Building Safety Bill (Thirteenth sitting)

Ian Byrne Excerpts

Thursday 21st October 2021 Public Bill Committees

[Mike Amesbury]

I thank the Minister, and my hon. Friend the Member for Luton South for her contribution.

In principle, the clause seems to be a step forward, but in reality, it will hardwire into the Bill the injustice that thousands—indeed, millions—of people are familiar with: they are trapped in their properties, and the Bill will ensure that historical remediation falls on the shoulders of leaseholders. The Ministers and the Department have been in a difficult position because it looks as though the Treasury’s door has been closed to any further financial progress.

[Ian Byrne (Liverpool, West Derby) (Lab)]

Let me read out something to put in context what my hon. Friend says about hardwiring and what the clause does. Darren Matthews says:

“I am ruined. Shared owner (50% for £63,000) and in May was billed £101,500 for remedial works. Block 13.5m tall so doesn’t qualify for BSF but possibly new loan scheme that’ll take 161 years to repay. Madness!”

That is a perfect example of what we are talking about. The clause hardwires unfairness into the Bill. As my hon. Friend the Member for Luton South has just mentioned, many leaseholders will be in the same position as Mr Matthews. How can that be fair?

[Mike Amesbury]

I thank my hon. Friend for his powerful and insightful intervention. He mentions the case study of somebody who is trapped in this nightmare, which the Ministers and the Department are very familiar with. I will give the Minister another example from social media; it is 47 minutes old. Lucy Brown is a leaseholder trapped in this nightmare that we are, hopefully, collectively trying to resolve. She wrote:

“15 months in the BSF”—

that is, the building safety fund—

“application process. Our managing agent/FH”—

that is, the freeholder—

“won’t agree to the BSF terms (likely those requiring the FH guarantee the works be done to an acceptable standard). The joys of the leasehold system—you own nothing, you control nothing + you pay everything.”

How will the clause solve the problem when that particular landlord—the freeholder in this case—has already decided that they have exhausted the process? The levy is thousands and thousands of pounds, and people are going bankrupt in the current climate. How will this move things forward?

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[Christopher Pincher]

To aid Committee members in making interventions, I will try to sit down slowly, so that I am standing for as long as possible. In conjunction with clause 126, which is to come shortly, clause 125 makes changes to the operation of the Defective Premises Act 1972. That Act creates a right to bring a claim for compensation where a dwelling is not “fit for habituation” on completion of that dwelling. The Act currently applies only in relation to the provision of a dwelling, mainly when a property was built defectively in the first place. It does not apply to work done to a dwelling beyond its initial completion—not even to major or complex refurbishment works, such as the cladding of a block, which is what Grenfell Tower underwent. The clause seeks to remedy that.

The clause expands the Defective Premises Act by inserting proposed new section 2A into it. The new section will create a duty to ensure that any work done to a dwelling does not render that dwelling unfit for habitation. It will cover subsequent works done to the building after construction. The clause applies where a person takes on work in relation to any part of a relevant building in the course of a business. That means that it does not apply, for example, to homeowners doing work on their own properties. As in the case of the 1972 Act, the person to whom the duty is owed—the person who has the right to bring a claim—is the person for whom the work is done and any person who holds or subsequently acquires a legal or equitable interest in a dwelling in the building. That includes the freeholder of a block of flats as well as leaseholders.

The “fit for habitation” test is the same test used in the 1972 Act. Subcontractors also owe the same duty for the work that they take on. The clause applies to any relevant building defined as a building consisting of or containing one or more dwellings. The new provision will apply to work completed after the clause comes into force. Clause 126 will provide for a 15-year limitation period in relation to this clause.

[Ian Byrne]

On the ability of a leaseholder to bring a civil claim against a contractor, there is a real fear about the ability of David to challenge Goliath. In our discussions on the Bill, we have talked a lot about cultural change and historical problems and what is required. I am listening to what the Minister says, but once again my great fear is that unless the provisions can be outlined in terms, how can David challenge Goliath? Will leaseholders get legal aid to challenge contractors? Will there be a level playing field for people who want to bring civil cases against contractors? Historically, as Opposition Members have outlined, many people have been dragged into the realms of the law, and have basically had to devote their life to challenging unfair decisions.

[Christopher Pincher]

I am grateful to the hon. Gentleman for his question. Legal aid is not available in these cases, but there are various remedies people can take, either individually or collectively. It is not necessarily the case that the leaseholder would be bringing the claim. It could be the landlord or freeholder. With clause 125, we want to define a very strict provision. That means that the appellant does not have to demonstrate that fault or negligence has taken place. All they have to demonstrate is that the building is not fit for habitation under the terms of the 1972 Act, and the case law already develops that. Adding new section 2A into the Act strengthens the provision. We consider clause 125 to be an important additional safeguard for homeowners against shoddy work done to their dwellings.

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[Ian Byrne]

I thank the Minister for giving way, and it is an honour to serve under your chairmanship, Mr Dowd. The independence of the scheme is critical and the Minister has not really outlined the make-up of the ombudsman, and how people will be able to have confidence in it. I will keep going back to the culture change point because if the ombudsman is seen as reputable and upstanding, people will have confidence in it. Culture change can then derive from the ombudsman. I welcome the scheme, but I would like a bit more clarity on who will sit on the ombudsman. The explanatory notes say that the scheme could also select a third party to be established to run it, so may we have some clarity on that point, too?

[Eddie Hughes]

I thank the hon. Gentleman for his intervention. I completely agree with the premise of his point, which is that that independence needs to be present in such a way that those making complaints can have confidence in it. The scheme could be set up in a number of ways. For example, it would be possible for it to be done in-house so that the Government have tighter control of it, or it could be done by another party. With the New Homes Quality Board, a shadow version is being constituted at the moment. We will be able to see further details on that, but there is no presumption that the shadow board would become the final board once the Bill is passed into law. We will be able to get some indication of how the scheme will work by looking at the workings of the shadow board, and details are available for that, but as I say it will be for the Secretary of State to determine in what form it continues to ensure that there is the confidence that the hon. Gentleman so rightly says is important.