Mortgages: EWS1 Form Debate
Full Debate: Read Full DebateLord Flight
Main Page: Lord Flight (Conservative - Life peer)Department Debates - View all Lord Flight's debates with the Ministry of Housing, Communities and Local Government
(3 years, 1 month ago)
Lords ChamberMy Lords, I think we are straying a little away from the original Question, which was about external wall systems and the need for a certificate to ensure that lenders have the information they need to lend. As I said in answer to the previous question, for 50% of those who make mortgage applications, an EWS1 form is in place, and we continue to take a number of measures and steps to make the provision of an EWS1 form easier.
My Lords, EWS1 requirements have become an overreaction to the Grenfell Tower tragedy, particularly their application to multi-occupancy blocks and buildings below 18 metres. Fear of being sued has limited the availability of required professional assessors, the amount of insurance the insurance industry is willing to provide to the professionals involved, and financial organisations’ willingness to lend. It has ultimately killed the market in leases. Will the Government consider effectively reducing and rationalising the requirements of EWS1 and providing insurance cover for the professionals involved?
My noble friend will be pleased to know that we have announced our intention to provide a scheme that enables professionals who carry out EWS1 to have sufficient professional indemnity insurance cover. We are also engaging with the Building Societies Association, UK Finance and the major banks so that they look at other forms: for instance, an updated fire risk assessment or, for buildings constructed after 2018—post Grenfell—sign-off from a building control inspector. There are lenders that have led the way on this by taking a more proportionate approach in not always requiring an EWS1 certificate.