Unsafe Cladding: Protecting Tenants and Leaseholders

John McDonnell Excerpts

Monday 1st February 2021 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab) [V]]

Happy birthday, Madam Deputy Speaker.

I have many constituents whose lives have been thrown into turmoil by the failure of the Government to act promptly on this issue, and by what can only be described as abusive behaviour by the developers of their properties and neglect by housing associations. I wish to name one developer in particular—the notorious Ballymore Group. It is notorious for its profiteering from extortionate, ever-increasing service and insurance charges. From the start of the cladding crisis, Ballymore has lived up to its track record of failure to communicate with and consult its residents, and its continuing attempts to shirk its own responsibilities and load as much cost directly on to the residents as possible.

My constituents have submitted their case study of their experiences to the Minister. They have explained that, as leaseholders and participants in shared ownership schemes, they are being placed in extremely vulnerable positions, facing the risk of heavy cost burdens. The delay in Government decision making over arrangements to cover remedial costs has meant that many of my constituents are unsure of their safety and unsure when their properties will be made safe. Ballymore has just said not until 2023, and that items such as other safety defects revealed on inspection beyond the cladding will not be covered by the Government grant or by the company. This includes the very wooden balconies that this company installed itself. The scale of the costs will clearly overwhelm the amount allocated by the Government. That, plus the restrictions on what work is eligible for financial support, is resulting in developers such as Ballymore seeking to shift as much of the cost burden as possible on to leaseholders and shared ownership residents.

Shared owners are absolutely over a barrel. They own nothing. They cannot sub-let or sell. The clocks are ticking on short leases. The housing associations are charging premiums for lease extensions but doing nothing to help in any way, while taking a management fee on top of the developer’s management fee. Shared owners now risk having to pay for 100% of remediation and the interim costs, despite owning nothing. How can that be termed affordable housing? The emotional stress on my constituents is immense, especially as many have lost their jobs or had their wages cut as a result of the pandemic.

The message from my constituents to the Government is very clear. They want an immediate assurance, with legislation, that their homes will be made safe and that the developers who caused these problems will be the ones to pay.