Building Safety and Resilience

Debate between Clive Efford and Judith Cummins

Wednesday 11th September 2024 Commons Chamber

[Clive Efford]

Yes, insurance costs are driving up service charges. I have heard of 60% increases in service charges that are attributable to insurance costs. Insurance companies are gouging prices and making money on the back of this situation. Given what has brought us to this debate, it is absolutely appalling that they are behaving in that way.

Remedial works are ultimately the responsibility of freeholders, and contributions from leaseholders should be capped. Management companies are obliged to provide the detail of what they intend to spend on such work but, unfortunately, they are withholding that information. The managing agent should not be able to charge residents anything until the information is supplied. The cap should be spread over 10 years, and no more than one tenth of the cost should be charged in any one year. In the absence of the relevant information, leaseholders cannot check whether the charges that are being imposed on them are reasonable. If they do not pay them and they challenge them, they risk being in default of their leases and receiving a letter from solicitors. The reality is that the terms of leases prevent people from being able to get justice.

The outstanding safety work in the block in Master Gunner Place is simply not being done. A survey was done at the end of 2019, and it was clear that the work needed to be done. In the intervening years, none of it has been carried out. The developer, Vistry Group, is supposedly in the process of handing over the freehold to Samnas, but because the legal documents have not been signed, the leaseholders have been left in limbo and are unable to progress any of the work. The leaseholders engaged lawyers to write to the developer in order to get a reply on the scope of the work that needed to be carried out, and they were informed that the work was due to start in August 2024. Here we are in September, and nothing has been done. They still have no idea about what work is in scope or what contribution the residents will have to make. There are three blocks involved in the development and, to date, none of them has had any of the remedial work done.

It is now time to draw a line under all this. It has gone on for too long. We know that the work needs to be done, we know who is responsible for it and we should not be allowing them to drag their feet any more. It is time for the remediation acceleration scheme to put a rocket under those developers and freeholders. We should be ensuring that they carry out this work, and that if they refuse to do so, they are fined. Only fines will make these people see reason; it is only if they are hit financially that they will change their ways. The remediation acceleration scheme must also include compensation for leaseholders for all the unreasonable charges they have been forced to pay because the management companies and the freeholders have withheld the information needed to ensure accurate fees and charges and that the cap is being properly applied. Where those companies have not done that, we should be making sure that they are fined.

[Madam Deputy Speaker (Judith Cummins)]

I call Melanie Ward to make her maiden speech.