the 10s. They would be absolutely appalled at the standard of build. They did not build their temples to last 10 or 15 years but centuries. We have got to learn that quality of our built environment matters. I thank noble Lords for raising some of their points.

One of the objectives of the Bill is not just to create a regulatory system that works but to raise the competence of an industry that has cut corners and, as the noble Earl, Lord Lytton, said, effectively gamed the system. We have to get back to the culture around quality, competence and professionalism. That will take not just legislation but an attitude of mind.

I start by responding directly to the noble Lord, Lord Stunell, around impact assessments. He is absolutely right. The government amendments came thick and fast. My entire weekends have been ruined since the beginning of the year, working at pace as we approved a plethora of amendments. It is fair to say that the sheer pace of this has meant that it has not been possible to look entirely at the impact. We just know that they are the right lines, and the impacts will be looked at in due course—my response says, “We are looking at the impact of the government amendments and will publish an assessment in due course.” We have been working very fast to get this right in the time we have, and we thought it was very important that we were ready to have these discussions in Committee of government amendments before we get to the even more serious business of Report.

I shall respond to the noble Baroness, Lady Pinnock, supported by the noble Baroness, Lady Hayman of Ullock, about Clause 126 and intruding on the powers of the Senedd. We have worked closely with the Welsh Government across all areas of the Bill to develop and agree measures that work for England and Wales. The Welsh Government have agreed the measures applying to Wales and we expect legislative consent in due course.

I have had a number of ministerial meetings with my counterparts in the devolved Administrations, and there are lessons to be learned from the Welsh approach to the building safety crisis—and, indeed, from my Scottish and Northern Ireland colleagues—on this issue. It affects all our nations in this great United Kingdom, and we have a constant dialogue as we grapple with it, but it is fair to say that the lion’s share of the problem lies in our big cities here in England. That is not to say that we are not learning from the Welsh and others, and of course we will not ride roughshod over them. I hope that gives the noble Baronesses, Lady Pinnock and Lady Hayman of Ullock, some reassurance.

I thank my noble friend Lord Blencathra for bringing forward his amendments, which are clearly aimed to impose greater punishment on those who breach building regulations. I thank the noble Baroness, Lady Hayman of Ullock, for mentioning a breach of the regulations, probably around the time when my noble friend Lord Young was the Housing Minister. I do not know whether he was responsible for the 1984 building regulations—he was. We have the living history in the Room, in the person who brought them forward. Do you know what I was doing in 1984? I was doing my A-levels, and here we have the Minister who brought forward the building regulations in 1984. That is the kind of place we have: people with decades of understanding of these issues.

It is a crime to breach building regulations. If you commit a crime in this country, there is no statute of limitations—I know that from being Deputy Mayor for Policing and Crime—so people can go after you after any period. I have huge sympathy for the intent behind there not being a short period of time, and it is important that we recognise that breaches of building regulations are criminal; that cannot be said often enough. I thank the noble Baroness for raising that again, and the Government have sympathy, but I fear we are unable to accept my noble friend’s proposals, as I intimated in my opening speech.

Looking first at Amendment 13, we consider that the changes are unnecessary for a couple of reasons. First, for some years now, the magistrates’ courts have had the power to impose unlimited fines—and fines are, of course, the principal punishment available in respect of corporate bodies, which are most likely to be in a position to commit the offence of breaching building regulations.

Secondly, it will not have escaped your Lordships’ notice that significant backlogs have developed in the Crown Court over the past two years as Covid protocols have been introduced. The costs to the courts service, the prosecution and the defence are also far higher in the Crown Court.

As was raised by the noble Baroness, Lady Hayman of Ullock, it is quite possible for the building regulations to be breached in a relatively minor way. In such cases, it would be entirely appropriate for the case to be dealt with by the magistrates. It is, of course, also possible for breaches to be extremely serious, which is why the Bill for the first time allows cases to be dealt with in the Crown Court, in the same way as crimes are dealt with: sometimes in the magistrates’ court, sometimes in the Crown Court. However, we do not consider that it would be sensible to require all breaches of the building regulations to be dealt with in the Crown Court.

Turning to Amendment 14, I say to my noble friend that I agree with increasing the daily rate of fine for ongoing offences. Indeed, the Bill already increases the daily rate from £50—where it has been since 1984, when I am sure it was set by my noble friend Lord Young, when £50 was a considerably greater sum of money than it is today—to £200, which is the current rate for a level 1 fine. However, we consider that increasing it further to £2,500, as my noble friend proposes, “would be disproportionate”—that is what it says here, anyway.

The principal aim of the prosecution must be to impose an initial fine commensurate to that particular offence; any further fine should merely encourage work to be put right, rather than imposing huge additional punishment. We consider the potential maximum of £5,600 for the month of February is likely to be significantly more proportionate on top of the fine imposed on conviction, rather than the £70,000 proposed by my noble friend.

On Amendment 15, imposing a sentence according to a mathematical formula raises a number of issues. First, the cost of the work done will not always be clear; there may be disputes about the cost in the invoice or the value of the work actually done, and resolving this would take up the court’s valuable time. Secondly, the court might consider that, in a particularly egregious case, a significantly higher fine is required than one that would be arrived at from the calculation. The amendment would preclude the court from imposing that higher fine. Finally, the provision in the amendment to enable the court to impose rapidly escalating further fines, if the breach remains unresolved, has the potential to lead to significant unfairness—as, for example, a £10,000 initial fine could total up to £70,000 if a breach remained unresolved for just two months after conviction.

As I said at the start of my remarks, while I am supportive of my noble friend’s amendments, I hope that with this explanation he will be content not to press them. I reiterate that I absolutely sympathise, and want to go with the nature of this—but that is the response to the amendments as tabled today. I thank my noble friend for laying the amendments for us to think them through and debate them extensively.

Before turning to the comments from the noble Lord, Lord Best, about strengthening the teeth of the new homes ombudsman, it is important to reflect that there has to be a little bit of work done to tidy up the whole approach to the ombudsman’s service for people in housing. I asked my colleagues behind me to list the number of people who provide a complaints service for people in different types of homes and tenures. We have the new homes ombudsman, which will be unleashed for new build, but we also, as the noble Lord, Lord Best, will know, have the Regulator of Social Housing and—my old colleague at City Hall, Rick Blakeway—the Housing Ombudsman Service, and we have the Local Government and Social Care Ombudsman. Homes are homes, and we need to think about how we get a complaints service that works for homes in the round. I know that we can categorise social housing as being over here, and people in private renting over there, but these are people’s homes. We need to recognise that, at the moment, it is a patchwork quilt of services that provide that whole ombudsman service, and that is not ideal. I wanted to put that forward—that, when discussing this subject, we are talking about new-build private homes and not housing in the round.

I turn to the amendments tabled by the noble Lord, Lord Best. I thank him for raising this important matter, but I am afraid that the Government will not be able to accept these amendments, as the intention can be achieved elsewhere. The Bill sets out requirements for the ombudsman scheme to include provision about what home buyers can complain to the ombudsman about in individual cases, and making improvement recommendations about scheme members’ quality of work and conduct in general. The developers’ code of practice allows the standards of conduct and standards of quality of work expected of members of the scheme to be set out.

The noble Lord’s amendments would provide the ombudsman with powers to make general requirements of the scheme’s members, duplicating provisions already in the Bill. It is unclear how they could be enforced or appealed against, and we must be careful that the ombudsman does not duplicate the role of regulators, the scheme provider or Parliament. The Bill includes provision for complaints to the ombudsman within two years of the first acquisition of the new-build property, which aligns with the developer liability period under most new-build warranties. I was shocked to find out that within a warranty it is for the first two years that developer liability is covered; the rest is covered through some form of warranty or insurance scheme to 10 years in private housing or 12 years in social or public housing. It is in this period that issues are much more likely to be raised in relation to snagging or the home-buying process. We believe that the proposal to extend this to six years would be unnecessary and would introduce a new unknown burden on members of the scheme. But I assure noble Lords that home buyers will retain their existing rights to seek redress in law and elsewhere in this Bill. With this reassurance, I hope that the noble Lord will be content not to press his amendments, and the Government will continue to consider how and where practices in this area could be improved.

I did say—if I may go a little bit further on that note —that we need to think about warranties, but we should also remember the Defective Premises Act, which has a statute of limitations of only six years. We are proposing to extend that prospectively to 15 years, hoping that there will be a culture change and a stronger regulatory environment, and 15 years is a reasonable timeframe to expect to seek redress—and then, retrospectively, 30 years. I am having those discussions and debates with my colleagues and the noble Lord, Lord Stunell, because I consider breaches of regulations, even going back 25 or 28 years, as a crime. It is a crime to breach building regulations, and there should be no statute of limitations for some of the crimes that we have seen, where we are putting flammable materials on the outside of the buildings, not having compartmentalisation, and having inadequate fire stopping, or fire doors that do not act as fire doors. All that I consider to be essentially breaches of building regulations, and we need to go after the perpetrators. But that is for another group of amendments—for the perpetrator pays or polluter pays—in due course.

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Moved by
17: Clause 41, page 51, line 21, at beginning insert “Section 58Z7A of this Act (sharing of information between regulatory authorities) and”
Member’s explanatory statement
This amendment and the next amendment, which are consequential on the Minister’s amendment at page 56, line 22, provide that new section 58Z7A of the Building Act 1984 applies to a person to whom the regulator has delegated registration functions under new Part 2A of that Act as it applies to the regulator.
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Moved by
23: Clause 52, page 77, line 9, leave out “public body’s final certificates” and insert “plans certificates, final certificates”
Member’s explanatory statement
This amendment is a drafting change.
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Baroness Brinton Portrait Baroness Brinton (LD) [V]
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My Lords, I wish to speak briefly to the amendments in this group, particularly in relation to the issue of perpetrator pays for fire hazard remediation—work that must be carried out speedily to ensure the safety of the inhabitants of the building. Amendment 24 and others, introduced by the noble Lord, Lord Young of Cookham, sets out the removal or alteration of offending work that contravenes fire safety regulations. It is interesting to note that he joins a group of former Ministers who are now trying to remedy the problems that were around during their time as Ministers. I think we should thank them not just for their humility but for their acknowledgment, through their amendments, that change is needed even more urgently than ever.

The noble Lord is right that his and other non-government amendments in this group are critical to delivering what the Government want to achieve, despite their own proposals being inadequate. I echo his point that if the Government think that things can be done more effectively to achieve the objectives that he outlined, I suspect that the Grand Committee would want to hear them.

The Minister spoke earlier of his surprise about the mechanisms of current building work guarantees and the role of insurers and warranties. Insurers have, rightly, made it clear that they are not responsible for this crisis. Insurance is not eligible in the event of defective work, and insurers never sign off work; they rely on the assurances of the companies they are insuring that the work is safe. The practical problem is that too many companies have relied entirely on their insurers. In my former professional life as a Cambridge college senior bursar, I have been that client who has sat in the middle and watched arguments about who should pay for defective work on blocks of flats, including works on a fire hazard in a medium-rise building.

The problems we faced as a college, even though they were with student accommodation, were absolutely nothing compared to the problems that leaseholders and renters in blocks of flats face. Talk to any of the current leaseholders living in blocks known to be unsafe: even with waking watches overnight, families are constantly on edge, and too many face the threat of worthless homes that are unsaleable until the perpetrator pays principle is fully brought into effect. I think “perpetrator pays principle” will be one of the next speech therapist phrases that people have to articulate; it is quite difficult to get your mouth around. The current government proposals do not take into account too many leaseholders who, like those in high-rise cladding buildings, are also not responsible for the defective work done by others.

Amendment 118 makes it clear that those who should pay, in the event of a block of flats having fire hazards, are those who did the work itself. The Government’s current proposals do not go far enough and still leave too many loopholes for those living in unsafe flats. This is the moment that legislation can and should make it absolutely clear that the perpetrator is responsible and must effect the remediation work and pay for it. In the event of a gap between that work being necessary to be carried out and it being agreed that the perpetrator should pay, the Government should indeed step in to help out.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, before I get my bearings, it is always good to have a few Latin phrases. “Quis custodiet ipsos custodes?”—well, I am just going to say, “Res ipsa loquitur”.

This is the “PP” group of amendments: “polluter pays” if you are my noble friend Lord Young, or “perpetrator pays” if you are the noble Earl, Lord Lytton. Although I will respond formally at the end— I am now speaking to the government amendments—I honestly agree with the sentiment of working with noble Lords and that a pick-and-mix approach is the right way forward. I am very keen to do that between now and Report. That is not in my speaking notes. The important thing is that we need a practical approach. We need one that works in law and in practice, and of course we want the polluter to pay.

I have taken noble Lords’ amendments and sought external counsel opinion, off my own bat, from a leading QC who deals with these issues in the courts to get their opinion. While I know my noble friend has tremendous ministerial experience, he perhaps has not always been in the courts when these things go into dispute. I know the noble Earl has considerable professional experience, but, again, this has to work in law as well as in practice. As the Committee will all appreciate, any scheme that requires government funding is not just a matter for this department; it is a matter for the Government and, in particular, needs Treasury approval.

I have always accepted that, in order for the polluter to pay, we have to have something that establishes liability at the building level. It is not an either/or. That is not to say that the Government’s approach is wrong; I think the Government’s approach is right. We have to have a waterfall effect that goes down the list of the polluters but recognises that not all freeholders are equal—some are “more equal than others”, to quote George Orwell—and that perhaps assignment of liability can be varied in regulation to reflect that. But all that detail is something that happens at later stages of the Bill, as my noble friend will know. Perhaps we will tease out some of those points in due course.

Clearly, if you are a developer like Ballymore that retains its freeholds, it is very easy. But if you are a developer like Berkeley, which often sells off its freeholds to a freehold investor, it becomes slightly more complex. But the intention of the Government is certainly not to let the Berkeley Group off the hook because it took another £20 million or £30 million by selling its freeholds off to another group to manage. It is still in the frame for the buildings that it built. I mention those developers just as examples, because we are obviously talking about a crisis that affects all the major housebuilders, as they freely acknowledge—not just the large ones but the medium and small ones, which have all contributed to a crisis that has brewed up over decades.

Let us move to the government amendments. Following my 11 January repeat of a Statement to this House, we have been clear on our expectations that developers should commit to self-remediate all unsafe high and medium-rise buildings for which they are responsible. They should agree contributions to fund the remediation of all cladding on buildings of 11 to 18 metres. The department has been in discussions with industry leaders on this matter and is making good progress towards a solution. I have had discussions with the medium-rise developers and have been alongside the Secretary of State in all those substantive discussions. However, should we need to take action against those unwilling to make these commitments, amendments tabled in my name will make it possible to impose a solution in law and make sure that developers and manufacturers take responsibility for rectifying building safety defects. I will now outline these important government amendments.

The first measure we are proposing as part of our package to ensure that the burden of paying for fixing historical building safety defects does not fall on leaseholders or taxpayers is a group of amendments to the building safety levy. They are an important part of the solution as they allow the building safety levy to be imposed in relation to building work going through the building control process on all residential buildings, not just buildings over 18 metres or seven storeys. This will enable the Government to raise funds to remediate cladding should the industry fail to step up and pay for the problems it has caused. It is our intention to set out in secondary legislation the levy rates and the details of who the levy applies to. By then negotiations with industry should have been concluded.

I now turn back to the package of government amendments and outline the further amendments that we are proposing to ensure that developers and manufacturers take responsibility for rectifying building safety defects. This package of amendments addresses many of the concerns highlighted today. They introduce measures to allow us to distinguish between companies that commit to shouldering their share of the blame and those companies that do not. The measures will incentivise industry actors to take responsibility in resolving issues with unsafe buildings, through firms committing to remediate buildings with which they are associated, and to contribute towards the funding of remediation of other unsafe buildings.

The first two amendments in this package would give the Secretary of State a power to establish a scheme or schemes for the building industry. This would act as a means of identifying which industry actors, including developers, and cladding and insulation manufacturers, have done the right thing and committed to act responsibly. Regulations will set out which persons in the building industry may be members of the scheme. In the first instance, the Government are minded to focus this measure on major developers of residential buildings and manufacturers of cladding and insulation. We are keeping this under review as talks with industry continue. Industry actors will be considered “responsible” if they meet published membership criteria for a scheme for which they are eligible. The membership criteria for a scheme will be set out and will include a commitment to rectifying building safety defects. The distinction between responsible actors and actors who have failed to do the right thing will be taken into account by the Government and regulators in their interactions with firms that are eligible for inclusion in a scheme.

The third amendment would give the Secretary of State a power to block developers that have failed to act responsibly from carrying out development for which planning permission has been granted, and to make sure that any breach of this block would be subject to enforcement action. The amendment would also allow the Secretary of State through regulations to require a developer to serve a notification of proposed development commencement and to prevent the grant of certification of lawful development for affected developers, should they seek it.

The fourth amendment would give the Secretary of State the power to prevent developers that have not committed to act responsibly, as set out in regulations, obtaining building control sign-off on their developments. This will make selling developments difficult for these developers, as building control approval is in most cases a prerequisite to occupancy and sale. The building control prohibitions will be imposed by regulations that will also set out details such as prescribed documents.

These new measures will help to make sure that while responsible industry actors can go about their business freely and with confidence, others will face significant legal, commercial and reputational consequences. They align with two of the principles set out by the Secretary of State: that the industry must pay for remediation and that the burden should not fall on leaseholders or the taxpayers. These measures will ensure that the burden is shared among the relevant industry actors while protecting leaseholders and the taxpayer. We cannot continue to allow those who are unwilling to commit to resolve the building safety crisis to have a role in building homes of the future. These amendments are being tabled to ensure that we have the legislative provision to help us to do this. I beg to move.

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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Yes. “Drectly” is what they say in Cornwall, which means “This year, next year, some time never”. I should like a bit of clarity. Timing is key. I should like to hear what the Minister is going to do about trying to get it done. How will we stop the developers and all those who we are going to try to get the money from through a levy wriggling out of their obligations? That is one of my fears in all this. Then there is the rate of the levy. Can we be given assurances that the rate will be of a sufficient level to pay for the remediation? That is key. I know that the Minister cannot give us a figure, but a broad brush assurance that the levy is going to do it would be good.

Retrospective compensation for those leaseholders who have already paid out should be considered. Some folk have gone bankrupt because of this. That is because it took time to get everyone together to deal with the problem. I know that retrospective compensation is hard to do, but we are putting back the clock 30 years in looking at these defects. If we can do that, we can look at retrospective compensation.

Leaseholders should pay nothing—that is where I am. We on this side support an amendment that gets there. As I say, I am full of admiration for people who, with their expertise, have tried to bring the Government to the place where they need to be. If the Minister is going to say yes to all these things, we will all leave happy.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, this has been a very good debate. I have enjoyed listening to virtually every speech, including that of the noble Baroness, Lady Pinnock. I am not going to pick out any speech that I did not like, but the contributions were very good. I am reminded of when I met someone who worked for Senator Cory Booker when he was mayor of Newark, which is a deprived part of the United States. Apparently, at a Democratic National Convention he came out with a phrase that sticks with me. He said:

“If you want to go fast, go alone, but if you want to go far, go together.”


When it comes to making sure that we get the polluter to pay, this Government are not proud about picking the best ideas that people have put forward today and putting them into the toolbox to ensure that we do precisely that.

I think of my noble friends Lord Young and Lord Blencathra, to whom I will add the noble Earl, Lord Lytton, as the three wise men. I was Faith Minister, so that description is appropriate. I have to say that the prize for the wisest of the wise goes to my noble friend Lord Blencathra, who seems to have that intellectual agility to change his position based on circumstance. He is someone who was a distinguished chair of the Delegated Powers and Regulatory Reform Committee one week, and the next week says, “Well, that was last week and this is this week. Come on Secretary of State—think about these ‘just in case’ powers”. We will think about them, but I thank him for providing us with that breadth of thinking.

I also pay tribute to my noble friend Lord Blencathra for suggesting that we look at reordering the Bill or setting objectives, as the Fisheries Act does. He also gave some advice; I will read out a note about why there needs to be a maximum for the levy. These are all great tips. To the noble Baroness, Lady Pinnock, I say that we will look at whether we can produce a written Explanatory Memorandum and of course we need to do impact assessments. These are all jobs of work and we will see how quickly we can get those things done. This is all in the spirit of wanting to be helpful and to have a better Bill, so I take all those points on board.

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Despite what my noble friend the Minister said about housing associations bearing responsibility, they are in a slightly different position from local authorities in terms of the resources that have been made available. Even if local authorities have to pay for their own defects being put right, at some point somebody is paying for that. It is either some social housing that was not built or a reduction in social care. They can put it right, but there is a cost—
Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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Housing is ring-fenced.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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I know that housing is ring-fenced; I introduced the housing revenue account.

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Moved by
25: Schedule 5, page 166, line 28, leave out paragraphs 38 and 39 and insert—
“38_ Omit sections 44 and 45 (and the heading before section 44).”Member’s explanatory statement
This amendment is consequential on the first new Clause after Clause 57 in the name of the Minister.
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Moved by
31: Clause 57, page 79, line 4, leave out from “on” to end of line 5 and insert “certain applications for building control approval etc”
Member’s explanatory statement
This amendment and other amendments of this clause extend the power to impose a levy to work other than higher-risk building work, if it relates to residential or mixed-use buildings, and to initial notices, amendment notices and public body’s notices (as well as applications for building control approval).
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Moved by
36: Clause 57, page 79, line 24, leave out from “that” to end of line 31 and insert “, unless the building control authority is given a notification under subsection (5A) in relation to a relevant application or notice (or a relevant application or notice of a specified description), the authority—
(a) may not take a specified step in relation to the application or notice (for example, may not grant an application, accept a notice or give a specified certificate in relation to works connected with the application or notice), or(b) must take a specified step in relation to the application or notice (for example, must reject a notice).(5A) A notification under this section is a notification given by the Secretary of State or designated person—(a) that the levy payable in respect of the application or notice has been paid, or(b) that no levy is payable in respect of the application or notice.”Member’s explanatory statement
See the statement relating to the first amendment to this Clause in the name of the Minister.
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Moved by
40: Clause 57, page 80, leave out lines 3 to 5 and insert—
““relevant building” means a building in England consisting of or containing—(a) one or more dwellings, or(b) other accommodation,(and “accommodation” here includes temporary accommodation, for example in a hotel or hospital);”Member’s explanatory statement
See the statement relating to the first amendment to this Clause in the name of the Minister.
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Moved by
41: After Clause 57, insert the following new Clause—
“Crown application
In Part 5 of the Building Act 1984 before section 132 insert—“131A Crown application(1) The following provisions bind the Crown—(a) Part 1 except sections 35B to 37, 39A and 40;(b) Part 2;(c) Part 2A except sections 58I to 58K, 58U, 58V and 58Z4 to 58Z6;(d) Part 4 so far as it relates to a provision within any of the preceding paragraphs.(2) No contravention by the Crown of a provision within subsection (1)(a) to (d) makes the Crown criminally liable.(3) Subsection (2) does not affect the criminal liability of persons in the service of the Crown.(4) Subsection (5) applies where—(a) a contravention of a provision within subsection (1)(a) or (b), or of Part 4 so far as it relates to such a provision, occurs in relation to a building or proposed building for which a local authority is the building control authority, or(b) a contravention of a provision within subsection (1)(c), or of Part 4 so far as it relates to such a provision, occurs in relation to Wales,and the Crown would, but for subsection (2), be criminally liable under this Act in respect of the contravention.(5) The High Court may, on the application of—(a) the local authority (in a case within subsection (4)(a)), or(b) the Welsh Ministers (in a case within subsection (4)(b)),declare unlawful the act or omission constituting the contravention.(6) In this section a reference to a provision includes any instrument made under it.(7) For the application to the Crown of Part 3, and Part 4 so far as it relates to that Part, see section 87.”Member’s explanatory statement
This new Clause makes provision about the application of Parts 1 to 2A of the Building Act 1984, and Part 4 of that Act so far as relating to those Parts, to the Crown.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Committee stage
Monday 28th February 2022

(2 years, 1 month ago)

Grand Committee
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 98-IV Fourth marshalled list for Grand Committee - (28 Feb 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

No one could have known that these appliances would fail. There will be similar issues in future, no doubt, but the shocking thing about those fires is not that each of them happened but that the damage and death was worse than it should have been, partly because of a failure to maintain fire safety systems, not because of a lack of surveillance of leaseholders’ activities in their own homes. We need to row back from potentially blaming leaseholders.
Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
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My Lords, I can see that my noble friend is about to rise, but there is a crescendo in this group of amendments and I realise that it is very important to hold in reserve the speeches from my noble friend Lord Young—as well as the crescendo of the amendments to be introduced by the noble Lord, Lord Stunell, and by my noble friend Lady Neville-Rolfe. This is a veritable feast of amendments, so I will introduce the government amendments at this point, if I may, before I summarise the group.

As this is a feast of amendments, I have looked up my old grace, which I used to say when I was 18, 19, 20 years of age. It is very long—I hope I will not get it wrong, as I know the right reverend Prelate will know if I do. It goes as follows:

“Oculi omnium in te sperant Domine:


Et tu das escam illis in tempore.

Aperis tu manum tuam,

Et imples omne animal benedictione.

Benedic, Domine, nos et dona tua …

et concede, ut illis salubriter nutriti

tibi debitum obsequium praestare valeamus,

per Christum Dominum nostrum.”

That is roughly right. It is what we used to say before we could eat. This is a feast, and I appreciate that every amendment is laid with the interests of improving this Bill. If we cannot accept them, I want to say that I appreciate the intentions behind every one of them. I will summarise our position at the end.

I have tried to summarise each group in three words. This is the “residents and redress” group, and I have always been clear that residents should be at the heart of the new regime. Today’s debate demonstrates the continued importance of that commitment. I am pleased to start by speaking to a group of amendments that is focused on ensuring that residents and others have more access to redress.

Amendments 76 and 77 create a new power for the High Court to impose building liability orders in appropriate cases. These orders will allow civil claims to be made against the associated companies of a company involved in the development or refurbishment of a building in certain circumstances, including when the original company no longer exists. In this House and in the other place, we have discussed the lack of ongoing liability that large developers have due to their use of special purpose vehicles. These amendments directly address this issue and support the changes we have proposed to the Defective Premises Act. They rebalance the level of exposure that small and medium-sized businesses in the construction industry currently have compared with the larger players—and, most importantly, they unlock potential funding for those who have remediated or who need to remediate, if they bring a successful claim. I consider that these orders will be an important tool in holding “polluters” to account and making them pay for their past misdeeds—so I hope that noble Lords will join me in supporting these amendments.

Moving on, I have also tabled a series of amendments that will help to make sure that construction product companies pay to put right building safety issues that they have contributed to causing. I do not intend to move these amendments today but have laid them to invite the scrutiny of noble Lords. I will listen carefully to the debate and bring these measures back at a future stage. Briefly, they target construction product manufacturers and ensure that they take responsibility for their part in the creation of building safety defects. The new clauses in Amendments 107 to 109 and 144 introduce two new causes of action against construction product manufacturers. There are currently almost no routes which allow leaseholders to hold construction product manufacturers accountable for their role in the creation of serious building safety defects. The Government are clear that those who have been responsible and continue to be responsible for building safety defects have a responsibility to put them right.

These causes of action will enable claims to be brought against construction product manufacturers and sellers for their role in the creation of building safety defects. They will apply if a product has been mis-sold or is found to be inherently defective, or if there has been a breach of construction product regulations. If this contributes to or causes a dwelling to become “unfit for habitation”, a civil claim will be able to be brought through the courts under these causes of action.

The cause of action relating to cladding products in Amendment 107 will be subject to a 30-year retrospective limitation period. The broader cause of action relating to all construction products in Amendment 108 will be subject to a 15-year prospective limitation period. These limitation periods reflect the changes we are making to the limitation period under Section 1 of the Defective Premises Act. These causes of action will ensure that construction product manufacturers can be held responsible for the costs of rectifying their mistakes.

Amendments 110, 113, 114, 141 and 145 will create a power to make regulations to require construction products manufacturers and their authorised representatives, importers and distributors to contribute towards the cost of remediation works where they have caused or contributed to dwellings being unfit for habitation. Amendment 110 will enable the Secretary of State to serve a costs contribution notice on companies that have been successfully prosecuted under construction products regulations, where the relevant product has contributed to identified dwellings being unfit for habitation.

Amendment 114 introduces a new schedule that will give the Secretary of State the power to appoint an independent person to inspect buildings where the relevant product has been used. This assessment will consider whether the conditions for serving a costs contribution notice are met, and the remediation works required. Amendment 114 will enable the Secretary of State to make regulations setting out a process for establishing costs that a company should be required to pay, which will take account of its ability to pay, and to whom payment should be made. This amendment will also enable the Secretary of State to require a company to contribute towards the cost of building assessments carried out as part of this process. Setting out this scheme in secondary legislation will enable the necessary interaction between costs contribution notices and construction products regulations, including those that will be made using the powers in this Bill.

I will listen carefully to the remainder of the debate today, as I have to every speech given so far introducing various amendments, and I look forward to hearing from noble Lords. As I said earlier, I will be moving only Amendments 76 and 77 today. I will carefully consider what I have heard in relation to the other amendments, and I will bring these measures back at a future stage.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, the instructions on the sheet of paper in front of me are not “crescendo” but “diminuendo”—some gentle accompaniment on the bass to the forte soprano that we heard from the noble Baroness, Lady Fox. But seriously, I want to add a brief footnote to the excellent speeches made by the noble Baroness, my noble friend and the right reverend Prelate.

I make the point that they all underline the need for the next stage of leasehold reform which the Government have promised, which does away with this feudal system of leasehold which exists nowhere else in the world. Once we have done that, all these problems that we have been talking about this afternoon will disappear: there will be an identity of interest between the freeholder and the leaseholder because they will be the same person. At some point, perhaps the Minister can shed some light on the next stage, confirming that that is indeed the Government’s objective and that they want to move in that direction as fast as possible.

I add a brief footnote to the excellent speech the right reverend Prelate made on Amendment 50A. In particular, I draw attention to the radical proposal in subsection (3)(a) of the new clause proposed in his amendment, which places an obligation on the landlord for

“where there is no recognised tenants’ association in existence before the coming into force of this section, creating a recognised tenants’ association and consulting with it about building safety”.

Because of the Long Title of the Bill, the right reverend Prelate had to confine it to building safety. However, it is a radical proposal. It places the obligation for establishing a tenants’ association not on the tenants, which is the position at the moment, but on the landlord, evening up the terms of trade. As I said, it is a very radical proposal indeed. An indifferent landlord does not want a residents’ association or a tenants’ association with whom he has a statutory obligation to consult, although I happen to believe that it is in his best interests to have such a dialogue. So the terms of trade are dramatically altered by the right reverend Prelate’s amendment.

In an earlier incarnation, I recall helping establish an organisation called Tpas—the Tenant Participation Advisory Service—I see the noble Lord, Lord Best, nodding sagely; he has a similar vintage to myself when it comes to housing legislation. That was focused primarily on tenants of social landlords, but I believe it has subsequently expanded into the private sector. It would be very well placed to advise landlords and tenants on how to set about establishing such an association, were the right reverend Prelate’s amendment to be accepted.

Finally, on this group of amendments, I reread chapter 4 of the Hackitt report last night, entitled “Residents’ voice”, and it has a whole series of recommendations about enfranchising the resident and the tenant in exactly the way that we have underlined. So, as I said at the beginning, I add a small a complement on the double bass to the excellent speeches that have been made on this group of amendments—or perhaps I am a tenor.

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The Minister often describes noble Lords as the awkward squad.
Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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Sometimes they are wise men and women. I hope that the Minister can take forward their wise suggestions on this group of amendments in particular.

We welcome many of the government amendments, tabled in good spirit to make sure that life gets better for residents of buildings across the country and that they are free from unsafe situations. Government Amendment 141 makes provision for regulations under the new clause relating to costs contribution notices to be subject to the draft affirmative procedure. I want to ask the Minister about the power given to government to make new legislation. What scrutiny will these new powers be subject to?

The noble Lord, Lord Young of Cookham, and the noble Earl, Lord Lytton, talked about the important issue of long leases. It is a fascinating debate, but perhaps it is not for now, because this Bill is about building safety. When the noble Lord, Lord Young, was a Minister in 1984, I was five—in fact, I was a safety hazard in my parents’ building at the time. His point about the future of long leases is important, and I am sure it will be discussed and debated in a future Bill. I also appreciate the experience brought by the noble Earl in discussing his points.

The noble Lord, Lord Stunell, made an interesting and very important point about product safety. It is difficult to digest. Even the Construction Products Association is confused about this area. There is a lack of clarity which I hope the Minister and the Government will address.

Finally, I will single out Amendment 147, in the name of the noble Baroness, Lady Neville-Rolfe, which looks at publishing assessments of the impacts on businesses, in particular, of remediation changes. It is an important amendment because there is a shortage of homes and we want to make sure that we look at how this impacts on everybody in the whole chain and that we do not move to a situation where we are building fewer homes. That is an important point, but today has to be about impact assessments on citizens of this country and every person living in an unsafe building.

The Minister in debate on a previous day mentioned that this is a landmark Bill and an opportunity. Unfortunately, at this moment it is not being taken forward with the really strong, meaningful, well-intentioned and well-purposed amendments that have been presented, so I hope that the Government will reflect, listen and make that impact.

Lord Thurlow Portrait Lord Thurlow (CB)
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Before the Minister stands up, perhaps I can make two points. This is a large group of quite diverse amendments. My concern is over the accountable person role. Judging by the discussion today—I will not go through the list of different contributions—I think it is going to be a very difficult job indeed. That person is going to need help in creating a co-operative working relationship with tenant groups, and the situation could be exacerbated by bad and difficult freeholders or managing agents, often in league, and if the accountable person finds himself or herself in their pocket it will not be made any easier.

I do not overlook difficult leaseholders. There are some tenants who will not let anybody into their building. That is also a problem to be dealt with, but I have two suggestions. The accountable person should be prepared to prove reasonableness in all their behaviours and should also be prepared to prove value for money. An autocratic manager refusing to engage with a leaseholder makes life even more difficult. In the second case, concerning value for money, whether it is the fire extinguisher example given by the noble Lord, Lord Blencathra, or some captive insurance company or an arrangement with a very high commission-bearing insurer offering kickbacks to freeholders, that would be avoided.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I rise to say how amazed I am by how young the noble Lord, Lord Khan, is. I thought I was a whippersnapper as someone in my mid-50s, but the noble Lord must have been born in—what, the late 1970s?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My maths is not that bad, but that is impressive.

I will start with the noble Lord, Lord Stunell, who focused on the government amendments. It is fair to say—he will know this as someone who played my role in the coalition Government—that we cannot possibly move amendments without considering A1P1 rights and the impact of the amendments. We would never get them through the legal system. Obviously, we are tabling the amendments but not moving them, but we have done all the checks, as you would expect, and taken legal opinion and so forth to make sure that they are all workable, and indeed lawful. Otherwise, we would just not be allowed to do it.

I also say that there has been considerable engagement with the organisations that the noble Lord mentioned, but we need to continue that engagement and that is something we can do. I reassure him that we have had representations from Build UK, the Association for Project Safety and the Construction Products Association, but we should continue to engage. My view is that there is never too much engagement with these organisations. However, I also said to him, and I put this now into Hansard—it was raised in a previous debate by the noble Baroness, Lady Hayman—that if you breach building regulations implemented in 1984 by the then young whippersnapper, my noble friend Lord Young, it is a criminal act.

The noble Lord will also know that if you commit a crime in this country, there is no statute of limitations for most crimes. In this case, we are saying that we have seen appalling practices over the previous 30 years, and there should not be a statute of limitations period that does not allow us to rectify that. That is why we are looking backwards 30 years and forwards 15 years. Of course, we have taken considerable legal advice about taking that position, but it is to ensure that there is no legal reason why someone who has broken building regulations is not open to face redress. I accept all the points he makes around the practicalities of doing that, but there should not be a small, narrow limitations period when we tackle this historically difficult problem that has crept up on us over not one decade, but three decades.

I turn to the noble Baroness, Lady Pinnock, who wanted to understand how we are regulating construction products. It is not straightforward, but it is pretty straightforward, so I will not take too long over this. We have created a national regulator. In the same way as we have a building safety regulator in shadow form until the Bill gets Royal Assent, the Bill will put into statute a national regulator for construction products in the Office for Product Safety and Standards. The CEO is a phenomenal chap called Graham Russell. He is there and it has already started to flex its muscles with a prohibition notice to Kingspan. This Bill formalises the national regulator for construction products and there are at the same time local regulators of products, as the noble Baroness will know, with her local government background within trading standards, that provide that local role. It is the national and local regulation of construction products that provides the regulatory environment for construction products.

The noble Baroness also raised construction products testing. This is something that the inquiry showed as an area of concern. The Building Research Establishment was a nationalised entity that it was privatised in the 1980s, I think—my noble friend Lord Young will know the exact date, I do not—but we also have the British Board of Agrément, which has always been in the private sector. Neither of those have come out as great, robust testing houses, which is why my predecessor as Secretary of State asked for a construction products testing review. I believe that report is nearly finalised. I will ask for a copy. There will be recommendations on how we improve the robustness of construction products testing. I hope that addresses the questions raised by the noble Baroness, Lady Pinnock.

One of the three wise men, the noble Earl, Lord Lytton, raised a very important point, but it is fair to say that, when we are talking about construction product manufacturers, we are talking not about all construction product manufacturers but about those that contributed to this crisis. Three of them have been raised, front and centre, as being responsible for the Grenfell Tower tragedy: Celotex, Arconic and Kingspan. These were all products that should never, frankly, have been able to have been put in that position. We can argue about why, but you cannot put flammable material that spreads like petrol up the side of a building and say that that adequately resists the spread of fire, which is what the regulations stated in Approved Document B. You cannot put flammable insulation behind it, et cetera. There are a number of product companies that contributed to this. Whether they were installed incorrectly or not is irrelevant: these products should never have been put on our buildings. We can look at the responsibility for that, but the responsibility also lies with the manufacturer, in large part, and in those cases, the polluter must pay. However, it is not all construction product manufacturers by any means, and I make that point absolutely clear.

Secondly, the way in which those products are installed is a matter for the construction company. The construction company, not the manufacturer, is responsible for following the instructions and installing the product correctly. We can see examples of perfectly good cladding systems that are installed incorrectly. In such cases, that falls on the developer in the first instance, or on whoever the developer got to install the system. We must be absolutely clear about that. If we start creating confusion around it, we avoid accountability and we do not move forward. It is pretty clear in my mind where culpability falls. I hope that that addresses some of the concerns raised by the noble Earl, Lord Lytton. This has been a fantastic debate. I have enjoyed every second of every minute of every hour. We have had one hour and 40 minutes on this group, and it has been absolutely tremendous. Thank you all for your contributions.

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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I was caught mid-sentence so I will go back to the beginning of that particular sentence. The noble Baroness suggests that we require detailed requirements on contravention notices to ensure the proper use of these powers, but that is better suited to regulations. Indeed, the balance between what is reasonable to expect of an accountable person, the urgency of building safety risks and protecting residents from potential misuse of powers is crucial. That is why we believe that this detail should be set out in regulations, developed in consultation with residents and accountable persons and subject to public consultation.

Amendment 52B would allow residents a reasonable time to remedy any alleged contravention before an application to the court; indeed, the Bill provides that the accountable person must specify the steps that the resident should take and a reasonable time for taking them. The court is very unlikely to issue an order before that time has expired.

Amendment 55C would require the building safety regulator to consult on and issue a statutory code of practice regarding powers of entry. Subsequently, Amendments 53B, 53C, 53D, 54B, 55A and 55B would require the accountable person to comply with a statutory code of practice and ensure that the right of entry into homes applies only in urgent cases or emergencies. In respect of Amendments 52A and 54A, the Government are closely listening to these points; however, the noble Baroness’s intention is already being achieved, as the resident would be notified of the application from the accountable person as part of the court process.

I would like to reassure the noble Baroness that there are already safeguards against misuse in this Bill. Under Clause 86, we will prescribe principles under which the accountable person must operate. These have been published in draft and include the requirement to consider the impacts on residents within the building.

In addition, the clause provides that accountable persons have a right of entry to a resident’s home with an order awarded by the court. The courts will apply established principles when considering any such application for entry and will grant access only when they consider it just to do so. This provides an effective safeguard against misuse. As noted in response to the points raised by my noble friend Lord Blencathra, we would expect the accountable person to seek to resolve issues directly with residents in the first instance to gain entry where it is needed.

The building safety regulator will issue guidance to accountable persons, which will set out the expectations for their system for handling residents’ duties and enforcing them. It is important to note that these powers are necessary for the accountable person to be able to discharge the legal duties we are placing on them. Although their use covers emergency cases, access may be needed where a resident refuses to allow the accountable person to discharge their duties. Indeed, the provision is designed for the discharge of day-to-day duties and not for emergency situations, which would require calling the emergency services.

As such, we must again strike a balance between protecting residents and affording the accountable person the tools needed to keep their building and residents safe. We believe that this balance is correctly achieved in the Bill. I understand the noble Baroness’s intentions with these amendments but, for the reasons I have given, I ask her not to press them.

I now turn to Amendment 107A in the name of the noble Lord, Lord Stunell, which seeks to probe whether the retrospective liability provisions in Amendment 107 apply only to higher-risk buildings. I reiterate the points I made earlier when outlining the intent of the Government’s amendments. This course of action will apply to all dwellings and all buildings containing dwellings. The Government’s position is that the ability to recover cost contributions from product manufacturers should not be restricted to those who live in multi-occupied high-rise buildings. While it is true to say that the amount of cladding on lower-rise buildings is likely to be lower, we do not think it appropriate to exclude these just because the building is not as tall. The crucial factor must be the safety risk.

We are not restricting this course of action to buildings over 18 metres because we intend to enable all individuals who have suffered a loss as a result of a dwelling being made unfit for habitation due to the mis-selling of a product, a product being inherently defective or a breach of existing building regulations to seek cost contributions for the losses they have incurred. This course of action protects leaseholders and home owners by ensuring that all construction product manufacturers are held liable for their part in the creation of building safety defects. The broad application of this course of action to include all dwellings reinforces this principle and delivers a proportionate approach. The scope of this course of action to apply to all dwellings will mirror the Defective Premises Act.

Finally, I turn to my noble friend Lady Neville-Rolfe’s Amendment 147. I assure her that the Government have considered the impact on business of the measures I tabled on 14 February. We are clear that the principle of protecting leaseholders is paramount. It is fundamentally unfair that innocent leaseholders should be landed with bills that they cannot afford to fix problems that they did not cause. These amendments will right this wrong, and the Government consider it critical that the provisions take effect as soon as possible. I must therefore ask my noble friend to withdraw her amendment.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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Are the Government planning to produce an impact assessment on the new measures? My amendment was drafted the way it was on the advice of the Bill clerks, but obviously my main concern is to understand the detail of this promising package.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am sorry; with the sheer length of the debate, we are now approaching the two-hour mark, so I hope that my noble friend will forgive me if I did not address that specific point. However, I did address the point that the Valentine’s Day amendments, tabled on 14 February, were made in haste. The work around impact assessment was therefore not carried out at that time, but obviously we intend to update our impact assessment to reflect all the amendments that the Government have brought forward; that is the good practice my noble friend seeks, I think.

I thank noble Lords for this debate, which has been an important and necessary part of the scrutiny of this legislation. I hope that, with the reassurances given, noble Lords will be happy to withdraw or not press their amendments. This has been a feast of a debate so let us conclude it with the two words that we used to say in our formal hall: benedicto benedicatur.

Lord Blencathra Portrait Lord Blencathra (Con)
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My Lords, we have spent two hours on this group of amendments. It is probably the second-most important group in the Bill, after the one we dealt with last week. There were more than 45 amendments down, so I make no apology that we have spent considerable time discussing them.

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Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I recognise that the government amendments in this group may be of greater significance than mine. I think it would be in the interests of the Committee if I sat down and allowed the Minister to explain them, and perhaps responded later. I beg to move.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I rise to introduce the government amendments in this group. This is an important group—equally as important as the previous group—and is about leaseholder protections.

We have been clear that it is fundamentally unfair that innocent leaseholders, most of whom have worked hard and made sacrifices to get a foot on the property ladder, should be landed with bills they cannot afford for problems they did not cause. That is why I have laid a series of amendments to the Bill to right this wrong. I want to outline these important government amendments and highlight how they will provide much-needed protections to leaseholders from exorbitant costs for remediation of their buildings.

These leaseholder protection provisions will make landlords liable, partially or in full, for the costs of remediating historical building safety defects. Amendments 62 to 64 and Amendment 66 are definition clauses setting out the types of defects, buildings and leases that are in scope of the protections. The new clauses state that leaseholders living in their own home or subletting in a building over 11 metres will be entitled to protections from unjust and unaffordable remediation costs. It will not apply to buildings that have exercised the right to collective enfranchisement or are on commonhold land, as in those buildings the leaseholders together effectively are the freeholders.

Amendment 68 would insert a new schedule into the Bill before Schedule 9, which sets out the circumstances in which service charges relating to historical building safety issues cannot be passed on to leaseholders, and the circumstances where service charges can be passed on to leaseholders are limited. Paragraph 2 of the new schedule provides that, where the landlord is responsible or has links with the developer that is responsible for the defect, they will be required to pay in full for the historical building safety issues. This will ensure that, as far as possible, those who are responsible for creating the defects take on the burden of costs and remove all liabilities for the historical defects from innocent leaseholders.

A definition of an “associated person”, for the purpose of determining which building owners have links to the developers of the building, is set out in Amendment 67. Similarly, where building owners are not linked to the developer but can afford to pay, they will be required to put the money up to do so and pay in full. We intend to table further amendments to provide details of the affordability test on Report. I welcome any suggestions from noble Lords on how this could work.

Paragraphs 5 to 7 of the new schedule provide that, where building owners are not linked to the developer and are not able to afford the remediation, some costs can be passed on to leaseholders. This will be subject in most cases to caps of £10,000, or £15,000 for leases in Greater London. These caps will limit how much leaseholders can be asked to pay for non-cladding costs, after—I repeat, after—building owners and landlords have exhausted all other cost recovery options, such as litigation under the Defective Premises Act or the new construction products causes of action we have just debated.

The amendments also provide that any costs paid out by leaseholders over the past five years will count towards the cap, meaning some leaseholders will pay nothing more. They also provide that cladding costs cannot be passed on at all. Paragraph 6 sets out caps to be applied to very high-value properties. It provides that, for properties with a value of over £1 million but under £2 million, the maximum permitted charge is £50,000 and, for properties with a value of over £2 million, the permitted maximum is £100,000.

Building owners and landlords must comply with the law as set out by Parliament. However, there may be some who attempt to avoid their liabilities. These landlords may be associated with a company with substantial assets. Given the extent of the building safety crisis, it is morally right that these associated companies are asked to shoulder their fair share of the costs. Amendment 69 would give the First-tier Tribunal powers to make a remediation order on the application of an interested person, meaning the regulator, local authority, fire and rescue authority or another person specified in regulations by the Secretary of State. A remediation order will require a landlord to remedy defects in their building, as specified in the order.

Amendment 70 would give the First-tier Tribunal powers to make a remediation contribution order on the application of an interested person if it considers it just and equitable to do so. For the purposes of Amendment 70, interested persons include the new regulator, the local authority and the fire and rescue service, as well as leaseholders and other persons who have a legal or equitable interest in the building. A remediation contribution order will require an associated company to make specified payments, at a specified time or event, to the landlord to remedy relevant fire safety defects in the building.

Where a company needs to be wound up, our provisions enable the liquidator to apply to the court to access the assets of associated companies to contribute to the remediation of building safety defects. All too often, companies let subsidiaries go into liquidation to cut their losses. It is morally wrong that they can just fold a company up and leave leaseholders in unsafe buildings with outstanding building safety defects and the corresponding liabilities. The court’s decision will be based on whether it is just and equitable to do so—in other words, whether it is right for that associated company to help to meet the building safety remediation liability of the failing landlord.

Some unscrupulous companies may try and wind up subsidiaries before these provisions come into force, which is why we have included provisions to enable liquidators to pursue associated companies of those landlords who are currently going through insolvency proceedings. It is unfair that innocent leaseholders have had to pay for remediation of building safety defects while those who caused the fire safety issues are able to exploit company law to escape liabilities that are morally theirs. I ask your Lordships to support this significant and important set of amendments.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I am grateful to my noble friend. It was bit like listening to one of the advertisements on the radio when, right at the end, all the terms and conditions are read out very quickly and one has to listen to them very carefully. I welcome the assurances that my noble friend gave right at the beginning; I will come back in a moment to some of the things he said.

In the meantime, I will speak to Amendment 56 in my name and also to Amendment 131 in the name of two of the three wise men. This group of amendments focuses on Schedule 8 to the Bill, which defines building safety charges. It takes up no less than 12 and a half pages of rules and regulations. My Amendments 58 and 60 would eliminate eight of them, but any benefit so gained would be wiped out by the 13 government amendments tabled since the Bill left the other place.

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Lord Stunell Portrait Lord Stunell (LD)
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My Lords, first, I am very sorry if taking a long time last time irritated the Minister. It was an important set of amendments and I think these amendments are also important, although I will try not to irritate him. It is a pity that he did not feel able to accept the amendment in the name of the noble Baroness, Lady Neville-Rolfe, about openness and transparency and impact assessments. I remind him that he dealt with my argument by assuring me that I would know that the Government clearly would not have brought forward proposals unless they had been cleared at the highest level and that lawyers had looked at them and he wanted to assure me that they all worked. That sounded to me very much like an impact assessment or, at the very least, an explanatory note, so I am hoping that he can publish the documents that were used inside the department to decide that this is indeed a viable system to place before your Lordships.

With that preliminary, I enthusiastically support my noble friend Lady Pinnock’s Amendments 93 and 94 proposing a peppercorn figure for the cap. The Minister indicated at an earlier stage that the figures in the Bill are, to an extent, arbitrary. A number has been decided, perhaps based on some total amount of money that the Treasury thinks it is prepared to pay which has been divided by an assumed number of residents to produce a cap figure. It may be neat arithmetic for the Treasury, but it is not neat arithmetic for leaseholders facing their payment.

Some very pertinent questions have been asked by the noble Baroness, Lady Hayman, and other participants in this debate. I hope that the Minister will at least be able to commit to writing a letter, having carefully read Hansard, about this group of amendments and the previous group to make sure that he has ticked off all the queries that have been raised. They have all been advanced by noble Lords who very strongly want to see effective legislation but have various levels of severe concern about whether this legislation will be effective. I am sorry that it may be a little painful for him, but we need to understand the correct answers to this and, if not, to try again on Report.

This is a sensational policy development by the Government in interfering with the market. We believe it is justified in principle, but we want to see that it has not just been waived through without serious thought and consideration. It is easy to have popular legislation, although it would be more popular if the cap were a peppercorn, as my noble friend Lady Pinnock has proposed, but that does not mean that it will work. Plenty of popular legislation turned out not to work. The Dangerous Dogs Act occurs to me, and we must not turn this into a dangerous buildings Act full of good intentions but unable to deliver.

In relation to the other amendments, in Amendments 56 and 57, the noble Lord, Lord Young of Cookham, has produced, as he always does, extremely reasonable amendments and it is hard to see how the Minister can dismiss them. When we look at this, and bearing in mind that the Minister said in relation to the whole of this debate that the Government are still in listening and learning mode, it might be important to listen to them and to bring them forward again.

There was a theme too about excluded groups. It starts with a bold statement that no leaseholder will have to pay and then, as the noble Lords, Lord Leigh and Lord Naseby, and others have pointed out, there are little nooks and crannies in this which means that there are groups of leaseholders who will not benefit from the pledge, apart from the fact that there is a cap, which there certainly should not be.

In the debate on the last group, I commented on government amendments in some detail. I am sorry that it was a bit too hard for some people—it was a bit hard for me and I probably got some of it wrong—but I want to pick out from this current group some points that arise from government Amendment 70, which puts in place remediation contribution orders. I have a feeling that when it comes to assessing what the sum should be, the quantum that appears in a remediation order, all the issues I raised on the last group will raise themselves again. I hope the Minister is not persuaded by an argument that says, “The facts will speak for themselves. It is easy with a building, you can just go and look at it and tell whether it is compliant or not, and then you can decide how much it cost, and then they have to pay.” It is all a question of who decided that that would be used, who put it up in that particular way and what kind of regulation was carried out. We are talking about events that may have taken place 20, 25 or 30 years ago; the current opportunities to retrieve that information are very small and the chance of delivering it is very small as well.

The noble Earl, Lord Lytton, raised the point about the interaction of this process with the courts, which will be required to decide what a building safety order and a remediation contribution order should actually be. What should it be when it gets signed off by the courts? They will want to know the answers to this and I think the Minister will have heard that a number of noble Lords have a sneaking feeling that that will prove a very difficult hurdle to get over with the provisions in the form that they are.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, this has been a fascinating debate, it really has. I shall start with the noble Lord, Lord Stunell, because he served as Minister from 2010 to 2012 and we are graced by his presence. I think that in the coalition he was succeeded by the noble Lord, Lord Foster, from 2012 to 2014, and then there was a chap called Stephen Williams, who never made it to this place. If the noble Lord talks to his colleague Stephen Williams of the Liberal Democrats, who was in the coalition Government, he will know about Florrie’s Law, because that came into existence in 2014. The protection we are talking about today is based on Florrie’s Law that came into effect in public housing. This is about applying that principle of a liability cap across all types of tenure. In fact, I had a meeting in this place with the noble Lord, Lord Pickles, who introduced that amendment in response to a leaseholder who received an enormous bill which was so great that, through the shame of receiving it, she subsequently died. That is why we came up with the cap, as a coalition Government, through Florrie’s Law, and it is that principle we are looking to apply.

I turn to the noble Baroness, Lady Hayman. My admiration for her has increased, with her detailed grip of policy. She read it out with such aplomb, I have to be honest. I think it is important for me to take the high level and I will respond to her in writing, but I want to give her the outline. She is absolutely right in her assessment; what she read out was absolutely correct and the phrases “cascade” and “waterfall” have been applied to the approach we are taking. The waterfall or cascade is in five parts. We start with the developers. Then we move to the freeholders, via an affordability test, and other interim landlords; that is the second wave of the cascade. The third is freehold and interim landlords seeking redress from third parties that have contributed to pollution. The fourth is leaseholders who pay a capped amount—that is for non-cladding costs, to be clear, and is where Florrie’s Law kicks in. Of course, the fifth is freeholders and interim landlords who pay the remainder. That is the cascade approach, but I will write to the noble Baroness, because it was so eloquently put that I believe her questions of me deserve full and detailed answers.

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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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Therefore, the scope of “relevant defect” is sufficiently broad and will take account of many of the defects listed by my noble friend Lord Blencathra.

In relation to cladding, the Government have already put in place separate provisions, whereby leaseholders of properties in buildings over 11 metres will be protected from all costs associated with cladding remediation. I know that my noble friend has raised very real examples of leaseholders with narrow, not broad, shoulders who may have a certain amount of property in their retirement portfolio and have chosen to invest in property as a way of guaranteeing their income in old age. I would like to sit down with my noble friend and policy officials to see that we have got the policy intention right. He raises an important point that, sometimes, there are landlords with pretty narrow shoulders, and I do not think it is the intention of the Secretary of State and the Government to be unduly unfair on those people. We will sit down to understand the concerns. At this stage, there are a number of protections in place, but we recognise where my noble friend is coming from.

I forgot in the desire to get going that I should have declared my residential and commercial property interests as set out in the register. They are all properly laid out.

I also forgot to mention something in response to the noble Baroness, Lady Hayman, who raised the important point about retrospection. I got through the waterfall and the cascade but forgot about retrospection. It has been raised by a number of noble Lords; even the noble Baroness, Lady Pinnock, probably mentioned it as well.

The important thing is that day zero for the building safety reset is 14 February 2022. Once we have got this Bill through, that is the date we will start from. However, retrospection does kick in, in the sense that leaseholders who have spent money to date will not pay more than the cap. We will take into account the money they have already spent. Admittedly, we are not going back to refund those who have already spent money, but there is a cap in terms of liability. I shall also deal with the specific issue raised by my noble friend Lord Leigh of Hurley.

I shall now address the building safety charge amendments tabled by my noble friend Lord Young of Cookham. I shall race through these, because, basically, my noble friend is right to recognise that there may be other ways of skinning a cat, and looking at service charges as opposed to the building safety charge. Let us just see how we evolve that as time goes on—so I shall leave that, if I may. I thank him for raising those points. The Government’s intention was not as it has been painted by some people, but we recognise the points that he has raised.

Turning to Amendment 131, I thank my noble friends for raising this interesting matter, but I am afraid that the Government will not be able to accept the amendment. It would require the Secretary of State to establish a statutory inquiry into costs leaseholders have paid since 10 January 2022 which are not recoverable by those leaseholders. As I have already described, the Government have tabled a series of amendments either to remove or to greatly restrict the costs that the vast majority of leaseholders living in blocks over 11 metres will have to pay. Given these significant protections, the Government do not consider that the costs and bureaucracy involved in setting up another statutory public inquiry would be appropriate or justified. On that basis, I ask my noble friends not to press their amendment.

Turning to Amendment 86, I thank the noble Lord for raising this important matter, but I am afraid that the Government will not be able to accept the amendment. Managing agents play an important role in managing and maintaining buildings on behalf of their clients, and it is fair that they should be paid for the services they provide. I agree with my noble friend that it is important that managing agents do not charge excessive fees for those services, and that such charges must be reasonable. Managing agents also need to be clear about the charges they pass on. This Government strongly believe that service charges should show this. They should be transparent and communicated effectively, and there should be a clear route to challenge or redress if things go wrong.

The law is already clear that service charges must be reasonable and, where costs relate to work or services, the work or services must be of a reasonable standard. Leaseholders may challenge the reasonableness of the service charge through the appropriate tribunal, whether that is the First-tier Tribunal in England, or the leasehold valuation tribunals in Wales.

It is also important to recognise that there may be practical challenges in setting a fee. The cost of carrying out a fire risk assessment specific to the safe occupation of an individual building will range considerably, owing to the significant variations between buildings and their individual risk profiles.

It may have unintended consequences to impose a cap on a charge for work carried out by managing agents solely on fire risk assessments. Capping one cost, without considering whether charges for other activities they carry out should also be capped, might simply allow managing agents to recoup costs from other services they provide. Any such cap would need to ensure that the intended outcomes were achieved.

The Government are already considering in what circumstances fees or charges are justified and whether they should be capped or banned. We established a working group, chaired by the noble Lord, Lord Best, who looked at this alongside the regulation of property agents and reported back to government in 2019. We are currently considering those recommendations.

I thank the noble Baroness, Lady Hayter, for her work in preparing the codes of practice. As the Minister, I can say that we take on board the need to ensure that managing agents are professionalised and properly regulated. The Government will respond on that, and we take it extremely seriously. It is all about getting the right legislative vehicle, with some forward planning. Noble Lords will hear more about that—“in due course” is, I think, the phrase we use.

With regard to legal costs, not all leases allow landlords to recover their legal costs incurred through the service charge. Even where the lease permits this, there are already statutory protections in existence. Where a landlord has incurred, or has intended to incur, legal costs in connection with proceedings before a court or an appropriate tribunal involving a leaseholder, leaseholders can apply under Section 20C of the Landlord and Tenant Act 1985 for some or all of those costs not to be regarded as “relevant costs” in determining the amount of any service charge payable by the leaseholder. I thank the noble Lord for raising this important matter and assure him that the Government are actively considering the issues raised. With that assurance, I ask him to not move his amendment.

Now we turn to the amendment from the noble Baroness, Lady Hayman of Ullock, the Workington Warrior. She highlighted an amendment raised in the other place on the proposed building works agency, which would undertake the work the department is already doing on the auditing and monitoring of buildings over 18 metres with unsafe cladding. This represents poor value for money and would have the effect of increasing costs and burdens. Furthermore, the proposed works agency would oversee an audit of cladding, insulation and other building safety issues in all buildings over two storeys. This would result in hundreds of thousands of buildings being audited and would be very expensive and take numerous years. We do not consider this proportionate and therefore we oppose it.

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Earl of Lytton Portrait The Earl of Lytton (CB)
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The Minister answered a query I raised in connection with Amendment 72; I apologise for jumping a group. It was to do with commercial developers. I think I used the term “commercial developers”, but I intended to say “developers of commercial property”—that is, as opposed to commercial developers of residential property.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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Oh, I see. You said commercial developers?

Earl of Lytton Portrait The Earl of Lytton (CB)
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I said commercial developers, but I meant to say “developers of commercial property”. However, I will leave that point for the next debate.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, as the Committee enters its sixth hour of sitting, this is not the time for a comprehensive wind-up. However, I thank all those who have taken part in this debate.

My noble friend Lord Naseby made a valuable point about buy-to-let investors. Over the past 10 or 20 years, buy to let has become an alternative to a conventional pension for many people. I am grateful that my noble friend the Minister said that he is open to discussion on this; we count that as a win.

My noble friend Lord Blencathra had a series of amendments on the theme of protecting leaseholders. I am grateful for them.

My noble friend Lord Leigh of Hurley made a legitimate point about the freeholder who had not claimed the money he could have. I wrote down the solution that my noble friend the Minister arrived at. He said, “We will fix it at the political level.” The mind boggles as to what exactly that involves but I am sure that, with his robust physique and experience of government, he will come up with a satisfactory outcome on that.

The amendment in the name of the noble Baroness, Lady Pinnock, would remove the cap for leaseholders. I have a lot of sympathy with that. New paragraph 2(1), proposed by government Amendment 92, states:

“No service charge is payable under a qualifying lease in respect of a relevant measure relating to a relevant defect if a relevant landlord … is responsible for the relevant defect.”


That is fine, but then there is a whole series of exclusions, of which this is one. I find it difficult to reconcile the cap with the principle that the leaseholder is innocent and should not pay; I think we will have to come to back to that.

The noble Earl, Lord Lytton, made the same point as my noble friend Lord Leigh of Hurley: that the leaseholder should be able to apply. If the leaseholder could have applied in my noble friend’s case, there would not have been a problem and the freeholder would not have been in the loop, as it were.

I am grateful to my noble friend Lady Neville-Rolfe for supporting a number of the amendments. The noble Baroness, Lady Hayman, had her own, thoughtful approach to protecting leaseholders. She referred to the cascade. I hope that her many questions will be answered; perhaps we can all share in the letter that goes round. She also supported the request for an inquiry into compensation, for which I am grateful.

On the waterfall, the Government did not seem to appear in it. I thought that they were right at the end, but they have somehow been left out. I think that the Government are at the end of the waterfall if all else fails; my noble friend the Minister is indicating that this may not be the case, but what are the levy and fund for if not to help where the costs are not otherwise met by the freeholder, the leaseholder or the developer?

The noble Lord, Lord Stunell, asked how the cap was arrived at. It may well have been through a reverse process involving the Treasury.

Finally, my noble friend the Minister said that I thought he was a snake oil salesman. I believe that he believed what he said; my comment was about the pace at which he said it, which was like an advertisement where the terms and conditions are spelled out at an accelerated pace and one does not really have time to hear them. I think my noble friend said that enfranchised leaseholders are now within the scheme; I think he said that because I read his lips. I find that difficult to reconcile with what is in government Amendment 63:

“‘Relevant building’ does not include a self-contained building or self-contained part of a building … in relation to which the right to collective enfranchisement … has been exercised.”


If that should not be there, that is fine, but that is how I read it; I also made that point in an earlier contribution.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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We can sort it out. I am told by my lawyer that you are wrong.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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If I am wrong, the Bill may be wrong, because I have just read out what is in it, but I think this is something we can sort out at the political level.

I am grateful to all noble Lords who have taken part in this debate. I beg leave to withdraw my amendment.

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Moved by
61: Clause 116, page 123, line 39, leave out subsection (2)
Member’s explanatory statement
This amendment removes the provision providing that Part 4 does not apply in relation to the Palace of Westminster.
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Moved by
62: Before Clause 117, insert the following new Clause—
“Remediation of certain defects
(1) Sections (Meaning of “relevant building”) to (Meeting remediation costs of insolvent landlord) and Schedule (Remediation costs under qualifying leases) make provision in connection with the remediation of relevant defects in relevant buildings.(2) In those sections—(a) sections (Meaning of “relevant building”) to (Associated persons) define “relevant building”, “qualifying lease”, “the qualifying time”, “relevant defect” and “associate”;(b) section (Remediation costs under qualifying leases) and Schedule (Remediation costs under qualifying leases) contain protections for tenants under qualifying leases in respect of costs connected with relevant defects, and impose liabilities on certain landlords;(c) section (Remediation orders) makes provision about remediation orders, under which a landlord in a relevant building is required to remedy certain relevant defects;(d) section (Remediation contribution orders) makes provision about remediation contribution orders, under which an associate of a landlord in a relevant building is required to contribute towards the costs of remedying certain relevant defects;(e) section (Meeting remediation costs of insolvent landlord) makes provision about cases where a company that is a landlord in a relevant building is being wound up, and confers on the court a power to require an associate of the company to contribute to its assets.”Member’s explanatory statement
This new Clause introduces provisions about the remediation of certain defects arising out of works carried out before commencement.
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Moved by
64: Before Clause 117, insert the following new Clause—
“Meaning of “qualifying lease”
(1) This section applies for the purposes of sections (Remediation costs under qualifying leases) to (Meeting remediation costs of insolvent landlord) and Schedule (Remediation costs under qualifying leases).(2) A lease is a “qualifying lease” if—(a) it is a long lease of a single dwelling in a relevant building,(b) the tenant under the lease is liable to pay a service charge,(c) the lease was granted before 14 February 2022, and(d) at the beginning of 14 February 2022 (“the qualifying time”)—(i) the dwelling was a relevant tenant’s only or principal home,(ii) a relevant tenant did not own any other dwelling in the United Kingdom, or(iii) a relevant tenant owned only one dwelling in the United Kingdom apart from their interest under the lease.(3) Where a dwelling was at the qualifying time let under two or more leases to which subsection (2)(a) and (b) apply, any of those leases which is superior to any of the other leases is not a “qualifying lease”. (4) For the purposes of this section—(a) “long lease” means a lease granted for a term of years certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise;(b) a person “owns” a dwelling if the person has a freehold interest in it or is a tenant under a long lease of it;(c) “relevant tenant” means a person who, at the qualifying time, is the tenant, or any of the tenants, under the lease mentioned in subsection (2);(d) “service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985.”Member’s explanatory statement
This new Clause defines “qualifying lease” for the purposes of the provisions relating to the remediation of defects arising out of works carried out before commencement.
Amendment 65 (to Amendment 64) not moved.
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Moved by
66: Before Clause 117, insert the following new Clause—
“Meaning of “relevant defect”
(1) This section applies for the purposes of sections (Remediation costs under qualifying leases) to (Meeting remediation costs of insolvent landlord) and Schedule (Remediation costs under qualifying leases).(2) “Relevant defect” means a defect as regards a building that—(a) arises as a result of anything done (or not done), including anything used (or not used), in connection with relevant works, and(b) causes a building safety risk.(3) In subsection (2) “relevant works” means works relating to the building (including its initial construction) that were carried out—(a) before completion, if completion occurred in the period of 30 years ending with the coming into force of this section, or(b) by or on behalf of a relevant landlord or management company, after completion and within that period.(4) For the purposes of this section—“building safety risk”, in relation to a building, means a risk to the safety of people in or about the building arising from—(a) the spread of fire, or(b) the collapse of the building or any part of it;“completion” and “management company” are defined by regulations made by the Secretary of State;“relevant landlord” means a landlord under a lease of the building or any part of it.”Member’s explanatory statement
This new Clause defines “relevant defect” for the purposes of the provisions relating to the remediation of defects arising out of works carried out before commencement.
Amendment 66A (to Amendment 66) not moved.
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Moved by
67: Before Clause 117, insert the following new Clause—
“Associated persons
(1) For the purposes of sections (Remediation costs under qualifying leases) to (Meeting remediation costs of insolvent landlord) and Schedule (Remediation costs under qualifying leases), a person (A) is associated with another person (B) in the circumstances mentioned in subsections (2) and (3).(2) If A is an individual, A is associated with any body corporate of which A was a director at any time in the period of 5 years ending at the qualifying time.(3) If A is a body corporate, it is associated with another body corporate (B) if—(a) at any time in the period of 5 years ending at the qualifying time, a person who was a director of A was also a director of B, or(b) at the qualifying time, one of them controlled the other or a third body corporate controlled both of them.Subsections (4) to (6) set out the cases in which a body corporate is regarded as controlling another body corporate.(4) A body corporate (X) controls a company (Y) if X possesses or is entitled to acquire—(a) at least half of the issued share capital of Y,(b) such rights as would entitle X to exercise at least half of the votes exercisable in general meetings of Y,(c) such part of the issued share capital of Y as would entitle X to at least half of the amount distributed, if the whole of the income of Y were in fact distributed among the shareholders, or(d) such rights as would, in the event of the winding up of Y or in any other circumstances, entitle it to receive at least half of the assets of Y which would then be available for distribution among the shareholders.(5) A body corporate (X) controls a limited liability partnership (Y) if X—(a) holds a majority of the voting rights in Y,(b) is a member of Y and has a right to appoint or remove a majority of other members, or(c) is a member of Y and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in Y.(6) A body corporate (X) controls another body corporate (Y) if X has the power, directly or indirectly, to secure that the affairs of Y are conducted in accordance with X’s wishes.(7) In subsection (5) a reference to “voting rights” is to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.(8) In determining whether one body corporate (X) controls another, X is treated as possessing—(a) any rights and powers possessed by a person as nominee for it, and(b) any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).”Member’s explanatory statement
This new Clause defines “associated person” for the purposes of the provisions relating to the remediation of defects arising out of works carried out before commencement.
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Baroness Watkins of Tavistock Portrait The Deputy Chairman of Committees (Baroness Watkins of Tavistock) (CB)
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The question is that Amendments 79 to 81 be agreed to.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am sorry. Those amendments are not government amendments. Will they go in Hansard?

Baroness Watkins of Tavistock Portrait The Deputy Chairman of Committees (Baroness Watkins of Tavistock)
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Do not worry. They will not because Hansard will cover your back and my back. I have been told that this is the most complicated thing that has been done in Grand Committee for years, so I think we have to accept it if I have made a mistake. I thought they were government amendments.

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Moved by
90: Clause 120, page 129, line 4, at end insert—
“(c) the relevant Northern Ireland department.”Member’s explanatory statement
This amendment places the Secretary of State under a duty to consult the relevant department in Northern Ireland before making arrangements to establish the new homes ombudsman scheme.
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Moved by
92: Before Schedule 9, insert the following new Schedule—
“SCHEDULE REMEDIATION COSTS UNDER QUALIFYING LEASESInterpretation
1_ In this Schedule—“associated”: see section (Associated persons);“building safety risk” has the meaning given by section (Meaning of “relevant defect”);“qualifying lease”: see section (Meaning of “qualifying lease”);“the qualifying time” has the same meaning as in section (Meaning of “qualifying lease”); “relevant building”: see section (Meaning of “relevant building”);“relevant defect”: see section (Meaning of “relevant defect”);“relevant measure”, in relation to a relevant defect, means a measure taken—(a) to remedy the relevant defect, or(b) for the purpose of—(i) preventing a relevant risk from materialising, or(ii) reducing the severity of any incident resulting from a relevant risk materialising;“relevant risk” here means a building safety risk that arises as a result of the relevant defect;“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985.No service charge payable for defect for which landlord or associate responsible
2_(1) No service charge is payable under a qualifying lease in respect of a relevant measure relating to a relevant defect if a relevant landlord—(a) is responsible for the relevant defect, or(b) is or has at any time been associated with a person responsible for a relevant defect.(2) For the purposes of this paragraph a person is “responsible for” a relevant defect if—(a) in the case of an initial defect, the person was the developer or carried out works relating to the defect;(b) in any other case, the person carried out works relating to the defect.(3) In this paragraph—“developer” means a person who undertakes or commissions the construction or conversion of a building (or part of a building) with a view to granting or disposing of interests in the building or parts of it;“initial defect” means a relevant defect arising in connection with works carried out before completion (within the meaning of section (Meaning of “relevant defect”));“relevant landlord”, in relation to a qualifying lease, means the landlord under the lease or any superior landlord.Paragraph 2: extension of protection to superior leases
3_(1) This paragraph applies if, as a result of paragraph 2, an amount of service charge (an “unrecoverable amount”) that would otherwise be payable under a qualifying lease in respect of a relevant measure is not payable.(2) Any superior lease has effect as if any liability of the tenant under the superior lease to pay an amount in respect of the relevant measure (“the relevant amount”) were a liability to pay an amount equal to—(a) the relevant amount, minus(b) the unrecoverable amount.(3) In this paragraph “superior lease” means any lease which is superior to the qualifying lease.No service charge payable if prescribed conditions are met
4_(1) No service charge is payable under a qualifying lease in respect of a relevant measure relating to any relevant defect if any prescribed conditions, relating to a relevant landlord or the value of the qualifying lease, are met.(2) In this paragraph—“prescribed” means prescribed by regulations made by the Secretary of State;“relevant landlord” has the same meaning as in paragraph 2. Limit on service charge in other cases
5_(1) A service charge which would otherwise be payable under a qualifying lease in respect of a relevant measure relating to any relevant defect is payable only if (and so far as) the sum of—(a) the amount of the service charge, and(b) the total amount of relevant service charges which fell due before the service charge fell due,does not exceed the permitted maximum.(2) In this paragraph “relevant service charge” means a service charge under the lease in respect of a relevant measure relating to any relevant defect that—(a) fell due in the pre-commencement period, or(b) falls due after commencement.(3) In sub-paragraph (2) “the pre-commencement period” means the period—(a) beginning 5 years before commencement or, if later, on the day the relevant person became the tenant under the qualifying lease, and(b) ending with commencement.“The relevant person” means the person who was the tenant under the qualifying lease at commencement.(4) In this paragraph—“commencement” means the time this paragraph comes into force;“the permitted maximum”: see paragraph 6.Paragraph 5: the permitted maximum
6_(1) In paragraph 5 “the permitted maximum”, in relation to a qualifying lease, has the following meaning.(2) The permitted maximum is (subject to sub-paragraphs (3) to (5))—(a) if the premises demised by the qualifying lease are in Greater London, £15,000;(b) otherwise, £10,000.(3) Where the qualifying lease is a shared ownership lease and the tenant’s total share was less than 100% at the qualifying time, the permitted maximum is the tenant’s total share (as at that time) of what would otherwise be the permitted maximum.(4) Where the value of the qualifying lease at the qualifying time is at least £1,000,000 but does not exceed £2,000,000, the permitted maximum is £50,000.(5) Where the value of the qualifying lease at the qualifying time exceeds £2,000,000, the permitted maximum is £100,000.(6) The Secretary of State may by regulations make provision about the determination of the value of a qualifying lease for the purposes of paragraph 4 and this paragraph.(7) In this paragraph “shared ownership lease” and “total share” have the meaning given by section 7 of the Leasehold Reform, Housing and Urban Development Act 1993.Annual limit on service charges
7_(1) The Secretary of State may by regulations make provision limiting the total amount of service charges payable in any period of 12 months under a qualifying lease in respect of relevant measures relating to any relevant defect to one fifth of the permitted maximum.(2) In this paragraph “the permitted maximum” means the permitted maximum as defined by paragraph 6 in relation to the lease.No service charge payable for cladding remediation where tenant was resident
8_(1) No service charge is payable under a qualifying lease in respect of cladding remediation if the condition in section (Meaning of “qualifying lease”)(2)(d)(i) (resident tenant) was met at the qualifying time. (2) In this paragraph “cladding remediation” has the meaning given by regulations made by the Secretary of State.No service charge payable for legal expenses relating to relevant defects
9_(1) No service charge is payable under a qualifying lease in respect of legal expenses relating to the liability (or potential liability) of any person incurred as a result of a relevant defect.(2) In this paragraph “legal expenses” means any costs incurred, or to be incurred, in connection with—(a) obtaining legal advice,(b) any proceedings before a court or tribunal,(c) arbitration, or(d) mediation.Paragraphs 2 to 9: supplementary
10_(1) This paragraph supplements paragraphs 2 to 9 (the “relevant paragraphs”).(2) Where a relevant paragraph provides that no service charge is payable under a lease in respect of a thing—(a) no costs incurred or to be incurred in respect of that thing (or in respect of that thing and anything else)—(i) are to be regarded for the purposes of the relevant provisions as relevant costs to be taken into account in determining the amount of a service charge payable under the lease, or(ii) are to be met from a relevant reserve fund;(b) any amount payable under the lease, or met from a relevant reserve fund, is limited accordingly (and any necessary adjustment must be made by repayment, reduction of subsequent charges or otherwise).(3) In this paragraph—“the relevant provisions” means sections 18 to 30 of the Landlord and Tenant Act 1985 (service charges) and section 42 of the Landlord and Tenant Act 1987 (service charge contributions to be held on trust);“relevant reserve fund” means—(a) a trust fund within the meaning of section 42 of the Landlord and Tenant Act 1987,(b) an express trust of a kind mentioned in subsection (9) of that section, comprising payments made by the tenant under the qualifying lease and others, or(c) any other fund comprising payments made by the tenant under the qualifying lease and others, and held for the purposes of meeting costs incurred or to be incurred in respect of the relevant building in question or any part of it (or in respect of that building or part and anything else).No increase in service charge for other tenants
11_ Where—(a) an amount (“the original amount”) would, apart from this Schedule, be payable by a tenant under a lease of premises in a relevant building, and(b) a greater amount would (apart from this paragraph) be payable under the lease as a result of this Schedule,the lease has effect as if the amount payable were the original amount.Recovery of service charge amounts from landlords
12_(1) The Secretary of State may by regulations make provision for and in connection with the recovery, from a prescribed relevant landlord, of any amount that is not recoverable under a lease as a result of this Schedule.(2) In this paragraph—“prescribed” means prescribed by regulations under this paragraph;“relevant landlord”, in relation to a lease, means the landlord under the lease or any superior landlord. Information
13_(1) The Secretary of State may by regulations make provision requiring a tenant under a qualifying lease to give prescribed information or documents to the landlord under the lease or any superior landlord.(2) The regulations may provide that the information or documents are to be given in a prescribed way.(3) In this paragraph “prescribed” means prescribed by the regulations.Anti-avoidance
14_ A covenant or agreement (whenever made) is void insofar as it purports to exclude or limit any provision made under this Schedule.”Member’s explanatory statement
This new Schedule contains protections for certain leaseholders and others, relating to certain remediation costs, and imposes corresponding liabilities on certain landlords.
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Moved by
95: Schedule 9, page 211, line 38, leave out “and the Scottish Ministers” and insert “, the Scottish Ministers and the relevant Northern Ireland department”
Member’s explanatory statement
This amendment is to ensure that the new homes ombudsman scheme includes provision about provision of information to the relevant department in Northern Ireland.
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Moved by
97: Clause 122, page 130, line 4, after “Scotland” insert “or Northern Ireland”
Member’s explanatory statement
This amendment glosses the meaning of “occupation condition” for homes in Northern Ireland.
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Moved by
98: Clause 122, page 130, line 23, at end insert—
“(c) in relation to land in Northern Ireland, a legal estate which is—(i) an estate in fee simple absolute in possession,(ii) an estate in fee simple in possession subject to a rent payable under a fee farm grant, or(iii) a term of years absolute granted for a term of more than 21 years from the date of the grant.”Member’s explanatory statement
This amendment provides the meaning of “relevant interest” for land in Northern Ireland.
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Moved by
101: Clause 123, page 131, line 8, leave out from “exercisable” to end of line 10 and insert “—
(a) in the case of regulations made by the Secretary of State or the Welsh Ministers, by statutory instrument, and(b) in the case of regulations made by a Northern Ireland department, by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).”Member’s explanatory statement
This amendment provides for procedural matters connected to the power conferred on a Northern Ireland department to make regulations.
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Moved by
103: Clause 124, page 132, line 8, at end insert—
“(c) the relevant Northern Ireland department.”Member’s explanatory statement
This amendment places the Secretary of State under a duty to consult the relevant department in Northern Ireland before making regulations about the new homes ombudsman scheme.
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Moved by
105: Clause 126, page 133, line 5, leave out “and the Scottish Ministers” and insert “, the Scottish Ministers and the relevant Northern Ireland department”
Member’s explanatory statement
This amendment places the Secretary of State under a duty to consult the relevant department in Northern Ireland about the code of practice.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Committee stage
Wednesday 2nd March 2022

(2 years ago)

Grand Committee
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 98-IV Fourth marshalled list for Grand Committee - (28 Feb 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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Yes. We clearly intend to use these powers and we already published draft regulations in October 2021.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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Are we allowed to see the draft regulations? It would be really useful.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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They are published.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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We will circulate them to the whole Committee.

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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I have tricked the noble Lord, Lord Khan—I am responding to this one. First, we have not gone around counting every balcony in the country. Given that there are 7,500 medium-rise buildings and about 12,500 high-rises, we have other things to do with our time.

I met the devolved Administrations of Wales and Scotland today; we need to know roughly how many buildings require remediation and then do it as quickly and effectively as possible. There is some way of knowing that with high-rises, and through surveys we have a pretty good grip on the number of buildings where remediation may be required—it is actually very few—as well as mitigation. Increasingly, we want to see more innovation so that we can avoid costly remediation wherever possible.

The noble Baroness, Lady Fox of Buckley, is very clever. I have been trying to distil amendments in up to three words—I have got it down to two on one occasion—and it would be easy to say that this is the “balcony” amendment, but I do not think it is. It is the “proportionality” amendment. It is fair to say that this was addressed when, on 10 January, my right honourable friend the Secretary of State set out some building safety reset principles. He said:

“We … need to ensure that we take a proportionate approach in building assessments overall … too many buildings … are declared unsafe, and … too many … have been seeking to profit from the current crisis.”—[Official Report, Commons, 10/1/21; col. 283.]


The noble Baroness was very eloquent in giving examples of precisely that—where, essentially, an industry is fuelled by trying to profit at the expense of leaseholders, very often, who do not have the shoulders to bear the costs being charged to them. That is why we are putting a number of protections for leaseholders in this Bill, for both cladding and non-cladding costs, which we have discussed in other groups, and the very strong principle that the polluter must pay wherever possible, as we discussed in an earlier group today.

The Government have taken three measures with regard to proportionality. It is important to reflect on them, because they are easily forgotten as we debate things. None is in this Bill; I will turn later to some things that are. First, we withdrew the consolidated advice note of January 2020; that was seen as a driver of decisions to remediate without thought on too many occasions, when it was not necessarily the right way to go. Secondly, after withdrawing the advice note, the publicly available specification was introduced, produced by the British Standards Institution; it will enable fire engineers and other experts to have a consistent and auditable assessment of risk—basically, grading whether something is high, medium or low—of the external wall systems, which sometimes include balconies and sometimes do not. That is an important tool to have to be able to start having sensible risk-based assessment of external wall systems.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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I have one query on that. I thank the noble Lord for his response, but on the recommendation of high, medium and low risk, everything I have read on this suggests that with high or low risk we know where we are, but medium risk says, “There is some risk, but don’t worry, you don’t need remediation”. The point made in everything I have read is: who will go along with that? If you say that there is medium risk—this is where risk aversion comes in—there is concern that the assessors do not have the expertise, as has been referred to, and may say, “There is medium risk, but can I go home and sleep at night, because I am not quite sure what that means? There might be a risk.” That is where blame avoidance comes in. This comes back to the assessors; I do not think that will solve it.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I did not say that it would. The noble Baroness intervened too early; that is the problem with interventions. No one was saying that any single thing—

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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I was just trying to clarify something—that is good.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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The noble Baroness raises the issue of balconies. I am talking about a system that looks at the external wall system. We then have the Fire Safety Act, which we took through this House. I have all the scars to prove that it was not an easy matter to get that three-clause Bill past a number of the people here today. We got it on the statute book, however, and it will commence shortly with a building prioritisation tool.

The noble Lord, Lord Stunell, spoke very eloquently on fire risk assessments. They will look at the risk in the round, going beyond external wall systems and including balconies, the external walls, the flat entrance doors and whether they are fire doors, et cetera. Fire risk assessors will have to look in the round, consider whether there are enough ways to exit the building and come up with a series of action steps, which will often be very small, that can make a building safer. It is right that we make sure that those risk assessments are done by competent professionals. They need to be kept up to date. They will come up with a series of actions that can be taken. Not all of those will require huge expense, but they will make the building that little bit safer.

I think noble Lords need to see this as a package. In answer to questions raised, the proportionality agenda does not have a silver bullet as an answer, but there are a number of things that the Government are encouraging that will lead to a more proportionate approach. PAS 9980 refers to materials on a balcony that may be combustible, such as timber decking, which may be relevant even if the construction of the balcony itself includes materials that present minimal or no risk. The current position, with the inclusion of balconies in the fire safety order and the professional guidance in PAS 9980, is all about encouraging that proportionate approach.

The competence of fire risk professionals is a relevant factor and ensuring that is a major objective of the Bill. We are bringing about greater professionalism in the sector through Clause 129, with a requirement that anyone appointed to undertake a fire risk assessment must be competent. That stipulation is in the Bill, in answer to the noble Lord, Lord Stunell. A lot of this is not happening in the Bill, but there are clauses which aim to drive competence, which directly answers questions raised in this debate. That is what we have to look to, rather than necessarily seeing this specific Bill as the answer in isolation. We must look at the measures the Government are taking in the round.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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My Lords, I thank all noble Lords who have spoken. My heart was in my mouth when the noble Earl, Lord Lytton, spoke, because I thought, “He knows what he’s talking about and I’m not sure I do”, so I was glad that he recognised something in what I said on the professional point about materials and so on. I am not an expert but I know lots of people who work in this area.

My concern is that there are blocks of flats all around London whose residents are being told that the balconies have to be remediated, but they have passed their fire risk assessments. This is basically coming from freeholders acting in a precautionary fashion, as in the Dorset example I used. They have said, “We think some of these balconies are unsafe. We’re going to take them down and you have to pay.” They are using safety as the basis but they should have maintained the balconies. There is great concern about the balcony question but I have been caught out by the Minister, because this was really an attempt to talk about proportionality. That is what I really wanted to do. Although I keep hearing about balcony scandals, that was my main focus.

We want to keep people safe all the time, but the right reverend Prelate the Bishop of St Albans made the important point that safety has a cost. Carrying on from our Committee meeting the other day, I was talking about a cost-benefit analysis and always thinking about balancing. If you want 100% safety, you would never leave the house. We also need a sense of proportionality towards fire, which is still very rare. People are not dying of fires in their thousands, in this country. I want to get the right balance.

The noble Lord, Lord Stunell, made a very important point, on which I have been trying to get balance. As a leaseholder, I have tried to speak on behalf of leaseholders a little, because I thought I could make a valid contribution. I am not suggesting that every time a leaseholder says something, we all have to believe it. Leaseholders are not experts, and their fears and concerns should not make the decision, but sometimes it is worth asking them what they know or think and part of the Bill suggests that. The objective point about competence is key. I am suggesting that, because of blame avoidance, fear of litigation and measures being brought in by the Bill, people will always take the most risk-averse decision. That could be at the expense of leaseholders and will not necessarily improve safety.

I shall withdraw my amendment, but I hope it has contributed to a broad discussion to which we can return on Report to make sure that the Bill does not create more problems than intended.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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I appreciate where the noble Baroness is coming from, but I still think there should be parity across the board going forward. Thinking about the Government’s levelling-up White Paper, if we are going to level up, surely parity should be part of that, so that all renters have the same protections.

I will sum up because we still have a lot to get through today. Given the nature of the discussion and the concerns that social housing landlords rarely carry out the certification—the problem is it is not mandatory, so it does not happen very often—I hope the Minister has listened to all of this debate. There is a lot for him to take back to his department.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, it has been an absolutely fascinating debate. This is very much the additional safety measures group—that is three words; you cannot do better than that. I thank the noble Baroness, Lady Jolly, in particular for raising this important issue, as well as noble Lords who have spoken about the Safer Stairs campaign. I am sorry that I did not hear from my noble friend Lady Eaton, but she could easily have joined forces with everyone here.

I have been invited to say, “Just go for it” or “Just do it”—it is almost like a Nike ad in this House—but I think that it is a question of how you go for it. I met with the chief executive of RoSPA, Errol Taylor, in this House, and we have a plan that is important to share with noble Lords. As my officials have said, it would be highly unusual, even though people are grappling for precedents, to include in an Act of Parliament something that is as detailed as this, referring to a specific technical standard.

We are not graced by the presence of my noble friend Lord Young, who was Minister when the building regulations were passed. It is possible that this existing standard, BS 5395-1, could be included in an approved document. Indeed, it is in Approved Document K. I have received a letter from RoSPA making that proposal, which we will take to the next meeting of the Building Regulations Advisory Committee—BRAC—which advises on these things. We have effectively brought forward the next meeting, which was scheduled for September, as I know that noble Lords are very impatient.

We brought forward that meeting, which essentially is an emergency BRAC, to 16 March. That is how fast we move in my department. You meet someone on 23 February, you set up an emergency meeting on 16 March and you get an answer. Let us see whether the route of updating the approved document is an elegant way of fulfilling the desires that have been laid out by so many noble Lords. We all have elderly parents, or some of your Lordships may well; I do not. No, I take that back—perhaps we do not all have elderly parents. I suddenly realised that that was probably not the thing to say. [Laughter.]

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Baroness Jones of Moulsecoomb Portrait Baroness Jones of Moulsecoomb (GP)
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Has the noble Lord been drinking?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I have not been drinking. I have had some Polos. In fact, I am not drinking anything at all.

I move on to the next campaign, which is electrical safety first. In fact, I am being bombarded with emails and letters. I promise noble Lords that I have had the briefing document from NAPIT—it followed up even today to check that I had it. That is also an incredible campaign.

I have to say that I particularly enjoyed the way the noble Lord, Lord Foster, introduced these amendments. His Amendments 122 and 123 have both been brought forward to ensure electrical safety in homes. I thank the noble Lord for raising this important matter and for his comments on the matter at Second Reading, but I am afraid that the Government cannot support these amendments.

We recognise the intention of these amendments, but we believe that they place a disproportionate burden on leaseholders in high-rise buildings. Under Amendment 122, high-rise leaseholders would be required to obtain and keep up to date an electrical installation condition report—an obligation we place on no other homeowner. Under Amendment 123, that obligation would also be placed on leaseholders who live in mixed-tenure high-rise buildings. “Mixed tenure” is defined as buildings where in addition to leaseholders there are also social housing or private rented tenancies. We believe that leaseholders living in their homes have a fundamental motivation to ensure that their home is safe and will take steps to ensure the safety of electrical installations. Therefore, we do not currently believe there is sufficient evidence to place further burdens on leaseholders in high-rise buildings.

I also assure the noble Lord that the intention of ensuring that residents take an active role in ensuring the safety of their building has already been met in the Bill. The Bill imposes a new active duty on residents not to create a significant risk of spread of fire or structural failure and empowers the accountable person to enforce these duties through the courts. These are systemic changes that are broader in scope than specific requirements for an electrical installation condition report; they will promote genuine collaboration between all parties in keeping their building safe.

The Government thank the noble Lord for raising this important point and will highlight in our guidance to accountable persons and residents the importance of considering electrical installations as part of their building safety decisions. With that assurance, I must ask him not to move his amendment.

On Amendment 124, I thank noble Lords for raising this important matter, but I am afraid that the Government will not be able to accept this amendment. However, I can assure them that their intention is being met by the Government. In the Social Housing White Paper we committed to consult on electrical safety requirements in the social sector, and expert stakeholders participated in a Government-led working group last year to inform the content of that consultation. The working group considered the mandating of electrical safety inspections in all 4 million social homes, not just those in high-rise residential buildings, as moved by this amendment. The group also considered how to keep social housing residents safe from harm caused by faulty appliances. We will consider whether the best way forward to protect social residents from harm is to mandate checks and bring parity with standards in the private rented sector, and it is important that we work through all the issues to reach the right decision. The consultation will be published shortly.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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“Shortly” is better than “in due course”.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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Social homes are already safer than homes of other tenures in respect of electrical safety. In 2019, 71% of social homes had all five electrical safety features compared to 60% of owner occupied and 65% of private rented homes. Under obligations in the Landlord and Tenant Act 1985, social landlords are required to keep electrical installations in repair, and the Homes (Fitness for Human Habitation) Act 2018 requires social landlords to keep homes free of electrical hazards.

With that explanation, I ask the noble Baroness to withdraw her amendment.

Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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Perhaps I am the only person in the room who does not know what updating the approved document actually delivers, so perhaps the Minister could give us some information.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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Effectively, the Building Act 1984 has various approved documents, and Approved Document K would be the relevant document to update, which would then set that standard in building regulations. As the noble Baroness, Lady Hayman, has pointed out, when you build new-build homes, you have to build to those regulations. Does that help the noble Baroness understand what I said? I am sorry I am so unclear; I will do better next time.

Baroness Jolly Portrait Baroness Jolly (LD)
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My Lords, this has been a really fascinating debate. We have a listening Minister, and it looks as if we have a good outcome. I am sure he will carry on listening and, if he does not listen, I am sure we will carry on trying to talk to him to make sure we get what we would like. He said he has met the RoSPA CEO, and he is very insistent and will not take no for an answer. I look forward to pressing this further with the Minister in due course.

Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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I live in Cornwall, and we do things dreckly. For the moment, I am happy to withdraw the amendment.

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Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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My Lords, I rise briefly to speak to Amendment 132 in the name of the noble Baroness, Lady Neville-Rolfe. It is a little but very important amendment and, as the noble Baroness will appreciate, “Every little helps” in making sure we get this right. I admire what the noble Earl, Lord Lytton, who spoke with great expertise, said about ending the confusion and providing clarity. That was a very important point. As a Lancastrian, I have never agreed with somebody from Yorkshire as much as I have agreed with the noble Baroness, Lady Pinnock, during the course of this Bill. She is quite right: leaseholders should not bear the costs for issues they have no control over. It is not their fault. We need to end the logjam.

This is my final contribution in Committee. It has been a fascinating debate. I have a special message for the Minister in Latin, to continue the theme: “Da operam, si potes”, or “You can do it, if you try hard”. We have debated a lot of fantastic amendments during this Committee. I am sure the Minister can do it and make this landmark Bill even better, to help people, residents and leaseholders across the whole country.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I thank my noble friend Lady Neville-Rolfe for her amendment. It has been a fascinating debate, with lovely Latin phrases which I am sure have been worked on all afternoon using Google Translate.

As the Government have made clear, it is important that we restore a sense of balance and proportionality to fire safety. We must ensure that fire risk assessments of external walls do not require unnecessary work and reduce the risk aversion we have seen in the sector. The department has already taken steps to ensure that industry takes a proportionate approach to the assessment of the external walls of buildings and I can reassure my noble friend that we will continue to work with industry, including lenders and surveyors, to keep under review the process used to assess external wall systems.

The noble Earl, Lord Lytton, mentioned that we have been tracking the data from mortgage lenders and it is available on the GOV.UK website. I have been looking at my Apple iPhone—I have given the brand away, but I do not know how I could have coded that without using the brand name—and the vast majority of mortgage valuations for flatted developments do not require an EWS1 form. The trend is also going down. I think the most recent data in January was that around 8% of mortgage valuations require an EWS1, so 92% do not. That is down from 9%. My department estimates that 492,000 leaseholders in residential buildings of 11 metres and above do not need to undergo an EWS1 assessment for their building for them to sell their property or remortgage. It is important that we continue to work with mortgage lenders to track how that is evolving over time. These things take time, but the trend is in the right direction.

The Government are also making preparations to launch a professional indemnity—or PII—scheme, targeted at qualified professionals to enable them to undertake EWS1 assessments where otherwise they would not be getting PII cover. A condition of PII coverage under the scheme will be that EWS1 assessments are carried out in line with PAS 9980. An audit process will be in place to monitor compliance to the standard.

I thank my noble friend for raising this important matter. She has absolutely championed that the Government get to grips with some of these points. I think we are making progress on a number of fronts now. I assure her that this work is of critical importance for the Government. We will continue to work closely with industry in the coming months to ensure that. I therefore ask that she withdraws her amendment.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, I thank my noble friend, particularly for giving the figures. Before Report, it would be good to have the figures for the non-high-risk buildings as well, because one of the concerns I had was that the industry was requiring people who were not caught by measures following Grenfell to have these EWS1 assessments. It was a probing amendment and I will reflect further in light of what has been said. It was a very good debate.

There is confusion and concern about the logjam, and we need to make sure that we have the support of the industry professionals who are needed to do this. Things can take a long time in the building industry, as I think we will hear when we debate retentions. I certainly did not want to lock horns with the noble Earl, Lord Lytton, who is such an excellent member of the Built Environment Committee, but to make sure that we had this debate and that we really do sort this issue, as I know the Government have said that they wish to. I beg leave to withdraw my amendment.

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Moved by
133: Clause 135, page 142, line 20, at end insert—
““building function” has the meaning given by section 3;” Member’s explanatory statement
This amendment defines “building function” for the purposes of Clause 135.
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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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“St George,” “St Stephen,” “It is so easy, just do it”: I have had all the usual exhortations. I did really enjoy meeting the noble Lord, Lord Aberdare, and David Frise. I think it was towards the end of last month, so relatively recently. David Frise, part of the Building Engineering Services Association but representing Actuate UK, had gone through the quite traumatic experience of building up a business then effectively seeing it dismantled because of the pressures of being a subcontractor. I have declared my business interests—as someone who has started a small business, I know exactly what it is like when you are working for bigger businesses, particularly in the early days. It is tough, particularly when people withhold payments that you are contractually due just because they know they can.

Another practice we see in payments is: “Why do we not pay you in 180 days’ time?” You have delivered the services and paid all the costs, but: “We are a big company, and our payment run is every 180 days.” It is that kind of line; it does not happen all the time, and I know that is not something Every Little Helps would do; it will have a code of practice. But that is the kind of thing we have seen, and it is important, if we want to encourage smaller organisations, that we see the end of those kinds of practices. I think we are, generally speaking; certainly, blue chip companies would not do that.

One of the things I would also say about the whole construction issue is that one of the things I want to know as a businessman is who makes the money. It is clear that developers have made good money since Grenfell. Before Grenfell they made good money, but since Grenfell even more. Some of the manufacturers of the construction materials have done really rather well as well. But actually, construction is a cash-flow business on wafer-thin margins, and the further you go down from the prime contractor, the more they squeeze the margins, and that is the kind of the thing the noble Earl, Lord Lytton, has been talking about—the value engineering. That is why you start to see the corners being cut.

We have to understand that we are dealing with a real cultural issue. That is what we said to the noble Lord, Lord Aberdare, in the meeting. Yes, I would like to wave my magic wand and say there is a legislative solution—but we recognise that he is going to set out in writing to me a number of thoughts about this. I think that is what we agreed. Then, we are going to take some of those thoughts to Dame Judith Hackitt and also talk to Amanda Long, who ran the Considerate Constructors Scheme and is also building a building safety charter, to try and get players on board. Perhaps they can consider cash retentions within that. There is also the New Homes Quality Board and the new homes ombudsman, which operates underneath that. Perhaps they can think about some of these issues.

There are a number of things I can talk about that could potentially also help. The Construction Leadership Council has a business models workstream focused on collaborative contractual practices, which I think has been raised by the noble Lord, Lord Aberdare. We are also looking at the culture of late payments that I already referred to. Our efforts include introducing payment practices, reporting through legislation and guidance. Prompt payment is also important.

What I resolve is not to accept the amendment but to work with the noble Lord, Lord Aberdare, because I really feel passionate about this. It is an abhorrent practice, and we should do what we can to ensure the culture of good practice prevails and that we address those that are not following the right way. But let us get the culture right.

Lord Stunell Portrait Lord Stunell (LD)
- Hansard - - - Excerpts

Before the Minister sits down, I wonder if he could comment on the Department for Education’s performance.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

That is a really good way to end the debate. I will have to write to the noble Lord, because I do not know a lot about the Department for Education other that it is on the street near Marsham Street. I have been there maybe two or three times when I was a council leader. I will write to the noble Lord, but I think it is probably something, as he would well know, that I am not in a position to answer at the Dispatch Box right at this minute.

At this point, I am allowed to sit down. I have avoided a Latin phrase for the whole four hours of this debate, but the noble Lord, Lord Kennedy of Southwark, has provoked me: he responded to me saying that I would not resort to Latin by saying, “Id gratum esset”. I knew enough Latin to know that that means, “It would be appreciated”. Well, I have appreciated this debate, and I look forward to moving on to Report and taking this landlord Bill through this House.

Lord Aberdare Portrait Lord Aberdare (CB)
- Hansard - - - Excerpts

My Lords, I thank the Minister for that response, which at least confirmed my prophetic abilities and had quite a bit of encouragement. I confirm that we are working on a letter to him along the lines that he described, and we will get that to him in due course—that is a bit pessimistic; we should say “shortly”. I thank him for the other comments that he has made, which I will study and act upon.

I was absolutely delighted that the noble Baroness, Lady Neville-Rolfe, was able to contribute to the debate. As she said, she was the Minister responsible when I first accidently got involved with retentions in 2015. For a glorious moment, I thought that she might prove to be the dragon-slayer, but I am delighted that she continues to support the cause. The noble Lord, Lord Stunell, made a very important point about investment in training as well as the fact that government itself is not doing all that it could to bring this practice to an end.

As always, I depend heavily on the vast expertise of my noble friend Lord Lytton, whom I thank particularly for focusing on the impact on SMEs. The noble Baroness, Lady Hayman of Ullock, also did so, again pointing out the issue of cash flow and its importance. Fortunately, my SME was never in the construction sector, so that is one problem that we did not have, although we certainly had plenty of cash-flow problems. Of course, I also thank the Minister.

Fixing this issue will be a key part of achieving the goal that the Minister is setting out to achieve: a productive, high-quality, collaborative, innovative, forward-looking and, above all, safe construction sector, providing the sorts of homes and other buildings that we can be truly proud of. I am not convinced that we should not come back to this issue on Report, but, for now, I beg leave to withdraw the amendment.

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Moved by
137: Clause 137, page 143, line 2, at end insert—
“(ba) sections (Remediation of certain defects) to (Meeting remediation costs of insolvent landlord) and Schedule (Remediation costs under qualifying leases) (remediation of certain defects);”Member’s explanatory statement
This amendment provides for the new clauses and Schedule relating to the remediation of certain defects to bind the Crown.
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Moved by
138: After Clause 137, insert the following new Clause—
“Application to Parliament
(1) The following provisions do not apply in relation to the Parliamentary Estate—(a) sections 101, 102 and 105 (compliance notices under Part 4);(b) paragraphs 1 to 3 of Schedule 2 (powers of entry of authorised officers).(2) If the Palace of Westminster (or any part of it) is a higher-risk building within the meaning of Part 4, for the purposes of that Part the accountable persons for the building are the Corporate Officer of the House of Lords and the Corporate Officer of the House of Commons, acting jointly.(3) No contravention by a Corporate Officer of a provision made by or under Part 2 or 4 makes the Corporate Officer criminally liable.(4) Subsection (3) does not affect the criminal liability of relevant members of the House of Lords staff or of the House of Commons staff (as defined by sections 194 and 195 of the Employment Rights Act 1996).(5) In subsection (3) “Corporate Officer” means—(a) the Corporate Officer of the House of Lords,(b) the Corporate Officer of the House of Commons, or(c) the Corporate Officers acting jointly.(6) In this section “Parliamentary Estate” means any building or other premises occupied for the purposes of either House of Parliament.”Member’s explanatory statement
This new Clause makes provision about the application of Parts 2 and 4 to Parliament.
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Moved by
139: Clause 140, page 144, line 19, after “71” insert “, (Meaning of “relevant building”)(2)(c), (Remediation orders)”
Member’s explanatory statement
This amendment provides for the draft affirmative procedure to apply to certain regulations.
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Moved by
142: Clause 141, page 144, line 41, at end insert—
“(ba) sections 120 to 127 and Schedule 9 (new homes ombudsman scheme);”Member’s explanatory statement
This amendment provides for certain provisions about the new homes ombudsman scheme to form part of the law of England and Wales, Scotland and Northern Ireland.
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Moved by
146: Clause 142, page 146, line 18, leave out “, 39 and 86 to 88” and insert “and 87 to 89”
Member’s explanatory statement
This amendment is consequential on the first amendment of Schedule 5 in the name of the Minister (and also corrects the numbering of the paragraphs referred to).

Building Safety Bill

(Limited Text - Ministerial Extracts only)

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Lords Hansard - Part 1 & Report stage
Tuesday 29th March 2022

(2 years ago)

Lords Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 125-I(a) Amendments for Report (Supplementary to the Marshalled List) - (28 Mar 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
- Hansard - - - Excerpts

My Lords, turning first to Amendment 1 in the name of the noble Lord, Lord Foster of Bath, we agree that longer-term protections for residents’ safety are absolutely critical. His amendment also raises the importance of how we manage longer-term protections relating to fire safety.

Look at the government cuts to the fire service. Between 2010 and 2016, the Government cut central funding to fire and rescue services by 28% in real terms. In 2020, that was followed by a further cut of 15%. If the Government are really serious about tackling fire safety—there is a lot of good stuff in this Bill—they need to look at reversing those cuts to our fire safety organisations to make sure that they have the proper support they need to do the job that needs to be done.

Turning to Amendment 2 in the name of the noble Lord, Lord Crisp, I assure him that, in principle, we support what he is trying to achieve. The issues that he raises are important. Health and well-being need to be considered in a lot of our legislation and we too often overlook it. The noble Lord, Lord Aberdare, introduced his Amendment 7 very ably, as he always does, and we certainly support in principle what he is trying to achieve with it. We have every sympathy with many of his practical suggestions for what could be done to improve things in this area.

Amendment 8, in the name of the noble Lord, Lord Stunell, which he just clearly introduced, is particularly important given the areas that it includes and to which he referred. We had a long debate in Committee on the importance of the safety of staircases and making sure that the minimum standards are properly applied. We heard from many noble Lords about the RoSPA campaign and the number of people who die falling down staircases. This is an opportunity to do something about that.

We also had much debate in Committee on electrical certification and the importance of the safety of electricity systems. It is important that this also includes provision for disabilities. I am aware that the Government have introduced amendments on disabilities, but this is another opportunity to support that.

It is important that we have an amendment that looks at timely intervention—timely action—on safety issues. Grenfell was not the first time in recent years that a fire in a high-rise block of flats resulted in loss of life. In 2013, coroners wrote to Ministers about two separate fires: first, Lakanal House in Camberwell in 2009, in which six people died, and then Shirley Towers in Southampton in 2010, in which two firefighters died. The coroner’s letters included clear points of criticism and recommendations, which were not acted on. These also included retrofitting sprinklers into high-rise social housing blocks. The amendment of the noble Lord, Lord Stunell, includes the importance of sprinklers. The Lakanal House fire involved high-pressure laminate cladding, but that was not ordered to be removed from buildings until 2019—between 2009 and 2019 is 10 years.

It is important that when coroners, for example, or anyone who understands the safety of buildings writes to Ministers about genuine and serious concerns with actions that need to be taken, these are acted on in a timely way. That is why we strongly support Amendment 8, in the name of the noble Lord, Lord Stunell and, if he decides to divide the House on it, we will support him.

Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
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My Lords, I thought that it would be helpful to reflect on why the Bill is before us today. It is entirely driven by the Grenfell fire tragedy, which took place on 14 June 2017 and resulted in the largest loss of life in a residential fire since the Second World War. It was also the deadliest structural fire in the United Kingdom since Piper Alpha in 1988. As the Minister who has taken on responsibility for both building safety and fire, as Building Safety Minister in the Department for Levelling Up, Housing and Communities and Fire Minister in the Home Office, I have reflected on the factors that drove that outcome of such a loss of life. One of those was the corrosive construction industry culture that uses the sort of Spanish practices mentioned by my noble friend Lord Blencathra. I have had similar experiences in construction—we all have, to a greater or lesser extent. Anyone who has undertaken any kind of construction project knows that the margins are squeezed and the people you value, the tradesmen who are on the job, are often simply not paid. It is shocking.

But there are also two other reasons why that tragedy happened. The first was a regulatory system that is essentially broken, which is why we have the Bill to establish the new building safety regulator, which will then take on responsibility for building regulations. Secondly, there was an inadequate response on the night by fire and rescue services. The Home Secretary will shortly launch, and I will support her, a White Paper on fundamental reform of fire and rescue services.

A considerable amount of money has been invested in fire and rescue services in the past three years while I have been Fire Minister, particularly on fire protection. There had been a loss of skills in those people who were very capable of assessing the built environment in fire and rescue services, so we introduced a £30 million uplift to try to repair that. It is not just about numbers and investment; it is about ensuring that we have the right skilled people in our fire and rescue services. We will continue with further investments on fire protection because we recognise that we have to prevent fires from happening in the first place, but we also have to ensure that we build in a way that is safe both from a fire perspective and in every other sense of the word.

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Moved by
3: Clause 4, page 3, line 5, at end insert—
“(1A) The assistance and encouragement that must be provided under subsection (1) includes, in particular, assistance and encouragement with a view to facilitating securing the safety of disabled people in or about higher-risk buildings in relation to building safety risks as regards those buildings.”Member’s explanatory statement
This amendment provides that the regulator must in particular provide assistance and encouragement to relevant persons with a view to facilitating their securing the safety of disabled people in or about higher-risk buildings.
Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I open this group by introducing a set of amendments that respond to many of the issues raised during previous debates on this Bill. I hope that these changes will be welcomed.

I start with a change that I trust will be welcomed across the House: the removal of the building safety manager. Following feedback from leaseholders and persuasive interventions from noble Lords during Committee, we are scrapping the legal requirement to appoint a building safety manager. I thank noble Lords, including the noble Baronesses, Lady Fox of Buckley, Lady Pinnock and Lady Hayman of Ullock, the noble Lord, Lord Thurlow, and my noble friend Lady Neville-Rolfe for their thoughtful contributions on this important matter.

The Government are clear that accountable persons are responsible for ensuring that their buildings are safe and must not pass on unnecessary costs to leaseholders. We must restore common sense on building safety. There are more effective ways of discharging the responsibilities set out in the Bill than recruiting managers on high salaries for individual buildings.

Accountable persons should reflect on their current management arrangements. If they are confident that they deliver safe outcomes, there is no reason for change. We are committed to driving up standards of safety management and maintenance in high-rise buildings and the competence of those who deliver it. In the first instance, this should be done by supporting the development and upskilling of those already managing buildings. The Government will continue to work towards raising professionalism and standards among property agents and are considering the recommendations of the working group of the noble Lord, Lord Best, on regulating the market. We will continue to work with industry on improving best practice.

I turn now to our amendments to the building safety charge. I have listened to the feedback that we have received from stakeholders and in the other place and I thank my noble friend Lord Young of Cookham for raising this matter during Committee on the Bill. I recognise the concerns raised—that the building safety charge as previously envisaged could have created additional bureaucracy for landlords and leaseholders alike—and I have listened to those concerns.

The amendment simplifies how the costs are managed by removing the building safety charge as a separate charging mechanism. We will do this by changing the modifications that we are making to the Landlord and Tenant Act 1985. Building safety costs will now be accounted for as part of the service charge, as my noble friend recommended. The costs will be clearly identifiable and part of a system that is familiar to both landlords and leaseholders, thereby ensuring transparency of the costs. As the building safety charge will be incorporated into the service charge, the legislative protections against forfeiture will already be in place, so I am removing the amendments related to forfeiture that were laid in the other place.

I move on to how we can strengthen the voice of disabled residents. I am particularly grateful to the noble Baroness, Lady Grey-Thompson, for tabling amendments in Committee to highlight this important matter. The Government and the Health and Safety Executive are committed to providing residents with diverse backgrounds and lived experiences—including, in particular, disabled residents—with a strong voice in the new regulatory system. We have therefore brought forward amendments to ensure that the building safety regulator will have to pay particular attention to the safety of disabled people in high-rise residential buildings and engage with them.

Amendment 3 ensures that the building safety regulator must particularly focus on the safety of disabled persons when undertaking its broad Clause 4 functions around safety in higher-risk buildings. Amendments 5 and 6 are consequential amendments. Amendment 9 provides that the building safety regulator must take all reasonable steps to ensure that its residents panel contains representation from individual disabled residents of high-rise residential buildings or groups that represent or support disabled residents. Groups may be represented corporately or by an individual member expected to be sponsored by the organisation. Amendment 12 requires the building safety regulator to report publicly about its engagement with disabled residents of high-rise residential buildings in its wider annual statement on resident engagement. Amendment 14 defines “disabled”, using the widely used definition from the Equality Act 2010.

I thank those noble Lords who made important points about resident engagement in Committee, particularly the right reverend Prelate the Bishop of St Albans. We have listened carefully to them and are making appropriate amendments to the Bill. The Bill puts residents at the heart of the building safety regime and gives them a clear voice in building safety matters. These amendments take this even further and oblige the principal accountable person to consult residents at prescribed times on the residents’ engagement strategy. This means that residents have the opportunity to comment on the form of the strategy and that those responsible for the safety of the building must listen to such comments.

To avoid any doubt, we have also made it clear that the principal accountable person will be obliged to act in accordance with the strategy. This means that residents and the building safety regulator will be able to hold principal accountable persons to account for their commitments made in the residents’ engagement strategy.

I thank the noble Lord, Lord Best, and my noble friend Lady Neville-Rolfe for raising the important matter of resident management companies assuming accountable person duties under the new regime. I have sought to address this issue through collaboration with the noble Lord and will accept his technical, non-government Amendment 86 to my Amendment 85. This will ensure that all resident management companies that are an accountable person have the option to appoint a professional director to support them with their Part 4 building safety duties.

These amendments give a power to the Secretary of State to set out in regulations the detail of provision that will be implied into articles of association of resident management companies to enable this. They imply terms into leases so that costs of the appointment can be recoverable as a service charge under the lease. The amendments apply retrospectively. Through secondary legislation, we will apply leaseholder consultation requirements to protect leaseholders from paying unnecessarily large sums as a result of appointing a professional director and ensure that, where professional directors are appointed, they can also be easily removed when required.

Amendment 263 provides that, where a paid professional director is appointed to support building safety, all unpaid directors of the resident management company will be relieved of their personal criminal liability under Part 4. Resident management companies will continue to be liable for any contraventions that may occur, maintaining the principles embodied throughout the Bill of clear responsibilities and accountability. All the elements of this amendment enable resident management companies to remain in control and responsible for their buildings, while enabling them to obtain the professional support that they may need to meet the duties of our new building safety regime.

I am grateful to noble Lords and the Delegated Powers and Regulatory Reform Committee for their careful scrutiny of the delegated power in Clause 12. Noble Lords will be aware that we have responded to the committee’s report in detail. The provision in Clause 12 to repeal statutory committees was included in the Bill on the expert advice of the Health and Safety Executive that this power is needed to enable the committee structure to adapt and improve over time. I understand that the House has concerns that this power might be used by Ministers for other reasons.

I am grateful to the chair of the Levelling Up, Housing and Communities Committee in another place for suggesting a potential safeguard, which the Government propose to accept, through Amendments 10 and 11. These amendments ensure that the power to repeal provision for a statutory committee may be used only following a proposal by the building safety regulator. A statutory committee could not be repealed merely on the initiative of Ministers. Proposals for regulations would come to Ministers only after the regulator had consulted on them and regulations under this clause would continue to be subject to the affirmative procedure.

I hope that the House will welcome these changes and additional safeguards and that it will support these amendments.

Baroness Pitkeathley Portrait The Deputy Speaker (Baroness Pitkeathley) (Lab)
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My Lords, the noble Baroness, Lady Brinton, is taking part remotely. I invite her to speak.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, I start by thanking the Minister for his introduction to a large number of government amendments. Like other noble Lords, I think it is really important that the Government listened to a lot of our debate in Committee and have brought forward these amendments, as well as others that we will discuss later, in response. It is good that we are making such excellent progress in some areas. I also thank the officials in the department, who have been incredibly supportive and helpful in spending time with me to help me understand the huge number of amendments we had to consider at quite short notice; I very much appreciate that work.

However, as the noble Lord, Lord Stunell, said, there are still a few areas where people feel there is a bit more to be done; they are addressed by the amendments we have been looking at. I start with the three amendments in the name of the noble Baroness, Lady Brinton. I was pleased to add my name to them, as did the noble Baroness, Lady Grey-Thompson. There was a lot of discussion in Committee about the need for disabled people to be more supported. I am pleased that the Government brought in amendments to strengthen the voice of disabled residents; that is extremely important.

Starting with Amendment 13, the noble Baroness, Lady Brinton, mentioned that 41% of the disabled people at Grenfell Tower were killed in the disaster, which is an appalling figure. Anything that can be done to ensure that something like that does not happen again in a fire is terribly important.

The noble Baroness also talked about the Equality Act on her Amendment 20. It is really important that we consider how building safety can affect different groups listed with protected characteristics under that Act. This could also include pregnant people, who may need more support in getting out of a building. As a protected characteristic, it is important that that is taken into account, as someone who is very elderly and vulnerable should be.

I am pleased that the Minister has offered the noble Baroness a meeting on her Amendment 35, on personal emergency evacuation plans, because this is really important. I was quite concerned that none of the Grenfell Tower residents had been offered a personal emergency evacuation plan. Again, we need to ensure that in future these things are better managed, so I thank the noble Lord for his time on that.

I turn to the amendments in the name of the right reverend Prelate the Bishop of St Albans. I thank the noble Lord, Lord Blencathra, for introducing these amendments and look forward to his first sermon in the not-too-distant future, we hope. Again, these two important amendments draw attention to areas that need to be looked at further. Government Amendments 37, 38 and 41 to 45 look specifically at tenants’ associations and principal accountable persons. This was also much discussed in Committee, where it needed further work. I would like to talk a bit about the resident tenants’ associations because, as I think the noble Lord, Lord Blencathra, said, they need to be more widely promoted. This is a really important part of managing safety going forward.

Recognised tenants’ associations give owners of leasehold flats important rights. To become recognised, an association must have agreement from more than 50% of qualifying leaseholders. They then have the right to request information from the freeholder of their block, such as about the service charge account, which again was discussed a great deal in Committee. It is really important that resident tenants’ associations are properly recognised and more widely promoted. Again, when looking at consultation, they are a vital part of understanding better what residents’ needs and concerns are.

I turn briefly to the amendments in the name of the noble Baroness, Lady Fox. Her Amendment 36 raises the important issue that leaseholders need value for money. On her other amendments regarding entering buildings, it is important that tenants are properly protected in this way. Only when something essential is happening safety-wise can flats be entered, and it is really important to say that. I also welcome the fact that the government amendments remove the building safety manager. As the noble Baroness said, it was important that the Government listened to her clearly laid out concerns in Committee.

Along with the noble Lord, Lord Young of Cookham, we very much welcome the amendments to the building safety charge, and the fact that the Government have accepted the amendment of the noble Lord, Lord Best, which will make a very sensible and practical change going forward, as he said. I look forward to the Minister’s response.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, I start with Amendments 13, 20 and 35, which relate to disability discrimination. I thank the noble Baroness, Lady Brinton, for tabling these amendments, but I am afraid the Government will not be able to accept them. However, we were all struck by the statistic that more than 40% of the disabled residents of Grenfell Tower died in that tragedy, and the Government are committed to supporting the fire safety of the vulnerable. We are particularly aware of the need to improve the safety of those with mobility concerns. As the noble Baroness mentioned, I have committed to meet with her and I have met with the noble Baroness, Lady Grey-Thompson, on a number of occasions.

As noble Lords are aware, we ran a consultation on personal emergency evacuation plans last year. This highlighted the substantial difficulties in mandating PEEPs in high-rise residential buildings, especially around practicality, proportionality and safety. I shared some of our thinking, admittedly quite late before this debate, with the noble Baroness, Lady Brinton, because it is important to recognise that this thorny policy issue requires a considerable amount of work and collaboration with the fire and rescue service.

We will publish the Government’s response as soon as possible and explain these concerns in more detail. Our response will include a commitment to undertake a new consultation on this proposal for emergency evacuation and information-sharing—an EEIS. One of the things we learned about from the Grenfell Tower tragedy is the ability to locate people who are vulnerable and have mobility concerns, so that we can provide them with the support they need to safely evacuate those buildings where the “stay put” policy has been suspended. It is clear that information is critical. As are visits from the fire and rescue service to help advise them on how to make their properties that much safer. This is fundamental to ensure that we can provide the support that disabled residents require, so this EEIS proposal will give the fire and rescue service the information it needs on where people are located within higher-risk buildings that have a simultaneous evacuation strategy in place.

I completely agree—there is absolute unanimity on this—that accountable people must take all the appropriate steps to ensure that they comply with the law, not least in respect to protected characteristics. However, it is not clear what this amendment will achieve beyond the requirements that already appear in the Equality Act, which I will describe shortly.

Furthermore, an accountable person’s duty to manage building safety risks under the Bill extends to limiting their impact, should an incident involving the relevant building safety risks occur. This means accountable persons are already required by the Bill to consider how people might evacuate safely, if relevant to the building safety risk in question.

Amendment 13 would require the building safety regulator, in its statements of its engagement with residents, to outline the extent to which accountable persons have engaged with residents in relation to a duty to avoid disability discrimination by virtue of Amendment 35.

I agree with the noble Baroness, Lady Brinton, that disabled residents must be listened to and have their needs met. That is why we have tabled Amendments 3, 9 and 12, which require the building safety regulator to pay particular attention to the safety of disabled people in high-rise residential buildings. This includes seeking out disabled representation on its residents’ panel and publicly reporting on its engagement with the disabled residents of high-rise residential buildings. In relation to principal accountable persons’ proper engagement with disabled residents, it is clear that their responsibility to measure and review the effectiveness of their residents’ engagement strategy will apply to all residents, including those with disabilities.

On Amendment 20, activities relating to the exercise of a public function in the provision or management of public housing in relation to building safety will, depending on their nature and context, already be covered by specific parts of the Equality Act 2010. They may be within Part 3, “Services and public functions”, or Part 4, “Premises”. In other words, protection from discrimination, harassment and victimisation already exists for the users and residents of premises, irrespective of whether they are in public or private sectors, and subject to certain exceptions. A reasonable adjustments duty also arises in this field of activity.

Which part of the 2010 Act provides this protection will be case specific. The preliminary text of Part 3 provides that, if an act of discrimination, harassment or victimisation is made unlawful by other parts of the Act, including Part 4, which relates to premises, those provisions rather than those covering services and public functions apply. The depth or reach of protection between these two parts is broadly equivalent. Therefore, our conclusion is that Amendment 20 is unnecessary.

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Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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That amendment has been degrouped; we are coming to it later, where I have a similar amendment. The Minister might want to wait until then.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am addressing my noble friend Lady Neville-Rolfe’s amendment; we will come specifically to group 6 from the noble Baroness, Lady Fox, in due course.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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It is just that it has been degrouped to be with my amendment on the review. I was just explaining.

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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I am referring to Amendment 264A tabled by my noble friend Lady Neville-Rolfe, not the amendment of the noble Baroness. If it has been degrouped, I apologise; my speaking notes have not kept pace with the regroupings of particular amendments, which have been prolific and frequent until the very last minute. In any case, we are not accepting my noble friend’s amendment; we may turn to it once again, in which case I will not repeat myself.

I turn to Amendment 36 tabled by the noble Baroness, Lady Fox of Buckley, which would require the accountable person to take all reasonable steps to achieve best financial value. We believe these protections are already in place. The Bill requires all accountable persons to take reasonable steps to manage building safety risks.

As part of this duty, accountable persons will be required to act in accordance with principles that will be prescribed in regulations. We have published these in draft to provide an indication of our intent. They include a requirement that, where reasonable to do so, accountable persons consider the impacts on residents within the higher-risk building and carry out engagement with them. There will be a full consultation on these regulations in due course.

Accountable persons need to be clear about the charges they pass on. This Government believe very strongly that service charges should show this. The law is already clear that service charges must be reasonable. Under the residents’ engagement strategy, residents will be able to participate in building safety decisions and can raise cost as an issue.

I turn to Amendments 46 and 47 on powers of entry, also tabled by the noble Baroness, Lady Fox of Buckley. The Government recognise the importance of safeguarding against the misuse of requests for access to residents’ premises by accountable persons. I reassure her that those intentions have already been met in the Bill.

Amendment 46 aims explicitly to require that a request for access must be essential to achieve a building safety purpose. I assure the noble Baroness that Clause 101 already does this. To be an enforceable access request under the existing drafting, it must be made for the purpose of fulfilling the accountable person’s building safety duties or establishing whether a resident has breached their building safety duties. Therefore, by its nature, the request will be essential to achieving a building safety purpose.

It is not clear how Amendment 46 would change the current requirement that an access request must be necessary for one of the purposes I just mentioned. It is important that we do not set the bar so high as to make access requests difficult to implement where necessary; accountable persons have important building safety responsibilities and must have the appropriate tools available to ensure the safety of all residents.

Amendment 47 would require that, when making an order to allow access to a resident’s premises, the county court must be satisfied that access is essential to achieve the requested purpose. I reassure the noble Baroness that the county court is already required to be satisfied that the granting of an order must be necessary, under Clause 101(4), and will consider what is appropriate when considering a request. Therefore, the intended effect of the amendment has already been met.

I turn to Amendments 39 and 40 tabled by the right reverend Prelate the Bishop of St Albans, but so ably delivered by my noble friend Lord Blencathra, on residents’ engagement. I thank my noble friend for addressing these amendments, but unfortunately the Government cannot accept them. Amendment 39 would oblige principal accountable persons to change the residents’ engagement strategy to reflect representations made by residents. The amendment is too restrictive, as there will be a number of factors that principal accountable persons must consider when updating the strategy.

The views of residents must also be weighed against other factors, such as the principal accountable person’s ability to deliver what residents want and the cost of doing so, which would of course be passed on to residents. It is right that we allow principal accountable persons the flexibility to determine how best to ensure the views of residents are represented and balanced alongside other building safety considerations.

In any case, government Amendment 38 already requires meaningful consultation with residents. If the principal accountable person fails to take residents’ representations into account when updating the strategy, residents will be able to raise a complaint, and escalate if needed to the building safety regulator.

Amendment 40 would oblige principal accountable persons to establish a tenants’ association where a majority of residents participating in the strategy consultation are in favour of one being established. The Government agree that tenants’ associations can be and are powerful tools for resident representation. However, they work best when established by residents rather than when mandated by landlords or managing agents. Residents already have the right to establish a tenants’ association under existing legislation and any proposed change to the arrangements for establishment of tenants’ associations is not a building safety matter.

I will touch finally on the amendment tabled by the noble Lord, Lord Best. I thank him for his constructive engagement with me over the last week, and confirm, as I said in my opening speech to this group, that I am happy to accept his amendment.

I think that we have covered most matters raised during the debate. I am really sorry to the noble Baroness, Lady Fox, that my speaking notes did not keep up with the groupings. She is the Oliver Twist of the House—I have noticed that she wins, and then asks for more. I thank all noble Lords who participated in the debate. I hope that, with the explanations and reassurances that I have given, they will be content not to press their amendments and to support the government amendments.

Amendment 3 agreed.
Moved by
4: Clause 4, page 3, line 9, leave out “or building safety managers”
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 to 86 (which remove provision about building safety managers).
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13:23

Division 1

Ayes: 176

Noes: 151

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Moved by
9: Clause 11, page 5, line 18, at end insert—
“(2A) The regulator must take all reasonable steps to ensure that the committee includes—(a) one or more residents of a higher-risk building who are disabled,(b) a body that represents, supports or promotes the interests of any description of disabled people that includes residents of higher-risk buildings, or(c) a member of a body within paragraph (b).”Member’s explanatory statement
This amendment provides that the regulator must take all reasonable steps to ensure that a residents’ panel includes one or more disabled residents or a body that represents, supports or promotes the interests of disabled residents of higher-risk buildings.
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Moved by
10: Clause 12, page 6, line 15, at end insert—
“(1A) But regulations repealing section 9, 10 or 11 may be made only if the regulator has made a proposal to the Secretary of State for the making of such regulations (as to which see section 7(2)).”Member’s explanatory statement
This amendment provides that the power to repeal a Clause about committees may be exercised only pursuant to a proposal by the regulator.
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Moved by
12: Clause 20, page 10, line 36, at end insert—
“(1A) A statement under subsection (1) must, in particular, include information about the regulator’s engagement with residents of higher-risk buildings who are disabled.” Member’s explanatory statement
This amendment provides that a statement of the regulator’s engagement with residents etc must include information about the regulator’s engagement with disabled residents.
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Moved by
14: Clause 29, page 17, line 6, at end insert—
““disabled”: a person is disabled if the person has a physical or mental impairment which has a substantial and long-term adverse effect on the person’s ability to carry out normal day-to-day activities;”Member’s explanatory statement
This amendment defines “disabled” for the purposes of Part 2.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Lords Hansard - Part 2 & Report stage
Tuesday 29th March 2022

(2 years ago)

Lords Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 125-I(a) Amendments for Report (Supplementary to the Marshalled List) - (28 Mar 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Moved by
21: Clause 57, page 80, line 8, at end insert—
“(3A) The different provision that may be made by the regulations by virtue of section 120A(2)(b) includes in particular different provision in relation to—(a) persons who are eligible to be members of a building industry scheme and are not members of that scheme, and(b) other persons.”Member’s explanatory statement
This amendment clarifies that regulations under this Clause may make different provision in relation to persons who are eligible, but not members, of a scheme established under Clause 128 and other persons.
Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
- Hansard - - - Excerpts

My Lords, I am very pleased to speak to a group of amendments that will strengthen our solution in law to ensure that the industry pays to remediate all unsafe high-rise and medium-rise buildings for which it is responsible, and contributes to fund the remediation of all cladding on 11-metre to 18-metre buildings. As discussed during our debate in Committee, we need to take action against those unwilling to make these commitments and impose a solution in law to make sure that developers and manufacturers take responsibility for rectifying building safety defects—the polluter must pay.

Amendments 133 to 136 set out a number of changes to the definition of associated persons within the leaseholder protections provisions. Amendment 137 sets out that partnerships are captured within the definition of an associated company and Amendment 139 defines joint ventures. This will ensure that well-resourced companies cannot make use of complex corporate structures to evade their responsibilities. These amendments pierce the corporate veil.

Amendment 179 confers a power to make regulations to require landlords to provide information to a relevant tenant or other prescribed person

I will now speak to amendments we are making to Clauses 128 and 129, which I moved in Committee. As noble Lords may remember, these clauses give the Government the power to establish building industry schemes. We want to use this power to enable us to establish a scheme to distinguish between building industry actors who have committed to act responsibly and make buildings safe, and irresponsible actors who have failed to do so. The amendments tabled on 22 March add detail to those powers, to reflect more clearly the Government’s intentions and to provide Parliament and the public with more information on the purpose of any building industry scheme or schemes we set up, together with indicative examples of the kinds of membership conditions that eligible industry actors may need to meet to be part of a scheme.

We have made it clear that we expect the industry to act now to take responsibility for fixing building safety defects, and our principal objective in establishing a scheme under this power would be to make sure that we can hold industry to account against this and other obligations. Examples of the kinds of membership conditions that may apply to members of a scheme in connection with these purposes include: the remedying of defects in buildings to which an industry actor has a connection; and making financial contributions towards remediation of defects in buildings, including by way of contribution to a general industry fund to pay for remediation.

We may also require scheme members not to use certain construction products made by prescribed manufacturers—for example, cladding and insulation products made by manufacturers who have failed to step up and commit to an industry solution by making a financial contribution to remediating unsafe buildings.

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We know that the sector already faces huge cost pressures, not least because of the general maintenance costs associated with our ageing social housing stock. If social landlords have limited access to government funding, they will have to divert their own strained resources for maintenance and new build supply into building safety remediation, thus undermining the sector. It does concern us that if this is not taken into account, there will be a negative impact on those in housing need and particularly on the quality of housing for some of the poorest people in our country, for whom we know social housing needs a lot of improvement. This is very important to us; we believe it is a knock-on effect that must be avoided. I will listen very carefully to what the Minister has to say, but if we do not have a reply that we feel is substantive, we will be looking to divide the House on this matter.
Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

I thank noble Lords who have spoken in this long—a little over an hour on one group—but important debate on ensuring that the polluter pays. I thank the noble Baronesses, Lady Hayman and Lady Pinnock, for Amendment 22, on the levy on social housing. The noble Baroness, Lady Hayman, raised the issues of exemptions from the building safety levy for social housing providers and who the details of the buildings levy will apply to in secondary legislation.

I am pleased to inform the noble Baroness that we are considering an exemption from the levy for affordable housing as a whole, including social housing, housing for rent or sale at least 20% below market rent or sales rates, and shared ownership. The Government recognise that applying a levy to affordable housing would increase the cost of developing affordable housing and would therefore be likely to disincentivise supply, as the noble Baroness said. We consulted on this exemption for affordable housing in our consultation on the levy, which ran from July to October last year.

I hope the noble Baroness understands that her suggestion is under careful consideration and will be addressed in secondary legislation. I will probably have to roughly translate: she should be reassured that the building safety levy will not apply to public housing. That probably makes it a little easier for her to decide what she wants to do.

I turn now to Amendment 200, on the leaseholder protection fund, tabled by the noble Baroness, Lady Pinnock, and the noble Lord, Lord Stunell, which would require the Government to use funds raised by the levy to refund leaseholders who have already paid for safety works. While a noble thing to do, the Government’s primary aim is and should be to protect leaseholders from building safety risks and enable work to be undertaken to ensure this. For this reason, we will not be able to accept the amendment.

On Amendment 221, I thank the noble Baroness, Lady Pinnock, for this amendment. We share her determination to make sure that the industry acts now to take responsibility for fixing building safety defects and that the burden should not fall on leaseholders or taxpayers. The whole tone of the amendment is to get on with remediation and I have great sympathy for that. The principal objective of Clauses 128 and 129 is to make sure that responsible parties pay and to enable us to hold the industry to account. The further amendment I spoke to earlier will make it clear that we can link the scheme to the planning system.

Together, these powers will allow us to monitor compliance of members of the responsible actors scheme and make sure that members take responsibility and act promptly to make buildings safe. We do not believe a 5-year deadline needs to be inserted into the Bill. Our intention is for the measure to achieve its objectives much more quickly. Those that do not meet the scheme conditions may lose scheme membership and may immediately be subject to the planning prohibition, as our amendments make clear. A focus on pace is already built into the Government’s approach. I hope this reassures the noble Baroness that her intention has been more than met by the Government through this Bill, just in another way.

I turn now to Amendment 231 on social landlords and defects, tabled by the noble Baronesses, Lady Hayman and Lady Pinnock. The Bill already makes provision to protect leaseholders from unreasonable costs and allow guilty parties to be pursued. It contains a requirement on landlords to take reasonable steps to pursue other cost recovery avenues before seeking to recover the costs of remediation works from leaseholders. They need to provide evidence to the leaseholders of the steps taken. Social landlords will have to undertake these measures, including pursuing construction companies or installers where applicable.

To help all landlords, including social landlords, the Government are bringing forward an ambitious toolkit of other measures to allow those responsible to be pursued. This includes extending the limitation period under Section 1 of the Defective Premises Act 1972 to apply retrospectively for 30 years. We are also allowing the High Courts to extend the reach of civil liability to associated companies and creating a new cause of action. This will allow manufacturers, distributors and sellers of construction products to be pursued where defective or mis-sold products have been used in the construction of a dwelling, or where further works are carried out to that dwelling, rendering it unfit for habitation. These amendments make it easier for those affected to force those responsible for defective buildings—developers and construction products manufacturers—to pay.

While we are making it easier to pursue third parties, in parallel, we continue to protect leaseholders, so they are not paying for unreasonable remediation costs. The Bill introduces new statutory provisions which provide that cladding remediation costs cannot be passed on to qualifying leaseholders in buildings over 11 metres. The law is already clear that service charges and any increase in cost must be reasonable. Finally, the Government set a rent policy for social housing which determines the maximum amount of rent that social tenants may be charged and the maximum amount by which rents may increase each year. The rent standard prevents unforeseen hikes to tenants’ rents and is enforced by the Regulator of Social Housing.

Turning now to Amendment 232 in the name of the noble Baroness, Lady Pinnock, and the noble Lord, Lord Stunell, the service charge is the means by which fire safety costs would be recovered and the leaseholder protections measures already prevent costs being passed to leaseholders above the permitted maximum.

I now turn to Amendment 233, tabled by my noble friends Lord Young of Cookham and Lord Blencathra, which seeks to impose a duty on local authorities to pursue responsible developers. It imposes requirements on local authorities to remediate buildings with defects and to recover funds from responsible parties. If no funds can be recovered, the Secretary of State would be required to reimburse the local authority.

We have been clear that industry is responsible for remediating defective buildings. We expect developers to remediate buildings they had a role in developing or refurbishing. Where this does not happen, building owners and landlords will have new powers to pursue those responsible. Local authorities will also have powers under our new remediation orders and remediation contribution orders, as will other regulatory bodies. However, to impose a duty on local authorities to fix buildings or pursue responsible parties is not the right approach. This would absolve industry of its duty to resolve the crisis and building owners and landlords of their responsibilities to make buildings safe. It would also place an unacceptable burden on the taxpayer.

The amendment seeks to create a taxpayer backstop by requiring the Secretary of State to reimburse local authorities for costs they cannot recover. We have been very clear that it is wrong to look to the taxpayer for further funding to fix defective buildings. For these reasons, we will not be able to accept the amendment. I want to deal with the specific issue of the remediator of last resort. I understand where my noble friend Lord Young is coming from. We have asked the industry to provide a fully funded solution for both the cladding and non-cladding costs, including fixing their own buildings and contributing to a fund for the very orphan buildings he has highlighted of between 11 and 18 metres that need cladding remediation. The focus of the industry is on fixing its own buildings, and therefore we can begin to be more focused on where we apply taxpayer funds.

Finally, I address Amendments 201, 202, 229, 234, 235, 236 and 237 in the name of the noble Earl, Lord Lytton. Amendments 201 and 202 would hold the Crown liable where properties escheat—that is probably not the right pronunciation—and would prevent liquidators and trustees in bankruptcy renouncing the leases of buildings with fire safety defects. The Bill already prevents freeholders evading liability by simply escheating their properties where they do not want to pay. It also makes provisions in relation to insolvency and bankruptcy. Freeholders will still be liable where they were, or were connected to, the developer, or had a net worth over £2 million per in-scope building on 14 February. As I have said before, taxpayers should not be held liable. For this reason, I will not be able to accept these amendments. Amendment 229 is unnecessary as landlords are already prevented from passing on costs unless they have explored all other routes of funding.

I turn to the important Amendments 234 to 237. These cover building safety cost orders, providing powers to make regulations, stipulating liability and establishing a building safety cost fund. Liability for remediation costs is already set out in the Bill, as are provisions for building owners and landlords to go after associated developers, companies and manufacturers of defective products. For this reason, I will not be able to accept these amendments.

My noble friends Lady Neville-Rolfe and Lord Young of Cookham raised the position of enfranchised leaseholders and asked whether we have made life harder for them via Amendments 186 to 193. I want to be absolutely clear that nothing in the amendments increases liabilities for enfranchised leaseholders. No leaseholder will be worse off; all are measures to make the polluter pays principle apply to enfranchised leaseholders.

I hope that I have gone some way to provide assurances on the Government’s approach.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - - - Excerpts

Before my noble friend sits down, I am really grateful to him for the explanation he has set out but can he tell the House what happens where there is a building and no one has any money— the leaseholders cannot afford it, there is no freeholder and there is no developer or contractor to pursue? Who then puts that building right?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, in practical terms, we have a £5.1 billion fund, of which we have committed the first stage of £1 billion. We have an additional £4.1 billion for buildings over 18 metres and an additional £4 billion for cladding remediation, yet we are asking industry to fix its own buildings. That gives us the ability to focus on the few buildings my noble friend is talking about, because we have got the developers that built these buildings to go on and fix them in a proportionate way and we do not have to use the core of money that we already have. Noble Lords can test the opinion of the House, but that is a practical way of dealing with the problems—focusing the current funds on those few buildings where that scenario applies.

Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
- Hansard - - - Excerpts

Before the Minister sits down, I thank him very much for his response to my Amendment 22. Could he just clarify something, so that I am completely clear on it? Was he saying that the Government will exempt social housing from the levy and that an SI will be brought in? If I am correct in my understanding, I would be grateful for a meeting to discuss the detail of what he proposes will happen.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, I thank the noble Baroness, Lady Hayman of Ullock, for the opportunity to clarify what I meant. In simple terms, the exemption applies to social housing. With regard to how that is implemented and the means by which we do that, I will be happy to meet the noble Baroness to set out formally how we intend to bring that forward. I have already made that comment in meetings before Report, so it has been made in public. I am happy to make that commitment on the Floor of the House and to work on how we implement that and set it out, either in writing or in a further meeting.

Amendment 21 agreed.
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Moved by
23: Clause 57, page 80, line 43, at end insert—
““building industry scheme” means a scheme established under section 128 of the Building Safety Act 2022;”Member’s explanatory statement
This amendment is consequential on the previous amendment to this Clause in the name of the Minister.
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Moved by
24: Clause 60, page 83, line 31, leave out paragraph (e)
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 to 86 (which remove provision about building safety managers).
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Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
- Hansard - - - Excerpts

I thought we were going to have a vote.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

We surprised the noble Baroness.

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Earl of Lytton Portrait The Earl of Lytton (CB)
- Hansard - - - Excerpts

I, too, commend the noble Baroness, Lady Neville-Rolfe, on this amendment. Given the circumstances of the Bill, the number of variations in it and the sheer number of moving parts involved, a review is essential for precisely the reasons she said, and I support the amendment.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, I am grateful to the noble Baroness, Lady Fox of Buckley, and my noble friend Lady Neville-Rolfe for this insightful debate.

Amendment 26 from the noble Baroness, Lady Fox, would require a review of the financial impact of the new regime. I reassure the noble Baroness that a review is already required by Clause 152, which provides that:

“The Secretary of State must appoint an independent person to carry out a review of”


the system of regulation of building safety and standards and the system of regulation for construction products. Importantly, the reviewer is not limited and may choose to review connected matters, including the matters mentioned in the noble Baronesses’ amendments.

Similarly, Amendment 246A in the name my noble friend Lady Neville-Rolfe would require a review of the impact of the Act. I apologise for the mix-up that resulted in my addressing this amendment in an earlier group. I will repeat for the record that we believe that this further replicates Clause 152 in the Bill and therefore we believe this is unnecessary.

What I do say to my noble friend is that the Secretary of State has to appoint someone to carry out the review within five years, so that is a long-stop date. I am very happy to meet my noble friend to ensure that we get going with this review at the very earliest opportunity to make sure that that long-stop date is comfortably met. We also need to make sure that this review is substantive and learns the lessons of a new regime in the broadest possible sense and addresses the points raised by the noble Baroness, Lady Fox of Buckley, as well those raised by my noble friend Lady Neville-Rolfe, who has had tremendous Front-Bench experience as well as experience as a distinguished civil servant.

With those explanations, I kindly ask the noble Baroness, Lady Fox, to withdraw her amendment and my noble friend Lady Neville-Rolfe not to press her amendment.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
- Hansard - - - Excerpts

I will withdraw but I will come back to the Minister. I think it is important to come back to the Minister and say if it is within five years, I would like it to be brought forward sooner. I do not know why he does not just accept the two years but let us have the meeting to discuss it. At this point, I will not press the amendment and beg leave to withdraw.

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Moved by
27: Clause 79, page 94, line 34, leave out paragraph (a)
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 and 85.
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Moved by
28: Clause 80, page 96, line 4, leave out paragraph (a)
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 and 85.
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Moved by
29: Clause 81, page 96, line 23, leave out “, and any building safety manager,”
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 to 86 (which remove provision about building safety managers).
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Moved by
30: Clause 82, leave out Clause 82
Member’s explanatory statement
This amendment and the amendments leaving out Clauses 83 to 86 in the name of the Minister remove provision about building safety managers.
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Moved by
31: Clause 83, leave out Clause 83
Member’s explanatory statement
This amendment and the amendments leaving out Clauses 82 and 84 to 86 in the name of the Minister remove provision about building safety managers.
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Moved by
32: Clause 84, leave out Clause 84
Member’s explanatory statement
This amendment and the amendments leaving out Clauses 82 and 83 and 85 and 86 in the name of the Minister remove provision about building safety managers.
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Moved by
33: Clause 85, leave out Clause 85
Member’s explanatory statement
This amendment and the amendments leaving out Clauses 82 to 84 and 86 in the name of the Minister remove provision about building safety managers.
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Moved by
34: Clause 86, leave out Clause 86
Member’s explanatory statement
This amendment and the amendments leaving out Clauses 82 to 85 in the name of the Minister remove provision about building safety managers.
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Moved by
37: Clause 95, page 105, line 16, leave out “intervals” and insert “times”
Member’s explanatory statement
This amendment requires the strategy to be reviewed at times prescribed by regulations.
Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

I am very pleased to move a group of amendments that are focused on ensuring that leaseholders are protected from costs related to historical building safety defects. The package of leaseholder protections eradicates the idea that leaseholders should be the first port of call to pay to fix historical building safety defects. In fact, in drafting these clauses we started with the presumption that leaseholders should not have to pay anything, a sentiment that I know is shared with noble Lords from all sides of this House.

It is only right that building owners and landlords share in the costs of fixing dangerous buildings and we have carefully engineered—

Lord Cormack Portrait Lord Cormack (Con)
- Hansard - - - Excerpts

I was under the impression that this was grouped with a whole group of amendments that had been debated and therefore there was no need for a further debate. If I am wrong, of course I apologise.

Lord Duncan of Springbank Portrait The Deputy Speaker (Lord Duncan of Springbank) (Con)
- Hansard - - - Excerpts

I will take the blame for that. I should have said moved formally and that would have encouraged the noble Lord, Lord Greenhalgh, to say “moved formally”. I will accept the admonition on that point. The noble Lord has saved the House some considerable time because I can see the page of that speech now fluttering in the wind.

Amendment 37 agreed.
Moved by
38: Clause 95, page 105, line 17, at end insert—
“(c) in prescribed circumstances, consult relevant persons and prescribed persons on the strategy and take any representations made on the consultation into account when next reviewing the strategy;(d) act in accordance with the strategy.”Member’s explanatory statement
This amendment requires the principal accountable person to consult on the residents’ engagement strategy, and to act in accordance with the strategy.
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Moved by
41: Clause 95, page 105, line 26, leave out “an accountable person will consult relevant persons” and insert “relevant persons will be consulted”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
48: Schedule 7, page 200, line 7, leave out paragraph (b)
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 to 86 (which remove provision about building safety managers).
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Moved by
71: Clause 112, page 115, line 19, leave out paragraph (a)
Member’s explanatory statement
This amendment is consequential on the amendments in the name of the Minister leaving out Clauses 82 and 85.
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Moved by
72: Clause 114, page 116, line 30, leave out “section 110” insert “paragraph 8(3) of Schedule 7”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
73: After Clause 114, insert the following new Clause—
“Building safety directors of resident management companies
(1) This section applies in relation to a resident management company that is an accountable person for a higher-risk building.(2) The articles of association of the resident management company have effect as if they included such provision as may be prescribed relating to—(a) eligibility for appointment as a director of the company, for a building safety purpose;(b) the appointment of a director for such a purpose;(c) the entitlement to remuneration of a director appointed for such a purpose;(d) the removal of a director so appointed.(3) Subsection (2) has effect—(a) whether or not the provision is adopted by the company;(b) whether the company was formed before or after the coming into force of this section;(c) notwithstanding anything in the company’s articles of association.(4) In this section—“building safety purpose” means the purpose of supporting the resident management company in complying with its duties under this Part or under regulations made under this Part;“resident management company” has the meaning given by regulations made by the Secretary of State.”Member’s explanatory statement
This new Clause makes provision about directors of a resident management company that is an accountable person.
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Moved by
74: Clause 115, page 117, line 4, leave out “(6)” and insert “(5)”
Member’s explanatory statement
This amendment is consequential on other amendments to this Clause in the name of the Minister.
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Moved by
85: Clause 115, page 119, line 36, at end insert—
“30DA Liability for remuneration of building safety director of resident management company etc(1) This section applies to a lease of premises which consist of or include a dwelling in a higher-risk building if—(a) the landlord is an accountable person for the building,(b) the landlord is—(i) a resident management company within the meaning of section (Building safety directors of resident management companies) of the Building Safety Act 2022, or(ii) an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage), and(c) the tenant is liable to pay a service charge.(2) The lease has effect—(a) as if the matters for which the service charge is payable under the lease included remunerating any director of the landlord appointed for a building safety purpose (insofar as this would not otherwise be the case), and (b) where the lease contains different methods for apportioning different relevant costs (within the meaning of section 18), as if it provided that any costs for which the tenant is liable by virtue only of paragraph (a) to be apportioned in the same way as costs incurred in connection with insuring the building.(3) In this section—“building safety purpose” means the purpose of supporting the landlord in complying with its duties under Part 4 of the Building Safety Act 2022 or under regulations made under that Part;“landlord” includes any person who has a right under the lease to enforce payment of a service charge;“service charge” has the meaning given by section 18;“tenant” includes any person who has an obligation under the lease to pay a service charge.”Member’s explanatory statement
This amendment makes provision for the recovery from tenants of costs incurred by a residents’ company in remunerating a director of the company, appointed in connection with its building safety duties.
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Moved by
87: Clause 115, page 119, line 37, leave out “section 30C or 30D” and insert “sections 30C to 30DA”
Member’s explanatory statement
This amendment is consequential on the second amendment in the name of the Minister at page 119, line 36.
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Moved by
100: Schedule 8, leave out Schedule 8
Member’s explanatory statement
This amendment is consequential on the removal of the building safety charge as a separate charge.
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Moved by
101: Clause 116, page 122, line 4, leave out “, an administration charge or a building safety charge” and insert “or an administration charge”
Member’s explanatory statement
This amendment is consequential on amendments to Clause 115 removing the building safety charge as a separate charge.
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Moved by
114: Clause 118, page 125, leave out line 32
Member’s explanatory statement
This amendment is consequential on the amendment in the name of the Minister leaving out Clause 82.
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Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I was a little slow in rising to introduce the government amendments. I was, perhaps, a little punch drunk after the length of the debate today.

It is only right, and I am sure we all agree, that building owners and landlords should share in the cost of fixing dangerous buildings. We have carefully engineered this Bill to ensure that those responsible, and otherwise those with the broadest shoulders, will be the first who are required to pay. Where there is no party that clearly should pay in full, and only in this scenario, our approach spreads the costs fairly and equitably and, above all, ensures that the most vulnerable leaseholders are protected. These measures are a robust and unprecedented legislative intervention, reversing the existing legal presumption that leaseholders must bear the costs of historical building safety defects.

The Government have listened to the comments raised by noble Lords, and we have tabled amendments which go even further in protecting leaseholders. Before I set out the detail of these further protections, I would like to be clear that the protections we are putting in place are extensive and, as noble Lords will be well aware, that these must remain in balance with the demands placed on landlords and building owners in ensuring that building safety defects are fixed and paid for where no wrongdoing on their part has taken place. There is an element of fairness here that we need to deliver. The Bill changes the private contract between the landlord and the leaseholder by stating that leaseholders will not pay any costs except in certain circumstances. Government can do this if it is in the general interest to do so, provided there is a fair balance between all the parties. Therefore, we need to make sure that the Bill is both proportionate and fair to all parties.

As I have said, leaseholders need to be protected, and we have brought in the most wide-ranging and expansive set of protections ever seen, allowing the courts to look through to associated companies to find both who is responsible and who has funds to remediate properties as there is no point in having money while properties remain unsafe. However, we are also aware that not all landlords were involved with the developer or have deep pockets, and we need to make sure that we consider the issue of building safety from all sides. We have therefore legislated on the side of the landlords by providing numerous robust routes for recovery of funds from those truly responsible: developers and the manufacturers of defective construction products.

To be clear, and bearing in mind my noble friends’ proposed amendments, let me put their minds at rest. The Bill makes it very clear that leaseholders will not pay anything in the majority of cases. These are where the landlord is the developer or is linked to the developer, where the landlord is wealthy and, finally, where the leaseholder’s property is valued at less than £325,000 inside London and £175,000 outside.

Where these absolute protections do not apply, the leaseholder’s contributions will be heavily capped. On leaseholder contribution caps, it is important to bear in mind that these caps are a maximum that leaseholders can be charged, not a target, and that, as above, they apply only where the landlord is not linked to the developer and cannot afford to pay in full. In addition, costs paid out in the past five years, including for interim costs such as waking watches, will count against the caps. Overall, we consider that in most cases leaseholders will not have to pay the full capped amount and many will pay nothing at all. Nevertheless, the Government agree it is critical that those leaseholders who are least likely to be able to afford to contribute towards historical remediation costs receive the greatest protection. That is why we have tabled amendments to provide that any qualifying lease with a value below £175,000, or £325,000 in Greater London, will be protected from all costs relating to non-cladding defects and interim measures. This is in addition to the protections for cladding remediation costs, which apply to all qualifying leases, and to all leases in buildings owned by or connected to developers.

Amendment 164 sets out that the value of a qualifying lease at the qualifying time is to be determined by the most recent sale price on the open market, prior to 14 February this year, uprated in accordance with the UK House Price Index published by the Office for National Statistics. Uprating values for this purpose will be set out in legislation.

Amendments 118 and 119 expand the definition of “enfranchised buildings” to ensure that all types of enfranchised buildings are covered.

We have listened very carefully to concerns about leaseholder affordability in the small number of cases where leaseholders are paying up to the caps. That is why we have tabled Amendment 166, to double the repayment period from five to 10 years. For leaseholders whose property is not below the threshold and whose building owner or landlord is not liable for the full remediation costs, Amendment 166 will mean that with regard to the capped costs the monthly repayments will be halved.

We have also listened carefully to those who were worried about buy-to-let investors who may be holding leasehold properties instead of a pension. As a result, we have amended Clause 121 to provide that people owning up to three UK properties qualify for the protections. As before, the principal home will always qualify, irrespective of how many additional properties are owned.

As well as going further to protect leaseholders, we have tabled a number of amendments which add key detail to the measures. We are clear that developers must fix the buildings they developed. That is why we have tabled Amendments 141 to 143 to Schedule 9, which clearly state that, where the landlord is or is linked to the developer, they will not be able to pass costs on to any leaseholder. This includes non-qualifying leaseholders such as commercial leaseholders and those with more than three UK properties. We have also tabled Amendment 145, which extends the definition of a developer to include persons who were in a joint venture with the developer. If you commissioned the work, you will also count as the developer.

We have also tabled Amendment 152, which will amend Schedule 9 to provide that where the landlord meets the contribution condition—defined as having a total net worth of more than £2 million per in-scope building as of 14 February 2022—they will not be able to pass any costs on to qualifying leaseholders. The calculation for net worth will be set out in regulations and will take into account parent and associated companies. This will ensure that those who have used complex corporate structures, such as special purpose vehicles, cannot evade liability where they can afford to meet the costs of remediation.

We are also amending Clauses 120 and 122 on the definitions for relevant buildings, landlords and works. These amendments will extend provisions to include work undertaken to remedy a defect and will clarify that buildings that are leaseholder-owned are out of scope because, in such buildings, the leaseholders are effectively the freeholders as well. With Amendment 121, we set out how the height of an in-scope building and its number of storeys will be calculated.

Amendments to Clauses 122 and 136 cover further definitions, including clarifying that associated partnerships are included, as the noble Earl, Lord Lytton, raised in Committee. Amendment 169 to Schedule 9 inserts a new definition of cladding remediation, which now means the removal or replacement of any part of a cladding system that forms the outer wall of an external wall system and is unsafe.

Amendments 170 and 171 provide that the landlord cannot pass on costs to a qualifying leaseholder relating to professional services, in addition to legal costs. Amendment 177 provides that certain leases are taken to be qualifying leases without the tenant providing a certificate, unless steps are taken. It also provides that landlords are taken to have met the contribution condition unless they provide a certificate proving otherwise. This means that the legal burden will be on the landlord to prove that they are entitled to pass on capped remediation costs.

The amendments also make minor technical and consequential amendments to clauses to ensure the provisions work as intended, remove extraneous powers and commence the provisions two months after Royal Assent.

It is right that leaseholders be protected from extortionate costs of remediating historical building safety defects, in a manner that balances the demands placed on landlords and building owners, where no wrongdoing on their part has taken place. I ask your Lordships to welcome and support this significant and important set of amendments, which go further to protect leaseholders and provide that fair balance.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, this is probably the most important group of amendments we are considering today, because it is absolutely at the heart of the building safety scandal that started nearly five years ago with the loss of 72 people in the Grenfell fire. I always think it is worth remembering that: 72 people died and the lives of many families were changed for ever, and that happened because of systemic and long-term failures in the construction industry.

It is also worth remembering that leaseholders since that time have found themselves under the enormous pressure of anxiety when they receive invoices, maybe for £100,000 or more. Some of them have not been able to cope with that level of anxiety, thinking that nothing would change, and have chosen bankruptcy as a consequence and therefore lost everything they had saved and worked for. For some whom I have heard about, sadly, this pressure may have contributed to something even worse: in the face of the bills and a long dark tunnel with no solution, they ended their lives. That is the backdrop. That is the tragic impact this has had on individuals across the country, and which has brought us to this place. This set of amendments is at the heart of those concerns.

I first raised my worries about leaseholders being liable for all the costs of cladding, removal and remediation of all the fire safety defects when the Fire Safety Bill was first debated in 2020. Unfortunately, I did not succeed in amending it at that stage, but what has happened since has been remarkable—the number of people on all sides of the House who have taken up the cudgels to argue the case, rightly, for justice for leaseholders. I give enormous credit to the cladding campaigners from all groups and different cities around the country who have got together and done the investigation, found the facts and put the case to the Government, who, to their credit, have listened and made the changes we have seen today. I think there are over 200 government amendments to the Bill today.

The question of justice for leaseholders is still at the heart of the Bill, and I contend that the Government still have not gone far enough in fulfilling what the Secretary of State and the Minister have said: that they should not pay a penny. They have done everything right and nothing wrong. They should not pay anything towards this remediation, because the flammable cladding, sometimes knowingly, was put on buildings, as was exposed in the Grenfell inquiry. Shoddy construction, sometimes deliberate, to cut corners and save costs, has also been exposed during the Grenfell inquiry.

I want to speak to Amendment 156 in my name and that of my noble friend Lord Stunell, but also to Amendment 155 in the name of the noble Baroness, Lady Hayman, and to Amendments 158 and 159 in the names of the noble Lords, Lord Young of Cookham and Lord Blencathra, and the noble Baroness, Lady Hayman, to which I have added my name. They focus on trying to solve the problem of justice for leaseholders, who should not pay a penny.

Unfortunately, the Minister has said today that “the majority” will not pay. Well, if the majority will not pay, the minority will—and the minority should not, because none of this is of their making. My Amendment 156 seeks to establish that what the leaseholder should pay is a peppercorn—a grand, historical way of saying zero, zilch. I thank the noble Lord, Lord Young of Cookham, for his support for Amendment 155 in the name of the noble Baroness, Lady Hayman, which uses the word “zero”. I use “peppercorn”, but they get to the same place, and he has acknowledged the justice of this case.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, this has been an extremely important debate in which we have covered some of the critical issues still outstanding in the Bill. I thank the Minister for the introduction to the amendments. Many of them are good, but we believe there are still problems that need to be sorted out.

I will be brief. I thank the noble Earl, Lord Lytton, for his introduction to Amendment 115. If he decides to divide the House, he will have our support on that amendment.

I turn to my Amendment 155. It is really important that we take account of the principle that has been referred to by other noble Lords: there should be no cost to people who have done nothing wrong. It is not the fault of leaseholders that they have been left with these huge costs. We believe it is desperately unfair to force them to pay a penny, which is why my amendment has the word “zero” in it. As mentioned by the noble Baroness, Lady Pinnock, we must not forget the strain on the mental health of leaseholders. They need clear and proper support, and they are relying on your Lordships to do the right thing by them. To me, this is a moral question. Should leaseholders pay costs that, for many, will still be huge despite the caps proposed by the Government? They are blameless; they should pay nothing.

I thank the noble Lord, Lord Marks, and the noble and learned Lord, Lord Hope of Craighead, for clearly laying out the legal position. It has been important for me to hear that from them, and the detail that they have provided, having had discussions with the Government on their concerns about the ECHR. I also thank the noble Lords, Lord Young of Cookham and Lord Blencathra, and the noble Baroness, Lady Pinnock, for their support.

I confirm that I intend to divide the House on Amendment 155. If it fails to pass, I will be happy to support the noble Lords, Lord Blencathra and Lord Young, on Amendment 158.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I spoke to the government amendments as I hoped it would assist the House to have the Government’s views. With the permission of the House, I will now speak again in reply to the points raised by noble Lords on the non-government amendments that they have tabled.

Amendments 155 to 160 and Amendments 162 to 163 deal with leaseholder contribution caps. I thank noble Lords for their contributions and constructive approach, but I am afraid that the Government will not be able to accept these amendments. It is important to bear in mind that leaseholder contributions apply only in certain circumstances, and even then, only when a series of other steps have been exhausted. The caps do not apply at all in relation to cladding defects, nor do they apply where the value of the flat is less than £175,000 outside Greater London and £325,000 inside.

The caps only apply where the building owner or landlord is not linked to the developer and cannot afford to pay in full, where the developer cannot be made to fix their own building, and where the building owners have exhausted all reasonable steps to recover costs from third parties. Leaseholder contributions will only apply where there is no clear developer or wealthy landlord to meet the costs in full, and the party responsible for defective work cannot be identified. The Government consider that this will occur only in a minority of circumstances.

Where there is no party that clearly should pay in full—and only then—our approach spreads the costs fairly and equitably across those with an interest in the building and ensures above all that the most vulnerable leaseholders are protected. The Government’s latest amendments go even further in protecting leaseholders. Where the freeholder or landlord is not at fault and cannot pay to meet the costs, we need to ensure a proportionate approach that takes into account the interests of all parties. That is why our approach spreads the costs equitably among all relevant parties with an interest in the building.

The amendments tabled by the noble Baronesses, Lady Hayman and Lady Pinnock, and—

Lord Cormack Portrait Lord Cormack (Con)
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Can my noble friend quantify how many people he expects will be paying? What is the maximum amount they will pay?

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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I cannot quantify the exact amount people will pay, but it is fair to say that we have set out a fundamental system of protection that admittedly does not go as far as the zero or peppercorn proposed in opposition amendments, but it does go a considerable way to ensuring that leaseholders are the last in line to pay, as opposed to the first.

As I said, the amendments tabled by the noble Baronesses, Lady Hayman and Lady Pinnock, and the noble Lord, Lord Stunell, seek to reduce leaseholder contributions to zero or a peppercorn. Where there is no clear party that must pay, it would not achieve a fair balance between relevant parties to transfer the costs in full to the freeholder or landlord. I appreciate that that opinion seems to vary from that of noble Lord, Lord Marks of Henley-on-Thames, but that is the government position.

Amendments tabled by my noble friends Lord Young and Lord Blencathra propose to reduce the leaseholder contribution caps, and another amendment proposes alternatively that the contribution is 1% of the lease value. The Government have already taken significant and far-reaching steps to protect leaseholders, protecting those in lower value properties and doubling the repayment period to 10 years. On that basis, I ask the noble Lords not to move their amendments.

Government Amendment 164 provides for the value of a lease to be determined without the need for a valuation. It allows for the value of the lease to be determined by uprating the most recent sale price prior to 14 February 2022. The uprating, which will be set out in regulations, will ensure all properties are compared on a level playing field. The uprating will be based on a metric called the house price index which tracks house prices. This will allow properties to be assigned a nominal present-day value.

Amendment 165, tabled by my noble friends Lord Young and Lord Blencathra, proposes that the value of the lease would be based solely on its most recent sale price. I am afraid the Government will not be able to accept this amendment as it would put leaseholders who have purchased their properties more recently at a significant disadvantage. The Government consider it important that properties are compared like for like, irrespective of when they were last sold. On that basis, I ask my noble friends not to move to their amendments.

I will turn now to Amendments 123 and 124, which deal with the definition of a qualifying lease. The Government have already tabled amendments which will see people with a total of up to three UK properties eligible for the protections. Amendment 123, tabled by my noble friends Lord Young and Lord Blencathra, proposes to increase this to a total of up to five UK properties. Amendment 124, tabled by the right reverend Prelate the Bishop of St Albans, proposes to increase the total to six for individuals in receipt of a state pension. I am afraid that the Government will not be able to accept these amendments.

As I have previously discussed, it is important that the Government take a proportionate approach and ensure that our measures are fair to all parties. This includes considering where certain groups of leaseholders are likely, on average, to be able to afford to contribute to the costs of remediation. The Government need to focus their protections on those who need it most, primarily leaseholders living in their own homes and those who have moved out and are subletting. We also recognise concerns about people with small numbers of additional properties, and that is why we are ensuring those with up to three UK properties will be protected.

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19:27

Division 2

Ayes: 156

Noes: 123

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19:41

Division 3

Ayes: 146

Noes: 114

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Moved by
120: Clause 120, page 128, line 16, leave out subsection (7)
Member’s explanatory statement
This amendment removes the power to make supplementary provision, in consequence of the proposed new Clause after Clause 120 in the name of the Minister.
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Moved by
121: After Clause 120, insert the following new Clause—
“Section 120: height of buildings and number of storeys
(1) This section applies for the purpose of section 120.(2) The height of a building is to be measured from ground level to the finished surface of the floor of the top storey of the building (ignoring any storey which is a roof-top machinery or plant area or consists exclusively of machinery or plant rooms).(3) When determining the number of storeys in a building—(a) any storey below ground level is to be disregarded;(b) any mezzanine floor is to be regarded as a storey if its internal floor area is at least half of the internal floor area of the largest storey in the building which is not below ground level.(4) In subsection (2) “ground level”, in relation to a building, means—(a) the level of the surface of the ground immediately adjacent to the building, or(b) where the level of the surface of the ground on which the building is situated is not uniform, the level of the lowest part of the surface of the ground immediately adjacent to it.(5) For the purposes of subsection (3) a storey is “below ground level” if any part of the finished surface of the ceiling of the storey is below the level of the surface of the ground immediately adjacent to that part of the building.”Member’s explanatory statement
This new Clause sets out how the height of a building, and the number of storeys, is to be calculated.
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Moved by
122: Clause 121, page 128, line 31, leave out “only one dwelling” and insert “no more than two dwellings”
Member’s explanatory statement
This amendment provides that a lease may be a qualifying lease if a relevant tenant owns no more than two dwellings (excluding their interest under the lease).
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Moved by
125: Clause 121, page 129, line 1, after “dwelling” insert “in England, Wales or Northern Ireland”
Member’s explanatory statement
This amendment ensures that subsection (4)(b) does not apply to Scotland (as the word “ownership” suffices for property in Scotland).
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Moved by
127: Clause 122, page 129, line 10, leave out “means a defect as regards a building” and insert “, in relation to a building, means a defect as regards the building”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
133: Clause 123, page 129, line 30, leave out from “a” to end of line 32 and insert “partnership or body corporate is associated with another person in the circumstances mentioned in subsections (2) to (3).”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
139: Schedule 9, page 225, line 10, at end insert—
““joint venture” includes a partnership (as defined by section 123);”Member’s explanatory statement
This amendment defines “joint venture” for the purposes of the Schedule.
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Moved by
152: Schedule 9, page 226, line 20, at end insert—
“No service charge payable if landlord meets contribution condition
3A_(1) No service charge is payable under a qualifying lease in respect of a relevant measure relating to any relevant defect if the landlord under the lease at the qualifying time (“the relevant landlord”) met the contribution condition.(2) The contribution condition is that the landlord group’s net worth at the qualifying time was more than N x £2,000,000,where N is the number of relevant buildings within sub-paragraph (3).(3) A relevant building is within this sub-paragraph if a member of the landlord group was, at the qualifying time, a landlord under a lease of the relevant building or any part of it.(4) For the purposes of this paragraph—(a) “the landlord group” means the relevant landlord and any person associated with the relevant landlord;(b) the net worth of the landlord group at the qualifying time is to be determined in accordance with regulations made by the Secretary of State.(5) The Secretary of State may by regulations amend the amount for the time being specified in sub-paragraph (2).(6) This paragraph does not apply if, at the qualifying time, the relevant landlord was—(a) a private registered provider of social housing (as to which see section 80 of the Housing and Regeneration Act 2008),(b) a local authority (as defined by section 29), or(c) a prescribed person.” Member’s explanatory statement
This amendment provides that no service charge is payable under a qualifying lease in respect of a relevant measure relating to any relevant defect if the landlord met the condition mentioned in the paragraph (relating to net worth).
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Moved by
154: Schedule 9, page 226, line 23, leave out from “if” to end of line 28 and insert “the value of the qualifying lease at the qualifying time was less than—
(a) £325,000, if the premises demised by the qualifying lease are in Greater London;(b) £175,000, in any other case.(2) For the purposes of this paragraph the value of a qualifying lease at the qualifying time is its value determined in accordance with paragraph 6 and regulations made under it.”Member’s explanatory statement
This amendment provides that no service charge is payable under a qualifying lease in respect of a relevant measure relating to any relevant defect if the value of the lease at the qualifying time is less than the amount mentioned in the amendment.
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19:57

Division 4

Ayes: 137

Noes: 123

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Moved by
161: Schedule 9, page 227, line 19, after “time” insert “—
(a) the value of the qualifying lease at that time is to be determined as if the tenant’s total share at that time was 100%;(b) ”Member’s explanatory statement
This amendment provides that where the qualifying lease is a shared ownership lease the value of it at the qualifying time is to be determined as if the tenant's share at that time was 100%.
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Moved by
164: Schedule 9, page 227, line 29, at end insert—
“(6A) The regulations may in particular provide that, except in prescribed cases, the value of a qualifying lease at the qualifying time is to be determined by—(a) ascertaining the consideration given on the latest disposal of the qualifying lease on the open market to have been made before that time, and(b) if that disposal occurred before 2022, uprating the consideration in accordance with the regulations.”Member’s explanatory statement
This amendment mentions the kind of provision that may be made by regulations under paragraph 6(6).
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Moved by
166: Schedule 9, page 227, line 34, leave out sub-paragraph (1) and insert—
“(1) A relevant service charge which would otherwise be payable under a qualifying lease is payable only if (and so far as) the sum of—(a) the amount of the service charge, and(b) the total amount of relevant service charges which fell due in the period of 12 months ending with the day on which the service charge fell due,does not exceed one tenth of the permitted maximum.”Member’s explanatory statement
This amendment removes the existing power to make regulations, and provides that a service charge in respect of a relevant measure is payable only so far as the total of such service charges in any 12 month period does not exceed one tenth of the permitted maximum.
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Moved by
181: Clause 125, page 131, line 4, after “Tribunal” insert “on the application of an interested person”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
186: Clause 126, page 131, line 24, after “corporate” insert “or partnership”
Member’s explanatory statement
This amendment provides that an order may be made in respect of a partnership.
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Moved by
194: Clause 127, page 132, line 18, leave out “the liquidator” and insert “a person acting as an insolvency practitioner in relation to the company”
Member’s explanatory statement
This amendment provides that a person acting as an insolvency practitioner in relation to the company may apply for an order under this Clause.
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Moved by
203: Clause 128, page 132, line 31, after “scheme” insert “to be maintained by the Secretary of State, or a person designated by the Secretary of State and acting on the Secretary of State’s behalf,”
Member’s explanatory statement
This amendment is a drafting change.
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Moved by
208: Clause 129, page 133, line 9, leave out subsection (2)
Member’s explanatory statement
This amendment is a drafting change.
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20:23

Division 5

Ayes: 59

Noes: 124

Amendments 222 and 223
Moved by
222: Clause 130, page 134, line 17, leave out “the proposed beginning of”
Member’s explanatory statement
This amendment has the effect of allowing regulations to require notifications to be given about development other than notifications relating only to the proposed beginning of development.
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Moved by
224: Clause 131, page 134, line 37, at end insert—
“(1A) The descriptions of persons which may be prescribed include in particular persons who—(a) are eligible to be members of a scheme established under section 128, and(b) are not members of that scheme.”Member’s explanatory statement
This amendment provides that the descriptions of persons in relation to whom regulations may impose a building control prohibition under this Clause include, in particular, persons who are eligible to be members of a scheme established under Clause 128 but are not members of that scheme.
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Moved by
227: Clause 132, page 136, line 11, leave out “relates to a building in England and”
Member’s explanatory statement
This amendment has the effect of applying this clause to Wales.
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Moved by
228: After Clause 133, insert the following new Clause—
“Order for information in connection with building liability order
(1) A person of a prescribed description may apply to the High Court for an information order.(2) An “information order” is an order requiring a specified body corporate to give, by a specified time, specified information or documents relating to persons who are or have at any time in a specified period been, associates of the body corporate.(3) An information order may be made only if it appears to the court—(a) that the body corporate is subject to a relevant liability (within the meaning of section 132), and(b) that it is appropriate to require the information or documents to be provided for the purpose of enabling the applicant (or the applicant and others) to make, or consider whether to make, an application for a building liability order.(4) In this section—“associate” has the meaning given by section 133; “building liability order”: see section 132;“prescribed” means prescribed by regulations made by the Secretary of State;“specified” means specified in the information order.”Member’s explanatory statement
This new Clause provides that a person prescribed by regulations may make an application to the High Court for an order requiring a body corporate to give information relating to persons who are associates of the body corporate and sets out when the High Court may make the order.
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Moved by
230: Clause 136, page 142, line 3, leave out from “section” to end of line 5 and insert “applies in relation to a claim which, before this section came into force, was settled by agreement between the parties or finally determined by a court or arbitration (whether on the basis of limitation or otherwise).”
Member’s explanatory statement
This amendment is a drafting change.
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20:37

Division 6

Ayes: 94

Noes: 117

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Moved by
238: Clause 139, page 144, line 5, after “converted” insert “, or to which any other works have been carried out,”
Member’s explanatory statement
This amendment clarifies that a home created by, for example, extending an existing building will be a “new build home” for the purposes of the new homes ombudsman scheme.
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Moved by
243: After Clause 144, insert the following new Clause—
“New build home warranties
(1) This section applies where a person (“the developer”) carries out a development in England that results in the creation of one or more dwellings (“new build homes”).(2) The developer must, at the time of or before granting or disposing of a relevant interest in a new build home—(a) provide to the purchaser a new build home warranty for the new build home, and(b) provide to a prescribed person a new build home warranty for any common parts.(3) A “new build home warranty” for a thing is an arrangement, satisfying any requirements under subsection (4), under which—(a) the developer agrees, in specified circumstances, to remedy any specified defect (or any defect) in the thing occurring in a specified period, and(b) a prescribed person obtains the benefit of a policy of insurance relating to specified defects (or any defects) in the thing.“Specified” here means specified in the arrangement.(4) The Secretary of State may by regulations impose requirements about new build home warranties, including in particular requirements as to—(a) the kinds of defect which the developer must agree to remedy;(b) the circumstances in which the developer must agree to remedy a defect (including the minimum duration of the period mentioned in subsection (3)(a));(c) the developer agreeing to meet prescribed costs incurred by a person occupying a new build home, where works to remedy a defect are carried out;(d) the policy of insurance (including risks that must be covered, the minimum amount of cover, the minimum duration of the period of cover, and the maximum amount of any excess);(e) the solvency of the insurer or underwriter;(f) the standard of service provided by or on behalf of the insurer in relation to the policy;(g) the ability of a person who has the benefit of the warranty to transfer that benefit to another person. (5) The regulations must provide that the period of cover under the policy of insurance must be at least 15 years beginning with the day on which the relevant interest is granted or disposed of.(6) In this section—“carries out a development”: the reference to a person carrying out a development is to undertaking or commissioning—(a) the construction of a building, or(b) the conversion of, or carrying out of any other works to, a building,with a view to granting, or disposing of, relevant interests in one or more dwellings created as a result of the construction, conversion or carrying out of works;“common parts”, in relation to a new build home, means any part of a building, where—(a) that part is provided for the use, benefit and enjoyment of the residents of the new build home and the residents of other dwellings (whether alone or with other persons), and(b) the right to use that part is conferred in connection with the grant or disposal of the relevant interest in the new build home;“defect”: any reference to a defect includes, in relation to land, contamination;“prescribed” means prescribed by regulations made by the Secretary of State;“purchaser” means the person to whom the relevant interest is granted or disposed of;“relevant interest” means a legal estate which is—(a) an estate in fee simple absolute in possession, or(b) a term of years absolute granted for a term of more than 21 years from the date of the grant.”Member’s explanatory statement
This new Clause imposes, on a developer of new build homes, a requirement to provide a “new build home warranty” complying with the requirements imposed under the clause.
--- Later in debate ---
Moved by
245: After Clause 145, insert the following new Clause—
“Liability relating to construction productsLiability relating to construction products: general definitions
In this section, section (Liability relating to construction products) and (Liability for past defaults relating to cladding products)—“the 1991 Regulations” means the Construction Products Regulations 1991 (S.I. 1991/1620);“the 2011 Regulation” means Regulation (EU) No. 305/2011 (regulation laying down harmonised conditions for the marketing of construction products);“the 2019 Regulations” means the Construction Products (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/465);“construction products regulations” means regulations under paragraph 1 of Schedule 12;“construction product requirement” means a requirement under—(a) construction products regulations,(b) the 2011 Regulation, or(c) the 2019 Regulations;“relevant building” means—(a) a building which consists of a dwelling, or(b) a building which contains two or more dwellings;“relevant interest”, in relation to a building in England and Wales, means—(a) in a case where the building consists of a dwelling, a legal or equitable interest in the building, and(b) in a case where the building contains one or more dwellings, a legal or equitable interest in—(i) the building, or(ii) any dwelling contained in the building;“relevant interest”, in relation to a building in Scotland, means—(a) in a case where the building consists of a dwelling, any right or interest (including a servitude or heritable security) in or over the building, and(b) in a case where the building contains one or more dwellings, any right or interest (including a servitude or heritable security) in or over—(i) the building, or(ii) any dwelling contained in the building;“requirement” includes a prohibition or restriction.”Member’s explanatory statement
This new Clause contains definitions relevant to the next two new Clauses tabled by the Minister.
--- Later in debate ---
Moved by
255: Schedule 12, page 242, line 22, at end insert—
“(2) Construction products regulations may under paragraph 20(1)(c) make consequential provision amending section (Liability relating to construction products), which may in particular include the omission or amendment of subsection (2)(b) and (c) of that section.”Member’s explanatory statement
This amendment is to enable construction product regulations to make consequential amendments to the Clause relating to liability in respect of construction products.
--- Later in debate ---
Moved by
263: Clause 151, page 156, line 15, at end insert—
“(4) Where—(a) a relevant company is an accountable person for a higher-risk building (within the meaning of Part 4), and (b) one or more (but not all) directors of the relevant company have been appointed for a building safety purpose and are entitled to remuneration from the company,this section, so far as relating to Part 4, does not apply in relation to a director who is not entitled to remuneration from the relevant company.(5) In subsection (4)—“building safety purpose” means the purpose of supporting the relevant company in complying with its duties under Part 4 or under regulations made under that Part;“relevant company” means—(a) a resident management company within the meaning of section (Building safety directors of resident management companies),(b) an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage), or(c) a company that is a commonhold association within the meaning of Part 1 of that Act (see section 34).”Member’s explanatory statement
This amendment provides that, in relation to certain residents’ companies, this Clause - so far as relating to Part 4 - does not apply to unpaid directors if there are paid directors, appointed for a building safety purpose.
--- Later in debate ---
Moved by
265: Clause 154, page 157, line 28, at end insert—
“(da) sections (New build home warranties) and (New build home warranties: financial penalties) (new build home warranties);”Member’s explanatory statement
This amendment provides for the new Clauses on new build home warranties to bind the Crown.
--- Later in debate ---
Moved by
266: Clause 158, page 159, line 25, leave out “120(2)(c),”
Member’s explanatory statement
This amendment is consequential on the removal of the power to make regulations under Clause 120(2)(c).
--- Later in debate ---
Moved by
270: Clause 159, page 160, line 9, at end insert—
“(da) sections (Costs contribution orders: general definitions) to (Costs contribution orders: assessments) (costs contribution orders);”Member’s explanatory statement
This amendment secures that the new Clauses relating to costs contribution orders extend to the whole of the United Kingdom.
--- Later in debate ---
Moved by
272: Clause 160, page 160, line 35, at end insert—
“(za) sections 119 to 127 and Schedule 9;”Member’s explanatory statement
This amendment provides for the provisions on the remediation of certain defects to come into force two months after Royal Assent.
--- Later in debate ---
Moved by
274: Clause 1, page 1, line 17, leave out “as follows” and insert “including”
Member’s explanatory statement
This amendment is a drafting change.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
3rd reading
Monday 4th April 2022

(1 year, 12 months ago)

Lords Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 144-I Amendment for Third Reading - (1 Apr 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Lord Ashton of Hyde Portrait Lord Ashton of Hyde (Con)
- Hansard - - - Excerpts

My Lords, I have it in command from Her Majesty the Queen and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Building Safety Bill, have consented to place their interests, so far as they are affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
- Hansard - - - Excerpts

My Lords, a significant number of the provisions in the Building Safety Bill apply to England and Wales and a number also apply to Scotland and/or Northern Ireland. Throughout the preparation and passage of the Bill we have been working closely with each of the devolved Administrations, and I pay tribute to officials and Ministers in Scotland, Wales and Northern Ireland for their constructive engagement and support.

There are provisions in the Bill which engage the legislative consent process in the Scottish Parliament, Senedd Cymru and the Northern Ireland Assembly. I am pleased to report that the Senedd and the Scottish Parliament have granted legislative consent. However, the Northern Ireland Executive have not brought forward a legislative consent memorandum and the Assembly has therefore not voted on legislative consent. I reassure noble Lords that the Government will continue to engage with the Northern Ireland Executive.

Schedule 8: Remediation costs under qualifying leases etc

Amendment 1

Moved by
--- Later in debate ---
Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
- Hansard - - - Excerpts

That the Bill do now pass.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, the Grenfell Tower tragedy resulted in the largest loss of life in a residential fire since the Second World War. On 14 June 2017, 72 people died and 70 more were injured. This was the deadliest structural fire in the United Kingdom since Piper Alpha in 1988. The Government are determined to ensure that a tragedy such as this never happens again. The Building Safety Bill is the landmark Bill that delivers on that mission.

These are the biggest changes to building safety legislation in our history. The Bill not only addresses the total building safety regulatory system failure head-on but protects leaseholders who are the victims in a building safety crisis. This Bill helps to ensure that there is a more proportionate approach to building safety risk, introduces a cap on the historic building safety costs that leaseholders will have to pay and, finally, provides an extensive set of tools in law that will ensure that the polluter pays.

Fifteen of the 37 disabled residents living in Grenfell Tower died in the fire. That is more than 40% of the disabled residents. The Government are committed to supporting the fire safety of disabled and vulnerable residents. We are acutely aware of the need to ensure the safety of residents with mobility concerns. The Government ran a consultation on the issue of personal emergency evacuation plans—PEEPs—in July 2021. The consultation has made clear the substantial difficulties of mandating PEEPs in high-rise residential buildings around practicality, proportionality and safety. On practicality, how can you evacuate a mobility-impaired person from a tall building before the professionals from the fire and rescue service arrive? On proportionality, how much is it reasonable to spend to do this at the same time as we seek to protect residents and taxpayers from excessive costs? On safety, how can you ensure that an evacuation of mobility-impaired people is carried out in a way that does not hinder others in evacuating or the fire and service in fighting the fire?

Given these difficulties, the Government are committing to undertake a new consultation. While our response is still being finalised, this will include a proposal called “emergency evacuation information-sharing” or EEIS. The Government will publish our response to the PEEPs consultation and our new consultation on EEIS and commence the Fire Safety Act 2021 on the same day next month, which is as soon as practical after the pre-election period. I have discussed this at some length with the noble Baronesses, Lady Grey-Thompson and Lady Brinton. I confirm to the noble Baroness, Lady Brinton, that the consultation will look to ensure as best we can that the golden thread exists between planning for the safe evacuation of a mobility-impaired person when needed and the response of fire and rescue services in the event that a building needs to be evacuated.

The Building Safety Bill leaves your Lordships’ House in a far better state than it arrived in. I welcome the clear cross-party support for the Bill. Both Opposition Benches have played hard but fair. I thank the noble Earl, Lord Lytton, for using his considerable professional expertise and the noble Baronesses, Lady Jolly and Lady Finlay of Llandaff, for their redoubtable efforts with the Safer Stairs campaign. I also thank the noble Baroness, Lady Fox of Buckley, for ensuring that the new regime is as proportionate as possible. Finally, I thank the right reverend Prelate the Bishop of St Albans for helping improve the Bill in the interests of leaseholders.

On the Government Benches, I thank my noble friend Lord Naseby for representing the interests of pensioners with pensions tied up in buy-to-let leasehold properties, my noble friend Lady Sanderson for ensuring that the voice of the Grenfell community is heard loud and clear, and last but by no means least, the dynamic duo of my noble friends Lord Young and Lord Blencathra, who have brought decades of parliamentary experience to ensure that leaseholders are protected. I also thank my long-suffering Whip, my noble friend Lady Scott, and her understudy briefly on Report, my noble friend Lady Bloomfield. My heartfelt thanks also go to Hannah Ellis in the Whips’ Office.

Finally, I thank the army of officials in the Department for Levelling Up, Housing and Communities, the Home Office and across government for their support and hard work over the last few months. I will name four who deserve special mention: the former Bill manager, Amy Payne, the current Bill manager, Catherine Canning, and the superb DHLUC government lawyers, Joanna Stewart and Katherine Bridges.

Lord Haskel Portrait The Deputy Speaker (Lord Haskel) (Lab)
- Hansard - - - Excerpts

My Lords, the noble Baroness, Lady Brinton, is taking part remotely. I invite the noble Baroness to speak.

--- Later in debate ---
Baroness Pinnock Portrait Baroness Pinnock (LD)
- Hansard - - - Excerpts

My Lords, I start by thanking the cladding and building safety campaigners who have been resolute and unremitting, since the Grenfell fire tragedy, in pursuing justice for leaseholders and tenants. Without them, this Bill would not be in the shape it is today. It has been transformed but not transformed enough, as we have heard from others. Across the House, people have worked together to make it a better Bill. I thank them for the way we have worked together to make improvements, but it is not yet enough.

I, too, urge the Government to accept the amendments that we accepted on Report. I, for one, am not giving way. I hope that the Government, at the other end, will say that the argument has been made for a nil cost to all leaseholders. That is where I shall firmly stand to the bitter end. Leaseholders are the innocent victims; they must not pay a penny.

I pass on my thanks to the Minister for being so free with his time, discussing the various amendments, and to the officials from various parts of the Government for explaining the detailed changes that had been proposed. Particularly, I thank Sarah Pughe in the Liberal Democrat Whips’ Office, and my noble friend Lord Stunell. Without their expertise, knowledge and experience, we would not have been able to do the job that, between us, we have done. I look forward to the Bill coming back, having been accepted by the Commons.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
- Hansard - - - Excerpts

My Lords, I beg the indulgence of noble Lords: as my noble friend Lord Young and the noble Earl, Lord Lytton, asked pretty much the same question, I thought I would respond to that very briefly. They wanted to know what happens to orphan buildings, where there is no polluter to pay. I do not feel that this works in this setting, but I have this wonderful diagram that makes it pretty clear to me what happens. This is the so-called “non-cladding costs waterfall”, which I am going to try to have put on the Government’s website. Let us be very clear: we need to look at this in terms of cladding and non-cladding.

There is, of course, the £5.1 billion building safety fund for the remediation of cladding in high-rise residential buildings, which is open to orphan buildings. My department is seeking a further £4 billion voluntary contribution. In the first instance, it is a voluntary contribution from the developers for the remediation of unsafe cladding in medium-rise buildings, which is also open to orphan buildings. Then, we have this wonderful government waterfall for non-cladding costs: the developers must pay. In instances where the developer is not available to pay, the landlord must pay. The landlord or freeholders who pass the government test, which is a net worth of £2 million per building, become legally liable for all the costs. The landlords must comply with the law, as set out by Parliament. Freeholders or landlords must pursue those responsible, as well as any applicable grant schemes, before they can pass costs on.

Finally, as it says on this wonderful chart, which even I can read with my poor eyesight, costs are shared equitably between freeholders, lessees and leaseholders, subject to robust leaseholder protections detailed in the Bill—and sent back to the other place with some other parameters that perhaps the Government might not have wanted at this stage.

I want to make a final point about landlords. Sadly, some landlords are polluters. A number of large freeholders have appeared on the Government’s “name and shame” list for not remediating their buildings. Some freeholders or landlords have gone so far as to force leaseholders to take loans to remediate their buildings. As I said, we all agree that, in those instances, the polluter must pay.

Bill passed and returned to the Commons with amendments.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Consideration of Lords amendments
Wednesday 20th April 2022

(1 year, 11 months ago)

Commons Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: Commons Consideration of Lords Amendments as at 20 April 2022 - (20 Apr 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Stuart Andrew Portrait The Minister for Housing (Stuart Andrew)
- Hansard - - - Excerpts

I beg to move amendment (a) to Lords amendment 93.

Rosie Winterton Portrait Madam Deputy Speaker
- Parliament Live - Hansard - - - Excerpts

With this it will be convenient to discuss the following:

Government amendment (b) to Lords amendment 93.

Lords amendment 94, and Government amendment (a) thereto.

Lords amendment 98, and Government amendments (a) to (c) thereto.

Lords amendment 107, and Government amendment (a) thereto.

Lords amendment 108, and Government amendment (a) thereto.

Lords amendment 109, and Government amendments (a) and (b) thereto.

Lords amendment 145, and Government amendment (a) thereto.

Lords amendment 184, Government amendments (a) and (b), amendment (e), Government amendments (c) and (d), and amendment (f) thereto.

Lords amendment 6, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendments 1 to 5 and 7 to 25.

Lords amendment 26, and amendment (a) thereto.

Lords amendments 27 to 77.

Lords amendment 27, and Government consequential amendment (a).

Lords amendments 79 to 92, 95 to 97, 99 to 106 and 110.

Lords amendment 111, and amendment (a) thereto.

Lords amendments 112 to 144, 146 to 183 and 185 to 191.

Stuart Andrew Portrait Stuart Andrew
- Parliament Live - Hansard - - - Excerpts

I must start with a reminder of where this journey started: 72 people lost their lives in the Grenfell Tower tragedy, which was the largest loss of life in a residential fire since the second world war. All our thoughts are with those families who have lost loved ones. The Government are determined to ensure that such a tragedy never happens again.

I thank the Members of this House, noble Lords, cladding groups and industry stakeholders who have worked tirelessly on this landmark legislation. I remind Members that the Bill not only creates an improved building safety regulatory system but protects leaseholders, who have become victims in the building safety crisis. We have stuck to my right hon. Friend the Secretary of State’s principles on building safety, which are that we must make industry pay to fix the problems for which it is responsible; protect leaseholders; and restore common sense to the assessment of building safety risks, thereby speeding up the fixing of the highest-risk buildings and stopping buildings being declared unsafe unnecessarily .

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Hansard - - - Excerpts

I accept that a lot of what the Minister is saying is correct—that those who are responsible should pay and leaseholders should not—but he missed out one group that has been particularly affected by Grenfell: social housing tenants. Why is the Minister not prepared to offer them the same financial support as he is giving to leaseholders?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

We continue to review all these matters. We are looking at and consulting on the whole of the affordable housing and social housing policy area, and we will come back to ensure that we get it right.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
- Hansard - - - Excerpts

The Chairman of the Levelling Up, Housing and Communities Committee—the hon. Member for Sheffield South East (Mr Betts)—and I have been involved in the prelegislative scrutiny of the Bill and the whole process behind it. Is my right hon. Friend the Minister saying that not only can we pass the Bill today with the Government amendments but he will continue to look to revise the law and to embrace more people in the law through secondary legislation?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

The Building Safety Regulator will continue to make sure that all building safety regulations are adhered to. Mention has been made of social housing tenants, social housing and affordable housing; we will consult on that further down the line so that we can be absolutely sure we have got this right. I hope that reassures my hon. Friend.

On 13 April, my right hon. Friend the Secretary of State wrote to Members to update them on the progress in the negotiations with industry. We will now see the vast majority of developers fix all the buildings that they had a role in developing or refurbishing in the past 30 years. My right hon. Friend announced last week that, in addition to the existing building safety fund, the Government will establish a new cladding remediation scheme, funded by industry contributions, to cover all other unsafe residential buildings of 11 to 18 metres that contain private leasehold properties but a developer has not accepted responsibility for fixing them or cannot be identified.

Stephen Doughty Portrait Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
- Hansard - - - Excerpts

I thank the Minister for what he is saying. He will be aware that I have had significant issues in my constituency, with many affected developments. In respect of the Celestia development in particular, there have been long-standing challenges in getting answers to the questions that residents are asking. Redrow wrote to the Secretary of State to say that it will now take responsibility for paying, but it has not made clear whether that applies to Wales—the letter refers only to England. Will the Minister clarify whether he understands that such commitments are going to be UK-wide, given that it is a UK-wide issue? If they are not, what pressure will he put on Redrow to make sure that that commitment applies to Wales as well?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I do not know the specifics, to be really honest with the hon. Gentleman. He will know that I have picked this issue up lately, and if he does not mind, I will come back to him with a definitive answer.

The leaseholder protections that were introduced in the other place put our commitments into law. Qualifying leaseholders—defined as those living in their own homes or with up to three UK properties in total in buildings that are above 11 metres or five storeys—will be legally protected from all costs associated with the remediation of unsafe cladding, as will all leaseholders in buildings owned by or associated with the developer. Leaseholders in buildings above 18 metres are already protected by the Government’s £5.1 billion building safety fund for the removal of unsafe cladding. It is the Government’s expectation that developers will pay to fix buildings that they had a role in developing or refurbishing.

John Redwood Portrait John Redwood (Wokingham) (Con)
- Hansard - - - Excerpts

Has it been possible to trace any foreign companies or foreign interests that are involved in these matters? Will they be making their contribution?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

My right hon. Friend raises an important point. I shall address that specific point later in my speech.

Stephen McPartland Portrait Stephen McPartland (Stevenage) (Con)
- Hansard - - - Excerpts

The Minister has been a breath of fresh air since he has come to the Department, and the discussions have been very productive. Will he clarify from the Dispatch Box that for leaseholders in buildings under 11 metres, who currently have no protections, the Department would be willing to look at those buildings on a case-by-case basis if support was needed?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

My hon. Friend has invested a considerable amount of time in his campaign and I have enjoyed the opportunity to have those discussions with him. I will come to that point shortly, but yes, as a Department we will deal with those buildings on a case-by-case basis. I shall give more details as to why we have come to that conclusion.

We are protecting qualifying leaseholders from costs associated with non-cladding defects, including interim measures such as waking watches. Building owners and landlords will be prevented from passing on the costs to fix non-cladding defects if they are linked to, or are, the developer.

While the Bill was in the other place, the Government made a number of amendments to it that will restore fairness to the system and help those who have been unfairly impacted by building safety issues. I know that many Members wish to speak, so I do not propose to go through each of the amendments made in the other place. The Bill now not only provides for a new regulatory regime but provides an extensive set of tools, in law, to ensure that those who bear the responsibility for defects are made to pay and to protect leaseholders from crippling bills for historic defects. In response to concerns expressed by Members in both Houses and by stakeholders, we have changed how the building safety charge works and removed the legal duty to appoint a building safety manager.

Royston Smith Portrait Royston Smith (Southampton, Itchen) (Con)
- Hansard - - - Excerpts

The EWS1 form, which was brought about by the Royal Institution of Chartered Surveyors, has caused many problems for people trying to sell their properties. We now have PAS 9980, which will not replace EWS1, but could the Minister say that from his perspective he would rather people look at PAS 9980, as opposed to EWS1?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I pay tribute to my hon. Friend, who has also been heavily involved in all this work. Yes, I can confirm that. I will elaborate later in my speech.

Let me turn now to the Government amendments to the Lords amendments. Lords amendment 94 inserts a clause that sets out the meaning of “relevant building”. The clause defines the categories of buildings to which the leaseholder protection measures apply. The Government originally proposed to apply the leaseholder protection measures to buildings containing at least two dwellings above 11 metres in height, or with at least five storeys. Amendments made in the other place extended the definition of “relevant building” to buildings of all heights containing two or more dwellings. We will take a very dim view of freeholders who seek to exploit leaseholders to pay for unnecessary works. The Department is aware of a handful of low-rise buildings where freeholders have been commissioning such works and we are addressing such buildings, as I said a moment ago, on a case-by-case basis, but we must restore proportionality to the system. That is why the Government do not agree with the extension of the scope of leaseholder protections to include buildings under 11 metres. There is no systematic risk of fire with buildings below 11 metres. Low-rise buildings are therefore unlikely to need costly remediation to make them safe. Lower-cost mitigations such as fire alarms are likely to be far more appropriate and proportionate. Assessments carried out in accordance with the new PAS 9980 principles should produce more proportionate responses than costly and, ultimately, unnecessary remediation. The Government have been clear in their view that an EWS1 form should not be required for buildings below 18 metres in height.

Stephen Doughty Portrait Stephen Doughty
- Hansard - - - Excerpts

I thank the Minister for his generosity in giving way again. What is his advice to leaseholders who believe that they have been wrongly charged for unnecessary works, or works that are not actually required in the way that he is describing? Many residents have raised concerns with me about what has been put forward and whether it was actually required. What should they do? What is the Minister’s practical advice?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

My door is always open, so if the hon. Gentleman wants to raise specific cases with me I would be more than happy to take them up and make sure that we get relevant answers for him.

Freeholders and landlords should not be commissioning costly remediation in buildings below 11 metres except in exceptional circumstances, which is where there is no more proportionate option available. They certainly should not be pointing to old EWS assessments to justify those costs. Given the small number of buildings involved, a blanket legislative intervention bringing hundreds of thousands more buildings into scope to deal with an issue affecting just a handful of buildings would be entirely disproportionate. The Government amendments therefore reinstate the definition of “relevant building” as one that is at least 11 metres, or five storeys in height, and contains at least two dwellings.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
- Hansard - - - Excerpts

I am extremely grateful to the Minister for giving way. In respect of the point that he has just made, have the Government made an estimate of the number of residential buildings below 11 metres where there may be a case for extensive remediation works? I am just trying to follow the logic of the Government’s position. They say that there is not really a problem with buildings below 11 metres, which is why they do want to include them, but if there is not a problem, surely the Government would not be having to do much in respect of those buildings, because there are very few of them—so the Minister says.

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

The issue is the proportionate measures that can be made in those buildings to ensure that they are safe. We want to make sure that we get this right, and we will be continuing to look at all of these. If the building safety regulator assesses that further work needs to be done, or that the Government need to look at what needs to be done, we will absolutely make sure that we do that, and I make that commitment to the House.

Daisy Cooper Portrait Daisy Cooper (St Albans) (LD)
- Parliament Live - Hansard - - - Excerpts

On that specific point, I am grateful that the Minister has said that he will look at this issue of buildings below 11 metres. As part of that, will he commit to focus especially on those buildings where there are many vulnerable residents—whether that is care homes, shelter buildings or perhaps even schools where there are children with special educational needs or disabilities who might find it harder to escape buildings? Will he commit to look specifically through that lens of risk to the vulnerable adults in those buildings?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I am grateful to the hon. Lady for her engagement, too. She raised this important point with me yesterday. Yes, absolutely, we have officials looking at that, but also, as I have said, the Building Safety Regulator will be assessing buildings such as those. If this becomes an area that needs further consideration, we will look at what measures need to be introduced.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

Will the Minister give way?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I will take one more intervention and then I must progress.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

I thank the Minister for giving way. He is being very generous, but these are important and quite complicated issues. There is a general welcome for the Government’s attempts to take a more proportionate approach and for moving away, albeit over a period of time, from EWS1 forms to PAS 9980, which can cover whole blocks rather than individual properties. The two questions that the Select Committee has not had answers to are, first, whether the Government will look at making the building regulator responsible for deciding which blocks need this new assessment rather than the building owners, who might have a particular interest in saying no; and, secondly, whether he will ensure that the professional indemnity insurance scheme also applies to assessors on the PAS 9980 assessments as well as to those on the EWS1 forms?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I know that the Department has been considering much of the Select Committee’s excellent work. We have moved a long way from the initial reports, and the responses will be going back to the Committee. Yes, I will take that away with me if the hon. Gentleman will allow, and I will write to him to give him further details.

Let me move on now to collectively enfranchised and commonhold buildings. The Government’s original proposal included an exemption from the leaseholder protection provisions to leaseholder-owned buildings—those in which the leaseholders have collectively enfranchised and those which are on commonhold land.

In a collectively enfranchised building, the freehold is owned by some or all of the leaseholders, so there is no separate entity with which the costs can be shared. The leaseholders are the freeholders. The amendments made in the other place seek to apply the protections to these buildings. The Government recognise that the amendments are well intentioned and driven by a desire to protect these leaseholders, and they share these aims. However, I must emphasise to the House that these amendments will not have the intended effect of protecting leaseholders living in those buildings. Those leaseholders who have enfranchised would still have to pay—but in their capacity as owners of the freehold rather than as a leaseholder. Indeed, it could make things worse. Where some leaseholders have chosen to enfranchise and others have not, the enfranchised leaseholders would have to pay for remediation of the whole building in their capacity as owners of the freehold—including the share of remediation costs that would otherwise have been recoverable from those leaseholders who have not enfranchised, once they have paid up to any cap. That is why the Government amendments reinstate the exemption for leaseholder-owned buildings. Enfranchised buildings are eligible for the £5.1 billion building safety fund in the same way as other buildings.

The other protections that we have introduced will also apply. The recent commitment from many developers to fix their own buildings will apply equally to enfranchised buildings, and the measures and powers that we have added to the Bill to pursue and compel developers and cladding manufacturers to pay will be available. I know that Members will still be concerned about how we can protect leaseholders in leaseholder-owned buildings, which is why I am announcing today that the Government will consult on how best leaseholders in collectively enfranchised and commonhold buildings and other special cases can be protected from the costs associated with historical building safety defects. The consultation will allow the Government to understand fully the position regarding leaseholder-owned buildings with historical defects and identify whether further measures are appropriate to address specific circumstances in which leaseholders may unintentionally be exposed to disproportionate costs.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
- Hansard - - - Excerpts

I am grateful to the Minister for giving way. He has, to some degree, covered the concerns that I was going to raise about those people who have exercised the right to manage. Yesterday, in a letter to us, he and the Secretary of State acknowledged that Lords amendment 117 identified a real problem. Frankly, at this stage, a consultation will give very little comfort, but could he try to assure leaseholders in that position by saying how long that consultation will be undertaken and when they might expect some conclusion?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I appreciate the hon. Gentleman’s point. I want to ensure that we get the consultation under way as quickly as possible. I accept that people have deeply held concerns, so we will do our best to get that done speedily, but we do need to consult. We need to get the evidence and know exactly what the picture is, in order to know how best to deal with that situation.

Lords amendment 184 inserts a new schedule 8, titled “Remediation costs under qualifying leases”. It sets out the circumstances in which costs cannot be passed on to leaseholders. The Government’s original proposals set out that where the building owner is, or is linked to, the developer or can afford to meet the costs in full, they would be prevented from passing costs on to leaseholders.

It is worth stressing just how wide these proposed protections are. If a building is still linked to the developer, that building owner and the landlord will be liable for the costs associated with non-cladding defects and their leaseholders will pay nothing. If the building owner or landlord is not linked to the developer, but has the wealth to meet the costs in full, their leaseholders will pay nothing. If a leaseholder property is valued at less than £175,000, or £325,000 in London, the leaseholder will pay nothing and, if the leaseholder has already met interim costs that exceed the contributions cap, they will pay nothing.

Based on that “waterfall”, the Government’s assessment is that the vast majority of leaseholders would pay less than the caps and many would pay nothing at all. However, it is important to remember that not all landlords are evil. Where the building owner or landlord is not at fault, where they have no link to the developer who created those defects and they do not have the wealth to meet the remediation costs in full, and only in that situation, we propose that leaseholder contributions towards non-cladding defects can be recovered, subject to the fixed caps.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
- Hansard - - - Excerpts

I apologise for not being able to be here since the beginning of the debate as I was at the rally with leaseholders.

Does the Minister agree that there is a conflict of interest issue? As I have seen in my constituency, which has many cladded buildings, it is often freeholders who do the assessments, which therefore do not have the necessary independence or checks and balances. Does he agree that it is worth having a building works agency, as Labour proposes, with independent assessors to do the work, so that residents can have confidence that there will be no more attempts to find ways to pass on the costs to leaseholders? We have had three fires in my borough since Grenfell, and it is vital that freeholders take the responsibility rather than passing on the bill.

--- Later in debate ---
Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

The hon. Lady is absolutely right. Freeholders must ensure that their buildings are safe. We will have responsible people associated with each of those buildings to ensure that all the regulations are adhered to. The Building Safety Regulator will also ensure that buildings are safe. As ever, we want to learn as this process goes on, and I would be keen to continue to have dialogue with her as we progress with this.

Ben Spencer Portrait Dr Ben Spencer (Runnymede and Weybridge) (Con)
- Hansard - - - Excerpts

My hon. Friend is being very kind with his time. On the point about the building cost thresholds, he will know that the London median house price is £515,000, but in Runnymede and Weybridge it is £475,000. In fact, house prices in my constituency are higher than or equal to those in 25 London constituencies. Many of my constituents will be adversely affected but will not get the same benefit as those in London, despite having equivalent or higher house prices. As he reviews the policy going forward, will he consider looking at house prices on a regional basis, as opposed to inside London versus outside London, which negatively affects constituents such as mine?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I thank my hon. Friend for raising that important point. He will be aware that we are trying to avoid any leaseholders having any contributions to make at all. The first port of call will always be the people who developed the building in the first place. I hope to come on a bit later to the valuation of properties, which might address some of his points.

Importantly, we proposed that those leaseholder contributions be subject to a firm cap and that costs paid out in the past five years count against the caps. The Government originally proposed that leaseholders’ contributions be capped at £10,000, or £15,000 in Greater London, and we believe that creates a fair balance. It is the Government’s assessment that the vast majority of leaseholders would pay less than the caps, and many would pay nothing at all. None the less, the other place voted to reduce leaseholders’ capped contributions to zero. I am afraid the Government cannot accept the amendments.

We believe that in those circumstances, setting the cap on leaseholder contributions to zero is not a proportionate approach. Placing the entire burden on freeholders and landlords in circumstances where they are not at fault and are not wealthy will only increase the risk that remediation that is needed to ensure that residents are safe will not happen at all. We are therefore restoring the caps at £10,000 outside London and £15,000 in London, as originally proposed, and have made a small number of other technical improvements to those measures.

Mike Penning Portrait Sir Mike Penning (Hemel Hempstead) (Con)
- Hansard - - - Excerpts

I welcome the Minister to his position on this very interesting Bill that is going back and forth. The one group of people who took the money right at the start for the developers and builders was the insurance companies. The developers could not have built those properties without having the legal protection of insurance. Sadly, the Minister has not mentioned the insurance companies once in this situation, but that is where the burden should fall, instead of on the leaseholders. Does he agree?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

Actually, the responsibility lies with those who built the building defectively in the first place. They are the ones we are chasing. I pay tribute— I should have said this right at the beginning—to officials in the Department, who have worked incredibly hard to get this new package of measures from the developers in place. It has not been an easy task, but they have done it with great passion and have been incredibly successful. As I say, it is the developers who should be paying, and we expect a minimal number of leaseholders to pay.

Royston Smith Portrait Royston Smith
- Parliament Live - Hansard - - - Excerpts

I am grateful to the Minister for giving way. I know he wants to get on. On insurance, which has been my bugbear as well, it is not just that many of the insurance companies insured the development beforehand, and therefore provided a warranty of sorts, but that since then they have increased premiums on leaseholders, sometimes by more than 1,000%. Does he have something to say about that particular activity from insurance companies?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

Yes. My right hon. Friend the Secretary of State has asked the Financial Conduct Authority to look at that, because it is an area of great concern. I hope to update the House on further progress in the near future.

Turning to Government amendment (a) in lieu of Lords amendment 6, the Government have accepted the principle of the Lords amendment, requiring the Building Safety Regulator to conduct a series of safety reviews. We believe the new version provides clearer drafting and a more practical and pragmatic approach. The amendment inserts a new clause that increases the time available to the regulator from two years to three, reflecting the time needed for the regulator to develop the capacity to carry out those reviews alongside all its other functions.

The new clause aligns the reviews with building regulations to address safety issues, focusing on the costs and benefits of measures to improve safety. It sets specific priorities for the regulator to review while fulfilling its duty under clause 5 to keep,

“the safety of people in or about buildings”,

under review. The scope remains true to the intent of the original amendment, and it is important to assure hon. Members that the reviews will be conducted within the principle of proportionality placed on the operation of the regulator’s building functions by this Bill.

I now turn to a number of technical improvements that the Government are proposing to Lords amendments. Lords amendment 93 inserted a new clause called “Remediation of certain defects”, which provides an overview of the leaseholder protection measures contained within the Bill. Government amendments (a) and (b) to Lords amendment 93 make two minor and technical amendments to that new clause.

The first amendment, to leave out “under qualifying leases” at line 12, is a minor and technical amendment to reflect that some of the protections in schedule 8 apply to leases that are not qualifying leases. When the landlord is, or is linked to, the developer they will not be able to pass costs on to any leaseholders in the building, including non-qualifying leaseholders. The second amendment, at line 23, is a minor and technical drafting change.

I now turn briefly to Government amendments (a), (b) and (c) to Lords amendment 93 regarding trusts. I must take this opportunity to pass on my appreciation to the noble Lord Young of Cookham and Lord Blencathra, who raised this matter through their work in the other place. I acknowledge the concerns raised about the use of trusts and how their misuse could undermine vital leaseholder protection provisions. The Building Safety Minister, my noble Friend Lord Greenhalgh, committed on Report in the other place to consider this further. Government amendments (a), (b) and (c) amend clause 120 to ensure that a body corporate or a partnership can be regarded as associated with another if they are the beneficiary of a trust that has an interest in a relevant building. In other words, the existence of a trust will not enable a group of companies to evade their responsibilities under the leaseholder protections. We have also inserted wording into clause 130 so that beneficiaries of trusts can be considered for building liability orders—that is, can be required by the High Court to contribute to remediation. The remaining amendments to Lords amendments 107, 108 and 190 are consequential to the amendments I have described.

--- Later in debate ---
Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

The hon. Gentleman is right that it would not be appropriate for me to speak on behalf of the Welsh Government, and I do not think they would like that either. What is important is that all buildings across the United Kingdom are safe. I hope that we will all learn from each other to ensure that we achieve that objective, because the safety of the residents is paramount in this instance.

I hope that hon. Members will welcome all the changes that the Government have made, which I firmly believe address the key concerns that have been raised in Parliament. It is in all our interests to see this crucial Bill become law as quickly as possible. I hope that all hon. Members across the House will support the Government amendments, and look forward to seeing the Bill implemented so that we can get these buildings into a safe position and give the residents the reassurance that they need.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
- Parliament Live - Hansard - - - Excerpts

I call shadow Minister Matthew Pennycook.

--- Later in debate ---
Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
- Hansard - - - Excerpts

I call the Minister, Stuart Andrew.

Stuart Andrew Portrait Stuart Andrew
- Parliament Live - Hansard - - - Excerpts

Once again, I thank all hon. Members for their contributions. They have raised lots of very serious points and questions and have clearly demonstrated a long-standing commitment not only to their constituents, but to this wider issue. I am grateful to right hon. and hon. Members for acknowledging that this piece of legislation is vastly different from what it was, and I apologise to the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), for the necessity, I suppose, of the late amendments that we tabled. I hope that he agrees, however, that it is important for us to get the Bill on the statute book, and to start the process of making sure that people feel safe in their home. I was particularly struck by some of the contributions from my hon. Friends who mentioned that. I also thank all those who have been involved in campaigns; they have shown how hard-working campaigners can make a considerable contribution on a very serious issue such as this.

I will start by responding to some of the amendments that the hon. Member for Sheffield South East (Mr Betts) tabled. I thank him and the Levelling Up, Housing and Communities Committee for their prelegislative scrutiny of the Bill and their tireless scrutiny of the Government’s response since the fire at Grenfell Tower.

Amendment (e) to Lords amendment 184 states that no

“service charge is payable under a qualifying lease”

where the landlord is either a private registered provider of social housing or a local authority. It provides that funding to meet the costs concerned would come from the levy set out in clause 57. I reiterate the Government’s commitment to protecting leaseholders, but we will not be able to support the amendment. We are clear that those responsible for creating historical building safety defects need to pay to put them right. That principle should apply equally where the party responsible is a social housing provider or local authority. Social housing providers will not be subject to provisions that stipulate that building owners and landlords with a net worth of more than £2 million per in-scope building must pay all in-scope remediation costs. They will be required to pay in full only where they were involved in developing the building.

We are also introducing an ambitious toolkit of measures to allow those directly responsible for defective work to be pursued. Those measures include an extension to the limitation period under the Defective Premises Act 1972 to 30 years; a new course of action relating to product manufacturers; and provisions removing the protections afforded by special purpose vehicles and shell companies. We have been working closely with social housing providers to help them to understand the impact of these changes.

Amendment (f) to Lords amendment 184 provides that where

“the freeholder of a building is a local authority”,

remediation costs will be paid “in the first instance” by the developer of the building and otherwise through the levy set out in clause 57. Again, the Government will not be able to accept the amendment because developers are already expected to remediate their buildings, and as we have announced, developers have signed our pledge to commit to do that. We are also introducing the ambitious toolkit that I mentioned.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

I entirely accept that developers have promised to do what the Minister described, but what happens when developers have gone out of business and cannot do that? Where does that leave the social housing landlord?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I committed earlier to continuing to work on the whole area of social housing, and I assure the hon. Gentleman that I am keen to deliver the ambitious affordable housing programme that we have announced. I do not want to see that affected in any way, so it is in my interest to ensure that we do everything we can in this area. I commit to our doing that.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

Will the Minister accept an invitation to come to the Levelling Up, Housing and Communities Committee in due course to investigate the areas that are not currently covered?

--- Later in debate ---
Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

How could I possibly refuse?

Bob Blackman Portrait Bob Blackman
- Hansard - - - Excerpts

I apologise for taking part in a bit of a pincer movement on the Minister. He mentioned the 30-year rule; there will be developers who say, “We built under the regulations that existed over those 30 years.” Are we going to say to those developers, “No. As a result of fire safety issues, you must remediate those buildings in line with the regulations that are now in place, not those that existed 30 years ago”?

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

Yes. I think I am correct in saying that. Yes, I am; I have just double-checked.

Colleagues have mentioned the 11-metre rule, and I reiterate that they should please write to my Department if they are aware of buildings under 11 metres that are facing costly remediation. We are clear that costly remediation should not be undertaken on buildings under 11 metres, and we would be glad to look into specific cases and to question freeholders on why they are insisting on commissioning costly and unnecessary remediation works.

In answer to my hon. Friend the Member for Worthing West (Sir Peter Bottomley), let me say that we are retrospectively extending the limitation period under section 1 of the Defective Premises Act. The duty under the Act applies to those taking on work in connection with the provision of a dwelling, which includes architects and contractors whose actions have contributed towards defects, as well as developers.

Peter Bottomley Portrait Sir Peter Bottomley
- Hansard - - - Excerpts

As I understand it, the difficulty is that a claim would need to be made on behalf of leaseholders by their landlord, who would insist on indemnity funding. The Minister and his advisers should get together with the Law Officers to find a practical way to ensure that claims to have a prospect of getting people to pay up, rather than people trying to resist. After Tony Pidgley sadly died, the new bosses resisted paying up to put right the defects in the Worcester Park block. That situation needs to be challenged.

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

It is always wise for a Minister answering the Father of the House to take his sage advice, and of course I will speak to my officials.

The hon. Member for St Albans (Daisy Cooper) asked about valuations. I am aware there has been a discussion about how the Bill proposes to assess the value and banding of individual flats. The process set out in the Bill—further detail will be set out in regulations—takes the last price at which a flat changed hands, which will be recorded at the Land Registry, and uprates it in line with the national house price data produced by the Office for National Statistics. We recognise that this may produce a value that differs from the flat’s current market value, but we are using this approach for two specific reasons. First, it uses publicly available data and so avoids any potential for gaming the system. Secondly, it avoids the need to value a large number of flats individually, which would likely be both expensive and time-consuming and could delay the needed changes and improvements to those properties.

Daisy Cooper Portrait Daisy Cooper
- Hansard - - - Excerpts

Notwithstanding the Minister’s explanation that the valuation might not meet today’s market value, which he also gave to me yesterday, does he accept that, precisely because the starting point is the most recent sale price, the owner of a flat might have to pay up to the cap to get remediation done, whereas the owner of the identical flat next door in the same block might not because the two flats sold at different times for different sums of money? That is simply not fair.

Stuart Andrew Portrait Stuart Andrew
- Hansard - - - Excerpts

I recognise the hon. Lady’s point, and I have committed to coming back to her after we have done further work in this area.

I am conscious that there will be a large number of Divisions in a moment, so I reiterate my thanks to hon. Members on both sides of the House. This is an incredibly important issue, and I am aware that my Department has a great responsibility to get it right. I hope that the direction set by the Secretary of State shows that we are determined to get it right for people who have been living in these worrying circumstances for too long.

Amendment (a) made to Lords amendment 93.

Amendment (b) made to Lords amendment 93.

Lords amendment 93, as amended, agreed to.

Before Clause 117

Meaning of “relevant building”

Amendment (a) proposed to Lords amendment 94.—(Stuart Andrew.)

Question put, That the amendment be made.

--- Later in debate ---
15:45

Division 242

Ayes: 316


Conservative: 305
Democratic Unionist Party: 4
Independent: 1

Noes: 188


Labour: 165
Liberal Democrat: 12
Independent: 5
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Conservative: 1
Alliance: 1
Green Party: 1

Amendment (a) made to Lords amendment 94.
--- Later in debate ---
16:01

Division 243

Ayes: 318


Conservative: 308
Democratic Unionist Party: 4
Independent: 2

Noes: 189


Labour: 166
Liberal Democrat: 12
Independent: 5
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Conservative: 1
Alliance: 1
Green Party: 1

Lords amendment 94, as amended, agreed to.
--- Later in debate ---
16:18

Division 244

Ayes: 317


Conservative: 310
Democratic Unionist Party: 4
Independent: 2

Noes: 190


Labour: 164
Liberal Democrat: 12
Independent: 4
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Conservative: 1
Alliance: 1
Green Party: 1

Amendments (c) and (d) made to Lords amendment 184.
--- Later in debate ---
16:35

Division 245

Ayes: 318


Conservative: 311
Democratic Unionist Party: 4
Independent: 2

Noes: 188


Labour: 160
Liberal Democrat: 12
Independent: 5
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Conservative: 1
Alliance: 1
Green Party: 1

Lords amendment 184, as amended, agreed to.

Building Safety Bill

(Limited Text - Ministerial Extracts only)

Read Full debate
Consideration of Commons amendments
Tuesday 26th April 2022

(1 year, 11 months ago)

Lords Chamber
Building Safety Act 2022 Read Hansard Text Amendment Paper: HL Bill 147-I Marshalled list for Consideration of Commons Amendments - (25 Apr 2022)

This text is a record of ministerial contributions to a debate held as part of the Building Safety Act 2022 passage through Parliament.

In 1993, the House of Lords Pepper vs. Hart decision provided that statements made by Government Ministers may be taken as illustrative of legislative intent as to the interpretation of law.

This extract highlights statements made by Government Ministers along with contextual remarks by other members. The full debate can be read here

This information is provided by Parallel Parliament and does not comprise part of the offical record

Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
- Hansard - - - Excerpts

That this House do not insist on its Amendment 6 and do agree with the Commons in their Amendment 6A in lieu.

6A: Page 11, line 7, at end insert the following new Clause—
“Report on certain safety-related matters
(1) Before the end of the period of three years beginning when this section comes into force, the regulator must—
(a) carry out a cost-benefit analysis of making regular inspections of, and testing and reporting on, the condition of electrical installations in relevant buildings;
(b) consider what further provision under the Building Act 1984, or in guidance under that Act, may be made about—
(i) stairs and ramps in relevant buildings,
(ii) emergency egress of disabled persons from relevant buildings, and
(iii) automatic water fire suppression systems in relevant buildings, with a view to improving the safety of persons in or about relevant buildings, and carry out a cost-benefit analysis of the making of that provision.
(2) Before the end of that period, the regulator must—
(a) prepare one or more reports about the analysis mentioned in subsection (1) (which may also contain recommendations), and
(b) give them to the Secretary of State.
(3) The Secretary of State must publish any report received under subsection (2).
(4) In this section “cost-benefit analysis” means—
(a) an analysis of the costs together with an analysis of the benefits that will arise if the things mentioned in subsection (1)(a) are done or the provision mentioned in subsection (1)(b) is made, and
(b) an estimate of those costs and of those benefits (subject to subsection (5)).
(5) If, in the opinion of the regulator—
(a) the costs or benefits cannot reasonably be estimated, or
(b) it is not reasonably practicable to produce an estimate, the cost-benefit analysis need not estimate them, but must include a statement of the regulator’s opinion and an explanation of it.
(6) In this section—
“electrical installation” means fixed electrical cables or fixed electrical equipment located on the consumer’s side of the electricity supply meter;
“relevant building” means a residential building or any other kind of building that the regulator considers appropriate.”
Lord Greenhalgh Portrait The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
- Hansard - - - Excerpts

My Lords, with the leave of the House, I will also speak to Motions B to H.

Here we are again: debating this landmark Bill which will bring forward the biggest changes to building safety legislation in our history. I will turn quickly to the outstanding non-government amendments. Noble Lords, led by the dynamic duo, my noble friends Lord Young of Cookham and Lord Blencathra, extended the definition of “relevant building” to buildings of all heights containing two or more dwellings. As the Government have said on many occasions, we must restore proportionality to the system. That is why we cannot agree to extend leaseholder protections to include buildings under 11 metres. As I have said repeatedly, there is no systemic risk of fire for buildings below 11 metres. Such buildings are extremely unlikely to need costly remediation to make them safe. Despite research and lobbying from a number of areas, the department has been made aware of only a handful of low-rise buildings where freeholders have been commissioning such work, and even fewer where that work was actually based on a proper assessment in line with the PAS 9980 principles.

My right honourable friend the Minister for Housing was clear that leaseholders in buildings below 11 metres should write to my department should they find that their freeholder or landlord is commissioning costly remediation works. I have already intervened directly with building owners and landlords to challenge freeholders, such as in Mill Court, and will continue to do so. Your Lordships can be assured that I will bring my full weight to bear where landlords are looking to carry out works that are not needed or justified. However, given the very small number of buildings involved, it is not appropriate to take forward a blanket legislative intervention and bring hundreds of thousands more buildings into scope. I must point out to noble Lords that doing this could backfire, sending mixed signals and encouraging the market to take an overly risk-averse approach to this class of buildings.

Turning to leaseholder-owned—or collectively enfranchised and commonhold—buildings, the Government’s original proposals included an exemption from the leaseholder protection provisions for leaseholder-owned buildings: those in which the leaseholders have collectively enfranchised, and those which are on commonhold land. Noble Lords agreed an amendment in the names of my noble friends Lord Young and Lord Blencathra—the dynamic duo again—and the noble Earl, Lord Lytton, to remove that exemption.

Those noble Lords will know that I have a great deal of sympathy with their position. I know that the amendment is well-intentioned and driven by a desire to protect these leaseholders, and the Government share those aims. However, as I said on Report, these amendments will not have the intended effect of protecting leaseholders living in those buildings. Those leaseholders who have enfranchised would still have to pay, but in their capacity as owners of the freehold rather than as leaseholders. Worse, where some leaseholders have enfranchised and others have not, the enfranchised leaseholders would have to pay for remediation of the whole building in their capacity as owners of the freehold, including the share of remediation costs that would otherwise have been recoverable from those leaseholders who have not enfranchised, once they have paid up to the cap. This would create the perverse situation where the leaseholder protections result in an increase in liability for those leaseholders who have chosen to collectively enfranchise. That is why the other place agreed to reinstate the exemption for leaseholder-owned buildings. My right honourable friend the Minister for Housing announced last Wednesday that the Government would consult on how best leaseholders in collectively enfranchised and commonhold buildings can be protected from the costs associated with historical building safety defects to the extent as all leaseholders.

Turning finally to the qualifying leaseholder contribution caps, the Government proposed that lease- holders’ contributions should be capped at £10,000, or £15,000 in Greater London. We believe that this approach protects leaseholders, while ensuring that work to remediate buildings can get under way. Noble Lords agreed with the amendment of the noble Baroness, Lady Hayman, to reduce that cap on contributions to zero.

I will not repeat all of the Government’s arguments here, but I want to remind Peers of just how far the Government have come. Leaseholders are fully protected from costs associated with the removal of unsafe cladding. On non-cladding defects, where a developer has signed up to our developer pledge—that is more than 35 developers—they will fix non-cladding defects, as well as cladding defects, in their own buildings, and these leaseholders will pay nothing. If a building owner is, or is linked to, the developer, that building owner will be liable for the costs associated with non-cladding defects, and their leaseholders will pay nothing. If the building owner or landlord is not linked to the developer but has the wealth to meet the non-cladding costs in full, their leaseholders will pay nothing. If a leasehold property is valued at less than £175,000, or £325,000 in London, the leaseholder will pay nothing, and, if the leaseholder has already contributed up to the cap, they will pay nothing. Based on this approach, the Government’s assessment is that the vast majority of leaseholders will pay less than the caps, and many will pay nothing at all.

In relation to safety checks, noble Lords agreed to an amendment that requires the new building safety regulator to look at a number of important safety matters. We have consulted with the HSE and are happy to confirm that we fully accept the principle of this amendment, and the building safety regulator will be happy to take forward these safety reviews. I thank the noble Lord, Lord Stunell, for his passionate advocacy in this area. The Government therefore proposed an alternate version of this proposal, which was agreed in the other place. I hope noble Lords will agree that this provides clearer drafting and a more practical and pragmatic approach. Importantly, we have increased the time available to the regulator from two years to three years. This reflects the time needed for the regulator to develop the capacity to carry out these reviews alongside all its other functions. We have also made a number of technical improvements to the Bill, and I am happy to answer questions while summing up.

Lord Stunell Portrait Lord Stunell (LD)
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My Lords, as the person who has just had his name mentioned, I will start my very brief contribution by saying that there will be noble Lords who have a lot of criticism of what has come back from the Commons, but I am not one of them in respect of Amendment 6A. I am very pleased to see that the Government have responded well to the views that were very strongly expressed by Members of your Lordships’ House on all sides on the importance of tackling these issues. The Minister has come back with an amendment that is longer than the one that we tabled, and he has come back with a period of time that is longer than the one that we suggested. I am delighted with the first, which shows that he has better drafters than I had at my disposal, but I am not so happy about the three years.

However, it is going to be a major step forward if we get these issues of fire suppression, stairways and ramps, electrical equipment and safety, and provision for people with disabilities properly examined and costed, with the regulations coming in front of the House and in front of the Secretary of State. Even if it takes three years, it will be a significant step forward, and I am very pleased indeed to see that it is included in this Bill.

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, it is good to recognise that the Bill has indeed been transformed during its passage through Parliament, but the major transformation point was initiated by the Secretary of State, Michael Gove, when he said that

“leaseholders are shouldering a desperately unfair burden. They are blameless, and it is morally wrong that they should be the ones asked to pay the price.”—[Official Report, Commons, 10/1/22; col. 283.]

I agree, as many others across the House will. Unfortunately, however, the Bill currently does expect some leaseholders to pay. My colleagues and I are asking the Government today to think again.

The Government argue that Article 1 of Protocol 1 of the European Convention on Human Rights ensures a balance of rights between property owners and leaseholders, which in their view means that leaseholders have to pay towards the costs. That is the basis of the Government’s argument for the cap of £10,000 and £15,000. However, that view was comprehensively challenged by my noble friend Lord Marks, whose argument was endorsed fully by the noble and learned Lord, Lord Hope of Craighead, on Report. Senior legal minds in this House agree that it is possible within the ECHR for innocent leaseholders to pay nothing.

This legitimately opens up the opportunity, which must be grasped, for the Government to accept that leaseholders must not pay a penny whatever the height of the building, hence Motion D1 in my name to include buildings under 11 metres so that leaseholders in those buildings do not pay. As the noble Lord, Lord Young of Cookham, rightly reminded us, a building under 11 metres has been destroyed by fire in under 11 minutes. We really need to think again about those buildings under 11 metres. However, I thank the Minister for the assurances he has given to those leaseholders in buildings under 11 metres at the Dispatch Box today and for urging them to get directly in contact with him if they get any invoices for remediation works. I am sure I will be holding him to account on that one, as will the leaseholders, and I am sure they will get in touch with us across the House to make sure that they do not pay. They must not.

What I do know is that the Government need to think again about the leaseholder cap. My Motion H2 reduces the cap back to zero, where it should be. I remind the House of the commitment by Secretary of State Michael Gove that leaseholders should not be paying the cost incurred as the result of the sometimes deliberate actions of others. The Minister himself has acknowledged tonight that some leaseholders will still pay, when we agreed in January at the very start of this great transformation that they are blameless and it is morally wrong that they should have to be the ones to pay the price. We have looked after many leaseholders but not all.

Obduracy in the face of moral right is a failure of political leadership. We on the Liberal Democrat Benches will support the noble Baroness, Lady Hayman of Ullock, in her Motion H1 to achieve a degree of improvement to the lot of leaseholders, who have shouldered the burden of anxiety and fear for too long and whose campaigning efforts have achieved so much.

Lord Greenhalgh Portrait Lord Greenhalgh (Con)
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My Lords, I must thank noble Lords for their contributions to this debate. I am not sure; maybe we are close to that point where we can say, “One more heave”. I want quickly to turn to Amendment 94 and Motion D1, the amendment of the noble Baroness, Lady Pinnock, to the Government’s Motion D, where she disagrees with the Government. I explained in my opening speech the reasoning behind our Amendment 94A and I do not propose to repeat my arguments. I simply remind noble Lords that the approach the Government have proposed is sensible. Setting the threshold at 11 metres will help restore proportionality to the system, as also argued by my noble friend Lady Neville-Rolfe, and the Government have committed to consult on how best leaseholders in collectively enfranchised and commonhold buildings can be protected. On timescales, in response to my noble friend, I think we said “soon”. I shall strengthen that and say “as soon as possible”. That is a big concession.

I turn to Motion H1 in the name of the noble Baroness, Lady Hayman, as an amendment to the Government’s Motion H. It would replace a zero cap in a previous amendment with £250 for leaseholder contributions, while Motion H2 in the name of the noble Baroness, Lady Pinnock, disagrees with the Government’s caps.

Motion H1 would make changes to the leaseholder contribution caps in Schedule 8 and reduce them to £250, up from the zero cap in her previous amendment. Motion H2 disagrees with the Government’s Motion and would return the caps to zero. As I said in my opening speech, the Government have been clear that setting the leaseholder contribution caps to zero or to a nominal level, such as £250 or £25 a year for 10 years, would not be a proportionate approach. I reiterate the Government’s commitment to protecting leaseholders. Indeed, it is hard to overstate how far-reaching our proposed protections are. They represent a hugely significant and robust improvement on the existing position for leaseholders.

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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendment 78A.

78A: Clause 114, page 119, leave out lines 14 and 15.
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendments 93A and 93B.

93A: Line 13, leave out “under qualifying leases”
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendment 94A.

94A: Line 7, at end insert “and—
(a) is at least 11 metres high, or
(b) has at least 5 storeys.
This is subject to subsection (2A).
“Relevant building” does not include a self-contained building or self- contained part of a building—
(a) in relation to which a right under Part 1 of the Landlord and Tenant Act 1987 (tenants’ right of first refusal) or Part 3 of that Act (compulsory acquisition by tenants of landlord’s interest) has been exercised,
(b) in relation to which the right to collective enfranchisement (within the meaning of Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993) has been exercised,
(c) if the freehold estate in the building or part of the building is leaseholder owned (within the meaning of regulations made by the Secretary of State), or
(d) which is on commonhold land.”
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendments 98A, 98B and 98C.

98A: Line 6, leave out “(2)” and insert “(1A)”
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendments 107A, 108A, 109A and 109B.

107A: Line 17, leave out “an associate of” and insert “associated with”
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendment 145A.

145A: Line 1, leave out “4,”
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Moved by
Lord Greenhalgh Portrait Lord Greenhalgh
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That this House do agree with the Commons in their Amendments 184A, 184B, 184D and 184D.

184A: In paragraph 2(4) of that Schedule, in the definition of “relevant landlord” after “lease” insert “at the qualifying time”
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20:34

Division 8

Ayes: 187

Noes: 209