Building Safety Bill

Clive Betts Excerpts

2nd reading
Wednesday 21st July 2021 Commons Chamber

[Robert Jenrick]

I will make some progress, if I may, but I will return to the hon. Lady.

While strengthening fire safety requirements in all premises regulated by the Regulatory Reform (Fire Safety) Order 2005 and improving competence and oversight generally, the Bill rightly focuses the new more stringent requirements on those buildings and those issues that pose the greatest risk. It provides a framework to ensure that, during design and construction, defined duty holders have clear responsibilities and that compliance with building regulations occurs. They will have to clear a series of hard stops through the new gateway system for in-scope buildings. In occupation, every building in scope will have an identified accountable person with clear responsibility for safety matters. Importantly, it will be a criminal offence not to carry out these duties effectively, punishable by an unlimited fine and up to two years in prison.

If we are truly to build a world-class regime, then residents must be at its heart. That is why, as well as championing social housing residents through the social housing charter that I created last year, we are giving residents a stronger voice in the system through the Bill, making it easier for them to seek redress and to have their voices heard. The Bill will require an accountable person for a high-rise residential building to engage with their residents and establish a formal complaints process for residents to raise concerns.

These measures are strong, but fair, and they will be overseen by the new building safety regulator within the Health and Safety Executive. The regulator will be equipped with robust powers to crack down on substandard practices, and as I said earlier, it will ensure that proportionality is embedded within its operations.

Dame Judith’s review pointed to an industry that needed significant culture and regulatory change to be fit for purpose, and I am sure I am not the only Member who has been shocked by the recent testimony at the Grenfell inquiry. This has exposed a corrosive culture of corner cutting and at times a cavalier attitude to building safety. We await the findings of the inquiry, and indeed whether criminal proceedings will follow.

The Bill creates powers to strengthen regulatory oversight for firms that manufacture and sell construction products, overseen by the new national regulator for construction products. Crucially, the Bill will have powers to remove unsafe construction products from the market swiftly and to take action against those who break the rules.

Our new regime will help those living in high-rise residential buildings to raise these issues, but we need to expand legal safeguards for everybody, regardless of the type of property they live in. We are strengthening redress for people buying a new build home, through provisions for the new homes ombudsman, which will provide dispute resolution and resolve complaints involving buyers and developers. As Members of Parliament, we all know of examples of shoddy workmanship by developers and of cases where complaints about things ranging from snagging to much more serious issues have not been properly addressed. There will now be a forum where these issues can be settled and consumers provided with the outcome they deserve when making the biggest investment in their lives.

[Mr Clive Betts (Sheffield South East) (Lab)]

I thank the Secretary of State for the kind words he said about the Select Committee’s scrutiny of the legislation. On the new homes ombudsman, many of us have been shocked by what we have seen from developers of new housing and the cavalier attitude they have towards their developments. Will he confirm that the new homes ombudsman will have the powers to deal with the appalling practice of non-disclosure agreements which some people have been asked to sign in order to get builders who have not built their homes properly to put that right? Will he consider going a step further and requiring the builders of new homes which have faults to put right all similar faults in other homes, just as a car manufacturer would have to do?

[Robert Jenrick]

Those are two important points. I would like to see the new homes ombudsman be able to take the kind of action that the hon. Gentleman describes. I will have to revert to him on whether the powers exactly allow that. If they do not, that is the kind of issue we should progress during the passage of the Bill. I give way to the hon. Member for Westminster North (Ms Buck) and apologise for keeping her waiting.

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[Robert Jenrick]

Thank you, Madam Deputy Speaker—

[Mr Betts]

rose—

[Robert Jenrick]

I shall come to the hon. Gentleman, but in answer to the question posed by the hon. Member for Cardiff South and Penarth (Stephen Doughty), my domain as Secretary of State on these matters is within England, but of course the lenders will apply practices at their discretion throughout the whole United Kingdom, so I think his question is probably better directed to the lenders who, following this announcement, will no doubt set out in the coming days how they intend to amend their lending practices in different parts of the United Kingdom. I do not think it is for me to explain the lending practices that they choose to adopt, other than in respect of the quotations that the lenders have given, which I believe will be published later today.

I shall take an intervention from the hon. Member for Sheffield South East (Mr Betts) and then, if I may, I will conclude my remarks.

[Mr Betts]

This is a very significant statement, and it is difficult to read it quickly and grasp it, but it says that EWS1 forms

“should not be needed for buildings less than 18m. This position is a significant step and one supported by the National Fire Chiefs Council and the Institute of Fire Engineers.”

That is a significant step, so will the Secretary of State explain, if the form is not necessary for those buildings, whether he is saying that, in effect, apart from cladding removal, significant remediation works are not necessary on buildings below 18 metres? Is that what the Government are saying? Because that is a major step in this debate and the House needs a lot more explanation.

[Robert Jenrick]

The expert advice that I commissioned has concluded that there is no systemic risk to life from purpose-built flats in this country and in particular—this was the question that I asked of the experts—from those flats that are low and medium-rise, meaning those of 11 to 18 metres. The experts’ advice, following on from that, is that they do not see a need for lenders to ask for EWS1 forms in the ordinary course of business. They also recommend that fire risk assessments are conducted in the usual compliance cycle, rather than on demand, in order to satisfy a market transaction such as purchasing or remortgaging a property. They do not conclude—as one would not expect them to do—that all buildings below 18 metres are safe. One can never say that, and there will be buildings that need remediation below that level, but because there is no systemic risk and the number of buildings is likely to be very small, it is not appropriate, in their opinion, which the Government have accepted, that lenders and other parties in the market should act as if there was a widespread and systemic issue. That is a subtle but important change of tone and one that I hope will lead—the initial support of the lenders suggests that this will happen—to a significantly different housing market.

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[Lucy Powell]

I am fully aware what an EWS1 form is, thank you. Its scope and its effect came about from the advice note that the Government issued in January 2020. If it is a matter for the lenders, what recourse do leaseholders have? There is nothing in the Secretary of State’s statement about recourse and accountability and where the buck stops. That is my central argument here. In the vacuum of leadership, everybody from insurers to mortgage lenders, risk assessors and others are too concerned about their liability, leaving thousands of buildings with endless fire safety requirements, some of which are potentially life threatening, but others are an unnecessary symptom of this crisis in confidence. Who is it that says which is which? Where does that sit? With whom does that lie? The Government cannot leave this to industry and the private sector to sort out. The market cannot sort this, because it is completely broken—the Secretary of State said today that the market was completely broken as if this was news to him. Yet he says that he will not intervene in that broken market. The power is with him to intervene if he wanted to. That is why we have been calling for a building works agency. I am talking about a crack team of engineers and experts appointed by the Government, going block by block, assessing the real fire risk and what remediation works are absolutely necessary; commissioning and funding those works from the building safety fund; and then, crucially, certifying the building as safe and sellable. This rigorous approach would also keep costs down, and the agency can then go after those responsible for costs. It has been done before in Australia and it can be done again here—if the Secretary of State was prepared to step up, lead and intervene rather than leave it to the broken market he describes.

[Mr Betts]

I keep reading this statement and I am not sure I am any clearer than I was at the beginning. The Secretary of State said that EWS1 forms are not needed on properties below 18 metres because there is no systemic risk across those sorts of buildings. What I am not clear about is whether the lack of systemic risk applies to cladding that is of limited combustibility. Is he now saying that there is no need to remove combustible cladding from buildings below 18 metres, or that there is a need? If there is, is not an EWS1 form needed as part of that process? If it is not, we still do not know who is going to pay for the work.

[Lucy Powell]

My hon. Friend makes a good point. Of course, there are also many buildings over 18 metres that do not have cladding and are still facing the issues of fire remediation works, some of which may not be necessary. I am not clear whose job it is to decide whether they are necessary, and therefore whether a building can be mortgageable and insurable once again and people can move on with their lives. I am still not sure of that and I still do not feel that the Government are really providing the leadership and intervention that is necessary.

There is huge strength of feeling on these issues, as we can see from the number of Members wanting to speak in this debate. The toll of this crisis is immeasurable. Innocent homeowners want us to work together, and I will work with anyone to protect them from these costs. I am not interested in party political point-scoring, as it happens, but the Government have to step up on these issues.

Returning to the Hackitt test, her ultimate test of this new framework is the rebuilding of public confidence in the system. She says that the people who matter most in all this are the residents of these buildings. The honest truth is that, through the omission of cast-iron protections for today’s leaseholders, this test will not be met. It is not enough to simply will the ends; the means need real determination and focus too. We will work with all sides to protect leaseholders and meet the Hackitt test.

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[Mr Clive Betts (Sheffield South East) (Lab)]

Welcome to the Chair, Madam Deputy Speaker. It is good to see you there.

The Housing, Communities and Local Government Committee did pre-legislative scrutiny on the Bill—it is a technical Bill, which we went through line by line and made recommendations—and I think that shows how the House should operate. I thank the Government, and the Minister for Building Safety and Communities in particular, for taking it seriously, responding to all our points in great detail and talking to us about it.

The Committee still have some concerns and wrote again to the Minister the other day about what we think is missing. One thing, of course, is building control. Developers should not be able to appoint their own building control inspectors, because that is a conflict of interest.

On risk, it is not height alone that makes buildings risky. A one-storey care home is potentially risky, and that must be taken into account in the role of the building safety regulator.

The Government are to come forward with proposals on the qualifications and training of everyone working on high-rise buildings. That is really important, because currently an electrician rewiring a flat in a high-rise development does not have to be qualified. Their employer must be part of a competent person scheme, but the individual does not have to be qualified anywhere in the building industry. Those matters need addressing now in the Bill.

[Seema Malhotra]

I thank my hon. Friend for all the work he does on his Committee. He made an important point about the independence of building control. Does he agree that it causes a considerable lack of confidence when people who have bought properties find they have no recourse and that there is a real question about the role of local authorities in building control?

[Mr Betts]

There are major issues about the independence of building control not just on the highest-rise buildings but right throughout the building industry. The Select Committee report drew attention to that.

On product testing, we await the Government’s proposals. Hackitt identified that the product testing regime is broken and needs fixing, and the Committee stands by its view that if a product that has gone to testing and failed a test comes commercially to the market, that information should be made available publicly. That is important information. The Government rejected that recommendation, but I hope they might consider it further.

It is very difficult to make comprehensive sense of the statement published today. I hope that the Secretary of State will accept an invitation to come to the Select Committee after the summer recess and discuss the matter with us in more detail. Whatever the statement says, it still leaves out buildings over 18 metres that have defects that are not just about cladding. Even when cladding defects have been put right, people are facing bills of £50,000 that they cannot afford. Where is the help for those leaseholders? It is not anywhere in the Bill.

I turn to buildings between 11 and 18 metres. I do not understand how the Secretary of State can say that systemic defects were not found in those buildings. Where does cladding fit into that? Will the removal of combustible cladding from buildings between 11 and 18 metres no longer be required? If it is still required, who will pay for it? The Government floated the idea of a loan scheme, but there is no reference to that in the Bill. Has the loan scheme been ditched? We need clarification on these important issues because leaseholders need certainty that they are not going to have to face these bills.

There are important issues in the Bill. It is generally to be welcomed. There are still issues that we want the Government to go further on, but the explanation in this statement of who is going to pay for some of the costs that the building safety fund does not cover is still an essential matter that the Government need to think again about.

[Madam Deputy Speaker (Judith Cummins)]

I call Sir Mike Penning.