Leaseholders and Cladding

Robert Neill Excerpts

Wednesday 12th February 2020 Westminster Hall

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the right hon. Member for Leeds Central (Hilary Benn) on securing the debate. I agree with the thrust of what he said.

The residents of Northpoint in Bromley find themselves caught in a similar position. They have ACM—aluminium composite material—cladding but, like many blocks, a combination of cladding is used in the system, so they have HPL—high pressure laminate—cladding as well. They need clarity that all the remediation and removal costs will be met.

Whatever the Government’s intentions, which I accept were good, the process is continues to prove costly and bureaucratic. There are still delays. It has been many months since the residents were told that they had the problem, but they have still not been able to access the funds. They are having to fork out for surveys, even though their flats are effectively valueless anyway. They cannot raise any further equity against them, because there is no equity any more; they cannot remortgage or raise any other kind of loan against them.

At the same time, the residents of the block of flats have been obliged to fork out for the costs of a waking watch. So far, by requirement of the fire brigade, they have had to fork out nearly £120,000 between them for the waking watch and fire alarm system, and they have had to find that from sources other than the equity of their properties. That is putting people under massive strain.

In consequence, people’s health is being affected, because they are paying £11,000 a month. There is no sign of that ending, because it is taking so long to get any clarity as to whether they qualify—I hope to God that they will. On the face of it, stone bonk, they should, but it is taking so long and every month is another £11,000. We need to speed up the process and make sure that the inevitable costs of the waking watch and alarms are met, because they flow directly from the unsafeness of the cladding. They would not have them otherwise.

It is essential for all systems that involve dangerous cladding, whether ACM or HPL, to be clearly and manifestly brought within the scope of scheme. I hope that the position around insurance will also be considered, because the residents’ premiums have increased massively. The solution must surely be a grant; a loan does not seem appropriate. In many cases, the freeholders would have a legal entitlement in their freehold agreements with the leaseholders to recover costs from the leaseholders, so we have to get the grant to the freeholders to be sure that they are not out of pocket. They are the innocent victims.

I know that the Minister understands the complexity of the issue and that the Government want to do the right thing. Previous Secretaries of State were clear, but there is a real risk that the good intentions that were set out at the beginning are getting lost in a mire of bureaucracy. I hope that the Minister can reassure me on those specific points and on how we could cut through and speed up the process.

--- Later in debate ---

[Esther McVey]

That is a very well made point. In January, the Secretary of State said that we are currently considering options with the Treasury on the support that can go to leaseholders. Those are obviously ongoing conversations and negotiations, and I can go no further than that today.

[Sir Robert Neill]

I understand that, but the Minister will understand that people at Northpoint are forking out £11,000 for every month that the conversations go on. They have to be brought to an end, and something must happen soon.

[Esther McVey]

I thank my hon. Friend for making that point. As I said, MPs from both side of the House are raising these issues. The fire risk of tall buildings with cladding was brought to everybody’s attention after the terrible tragedy of Grenfell Tower. It had not been brought to people’s attention before.