Building Safety Bill

Peter Bottomley Excerpts

2nd reading
Wednesday 21st July 2021 Commons Chamber

[Robert Jenrick]

As I understand it—I stand to be corrected if I have the wrong information—the 900 figure that the hon. Lady cites was a misinterpretation of the figures that were released earlier. None the less, the actual number is significant, albeit fewer than 900. We want to see waking watches used only in cases where they are absolutely necessary. The recent statement from the National Fire Chiefs Council has suggested that they are being used too often and that they can be reduced significantly. If she has constituents in that situation, as I am sure she does, in the first instance I would recommend that they make use of the waking watch relief fund to install a fire alarm, which can cut the costs very considerably.

This Bill takes an unusual step of retrospectively extending the period during which compensation for defective premises can be claimed—it more than doubles the current period, from six to 15 years. This significant step forward was requested and campaigned for by groups impacted by the cladding issue. We are going further, expanding the scope of the work for which compensation can be claimed also to include future major renovation work to buildings. These measures will not help everyone, but they do provide a step change in redress for raising issues. I hope that, in time, builders will extend their warranties to cover this period and provide the maximum amount of confidence to house purchasers.

[Sir Peter Bottomley (Worthing West) (Con)]

While my right hon. Friend is considering this point about the extension, will he please consider the point made by Robert Ayling, at Grosvenor Waterside, that the Building Act 1984 provision should be extended to six years after the plaintiff is aware of the defect? I am not asking for an instant answer, but such a measure would help to deal with the current situation very well.

[Robert Jenrick]

I will give that further thought and revert to my hon. Friend on it.

It was clear after the fire at Grenfell Tower that action was required to address safety concerns with respect to existing buildings, and my predecessors rightly took a safety-first approach, as I have also tried to do. We have provided expert advice and accelerated inspections of all high-rise buildings, and that work continues, with substantial progress having been made by the National Fire Chiefs Council on the building risk review, which is likely to be concluded by the end of the year. We have provided £5 billion in grant funding to carry out vital remediation work targeted at the buildings we know to be at the greatest risk from fire spread—those over 18 metres—and we have banned the use of combustible materials on the external walls of high-rise residential buildings, providing industry with a clear standard for the construction of new builds.

Some 474 buildings have been identified as having Grenfell-type ACM—aluminium composite material—cladding. We are now well on the way to remediating all of those buildings. Over 95% of the buildings identified at the beginning of last year have either completed or started remediation work; 70% of those have now been fully remediated, and that is rising every week. That means that around 16,000 homes have been fully remediated of unsafe ACM cladding, an increase of around 4,000 since the end of last year. Despite many building owners failing to provide adequate basic information, almost 700 buildings with other types of unsafe cladding are proceeding with a full application to the building safety fund. We have already allocated £540 million, which means that owners of 60,000 homes within high-rise blocks can be reassured that their remediation will be fully funded.

We currently forecast that over 1,000 buildings with non-ACM unsafe cladding will receive support of the same form through the building safety fund, providing a guide to the cohort of high-rise buildings where remediation is actually required. That is being progressed by a dedicated team in my Department and our two delivery partners, Homes England and the Greater London Authority. The Government have played their part: the unprecedented £5.1 billion we are providing gives assurance to leaseholders in eligible buildings that unsafe cladding on their blocks will be replaced at no cost to them.

I know that there will be strong feelings across the House about industry needing to fix and pay its fair share for problems that is has helped to cause. I recognise that some house builders have stepped up, too, thus far committing over £500 million for remediation since my statement in February. But some have not stepped up, or at least not in the way I expect them to. Ballymore, for example, has yet to commit to fully funding the remediation of its buildings.

The industry needs to go further. That is why we are introducing a new levy on high-rise residential buildings. We have published today a consultation document on the levy and I welcome views from all interested parties on its design. The levy will sit alongside a tax being developed by the Chancellor to raise at least £2 billion to contribute to the costs of historical remediation. This Bill also introduces the building safety charge to provide residents with clarity and certainty on the costs of building works, and we have listened and ensured that that charge only includes the cost of management of building safety in their building.

As I said at the outset, in bringing forward this new building safety regime we need to take a sensible, proportionate approach driven by expert advice. The Bill ensures that the building safety regulator will regulate in line with best practice principles, be proportionate and transparent, and ensure that the interests of leaseholders are protected. In 2020, only 9% of fires were in flats of four storeys or more. In 2019-20, only 7% of fires spread beyond the room of origin in such buildings. And, while every death is of course tragic, thankfully only 10 people died in 2020 as a result of a dwelling fire in flats of four storeys or more. We strongly believe that our proportionate approach is in line with these facts, ensuring that remediation works are undertaken only where absolutely required, and leaseholders should not be landed with bills for unnecessary work.

Unfortunately, that is not the position today and we need a significant reset. Too many people living in lower and medium-rise buildings have told us of feeling trapped in their properties, held back from selling their homes because of excessive caution in the lending, surveying, insurance and fire risk assessment markets. Understandably, this has caused residents to worry over safety and has led to unnecessary costs. I want to be clear that the vast majority of residents in all homes in this country, including blocks of flats, should not feel unsafe. Driven by these concerns, earlier this year I asked a small group of experts on fire safety to consider the evidence and advise me on the steps that should be taken to ensure a proportionate, risk-based approach to fire safety in blocks of flats. I thank them for their time and their expert advice, which I will publish later today.

The key finding of the experts’ advice is clear: we cannot and should not presume systemic risk of fire in blocks of flats. I quoted some of the statistics earlier, but let me repeat them. Dwelling fires are at the lowest point that they have been since we started to collect comparable statistics in 1981, despite the fact that in 2020 people spent significantly greater amounts of time in their homes as a result of covid restrictions. On that basis, the expert advice includes five significant recommendations to correct the disproportionate reaction that we have seen in some parts of the market. First, EWS1 forms should not be a requirement on buildings of less than 18 metres.

--- Later in debate ---

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for what I consider to be properly a point of order. The Secretary of State has most courteously explained to the House that the statement that is now forthcoming is market sensitive. I have had a chance to glance at it and I understand that it is indeed market sensitive, so I can understand, and I think the whole House will now understand, why the Secretary of State issued it at the point that he did.

I have to say to the House that there seems to have been some delay in the Vote Office and in the workings of the House, and for that, on behalf of the House authorities, I apologise to Members and to the Secretary of State. I thank the Opposition Whips for giving me a copy, since nobody else did—

[Sir Peter Bottomley]

rose—

[Madam Deputy Speaker]

I am still finishing my response to the point of order, Sir Peter.

I think there are some points in the statement that the Secretary of State will wish to clarify. I am not putting a time constraint on him, as I normally would, for finishing his Second Reading speech, because in addition to that speech it would be appropriate for him to take two or three questions on his written statement.

[Sir Peter Bottomley]

Further to that point of order, Madam Deputy Speaker. The written statement has the number HCWS228; an online search brings up one with a similar number from January 2015. Could the House authorities see whether they can get the statement online so that those Members who are participating virtually also have the chance to read it?

[Madam Deputy Speaker]

I thank the hon. Gentleman for that point of order and I reiterate it. I wonder whether the House authorities have done that—I do not know but I ask them to do so immediately.

--- Later in debate ---

[Sir Peter Bottomley (Worthing West) (Con)]

Thank you, Madam Deputy Speaker, and welcome.

Paragraph 19 of the National Audit Office report says:

“The Department has acknowledged that only in a minority of cases would it be financially justifiable for building owners to bring legal action to recover money.”

But the building owners will only make a claim if they are indemnified by the residential leaseholders, who do not have the money, so it is not going to happen, and the sums that the Department has reclaimed are very low. What is clearly obvious is that they will not get money from leaseholders. That follows on from the report of a working party set up two weeks after the Grenfell fire by Ted Baillieu, the former Premier of Victoria in Australia, and an architect. It reported within two years. He gave a presentation to the all-party fire safety group and the all-party leasehold and commonhold reform group. As they will not get money from leaseholders, they have to find the problems, fix the problems, fund the problems and then see how to get the money back. We know that the Ministry of Housing has got just over £5 billion from the Treasury. It expects to get perhaps £2 billion back in tax and £2 billion back in levy. If £15 billion is spent, there will be £3 billion back in VAT. So the Treasury seems to make money out of this, and who is left with the £10 billion of funding? The residential leaseholders, who cannot afford it.

It is quite clear that the Government have to do two things: first, as I said to the Secretary of State during his speech, extend the Building Act 1984 so that people can make a claim within six years of knowing that there is a problem; and secondly, make sure that the insurance industry knows that it is ultimately liable for what the architects, designers, component suppliers, builders, regulators and building control groups have done and must get most of the money back by agreement. There is no point in having individual leaseholders, or groups of them, taking legal action; it will not work. I say to the Secretary of State: in this case, please listen to those who know and try to make sure that no examination takes place without leaseholders being part of the committee. They could have told the Secretary of State four years ago that his approach was not working.

We are grateful for some progress, but we need much more.