Fire Safety Bill

Neil Coyle Excerpts

Consideration of Lords amendments
Monday 22nd March 2021 Commons Chamber

The stress of paying for remedial works is particularly acute for leaseholders in shared ownership blocks, including Norfolk House in Deptford. Residents do not qualify for the Government’s new cladding grants, as their building is under 18 metres. They therefore face having to pay back costs at £50 per month. The estimated total for removing the cladding is £3 million, meaning that residents would have this debt hanging over their heads for many years to come. On top of that, they are facing additional fire safety charges, including for a waking watch. The cost of that, to be billed from September, is a staggering £74,000 a month. Many constituents are also finding that banks will not lend on properties without external wall survey certificates, despite Government advice that the document is not a legal requirement. Just as the country faces another financial crisis, leaseholders will be forced into higher mortgage rates for homes that in many cases are no longer suited to their needs. The Financial Conduct Authority merely suggests using mortgage intermediaries. Ministers promised on at least 15 occasions that cladding costs would not be passed on to leaseholders, yet for years they have failed to deliver. Tonight, I call on the Government to support those amendments that would absolve leaseholders from bearing the costs of a crisis not of their making.

[Neil Coyle (Bermondsey and Old Southwark) (Lab) [V]]

Nearly four years after Grenfell, it is very disappointing that the Government still have not finalised support to make people’s homes safe, and that leaseholders are still waiting for the protection that Ministers promised multiple times, and that the Lords amendments could help deliver.

I am in touch with more than 3,000 households affected in my constituency, and hundreds of leaseholders have completed my online survey. These are people left in limbo by our Government, but already facing the cost of service charges or waking watches. There are also those facing costs where there is an uncertain timeline for the work. Seven out of 10 people who completed my survey said that works had been identified as necessary but they had yet to get the date for repairs. There are also people whom the Government deliberately excluded from help with compartmentalisation safety measures, and people living in buildings less than 18 metres tall. I am working with people living in 28 such buildings, and with people who have seen delays in Government action, despite the Government having failed to ensure that regulations meant that house building and renovations were safe. Of course, other people have seen Government guidance needlessly affect their insurance or mortgage.

Today, I am supporting the Lords amendments, but I am also asking the Government not to profiteer from this situation. I am seeking, with cross-party backing, including from the hon. Member for Southampton, Itchen (Royston Smith), who has already spoken, a VAT exemption on essential works required through fire safety surveys, in line with VAT changes made three years ago for some new builds. If that measure is adopted, the Government’s building safety fund will go 20% further, as money will not be lost to VAT. That fund goes on not luxury changes, but essential remedial works required by the Government to make people’s homes safe. Put simply, we cannot go from dishy Rishi eating out to help out last year, to rip-off Rishi profiteering from people’s misery today. I hope that this cross-party request will gain further support, and that Ministers will meet campaigners on this issue.

[Bob Blackman (Harrow East) (Con) [V]]

It is a pleasure to follow the hon. Member for Bermondsey and Old Southwark (Neil Coyle). The Government have moved swiftly to try to remediate the cladding on tall buildings. There has been slow progress, but progress is being made. In medium-rise buildings—those below six storeys—leaseholders will have to bear a cost, but we do not know what that cost will be, and we do not yet know the results of the proposals for the loan scheme. It is quite clear that the Government are trying to find a way forward, but we have yet to see the details.

There is also the issue of fire safety in buildings. The Bill is vital to preserving fire safety across the country in all buildings, whatever their structure. The Grenfell inquiry lifted the lid on the scandal of the tall buildings erected in this country without following proper fire safety regulations. Once a survey is carried out on a building, we know the extent to which work is required, whether regulations were followed, when the building was put up and whether the materials used in the building were correct. The people who provided substandard materials should be made to replace them free of charge. If builders put buildings up without following the proper regulations, we should go back to them and required them to carry out the remediation.

The one set of people who are completely and utterly innocent is the leaseholders. They did not build their building; they bought their lease in the belief that it was safe and secure. We should send out the strongest signal tonight that leaseholders should not have to pay a penny piece towards the cost of remedying things that were not their fault.

The Minister may say that the Bill is the wrong place to put that provision, but it will take at least 18 months—possibly two years—to bring the building safety Bill to fruition. Leaseholders do not have time to wait for us to deliberate, so let us join together and send the signal that leaseholders do not have to pay a penny. If the Government believe that Lords amendment 4B is somehow flawed, let them come forward with an amendment that is satisfactory and will result in the key outcome: not requiring leaseholders to pay.