Residential Leaseholders and Interim Fire Safety Costs Debate
Full Debate: Read Full DebateDepartment: Department for Levelling Up, Housing & Communities
Robert Neill
Main Page: Robert Neill (Conservative - Bromley and Chislehurst)Department Debates - View all Robert Neill's debates with the Department for Levelling Up, Housing & Communities
Residential Leaseholders and Interim Fire Safety Costs
Robert Neill Excerpts(3 years, 1 month ago)
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Sir Robert Neill (Bromley and Chislehurst) (Con) [V]
It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Vauxhall (Florence Eshalomi) on securing this debate.
The Government have done a great deal—I recognise that—with the money and funding made available. Equally, however, it is not enough, because the quantum of money available is not adequate and does not cover all the consequences of the regulatory failure that has put many people, including constituents of mine, in an impossible situation. It will be necessary for the Government to look again. Let me explain why that is important.
We have already heard about the dire position that many flat owners are placed in. Many of them have done the right thing in many ways—they have sought to buy their own homes—and they have done the things that my party has urged them to do. Now, they feel cut adrift. Many are people at the lower of the income scale, and many bought these properties as their entry into the housing market. Key statistics show, for example, that some 59% of the homeowners caught in this situation have an income of less than £50,000, and 33% of less than £35,000; when they are being hit with massive bills of tens of thousands of pounds, that is not very much—on properties that are unmortgageable or unsaleable.
In Northpoint, in my constituency, residents have collectively paid more than £0.5 million on a waking watch, on top of £120,000 for the installation of a temporary fire alarm. In some cases, the evidence shows that people are paying up to £50,000 a month. Also, as has been observed, insurance premiums have shot through the roof. In one London block, for example, the premium increased from £130,000 to £690,000. That is despite the fact that, in some cases, those buildings have been approved by the Department for the ACM remediation scheme and have put alarms in place. None the less, the insurance industry has, frankly, made unreasonable and unjustified levels of profit, and it needs to put its house in order, too.
We do need to pursue those at fault in the cladding scandal—the contractors and the builders—but that will take time, and it may take years. The leaseholders need help with cash flow. That is why the Government should be making available not just grants but loans to be recouped from those who are ultimately responsible. Only the Government have the cash flow to enable these people to move on with their lives. There is not just an economic cost but a massive personal and social one, too, for the victims of the cladding scandal.