Residential Leaseholders and Interim Fire Safety Costs

Margaret Hodge Excerpts

Wednesday 10th March 2021 Westminster Hall

[Dame Margaret Hodge (Barking) (Lab) [V]]

I warmly congratulate my hon. Friend the Member for Vauxhall (Florence Eshalomi) on securing this important debate.

In June 2019, a devastating fire tore through the timber balconies of Samuel Garside House in Barking. Residents lost their homes and possessions, and even their pets, and now live in fear, suffering sleepless nights and constant anxiety. Those residents were the first of many constituents impacted by the cladding scandal who have sought my help.

Leaseholders in Barking and Dagenham are not wealthy. Many live hand to mouth, and most cannot even afford contents insurance. Cladding has turned their dream of buying a home into a living nightmare. They face ongoing costs for interim safety measures, and cannot afford them. There are massive bills for waking watches, building insurance and EWS surveys, and the residents cannot sell or remortgage their homes.

At Academy Central, residents have paid £3,500 per household per year for a waking watch. Many cannot afford it and have been doing 24-hour control themselves, which places huge strain on their lives. At Rivermill Lofts, leaseholders have struggled to get an EWS survey. They have been quoted hundreds of pounds per flat, and only 70% of the households have paid up. In the meantime, their flats are worthless. At the Ropeworks, building insurance shot up from £70,000 to £650,000—that is 900%—in two years. At Barking Central, bills for interim measures have reached £6,500 per home. A third of leaseholders cannot afford that, and the cladding grant that they hope to get will not cover the costs of dealing with things such as flammable insulation or faulty firebreaks.

Many leases are buy-to-let, and the landlords often just do not care—at Arboretum Place, only five people turned up to discuss a way forward. The owner-occupiers cannot even begin to sort out the mess if the landlords will not engage. Responsibilities are diffuse, ownership is often shady and stakeholders shirk their obligations. I have had freeholders refusing point blank even to consider that they have a moral duty to help, developers refusing to turn up to meetings and insurers profiteering.

The Government said that leaseholders should not have to pay, but my leaseholders need Government action, not warm words. Developers, freeholders, builders, manufacturers and regulators should all contribute, but only the Government can force them to do so. The support package still has too many gaps—insufficient funding, arbitrary height thresholds, unaffordable loans and the ignoring of all the other defects. The issue will not go away—we will not let it—until the Government act comprehensively and thoroughly so that homes are made safe and leaseholders are not forced to foot the bills.

[Mr Philip Hollobone (in the Chair)]

I call Hilary Benn.