Housing: Cladding

Baroness Stowell of Beeston Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, the noble Lord points to the woeful culture in the construction industry. All I can say is that the pre-legislative scrutiny of the Building Safety Bill has started, and we look to get this through as quickly as possible with the support of Members of this House.

[Baroness Stowell of Beeston (Non-Afl)]

My Lords, I must declare that I am an owner and occupier of a leasehold flat in a building with cladding, and also an elected member of the leaseholder management board of that block. During the course of this Question, the extent of the problem and the effects of it have clearly been highlighted. It is necessary for the Government to prioritise, ensuring of course that the buildings most dangerously at risk are addressed first.

However, this makes it all the more important that the Government reach a new agreement with lenders, in relation to the owners of leasehold flats within buildings who have taken all the necessary interim safety measures. Not only are leaseholders currently prevented from being able to sell or remortgage their property, but those same leaseholders might need to remortgage to finance their very costly contribution to the remedial works. I note what the Minister said, but the costs are falling on to leaseholders, not freeholders. So can the Minister tell us what discussions he is having with lenders on this particular matter in order to address the urgency of it?

[Lord Greenhalgh (Con)]

My Lords, I have had a number of discussions with lenders, including a round table in June, to encourage them to take a more proportionate approach to risk in this regard. We recognise the points that the noble Baroness raises. However, I would say that, a number of times, we have seen buildings remediated through warranties, but also through building owners stepping up and paying for that remediation. Finally, we have asked Michael Wade, a senior adviser to the department, to look at ways of making remediation costs affordable to leaseholders if they do fall on them.