Fire Safety Bill

Baroness Finlay of Llandaff Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Thursday 29th October 2020 Lords Chamber

[Lord Whitty (Lab) [V]]

My Lords, I have added my name to the amendment tabled in the name of the noble Lord, Lord Kennedy, in relation to the responsibilities of leaseholders. It is important that this is reflected in the terms of the Bill. Leaseholders are not the responsible person unless they happen to be co-owners or co-freeholders, and as we heard in the debates on earlier amendments, leaseholders are being faced with quite substantial costs. It would be wrong if the legislation allowed an interpretation whereby in certain circumstances they were the responsible person. They are not. The owners or their agents are the responsible person and we should make that quite clear.

I also strongly support the principles of the amendment tabled in the name of my noble friend Lord Berkeley. Like him, I am astonished that at the moment, the regulations relating to domestic dwellings and indeed other buildings do not include a requirement on new build and major refurbishments for the installation of sprinklers.

Perhaps I may divert slightly from the question of high-rise domestic buildings. When I was at primary school in the 1950s, the school burned down. The fire actually started in my classroom. The report on that fire suggested that a simple sprinkler system would have quickly suppressed the fire and saved the building. As a result, when we returned to school, we were accommodated in temporary huts. Those temporary huts, in 1952, were required to have a rather crude sprinkler system. I was astounded to find out that in the year 2020, there is no such requirement for school buildings and no such requirement for high-rise buildings and premises in multiple occupation. That is something that should be addressed, if not in this Bill, at least in the batch of measures being brought forward by the Government in the wake of the Grenfell tragedy.

I am grateful to my noble friend for raising this issue because it needs to form part of the Government’s thinking in relation to the overall response to fire safety problems. I hope that at some point the Minister can indicate where that proposition will end up. I would strongly support such an addition.

[Baroness Finlay of Llandaff (CB) [V]]

My Lords, I apologise that I could not participate at Second Reading. I had wanted to raise carbon monoxide detection—a silent killer production of combustion—with fire detection, but I understand it is outside the scope of this Bill. I would like to speak to Amendment 8, to which I have added my name. Let me explain why.

I remain haunted by seeing the blazing Grenfell Tower from my daughter’s window, and I have every sympathy with those whose flats all over the UK find their leasehold purchases are now valueless and are still paying out their mortgage and charges. Back in the 1970s, we financially squeezed ourselves to buy our first flat, only later to find it was built with high alumina cement and, until deemed safe, completely worthless. That is why I feel a commitment to others caught in this plight. This amendment would bring further clarity to the meaning of a “responsible person”, and ensure that leaseholders who are not also freeholders are not made liable or responsible for any remediation work needed as a result of poor building and development decisions on flats which they believed, and were told on checks, comply with building regulations. I want to read the Minister’s response to the previous amendment very carefully, as I hope that it allays some of my concerns, but I note that the noble Baroness, Lady Neville-Rolfe, has raised some ongoing questions.

The huge costs of fire safety checks, materials testing, removal and replacement of dangerous materials, and the retrofitting of sprinklers and other fire safety equipment, all currently fall to leaseholders. Let me illustrate this with information from one such leaseholder. For residents of three blocks of flats in Baltic Avenue, Brentford—which probably should never have been signed off—fire safety checks have been quoted between £15,000 and £24,000, the mock testing of current cladding and insulation will cost £50,000, and rectifying all identified issues has been initially quoted to be at least £6 million. The previous group of amendments highlighted the huge burden on leaseholders, so who is responsible? This is surely the responsibility of developers and their team of architects, builders, et cetera, and the freeholders—and what about the banks that earn an income from the loans?

As the Minister has pointed out, he is well aware of the crippling costs, and he is clearly committed to doing something about the many leaseholders living in flats that are currently valueless, that cannot be sold or re-mortgaged. Many leaseholders are already financially stretched and bought their flats using the Help to Buy scheme, but if they cannot afford to pay for the fire safety checks they need to obtain an ESW1 form, Homes England will not value any properties bought under the scheme. Despite living in flats that are valued at zero, many leaseholders still find themselves having to cover interest payments on a loan that was given on the basis that if it fell in value you paid less. If the flats are worth zero, have all these loans been reset to zero, and are we sure that that has happened?

Even more seriously, these leaseholders are now suffering real mental health problems, not only from the financial burdens but because they know they are stuck in flats tonight that could go up in flames at any moment. The removal of cladding and other dangerous materials really is a matter of life and death. All this means that insurance costs will be sky high for buildings that are still considered to pose such a high risk. Can the Government give us some evidence of really speedy action?

In July, the housing Minister agreed that all costs should not have to be met by leaseholders and should be met by the developers or building owners. Many leaseholders believe the Government have changed their position, saying that leaseholders would still have to foot some of the bill, but they just do not have the money to do it. This amendment rectifies this by being absolutely clear about who is responsible for what, and that is why I support it.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

My Lords, I am going to try to call the noble Lord, Lord Stunell, again.