Residential Leaseholders and Interim Fire Safety Costs

Christopher Pincher Excerpts

Wednesday 10th March 2021 Westminster Hall

[The Minister for Housing (Christopher Pincher)]

It is a great pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Vauxhall (Florence Eshalomi) and all other Members who have spoken on behalf of their constituents and contributed so passionately and eloquently to this debate on a matter that we all care deeply about. The consequences of the Grenfell fire were catastrophic for the people and the community involved, and have been complex and wide ranging for many people across our country as a result. That is why—then, since and now—we are taking clear and decisive action to provide an unprecedented sum of money, more than £5 billion of taxpayers’ funds, for building safety to protect those most at risk.

In the short time that I have I will speak to the issue of cladding remediation and also to the title of the debate, interim fire safety costs. I will answer as many hon. Members’ questions as I can. If I do not complete that task in the allotted time, I am happy to follow up and write to Members subsequently.

The biggest cost facing leaseholders affected by building safety is cladding remediation. It is unacceptable for leaseholders to face those unaffordable costs. That is why we committed £1.6 billion of taxpayers’ money to accelerate the removal and replacement of unsafe cladding on the highest risk buildings—those over 18 metres in height—after the Grenfell tragedy. That was driven by the remediation of the most dangerous form of cladding, as the House will know—aluminium composite material cladding. I am pleased to say that as a result of that disbursement, 95% of those high-rise buildings with ACM have either begun or completed remediation work. It is also fair to say that the private sector has stepped up to the plate with respect to ACM, as something like 50% of the privately held buildings with ACM cladding have had the ACM removed as a result of the buildings’ owners, the developers or the warranty holders acting to replace the cladding.

However, we have not stopped there. We recognise that there are other forms of dangerous cladding on high-rise buildings and we have acted to remediate those through the building safety fund. Something like 500 registered buildings with other types of unsafe cladding are now proceeding with a full application to that fund, but we have not stopped there, either. We have allocated £3.5 billion to remediate all buildings above 18 metres that have unsafe cladding, an investment that totals over £5.1 billion. I suspect that when all of the taxpayer funds are added up, significantly more money will be spent by the taxpayer to remediate this problem.

I would also like to explain why 18 metres is the threshold trigger. It is because it is right that we prioritise those buildings that represent the greatest risk to residents in the event of a fire. Home Office analysis shows that buildings between 18 and 30 metres in height are four times more likely to suffer a fire with fatalities or serious casualties than any other apartment building. Building standards become more restrictive over 18 metres; the presumption on firefighting tactics changes over 18 metres. It is a well-established boundary used by the National Fire Chiefs Council in its operational guidance, it is used by the Building Research Establishment, and it is used in the independent expert guidance that we have received.

Why cladding? It is because we know that it acts as a fire accelerant and that is of greatest risk in high-rise blocks. That is a fact noted in the independent report by Dame Judith Hackitt and the independent advisory panel, to which Dame Judith spoke in a newspaper article, again just a few weeks ago. That is why we focus on cladding and why we focus on buildings over 18 metres in height.

A number of right hon. and hon. Members asked questions during the debate. My hon. Friend the Member for Harrow East (Bob Blackman) asked for some clarification on what is covered by the remediation package that we have tabled. I can tell him that the remediation package includes works that are integral to the safe remediation and removal of cladding on buildings that are at risk, so it includes such things as fire cavity barriers. They, too, are included in the package, if they need to be remediated as part of the safe removal of the unsafe cladding.

The right hon. Member for Leeds Central (Hilary Benn) asked whether I would clarify that no leaseholder will be required to fund additional works as a condition of receiving Government funding for cladding remediation. I was pleased to answer a similar question that he had tabled in written form and I am pleased to confirm here in the Chamber that, as I said then, no leaseholder will be required to fund additional works as a condition of receiving Government funding for cladding remediation. I hope that that answer helps the right hon. Gentleman.

The hon. Member for Cardiff South and Penarth (Stephen Doughty) asked whether we are engaged with the devolved Assemblies in Scotland and Wales. Yes we are, and we will continue to discuss the Building Safety Bill with them; I think we meet them on a monthly basis to do so.

The hon. Member for Poplar and Limehouse (Apsana Begum) asked about leaseholders who are also freeholders, and whether they would be able to benefit from the waking watch fund. The answer is yes.

As a result of the package that we have pulled together—as a result of the £5.1 billion in public money that we are spending, the tax and levy that we will impose on the developers, and the Royal Institution of Chartered Surveyors’ announcing a few days ago, in addition to its announcement last November, that the scope of the EWS1 form is going to be significantly reduced so that in total nearly 1 million households will now no longer have to face an EWS1 form and are effectively de-scoped from the risks that they had previously thought they might face—we are trying, I think successfully, to persuade the risk industry and the lending sector that they need to get risk, lending and valuation back into proper proportion. They must put aside the “computer says no” approach, properly assess the risk of buildings and their fire hazard, and properly ascribe value to them again, so that people living in those properties can get on with their lives. We are confident that as a result of that package the risk and lending industry will do that, and that we can begin to move on—and the people in those homes can begin to move on.

We have also discussed interim measures in the debate. I am grateful to the hon. Member for Vauxhall for addressing the point so eloquently. As I said, public safety is our first priority. We want to target funding where it is needed most, removing and replacing unsafe cladding to make the homes and the people who live in them safer more quickly. We have followed the National Fire Chiefs Council’s guidance to support the installation of waking watch or a common fire alarm where we need to ensure there are proper measures in place to guard against tragedy in the event of fire. However, we are also clear that those measures are a short-term strategy. They are a vital first step in ensuring that a building remains safe, but not an alternative—there is no alternative—to remediation. That is the reason we have spent so much time and are disbursing so much money to ensure that the problem is properly resolved.

As we have heard, too many waking watches have been in place for far too long. Leaseholders are being left to pick up often exorbitant bills. Data has shown that the most cost-effective means of protecting residents’ safety is through a fire alarm system. That, again, is evidence-based, and guidance is published by the National Fire Chiefs Council. That is why we are providing £30 million for the costs of installing an alarm system in high-rise buildings—again following the guidance of Dame Judith Hackitt and others—which have waking watch systems, where the costs are being passed on to residents; because those buildings have the highest risk and those residents face the highest costs. The fund opened on 31 January in all areas except for private sector buildings in Greater London. The deadline for applications is 14 March and the objective is to install those alarms as quickly as possible.

In contradiction to what the hon. Member for Sheffield Central (Paul Blomfield) said, we are moving quickly to disburse those funds: £22 million has already been delivered to local or regional authorities, because they are best placed to know the buildings that most need local support. In London, subject to a mayoral decision, the Greater London Authority will administer the fund in Greater London, and the fund will open to private sector buildings in London on 18 March. We felt it was wrong to delay the implementation of the fund and wait for London, which of course has the largest number of high-rise and at-risk buildings. We did not think that other areas should have to wait. In Birmingham and the west midlands, for example, Mayor Andy Street has been quick on the case, and other authorities have done the same, so I encourage the GLA and the Mayor of London to take advantage of the funds and disburse them as quickly as possible, to ensure that the people of London who are facing exorbitant waking watch costs can take advantage of this opportunity.

The hon. Member for Vauxhall also talked about the number of eligible buildings in London. We are taking sensible, clear advice, and the National Fire Chiefs Council has identified 400 buildings across the country that are at risk of fire and in need of support for waking watch remediation, 216 of which are in London. That is why we are confident that the £30 million we have allocated will be sufficient to deal with the challenge of waking watch in those high-rise buildings where the costs are being passed on to the leaseholder.

There is a shared desire across the House to ensure that residents are safe in their homes, and that leaseholders are protected from unaffordable costs. That is why we introduced the scheme and the generous financial package to support leaseholders in buildings less than 18 metres. I suspect that the announcements made by RICS in the past several months will also support them, and that the lending industry and risk industry, getting itself back into proper proportion, will also support them.

These debates are vital as we work together to protect leaseholders, so I thank the hon. Lady again for raising the issue and for speaking so passionately and eloquently in support of her constituents. I thank all other right hon. and hon. Members for doing the same. This is a crucial issue for us. We will continue to address it and we will bring forward the building safety Bill as soon as possible.