Commons Sense

House of Commons · Ministerial Statement

Building Safety

30 January 2023 · 33 other contributors

Opened by Michael Gove Con Surrey Heath

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Michael Gove raised concerns about building safety in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Secretary of State for Levelling Up, Housing and Communities, Michael Gove, acknowledged the collective failure in building safety oversight.
  • Leaseholders and tenants should not bear the financial burden for remediation, according to the minister.
  • The Government has taken measures such as the Building Safety Act 2022 to protect residents.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

The Secretary of State for Levelling Up, Housing and Communities, Michael Gove, made a statement to the House of Commons updating on the government's progress in making buildings safe. He acknowledged the collective failure that led to unsafe building materials being used and inadequate oversight by those responsible, emphasising that leaseholders and tenants should not bear the financial burden for remediation. The Government has taken measures such as the Building Safety Act 2022 to protect leaseholders from unjust costs. Significant progress includes forcing developers to pay for remediation instead of innocent residents, enabling mortgage lenders to lend on properties under new protections, and reopening the building safety fund for new applications. A medium-rise fund is being piloted with a developer levy. Additionally, a pledge was made by large house builders to fix all life-critical fire safety issues in buildings over 11 metres, and a final contract will be published for developers to sign within six weeks. Those who fail to comply may face severe consequences including prohibition from future development and building control sign-offs. The responsible actors scheme will ensure developers who built unsafe buildings are held accountable, with developer remediation expected to exceed £2 billion in investment.

Other contributors (33)
  • Robert Neill Con Chafford Hundred

    Question

    The MP asked if the Government would go beyond developers' contracts to pursue building owners who obstruct remediation work and about the criteria for identifying such owners. He also questioned why some companies are exempt from the contract.

    Minister reply

    The Minister emphasised that those who obstruct remedial works will face serious consequences, including legal action through the courts if necessary. The Government is targeting recalcitrant freeholders and has active investigations underway into various parties involved in the crisis.

  • James Davies Con Crewe and Nantwich

    Question

    The MP inquired about the costs associated with remediation, whether developers are funding all necessary work without Government assistance, and how to ensure that leaseholders understand their rights under the Building Safety Act.

    Minister reply

    The Minister confirmed that developers must fund remediation for buildings they are responsible for. He emphasised the importance of clear communication between developers and leaseholders regarding their legal obligations and responsibilities.

  • Diana Johnson Lab Kingston upon Hull North

    Question

    The MP questioned whether those who benefit from commissions related to insurance policies should be liable for compensation and about the role of managing agents, landlords, and freeholders in ensuring fair service charges.

    Minister reply

    The Minister committed to banning property managing agents, landlords, and freeholders from receiving commissions or other payments from insurers and brokers. He stated that all future bills must comply with the Building Safety Act's protections for leaseholders.

  • Robert Neill Con Chafford Hundred

    Question

    The MP sought clarification on whether the Government will publish a list of buildings where remediation is due but not happening, and if there are specific criteria to identify such buildings.

    Minister reply

    The Minister stated that the Building Safety Act provides mechanisms for identifying non-compliant building owners and taking appropriate action. He assured the MP that developers who fail to comply will face significant consequences.

  • James Davies Con Crewe and Nantwich

    Question

    The MP inquired about the Government's strategy for addressing buildings where remediation is ongoing but not completed, and whether there are specific measures to encourage progress.

    Minister reply

    The Minister highlighted the importance of developers signing the contract and fulfilling their obligations. He emphasised that those who fail to comply will face legal action through the courts.

  • Lisa Nandy Lab Wigan

    Question

    The MP welcomed some measures but criticised the lack of progress in fixing dangerous cladding, highlighting ongoing issues faced by leaseholders. She questioned the minister's approach towards foreign developers and urged for greater transparency on legal advice received.

    Minister reply

    The Minister acknowledged the collective responsibility of various actors involved in the crisis and stated that detailed negotiations with developers led to a contract that balances their responsibilities and ensures timely payment for required work. He mentioned ongoing efforts by the recovery strategy unit to deal with freeholders and construction product manufacturers, welcoming further engagement on this matter.

  • Peter Bottomley Con Worthing West

    Question

    The MP welcomed the minister's statement but noted previous failures in implementing commonhold reform. He suggested that leaseholders should be a party to insurance policies and proposed engaging with the insurance industry for better claims handling.

    Minister reply

    The Minister confirmed the government's commitment to proceed with commonhold reform as outlined by the Law Commission and acknowledged the importance of ensuring timely payments for companies carrying out remediation work. He stated that the points regarding the insurance sector are understood and will be acted upon.

  • Chris Stephens SNP Glasgow North East

    Question

    The MP thanked the minister for advance sight of his statement and questioned the support given to companies carrying out remediation works, particularly regarding insurance issues and timely payments by Homes England.

    Minister reply

    The Minister acknowledged the importance of ensuring that companies carrying out remediation work are paid in a timely fashion. He stated that progress is being made on this matter and raised specific concerns about insurance with the chairman and chief executive of Homes England.

  • John Redwood Con Wokingham

    Question

    What actions will the Government take to make it more likely that people will set up new construction companies and grow smaller companies, since we clearly need more capacity and more competition to get high-quality work done?

    Minister reply

    Many provisions in the Levelling-up and Regeneration Bill are designed explicitly to aid the entry of new small and medium-sized enterprises into the construction sector. This follows from the excellent work of my hon. Friend the Member for South Norfolk (Mr Bacon) who has championed self and custom builders.

  • Clive Betts Lab Sheffield South East

    Question

    I welcome the progress made so far, but in a couple of weeks’ time the Levelling Up, Housing and Communities Committee will be looking further at omissions that probably still exist, including how the Secretary of State will get money out of product providers. Apart from on ACM cladding, there is no help at all for social housing providers with disrepair problems and making homes more energy-efficient.

    Minister reply

    The Chairman makes an important point regarding the pressures on the social housing sector, I am aware and we need to work collectively to ensure it can discharge its obligations. More about this will be said in the weeks ahead.

  • Julian Lewis Con New Forest East

    Question

    If he does reform the freehold and leasehold systems, what provision will he make so that people with short leases are able to take over their freehold without having to pay huge charges for extending their lease?

    Minister reply

    We need to ensure there is a fair valuation so those on short-term leases do not have to pay over the odds to acquire freehold or commonhold status if property values increase.

  • Ruth Cadbury Lab Brentford and Isleworth

    Question

    What is being done to protect leaseholders and residents in blocks that have non-fire-related safety issues?

    Minister reply

    We announced new support initially for Greater Manchester and the west midlands to make safe a variety of safety issues, particularly social housing. More work on building safety is required.

  • Question

    Will the Secretary of State acknowledge the work done by many Conservative Back Benchers in voting against the Government and specifically that of my right hon. Friend the Member for Stevenage (Stephen McPartland) and my hon. Friend the Member for Southampton, Itchen?

    Minister reply

    My right hon. Friend the Member for Stevenage (Stephen McPartland) and my hon. Friend the Member for Southampton, Itchen have been genuine friends of those in need.

  • Stella Creasy Lab Co-op Walthamstow

    Question

    In the absence of anybody to hold accountable, these residents have already had to scrape together £10,000 to pay for surveys and reviews. Can the Secretary of State confirm that those costs can be reclaimed from the building safety fund?

    Minister reply

    If freeholders appeal to poverty in this case, the RSU can make sure we find the truth if I am informed about who the freeholders are.

  • Question

    Has any thought been given to a code of practice with teeth that sets benchmarks for acceptable conditions when remediation work is carried out?

    Minister reply

    More will follow in order to ensure we give teeth to the provision and an obligation on those doing the decanting to ensure people are in appropriate accommodation.

  • Stephen Doughty Lab Co-op Cardiff South and Penarth

    Question

    What sanctions will be faced by companies that knowingly took shortcuts on safety and what happens when they simply go out of business and pop up under another name?

    Minister reply

    We have found a particular company involved in construction at Grenfell trying to shift responsibility. It cannot access Government funds through Help to Buy or other schemes. Further action against companies will be a matter for the police and Crown Prosecution Service following on from the conclusion of the Grenfell inquiry.

  • Barry Gardiner Lab Brent West

    Question

    What sanctions will those who knowingly took shortcuts face, and what happens when companies simply go out of business and pop up under another name?

    Minister reply

    One particular company directly involved in construction at Grenfell tried to shift responsibility. We have said it cannot access Government funds through Help to Buy or any other schemes. Further action against companies will be a matter for the police and Crown Prosecution Service.

  • Jeremy Corbyn Ind Islington North

    Question

    What compensation will leaseholders and tenants get for increased insurance costs, and when can they expect work to start?

    Minister reply

    Once construction companies have signed the contract and social landlords commit to remediation, they should be in touch with tenants and leaseholders about when that work will be carried out. I would be grateful to know building by building where people are still in doubt.

  • Hilary Benn Lab Leeds South

    Question

    Far too many leaseholders are still living in properties that have not been remediated, including in my constituency at Cartier House, the Gateway, and the Drive, Saxton Gardens. When will they get sorted out?

    Minister reply

    No, it is not good enough. The Government aims to ensure these buildings advance work as quickly as possible.

  • Helen Morgan Lib Dem North Shropshire

    Question

    Can the Secretary of State give us some timelines for property ownership reform?

    Minister reply

    The aim is to do this in the Queen’s Speech.

  • Andrew Slaughter Lab Hammersmith and Chiswick

    Question

    The Secretary of State said nothing about leaseholders in smaller buildings, nothing about social housing. When will he make an announcement on this?

    Minister reply

    This Government have acted to ensure that social housing tenants get a better deal with the £30 million announced last week.

  • Stephen Timms Lab East Ham

    Question

    My constituents welcome the Secretary of State’s grasp of their problems, but his changes have required some arrangements that were previously in place to be reworked. Will the changes offer any assistance and relief?

    Minister reply

    Developers are stepping up to the plate and accepting their responsibilities. The insurers and construction product manufacturers also need to do more.

  • Fleur Anderson Lab Putney

    Question

    Two big developments in my constituency had unsafe cladding identified three years ago, applied to the building safety fund. Can you confirm that those developments will now be taken out of the building safety fund and given to their developers?

    Minister reply

    That is exactly what today’s announcement is intended to achieve.

  • Florence Eshalomi Lab Co-op Vauxhall and Camberwell Green

    Question

    I want to draw the Secretary of State’s attention to an area that is often forgotten: safety for disabled residents. How can this be acceptable?

    Minister reply

    The hon. Lady is completely correct. We need to move more quickly to give disabled people certainty they will be safe.

  • Justin Madders Lab Ellesmere Port and Bromborough

    Question

    May I point out that most of the industrial-scale scandals we are now familiar with developed over the past decade? Can he give us a date by which all our constituents will be free of leasehold?

    Minister reply

    That will depend on how quickly this House can agree the passage of the Bill. Given the generous words from the Opposition Front Bench, if we introduce it in the Queen’s Speech, then I hope it will be law as quickly as possible.

  • Gavin Robinson DUP Belfast East

    Question

    In my constituency there is the ARC—a building complex with 474 individual leaseholders. They know their building has non-ACM cladding that needs to be remediated. Will he engage with his colleagues and me to ensure the Northern Ireland Executive are given the support they need to deliver the remediation?

    Minister reply

    Absolutely. I will ask Sue Grey, the second permanent secretary of my Department, to be in touch with the Northern Ireland Executive this week.

  • Question

    On what date can we expect a positive response on personal emergency evacuation plans and the next and final stage of leasehold reform?

    Minister reply

    On PEEPs, I am reliant on the good offices of my friends in the Home Office. They are working hard and I hope to update the House shortly.

  • Ellie Reeves Lab Lewisham West and East Dulwich

    Question

    Dane House in Sydenham is a four-storey block of 26 flats with cladding on the third floor. Given today’s statement, will Crest Nicholson now be obliged to remove the cladding? Will he give a commitment that my constituents will no longer face such astronomical bills?

    Minister reply

    We will do everything we can, and I hope Crest Nicholson will hear clearly exactly the eloquent plea the hon. Lady makes.

  • Rushanara Ali Lab Bethnal Green and Stepney

    Question

    In my borough, there is a major issue with freeholders who are registered offshore so that our constituents cannot track them down. Can the Secretary of State commit to providing legal support or going directly after those who are not doing the work they are supposed to?

    Minister reply

    That is exactly what our establishment of the recovery strategy unit is designed to do.

  • Paul Blomfield Lab Sheffield Central

    Question

    I thank the Secretary of State’s ministerial and staff team for the support they have given to residents in Wicker Riverside. However, he will be aware of another case in my constituency, that of Mandale House, where the managing agency, Y&Y Management, which has directors in common with the landlords, is not only denying leaseholders their rights, but challenging the legal status of the legislation we have passed to protect them, presumably believing that the leaseholders will not have the resources to challenge them in court. Can the Secretary of State explain how today’s announcement will help leaseholders in Mandale House, and will he assure me that his Department will provide all the support they need to make Y&Y Management fulfil its responsibilities?

    Minister reply

    We absolutely will—it is with their concerns in mind that I made the statement today. I am grateful to the hon. Gentleman for his kind words about the Department’s engagement. May I thank, in particular, the Under-Secretary of State, my hon. Friend the Member for North East Derbyshire (Lee Rowley), who has made personal visits to many of those who are most directly affected and is ensuring that, within the Department, every lever is being pulled to help them on an individual basis?

  • Matt Rodda Lab Reading Central

    Question

    I thank the Secretary of State for his statement. Could he explain to the House how this action will help residents living in blocks that are just under the threshold for intervention? We have many such blocks in Reading and Woodley. In addition, could he update the House on what measures the Department will take to tackle wooden cladding, insufficient partitions walls, and weak or unsafe fire doors?

    Minister reply

    The hon. Gentleman is absolutely right to stress that it is not just cladding and buildings over 18 metres; there are other fire safety issues. It will be the responsibility of developers or, where appropriate, freeholders, to address those under the waterfall system that we have put in place through the Building Safety Act 2022.

  • Jim Shannon DUP Strangford

    Question

    I thank the Secretary of State very much for his statement. Building safety is vital for all parts of the United Kingdom of Great Britain and Northern Ireland. Further to the point made by my hon. Friend the Member for Belfast East (Gavin Robinson), may I request a timescale for communications between the Department for Levelling Up, Housing and Communities and the Department for Communities in Northern Ireland, which has responsibility for this? One thing to consider in all this is that we in Northern Ireland deserve the same safety as residents here on the United Kingdom mainland.

    Minister reply

    I could not agree more. I will ask Sue Grey, the second permanent secretary at my Department, to be in touch with the Department for Communities this week. I will write to the hon. Gentleman and the hon. Member for Belfast East (Gavin Robinson) with an update on the progress that we expect to make. May I apologise to the House for referring to the Queen’s Speech, when I should, of course, have referred to the King’s Speech?

Shadow Comment

Lisa Nandy

Lisa Nandy welcomed some measures but criticised the lack of progress five years after the Grenfell fire. She pointed out that only 7% of at-risk flats have been fixed and questioned whether there is a deadline for cladding removal or replacement beyond developers signing contracts within six weeks. The shadow minister also asked about actions against product manufacturers and building owners, seeking details on successful court cases and how to refer cases to the recovery strategy unit without burdening victims. She highlighted foreign developers' exemption from obligations and concerns over contract changes that may limit developer liability. Nandy welcomed steps to help leaseholders challenge dodgy bills but questioned why such practices are tolerated and advocated for abolishing leasehold tenure in favour of commonhold.

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