Leaseholders: Properties with Cladding

Lord Randall of Uxbridge Excerpts

Thursday 7th January 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I am happy to report that I spent a considerable amount of time being briefed by Dean Buckner, who is at the heart of those proposals, the Leasehold Knowledge Partnership, and the APPG on Leasehold and Commonhold Reform. I can also say that Michael Wade has been asked by my right honourable friend to look into this matter. There was a huge amount of similarity in thinking on how to move forward. In fact, we learned a lot from the discussions. At the moment, I cannot say exactly what will be put forward. That matter is obviously above my pay grade, but we are getting there.

[Lord Randall of Uxbridge (Con) [V]]

My Lords, I draw attention to my property entries in the register. The Government have stated that they expect building owners to pay for the cost of remediation rather than passing it on to leaseholders. Despite that welcome aspiration, there is currently no compulsion for owners to cover these costs. Many are flatly refusing to take that responsibility. This has already resulted in bankruptcies and even suicides among leaseholders presented with enormous bills. What can the Government do to force building owners and the construction industry to do the right thing?

[Lord Greenhalgh (Con)]

My Lords, that is a very pertinent question and I thank my noble friend for raising it. There are ways to deal with that. Frankly, they have made large sums of money in the last few years and their profits are often publicly available. There is a soft power aspect: developers want to continue to build if they are in business, and they can afford £60,000 for a fire alarm and to pay for remediation costs. They do the right thing. We saw with the aluminium composite material programme that around half of building owners did the right thing and did not to have to resort to payment and subsidy by the taxpayer.