Building Safety

Baroness Winterton of Doncaster Excerpts

Tuesday 14th March 2023 Commons Chamber

[Michael Gove]

I am grateful to the Father of the House, who has been indefatigable in his efforts on behalf of those affected by this crisis and of leaseholders more broadly. I should say, for his benefit and that of the House and the Opposition, that developers will be updating leaseholders on progress towards remediation quarterly on 31 January, 31 April, 31 July and 31 October each year—that will be public accountability.

I should also say for the benefit of my hon. Friend and the House that 96% of the most dangerous buildings—those with aluminium composite material cladding—have either completed or started remediation work. There are other high-rise buildings with other forms of unsafe cladding—1,208 such buildings. They are in the building safety fund. More than 350 of those buildings have now been addressed, and more than £1.7 billion of Government money has gone towards making those buildings safe. Progress, but not at the pace that either of us would have liked. His point about insurance companies is well made, and I will follow up subsequently.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Chris Stephens (Glasgow South West) (SNP)]

I thank the Secretary of State for advance sight of his statement. I have a couple of quick questions.

On the developers who have not signed, the Secretary of State is obviously talking about the situation in England. Does he intend to share that information with the devolved Administrations? Those companies may have interests in devolved areas.

What happens if a non-compliant building has defects that extend beyond fire performance matters? Further defects are often discovered only after the opening works have commenced and cladding has been removed—I am thinking particularly of acoustic and thermal non-compliance. Could the Secretary of State tell us which independent bodies will manage the work to identify such defects, and how will developers be held to account for them?

Finally, what is the Secretary of State’s plan when owners and/or developers of non-compliant buildings cannot be traced?

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[Michael Gove]

My right hon. Friend makes an important point. We need to ensure that we have in the development sector, and indeed in the building safety sector, a range of companies and actors determined to do the right thing. Some of the changes that we are making—to the national planning policy framework, for example, and other steps that my right hon. Friend the Chancellor will announce in due course—are designed to ensure that we have a diverse and energetic private sector market helping consumers and leaseholders.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Levelling Up, Housing and Communities Committee.

[Mr Clive Betts (Sheffield South East) (Lab)]

I thank the Secretary of State for his statement. Clearly, any progress in this matter is welcome for the leaseholders who are still sat there, wondering when something is going to happen to their unsafe homes. The Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire (Lee Rowley), is coming to the Select Committee next Monday. I apologise in advance that, for personal reasons, I cannot be there, but I am sure the scrutiny will be just as effective under the oversight of the hon. Member for Harrow East (Bob Blackman).

A number of issues have been raised with the Select Committee. First, in terms of the agreement that developers are signing, it was said to us that the remediation standards developers will have to work to will not be as strict as those under the Building Safety Act. Can the Secretary of State confirm whether that is true? Secondly, the Committee spoke to product manufacturers the other week, who said that they had had no contact with the Department for the last 12 months. Is that true, and if so, when will that contact be renewed, so that they can be held to account?

Finally, the Minister says, “I’m going to look at this” every time I ask him. Kate Henderson of the National Housing Federation told the Committee on Monday that the cost of remediating these matters will be £6 billion for social housing providers. They have only had a tiny bit of money under the ACM cladding measures. Will the Secretary of State look at that again? Otherwise, there will be cutbacks to the house building programme that they all want to engage in.

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[Michael Gove]

My hon. Friend makes a very good point. One thing that I was aware of before doing this job but have become clearer on since is that there are actors in the property market operating in the UK who hide behind opaque corporate structures, operate offshore and set up special purpose vehicles in order to get building done and then disappear from their responsibilities afterwards. That is why we set up the recovery strategy unit, and it is no criticism of any of our predecessors, because we have not faced a situation quite like this before. The whole purpose of the recovery strategy unit is to identify the ultimate beneficial owner of the building who should take responsibility. Developers who are operating as responsible plcs have all signed this contract. That is great and a real step forward, but there is still more to do.

On the point about leaseholders, we have a system that we have legislated on—it is not perfect, but it is a big step forward—which means there is a cap on the individual liability of any leaseholder, and the taxpayer has committed significant sums. I think—and I suspect this is a view shared across the House—that the building safety crisis shines a light on sharp practice by a small minority of people in the broader property sector that we need to take several steps to deal with, including improved land transparency legislation and other steps that will ensure we do not have a butler economy in this country, whereby people operating in the property sector put profit ahead of people.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I need to reiterate that I can only call Members who arrived at the beginning of the statement. It is the responsibility of Members to make sure they get here in time to hear the Secretary of State’s statement from the beginning. I assure Members that I and the other Deputy Speakers are even-handed about this.

[Hilary Benn (Leeds Central) (Lab)]

I very much welcome this statement, but I want to ask the Secretary of State about people living in buildings under 11 metres. The Government were not prepared to extend full coverage to them but said they would look at those buildings on a case-by-case basis—a commitment that the Secretary of State repeated this afternoon. Could he tell us how that is going? How many of those buildings have had assistance? What criteria are he and his colleagues using in deciding where to offer help? Does it include, for example, cases where the developers or builders went bust years ago? Does it include buildings where the leaseholders still cannot sell their flats because mortgage companies will not lend on them, despite the Royal Institution of Chartered Surveyors advice?