Leaseholders: Properties with Cladding

Baroness Kennedy of Cradley Excerpts

Thursday 7th January 2021 Lords Chamber

[Baroness Kennedy of Cradley (Non-Afl)]

My Lords, millions of home owners in this situation bought their properties in good faith. Now their properties are deemed worthless; they cannot be bought, sold or remortgaged. The freeholders and insurance companies say that it is not their problem, and mortgage lenders, through the confusion created by the Government’s changing guidance and the EWS1 certification, have exacerbated the problem. So I welcome the clarification on the guidance that the noble Lord has just given. However, will he accept that this is a bigger problem and that the Government must deal with it? They must ensure that property developers and insurance companies accept their share of the responsibility.

[Lord Greenhalgh (Con)]

My Lords, I absolutely accept that a generation of people have built buildings that are not fit for purpose and, under any regime, should not have been built in this way. In recent years, developers have made profits of between 20% and 30%, so of course they should step forward and do the right thing. I absolutely share that view. The leaseholders who find themselves in this position are victims. I have said that at the Dispatch Box and am happy to commit to do everything we can to ensure that this does not fall heavily on leaseholders.