Leaseholders and Cladding: Greenwich and Woolwich

Christopher Pincher Excerpts

Monday 16th November 2020 Commons Chamber

[The Minister for Housing (Christopher Pincher)]

I congratulate the hon. Member for Greenwich and Woolwich (Matthew Pennycook) on securing this important debate on a matter of significant importance not only to him and his constituency but, as we have heard, to the hon. Member for Vauxhall (Florence Eshalomi) and my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn), and to my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) and many other Members across the House. It is a national concern, and I pay tribute to the hon. Member for Greenwich and Woolwich for his remarks and his doughty campaign on behalf of his constituents, and I will try to address the points he raised during the course of my remarks.

First, however, I will provide some context. We established the building safety programme within days of the Grenfell Tower fire, and its aim has always been to ensure that residents of high-rise blocks are safe now and in the future. Our intention has been clear from the outset: that unsafe aluminium composite material of the type found on Grenfell Tower and other dangerous cladding must be removed from high-rise residential buildings. It is therefore our priority to ensure unsafe ACM cladding is removed and replaced swiftly, protecting leaseholders from unaffordable costs.

We want to see the completion of remedial works by the end of 2021, as the Select Committee report recommends. While many responsible building owners and developers—including Pemberstone, Barratt Developments, Legal & General, Mace, Peabody and Aberdeen Standard Investments—have taken action to remediate and fund the remediation of their buildings, some have not. Too many building owners and managing agents in the private sector have been too slow in getting remediation work started, and that is why the Government have intervened with the funding and the specialist support that we have provided. We will not tolerate any further delays. Where building owners are failing to make acceptable progress, those responsible should expect local authorities and fire and rescue services to take tougher enforcement action.

At the end of October, of the 460 identified high-rise buildings with ACM cladding, 363 buildings—that is 79% —have either completed remediation or had their ACM cladding systems removed. If we include the social housing sector, that figure rises to 97%.

We recognise that in London there is a disproportionate number of unsafe cladded high-rise buildings, so we have convened two London summits since September, bringing together the Mayor, key local authorities—including Greenwich—and the London Fire Brigade, to agree an action plan for accelerating the remediation of buildings, and my right hon. Friend the Secretary of State and my noble friend Lord Greenhalgh have been instrumental in that process.

Overall, the Government have set aside, as the House will know, £1.6 billion in funding. That covers the remediation not only of ACM cladding but of other types of unsafe cladding from high-rise residential buildings in the private and social housing sectors, and we have been guided in our approach by the recommendations of the Hackitt report. We made this money available to support the remediation of unsafe cladding, and a large proportion of that support will protect leaseholders from those costs.

We recognise that wider remediation costs will need to be met to ensure the safety of existing blocks of flats. However, as I am sure the House will accept, public funding does not absolve the industry from taking responsibility for any failures that led to unsafe cladding materials being put on these buildings in the first place. That is why we expect developers, investors and building owners who have the means to pay to take responsibility and cover the costs of remediation themselves, without passing on costs to leaseholders. We have heard that some are doing that, and they are to be commended, and others must follow their lead. That is the case for more than 50% of privately owned high-rise residential buildings with unsafe ACM cladding, and we expect developers and owners to step up in similar ways for other kinds of unsafe cladding.

We have always acknowledged that materials other than ACM are of concern, and we have been providing advice on their removal to building owners since 2017. The highest priority has, as we have heard, been the removal of the type of ACM cladding used on Grenfell Tower, because it poses the most severe safety risk, but other unsafe cladding materials must also be removed. As such, and for those cases where costs present a financial barrier to the pace of remediation, we have taken action. In March, we announced that additional £1 billion of funding, through the building safety fund, for the remediation of unsafe non-ACM cladding in the social and private residential sectors. The building safety fund is available for high-rise buildings with unsafe non-ACM cladding, such as those types of high-pressure laminate. We are already working to advance eligible applications to the fund to the next stage so that we can begin the remediation process as quickly as possible. The hon. Member for Greenwich and Woolwich suggested that there were very few processed applications, but I can assure him that there are many more than just a few. I look forward to presenting a fuller report, so that by the end of March 2021 we will see that that funding has been allocated in full, as we promised.

Although this funding is a much-needed step to make homes safer, we still expect a significant proportion of the remediation of unsafe non-ACM cladding to be provided by those responsible for the original work.

[Matthew Pennycook]

I thank the Minister for the detail he has provided in his response. I should make it clear that the statistics are his Department’s own published statistics, so if he has different figures, I urge him to bring those forward in the monthly publication so that we can see them. I am putting figures to him that his own Department has published. On developer liability, the Minister has again said “we expect”. I have sat in this Chamber and heard successive Ministers say that they “expect” developers and building owners to come forward, that it is morally right that they do so and that nothing is being taken off the table, but here we are in the same position many months if not years later. What are the Government actually going to do to compel developers and building owners to contribute more?

[Christopher Pincher]

I assure the hon. Gentleman that we have made significant progress with the processing of the applications. I look forward in due course—I hope it will be soon—to giving him better news than he supposes may be out there.

We have been clear that it is unacceptable for leaseholders to have to worry about cladding remediation costs to fix safety defects in their buildings that they did not cause. That is why—I say it again—where developers or building owners have been unable or unwilling to pay we have introduced funding schemes, providing that £1.6 billion of remediation to accelerate the pace of work and meet the costs of remediating the highest-risk and most expensive defects. We recognise that there will be wider works. We are accelerating work with leaseholders and the financial sector on solutions to deal with those wider works, and we believe that there will be a combination of options to deliver a solution—there will not be a quick fix, as the hon. Gentleman put it. I want to update the House and leaseholders on that set of options as soon as I can.

The hon. Gentleman also mentioned waking watch, as did the hon. Member for Vauxhall. I know that leaseholders have very significant concerns about the costs of interim measures, which have been heightened due to the covid-19 emergency. Waking watch is a short-term tool; it is no substitute for remediation. It is by targeting remediation funding where it is needed most—by removing and replacing dangerous cladding—that we can help make those homes safer more quickly and dispense with waking watches.

However, I recognise residents’ concerns about the costs of waking watch measures and the lack of transparency about those costs. That is why we have collected and published information on waking watches. The data will enable those who have commissioned waking watches to make comparisons and challenge providers about unreasonable costs. We have also identified, as a result of that work, that it can be cheaper to install alarm mechanisms rather than use waking watches. We will, of course, keep the situation under review.

[Florence Eshalomi]

On the specific issue of waking watches, a number of constituents represented by me, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), the hon. Member for Carshalton and Wallington (Elliot Colburn) and many others are probably watching tonight and about to go to bed. Does the Minister agree that they will not be able to sleep because of not just the cost of the waking watch, but additional costs for which they may be billed?

The Minister talks about options, but these people have no option to rent or sell—there are no options for some of those leaseholders. They want the Government to step up now and look at how to address the interim costs—not costs in the future. For them, there are no options and there is no way out. They feel trapped, now.

--- Later in debate ---

[Christopher Pincher]

I am obliged to the hon. Lady; I entirely understand the great difficulty that many of her constituents and others will feel. It is a very worrying situation for them. That is why we have put aside so much money this financial year to help remediate those buildings that have no other way of speedy remediation and that need it most. As I said to her, we will keep the situation under review.

The hon. Member for Greenwich and Woolwich also raised the question of EWS1 and mortgages. It is wrong for leaseholders to find themselves unable to sell their homes due to lending restrictions. I am aware—we debated this earlier today—that EWS1 forms created by the industry to assist valuations of high-rise buildings of more than 18 metres are being asked for in some instances for buildings under 18 metres. The Government do not support that blanket approach to EWS1 forms or buildings. It is probably worth my repeating that, as the House will know, the EWS1 form is not a Government form but produced by the Royal Institution of Chartered Surveyors. Not all lenders require it; some lenders use other tools. The Secretary of State has been working with the finance sector and my noble Friend Lord Greenhalgh to find more nuanced mechanisms to deliver a satisfactory outcome for residents and leaseholders, but we do not support a blanket approach to the use of EWS1 forms on buildings. Buildings below the height of 18 metres should not have EWS1 forms applied to them. Buildings which do not have external wall systems should not have EWS1 forms applied to them. We must work with all the vigour and determination that we can muster with the financial services sector to persuade them to take a different course.

We want residents to feel safe in their homes and we want them to feel empowered. Residents will be back at the heart of the system and measures in the draft Building Safety Bill will make that a reality. The new regime will give residents a stronger voice in an improved system of fire and structural safety, overseen by a more effective regulatory framework, including stronger powers to inspect high-rise buildings and sanctions to tackle irresponsible behaviour. We remain consistent in our commitment to take forward a comprehensive programme of reform and to end unfair practices in the leasehold market.

Progress has been made since the hon. Member for Greenwich and Woolwich spoke in the Westminster Hall debate back, I think, in February. Homes are being made safer. Some 97% of buildings with ACM have, or are now in the process of, remediation. We are already working to advance eligible applicants for the £1 billion building safety scheme to the next stage, so we can begin the remediation process as quickly as possible. I can assure him that more progress than perhaps he thinks has been made and is being made.

[John Healey (Wentworth and Dearne) (Lab)]

Well, tell us then.

[Christopher Pincher]

All in good time. We have appointed a specialist set of consultants to increase the pace of remediation and we have introduced the Fire Safety Bill to strengthen enforcement action. The hard work continues. We have published the draft Building Safety Bill, which is a once-in-a-generation change to the building safety regime. It will be instrumental not only in shaping future policy to allow the new regime to prevent safety defects occurring in the first place, but in ensuring that people are safe and feel safe in their homes.

We will continue to work tirelessly and, I hope, across the Chamber, to bring about the lasting change we need, so that absolutely everyone in our country lives somewhere which is decent, which is secure, which is safe, which is their own and which they can be proud to call, and we can be proud to call, their home.

Question put and agreed to.