The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
On 30 January 2023, the Government published the developer remediation contract and gave an initial cohort of developers six weeks to sign it. The deadline expired yesterday and I wish to share the responses.
I can today confirm that 39 developers have signed the contract. A list of those developers has been published on gov.uk. These developers represent a substantial proportion of our housing market. By signing the contract, they have irreversibly committed to fixing at least 1,100 buildings at a cost to themselves of more than £2 billion.
The contract gives effect to the self-remediation pledge that the largest house-builders signed last year. It requires signatories to fix all life-critical fire-safety defects in all buildings in England over 11 metres that they had a role in developing or refurbishing. It also requires them to reimburse the taxpayer where Government funds have already paid for remediation, with that money being used to make other buildings safe faster.
I wish to place on the record my appreciation for the lengths that developers have gone to to agree this contract, and the significant commitments that it entails. It is a testament to the sense of responsibility that I know is felt throughout the industry. It also reflects the determination that we all share to protect leaseholders from unjust costs. In that spirit, we will of course monitor the performance of obligations under the contract. These will begin with their informing leaseholders that they have accepted responsibility for buildings, and set out timescales for work to commence.
A total of 11 eligible developers that were invited to sign the contract have not yet done so. Some have asked reasonable questions about the arrangements for payments. Others have simply not got themselves organised, have failed to engage in time, or have not arranged their internal governance in good time. In accordance with provisions in the Building Safety Act, the Government will publish further information next week on how developers will be prohibited from commencing or completing developments in England, unless they sign and adhere to the contract. Regulations will, with Parliament’s consent, establish the responsible actors scheme and set out the criteria for membership. Developers who do not sign the contract will be ineligible to join the scheme, and subject to the prohibitions. A list of developers that are yet to sign the contract has been published on gov.uk today.
The signing of this contract by so many developers is an acceptance of their share in our collective responsibility for building safety and brings us closer to resolving the issue for leaseholders and tenants.
Let me take this opportunity, once again, to apologise to those leaseholders, and others, who have waited so long for this work to be done. While there is still much to do, I hope that today does show that your campaigning has not been in vain.
The Government will continue to remove dangerous cladding from buildings whose developers have not signed the contract or cannot be traced, using its building safety funds.
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