Wednesday 21st July 2021
(3 years, 4 months ago)
Commons ChamberBuilding Safety Act 2022 View all Building Safety Act 2022 Debates Read Hansard Text Watch Debate
The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)
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.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Will the Secretary of State give way?
Robert Jenrick
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.
Dr Fox
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
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
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
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—
Several hon. Members rose—
Madam Deputy Speaker
I thank the hon. Gentleman for that point of order. Would the Secretary of State care to clarify the matter?
Robert Jenrick
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.
Madam Deputy Speaker
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?
Madam Deputy Speaker
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
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 (Glasgow South West) (SNP)
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
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 (Strangford) (DUP)
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
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 (Leeds Central) (Lab)
Will the Secretary of State give way?
Robert Jenrick
I will give way to the right hon. Gentleman, and then I must make some progress.
Hilary Benn
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
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.
Ms Karen Buck (Westminster North) (Lab)
Will the Secretary of State give way?
Robert Jenrick
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.
Mr Clive Betts (Sheffield South East) (Lab)
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
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.
Ms Buck
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
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.
Sir Peter Bottomley (Worthing West) (Con)
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
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.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
Will the Secretary of State give way?
Robert Jenrick
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.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Will the Secretary of State give way?
Robert Jenrick
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.
Robert Jenrick
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
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.
Madam Deputy Speaker
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
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.
Mr Betts
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
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.
Robert Jenrick
I will, and then I would like to conclude my remarks.
Meg Hillier
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
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.
Several hon. Members rose—
Lucy Powell
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
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
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.
The Minister for Housing (Christopher Pincher) [V]
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.
Mr Deputy Speaker (Mr Nigel Evans)
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.