Building Safety

Neil Coyle Excerpts

Wednesday 10th February 2021 Commons Chamber

[Robert Jenrick]

I honestly do not know. The Scottish Government have, as far as I am aware, done nothing with the very significant sum of money that the Chancellor has given them through the Barnett consequentials process. I am not aware of what the Welsh Government are doing. I think those questions are better directed to the Scottish Government and the Welsh Labour Administration.

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

The Secretary of State has said that his mission is safety and fairness for leaseholders. How do today’s proposals protect a leaseholder who has been paying £50 a month but still has a large loan outstanding on their home at the point of sale, because of the cost of removing unsafe cladding? Is the truth not that the Secretary of State has failed to deliver on his promises of fairness, and that he is choosing to leave thousands of leaseholders facing massive costs?

[Robert Jenrick]

The hon. Gentleman, for whom I have great respect, misunderstands the scheme that we have just announced. For buildings of between four and six storeys, where the risk is much lower, leaseholders will have the opportunity, if they wish—there will be no compulsion—to take advantage of the financing scheme. That loan scheme financing arrangement will sit with the building, not with the individual. It will not affect the individual’s personal credit rating, and it should not have a material impact on the value of their property. It will be akin to paying somewhat more on their service charge every month. As I say, it will be capped at £50 a month, which is similar to the average service charge. Of course, in many buildings the service charge is already far in excess of that.