Residential Leaseholders and Interim Fire Safety Costs

Apsana Begum Excerpts

Wednesday 10th March 2021 Westminster Hall

[Apsana Begum (Poplar and Limehouse) (Lab) [V]]

It is a pleasure to serve under your chairmanship. Mr Hollobone. I congratulate my hon. Friend the Member for Vauxhall (Florence Eshalomi) on bringing this important debate.

As the cladding scandal rolls on, it is becoming increasingly clear that the Government are not concerned enough with the physical safety or financial security of my constituents who are living every single day in unsafe housing. The Government’s position on the waking watch measures are just one example of that. Committing to the use of waking watches, as the National Fire Chiefs Council suggests, would mean committing to temporary measures that would go on indefinitely. In its written submission to the Public Bill Committee on the Fire Safety Bill, the Fire Brigades Union stated that it was unable to support the use of waking watches in that way, for fear that it would become

“a de facto permanent state of affairs.”

Temporary measures such as those have been in place since the Grenfell Tower tragedy in 2017. The word “temporary” is losing its meaning and I would be grateful if the Minister would address that in his response, because constituents are now faced with bankruptcy, with the cost of waking watches placed at their door.

The other matter I would like to raise is the overwhelming financial burden being placed on leaseholders who are also legally freeholders. I draw on the example of the Limehouse West estate in my constituency, to bring the matter to the Minister’s attention. Limehouse West was owned by the Canal & River Trust until November 2019, when about 60% of the leaseholders got together to buy the freehold. They did that for a number of reasons. They wanted to take charge of their estate, as the Canal & River Trust was extremely slow to respond and do anything around the estate, and my constituents did not want to pay the ground rent.

In the context of the ongoing cladding scandal, for those constituents, being their own freeholders included some benefits. There was no risk of the Canal & River Trust choosing wildly expensive or unnecessary remedial works and then saddling leaseholders with costs, or the Canal & River Trust doing nothing for years and the flats staying almost unsellable while waiting for the EWS1 certificates.

Many of my constituents on that estate are both freeholder and leaseholder. The Government say that leaseholders should not have to pay a penny. Who pays for any cladding and remediation works at Limehouse West and similar estates in my constituency, including for interim measures? If it is the freeholders, 60% of my constituents on that estate will bear the cost of the work that will benefit all of them, without any means of recovering those costs. Many of my constituents who are freeholders-leaseholders feel that it is very unfair. If it is the original developers who should pay, there is the difficult legal problem of making this happen. In the case of the estate, the developer is the absolutely awful Bellway, which tells me that it will not pay for something that was completed over 20 years ago.

I would be grateful if the Minister could help distinguish where leaseholders are also freeholders in response to the costs of interim measures and the wider costs of remediation works. Does he believe there should be parity between the burden placed on freeholders-leaseholders and leaseholders only where the freehold has been bought out by a party that is not related to the original developer in any way? I really believe that the building industry should have to take a greater burden, but in the absence of that, it would be great to get clarification from the Minister.