Building Safety Bill

Debate between Baroness Hayman of Ullock and Lord Blencathra

Consideration of Commons amendments
Tuesday 26th April 2022 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for the constructive amendments that the Government have tabled at this stage and for listening to the noble Lords, Lord Young and Lord Blencathra, who have been very helpful during the passage of the Bill. However, there are still concerns outstanding, as has just been said, so I will speak now to my Motion H1 as an amendment to Motion H.

We on these Benches have consistently argued that all leaseholders should be protected from the cost of remediating historical cladding and non-cladding defects and the associated secondary costs, irrespective of circumstance. Although we fully acknowledge that the waterfall system set out in Schedule 8 provides leaseholders with a far greater deal of protection than was proposed when the Bill first came to us, when it was originally drafted, it does not protect all of them fully. Just as importantly, the Bill does not provide redress for the countless blameless leaseholders across the country who have already been hit with huge bills and have paid out significant sums as a result.

That is why I have tabled Motion H1 to reduce leaseholder contributions to a maximum of £250. I am aware that the Government have said that leaseholder contributions are fair in principle because they will apply in only a very limited number of cases. The Minister has said that leaseholders will pay up to the cap or a proportion of the cap in only a minority of circumstances. However, if it is only a very small number of cases that we are talking about, why are the Government so reluctant to provide proper and full support? For many people, £15,000, or £10,000 as the cap currently stands, is simply an impossible sum to find.

Leaseholders have refused to give up. They recognise more than anyone that the situation they face is simply not fair, and your Lordships’ House recognised that by supporting the amendment that I tabled on Report. I ask for noble Lords’ continued support in agreeing Motion H1 and, in so doing, to acknowledge the determination and persistence of the leaseholders and cladding groups that have been pressing for redress in this matter.

In sticking rigidly to the position that a minority of leaseholders will have to pay sums that, although capped, are still significant, in order to resolve a scandal that they played no part in causing, we believe that the Government are not acting equitably and will not ensure that the most vulnerable leaseholders will be protected. Our Motion H1 would provide such protection. If the Minister is unable to accept it, we will seek to divide the House, with a view to ensuring that all leaseholders are fully protected.

[Lord Blencathra (Con)]

My Lords, I apologise to the House for missing the first two minutes of my noble friend’s magnum opus; the last business went slightly faster than I had anticipated. I declare a personal interest as a leaseholder in a block of flats that may contain some non-cladding works that may require remedial treatment.

I have to praise my noble friend the Minister yet again for the tremendous changes that have been made to the Bill since it came from the other place. I also congratulate my right honourable friend Michael Gove on forcing all the big building companies to sign up, including bringing the Galliard Homes horse kicking and neighing to the water, although he will need to ensure that it and the other companies actually drink the water—they will throw millions at lawyers to weasel out of what they have signed up to.

I am told that the owner of Galliard Homes, Stephen Conway, has accused Michael Gove of acting like Al Capone and the mafia. My respect for young Gove increases by the minute. Conway had an estimated worth of £270 million in 2015; imagine what he is worth now. It seems to me that the owners of the big building companies have made their billions by being a bit more ruthless mafiosi than Michael Gove ever was. However, that is for another day.

Despite the excellent progress on the Bill, there are still some gaps. I regret that we do not have anything specific in the Bill protecting enfranchised leaseholders. All Governments have encouraged leaseholders to buy out the freehold. Those who have done so are still exactly the same as other leaseholders who have not, and they should get the same protection. I welcome the consultation but I hope it is speedy, and I hope that, if legislation is necessary or this can be done by regulation, that is brought in as quickly as possible.

I acknowledge that the Government have increased the number of properties qualified under buy to let, but in my opinion they have not gone far enough. As a small buy-to-let owner said to me, why does the Bill support with cost-capping a billionaire oligarch non-dom with two buy-to-let leasehold flats in Mayfair, valued at millions, yet leave completely exposed a pensioner buy-to-let leaseholder with a small portfolio of just four flats? These people are not big landlords. Although nothing can be done in this Bill now, I hope something can be done in future.

Nor am I happy that we are planning to reject buildings under 11 metres. They may not be as big a risk but they are unsellable. When an estate agent or lawyer tells prospective buyers that the flat they have looked at has some dangerous cladding—but not to worry because you will probably get out in time if it burns down—I do not think that they will find many buyers. These flats are simply unsellable.

Finally, I disagree with the removal of “zero”, and like the Opposition’s amendment of £250. I do not accept that the government caps set a proportionate balance, as was said in the other place by my right honourable friend Stuart Andrew MP, who was also an excellent Deputy Chief Whip in his time. As Michael Gove said, no leaseholders should pay a penny for any remediation works. We heard impeccable legal advice in this House from the noble Lord, Lord Marks, and a former Supreme Court Justice, the noble and learned Lord, Lord Hope of Craighead, saying that making leaseholders pay in order to avoid an ECHR challenge was misguided and wrong. As the noble and learned Lord, Lord Hope, said, the challenge will happen in any case, no matter what level the Government set the cap at, and those building companies will try it on.

If Motion H1 succeeds today, I do not want the Government in the other place to take on the role of the wonderful Ukrainian Snake Island defender, Roman Grybov, who offered sexual advice to the Russian warship. We are not the “Moscow”, and I hope that the Government will bring forward a compromise amendment, perhaps higher than £250 but much lower than the government caps.

With those quibbles, I wish to congratulate my noble friend yet again on the massive progress he has made with this measure. “One more heave”, as Jeremy Thorpe said in 1974—but hopefully with a bit more success.

Building Safety Bill

Debate between Baroness Hayman of Ullock and Lord Blencathra

Lords Hansard - Part 1 & Report stage
Tuesday 29th March 2022 Lords Chamber

[Lord Blencathra (Con)]

My Lords, briefly, I wish to support the noble Lord, Lord Aberdare, in his amendment on retention. I am not sure whether this is the right Bill for it but there is a problem that needs to be addressed sooner rather than later. My only experience of it—I think it was a form of retention—was many years ago, in the early 1990s, when I had a derelict farmhouse and barns done up in Cumbria. About half way through the job, I said to the electrician, “You must be making a pretty penny out of this.” “Some hope”, he said, “it’ll be next year before I get paid and I’m fourth down the line.” I asked what he meant by that. He said, “The contractor said I’ll get paid for your job only when I have bid for three others and done them. Once I finish the third one, then they’ll pay me for yours.” I was appalled but he said, “Oh, that’s standard practice in the trade, guv, nothing we can do about it.”

I do not know whether that is standard practice in the trade, or whether it actually is retention, but it is a racket that ought not to continue. I hope that, at some time in the future—in some other legislation if not in this Bill—my noble friend the Minister will be able to crack down on that sort of racket. I know that there are views on both sides of this issue but it is not right at all because there are safety implications. The electrician was to get paid for the job he did for me only if he went in at a rock-bottom price to win three other jobs. That is a safety issue.

[Baroness Hayman of Ullock (Lab)]

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.