Building Safety

Clive Efford Excerpts

Tuesday 26th March 2024 Commons Chamber

[Lee Rowley]

I am grateful for the question. On my hon. Friend’s first point, there are 11 buildings that have not started or finished their ACM remediation. One is not occupied. Of the remaining 10, work will commence on two in the next few weeks. Eight buildings will be remediated at a further date, and the remaining two have enforcement action being taken by the relevant authorities. Although I would like the number to go down to zero at the earliest possible opportunity, the situation is better than it was when we provided the update in October, and I expect the number to continue to move on a positive trajectory in the months and weeks ahead.

On my hon. Friend’s point about the 4,000 buildings that are being reviewed, we provided a further 1,000 potential leads to Homes England, which is leading on the cladding safety scheme, a number of months ago. A significant number were found to not require any remediation. Although I cannot comment on where the 4,000 will land, it is likely that a large number of them will not require remediation in the end, so I encourage residents not to worry about the number, but to see what comes out of the process.

Since December 2022, we have also taken action to make sure that we are starting to separate the need for remediation on properties from people’s ability to get on with their lives. The mortgage sector has been freed up to allow people to take mortgages, to remortgage and to move properties when big life events happen, and we hope that that will continue. I am monitoring, on a month-by-month basis, the large banks and building societies that are providing mortgages, and I can see that progress is being made.

[Clive Efford (Eltham) (Lab)]

Master Gunner Place in my constituency is in need of remedial work, and the residents have been supplied with a letter of comfort from the developer to say that it will cover the costs. My constituent has written to me to say that his service charge has gone up by 360% in the last eight years. In the last year alone, it has gone up by 107%. He is now paying a £6,000-a-year service charge, even though Hamptons says that the average cost in London for a similar-sized property is £1,700. My constituent says that the additional costs are building safety-related. What does the Minister have to say about that? Can anything be done to stop developers recouping their costs in this way?

[Lee Rowley]

The first thing we need to do is bring greater transparency to service charges, which is what we are trying to do through the Leasehold and Freehold Reform Bill. Assuming that progress is made in the other place, I hope that it will be on the statute book as quickly as possible, and then it will be clear exactly where such costs come from.

The second thing that is that our colleagues in the Financial Conduct Authority are bringing in the fair charging regime to make sure there are no inappropriate commissions and that, from an insurance perspective, exchanges are not under way with brokers, which will hopefully reduce the costs.

The third thing is the industry-led insurance scheme, which should hopefully bring down insurance costs for those who are most exposed. However, the hon. Gentleman is absolutely right: we need greater transparency and a greater understanding of where these costs are going, and we need to make sure that freeholders and managing agents are following the law, which is very clear about the kinds of costs that can and cannot be allocated. If there is something specific about the building he mentions that the Government can look at, I will happily talk to him separately.