Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department has taken to ensure that when a building owner enters administration, qualifying leaseholders remain protected from non-cladding remediation costs under the Building Safety Act.

The costs of remediation will only fall on leaseholders in the event some or all of the leaseholders choose to buy the freehold collectively and take over the rights and responsibilities of being the freeholder. Otherwise, the responsibilities will remain with the freeholder or, following the conclusion of any insolvency proceedings, with the party who acquires the freehold following termination of the insolvency. In which case, the leaseholder protections will apply.

As a result, qualifying leaseholders under the leaseholder protections in the Building Safety Act 2022 will remain protected in law from the costs of non-cladding historical safety defects being passed on to them through the service charge (under the terms of the protections).

Should a building owner become insolvent and enter administration, interested parties including leaseholders can also potentially look to pursue a previous freeholder, developer and any associated company or person for remediation costs through a Remediation Contribution Order and also have the potential to pursue developers, contractors or manufacturers where they are liable for defects which meant one or more dwellings in the building was not fit for habitation when the relevant works were completed.