Grenfell Tower

Matthew Pennycook Excerpts

Monday 5th February 2018 Commons Chamber

[Dominic Raab]

The hon. Gentleman is right that the flexibility relates to local authorities’ borrowing. Quite how that should be done will depend on the individual circumstances of particular local authorities, but we are willing to discuss that. As I mentioned earlier, we are yet to decline a request, so the support is there.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The New Capital Quay development in my constituency is just one of hundreds of private freehold developments across the country where cladding has failed and where the freeholder in question—Galliard Homes in this case— has washed its hands of all responsibility for interim fire safety measures and remedial works. Does the Minister agree that it cannot be right for leaseholders to pick up the full costs in such cases? Will he urgently set up a working party to consider the matter and give proper guidance as to who is liable under the law for the costs on such developments?

[Dominic Raab]

It is not just in relation to local authorities and housing associations that the freeholder is responsible for renovations; it is also the case for private landlords. The question of the allocation of responsibility for funding and financing the renovation is partly determined by the terms of the leasehold arrangement, but my understanding is that, as a matter of general law, a freeholder cannot pass unreasonable costs over to leaseholders. There is always recourse to the tribunal and we know plenty of leaseholders have taken such action. We have been very clear that, morally, such costs should not be passed on to leaseholders.