Building Safety Bill

Kelly Tolhurst Excerpts

Report stage
Wednesday 19th January 2022 Commons Chamber

The last point I want to make is about the need for speed. We are four and a half years on from Grenfell, and every single day that passes without the situation being resolved puts enormous strain on our constituents. They also have to shell out for the waking watches and insurance premiums that are the consequence of a problem for which they bear no responsibility whatsoever. Until the work is done, people’s flats continue to be worthless and they cannot get on with their lives. Some people have had to move out of their flat, get a new job in another part of the country and rent their flat out, and that is why it would be totally unfair to punish them for not being resident leaseholders. The sooner there is absolute clarity about what the statutory protection will look like, the sooner the work can be done and the day can eventually arrive when leaseholders can put behind them this groundhog day series of mornings when they have woken up thinking, “Oh my God, I am still stuck in this nightmare”, and instead wake up looking forward with some confidence to getting on with the rest of their lives.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I want to thank hon. Members across the House for the work they have put in. I also pay tribute to the Minister, whom I have spoken to on a number of occasions about the issues facing my constituency. I know that the Government have been listening and working really hard with colleagues to get to a place where people can be satisfied. As has been mentioned, the landscape is really complicated and the Government are trying to right some wrongs of the past.

I very much welcomed the Secretary of State’s statement last week, but I want to echo what has been said by colleagues across the House about what comes next and the protection that we will give to leaseholders. For example, at the Wharf in my constituency there has been a lack of clarity and transparency from the management company about the cladding and fire safety works that need to be carried out. The management company, Y&Y, is in the process of taking the leaseholders to a first-tier tribunal to award costs, adding a 5% commission. Since the statement last week, I have asked the management company if it could please pause this activity until the Government have moved further, but it has said that it will continue to go to the first-tier tribunal for costs. That will put some of the leaseholders in a really difficult position. Some of the people occupying those properties will not be able to pay those bills if the management company goes ahead with its actions before they have been given any security by the Minister, so I want to labour that point. We are also talking about historical payments that have been made, but this is happening as we speak.

[Sir Mike Penning]

One option for someone with a freehold property is normally to claim on their buildings insurance’s legal protection. A leaseholder has to pay the premium to the freeholder but does not have any protection. This is another area of the law that could be changed.

[Kelly Tolhurst]

My right hon. Friend is quite right. I welcome many of the amendments, and I welcome a lot of what is in the Bill. I am pleased with the extension on limitations.

During covid, a fire ripped through a building on the Causeway in my constituency. Again, it is not a high-rise block and is under 18 metres. Other hon. Members have mentioned firebreaks and the lack of such work. Coincidentally, further structural defects have been found in the investigation work carried out after the fire. They would not have been found if the fire had not ripped through the building in 2020.

As my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) and my hon. Friend the Member for Harrow East (Bob Blackman) said, these buildings have been signed off. I was a marine surveyor in a previous life, and if I had signed off the builds of boats that had major defects, my professional indemnity insurance would have had to pay out and I might not have got insurance next time around because of my poor performance. How is it acceptable that people can sign off such buildings and give certificates to the residents—our constituents—who buy them? That gives the residents confidence in the quality and safety of what they are buying. We need to look at the insurance argument; it is a valid point. To be frank, it is a scandal that those poor individuals have bought those buildings. The profession has a lot to answer for, as far as I am concerned.

Ultimately, I want to press the Minister on what assurances and comfort he can give my constituents who are watching the debate and who have been following the Bill with bated breath for many months, hoping that it will be their salvation.

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

I shall speak to Opposition new clause 3 and to the amendments that, although they will not be pressed to a vote this evening, would protect leaseholders from the costs of not only cladding removal, but the remediation of non-cladding defects.

I can hardly believe that it is four and a half years since the horrific fire at Grenfell, and still we are fighting for the robust legal protection that leaseholders in my constituency and across the country need and deserve. It is too easy to assume that removing cladding is the beginning and end of the scandal; the costs of remediating non-cladding fire safety defects are just as ruinous, and blameless leaseholders should not be picking up those costs. I have seen for myself the extent of fire safety defects at various buildings in my constituency, including the Brindley House development, where the scale of the missing firebreaks and other defects was truly shocking. The people who were responsible for putting up that building were grossly negligent and, in my opinion, complete cowboys.

The regulatory failure whereby buildings were declared fit for human habitation when they contained defective or inappropriate fire safety measures, or when those measures were wholly absent, is staggering. When there were negligent and dishonest practices, the costs of remediation should not fall at the feet of my constituents. A commitment to full legal protection for leaseholders from all costs—both for the removal of dangerous cladding and for the remediation of all other fire safety defects—should have been added to the Bill today, because those issues are not new and have been the subject of intense debate for years.

Ministers and their officials know full well the contours of the debate and the issues at stake, so it is not good enough that the Government did not make such amendments today. Instead, we will have to wait to see whether full legal protection is made available when the Bill goes to the other place. We may understand parliamentary procedure and the different staging posts of a Bill, but to my constituents watching from the outside, every single staging post feels like a slap in the face when they are not given the full protection that they need and deserve.

I associate myself with the comments that have been made about insurance, particularly professional indemnity insurance, but I want to mention the increased insurance premiums that many of our constituents have faced across the country. I have been writing to the Government, the FCA and others for more than two years to ask for action against the insurance industry for the huge increase—the hike—in premiums that our cladding-affected leaseholders have faced. That increase bears no resemblance to the mitigations that our constituents have paid for to decrease the risks in their buildings.

People have paid hundreds of thousands of pounds for new fire alarm systems and internal compartmentation to try to bring the risk down in their buildings, yet that is never reflected in the insurance premiums that they have to pay. That is unconscionable. There are big questions for the wider insurance sector to answer, in addition to the buildings industry. It seems to me that someone who has profited from, for example, charging a building in my constituency an insurance premium of £700,000 in total, which has never come down, has some big questions to answer.

I hope that when the Minister brings the Bill back to this place, we get the time for adequate debate and the further amendments that we need. I hope that we take action on insurance and perhaps even—God help us—implore the FCA to do its job and stand by our constituents, who deserve the regulator’s protection. When the Bill comes back, I hope that it addresses all those issues, as it is high time that the Government did right by leaseholders.