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Leaseholders and Cladding
24 November 2020
Lead MP
Christopher Pincher
Debate Type
Ministerial Statement
Tags
Housing
Other Contributors: 50
At a Glance
Christopher Pincher raised concerns about leaseholders and cladding in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Clive Betts
Lab
Sheffield South East
Question
The MP asked whether leaseholders will have to pay any costs for removing dangerous cladding, expressing that it would be unfair given the existing Government policy. He also questioned how 'an affordable amount' would be defined and sought assurances that developers and freeholders will be pursued for payment.
Minister reply
Minister confirmed that while public funding of £1.6 billion is being provided to assist leaseholders in buildings at risk, the overall expectation remains on developers and owners to pay for defects. He stated that costs should not fall disproportionately on leaseholders but acknowledged potential residual costs, stressing the need for innovative solutions to minimise such expenses.
Question
The MP highlighted the issues faced by leaseholder tenants who are burdened with anxiety and unmanageable costs due to dangerous cladding. He urged for comprehensive measures addressing all problematic buildings, including those affected by wood balconies violating regulations. The MP also raised concerns about ongoing waking watch charges.
Minister reply
Minister responded that the Government aims to prevent leaseholders from carrying the burden of these costs through innovative solutions and public funding. He mentioned ongoing work with Michael Wade to address such issues, and noted the publication of data on waking watch provider costs for better service comparison.
Mike Amesbury
Lab
Warrington South
Question
The Housing, Communities and Local Government Committee’s scrutiny report on the draft Building Safety Bill makes it clear that the Government need to step up and take action with a greater sense of urgency. The Member highlights several issues: leaseholders being responsible for remediation costs; slow progress in remediation work; safety issues not covered by funding such as firebreaks and wooden balconies; lack of risk prioritization; ongoing saga of external wall survey forms; the draft Building Safety Bill enshrining building safety charge which will put an additional burden on leaseholders. He asks what the Minister defines as 'affordable' costs for remediation, in 28 days, and questions why companies that knowingly engineered false test results are getting away scot-free.
Minister reply
The Minister acknowledges the ongoing situation but notes that taxpayers are spending £1.6 billion this financial year to help remediate buildings where owners cannot pay. He mentions negotiations have been made with industry bodies resulting in a change for EWS1 form, benefiting 450,000 leaseholders. The Minister emphasises the subjective nature of 'affordability' and seeks innovative solutions through work with the financial services sector to ensure that costs are fair. He agrees that firms proven to lie must receive legal repercussions.
Nickie Aiken
Con
City of London and Westminster
Question
The Member welcomes steps taken by some responsible property owners but expresses concern for leaseholders in her constituency whose buildings’ owner is pressuring them to pay for removal of dangerous cladding despite Government funding. She asks the Minister if he agrees that, given the billions being made available by the Government, it's now unacceptable for building owners to try and pass on remediation costs to leaseholders.
Minister reply
The Minister agrees with her point and emphasises that responsibility lies with developers or warrantee holders rather than leaseholders. He mentions spending a significant amount of public money but stresses the need for owners to take action in remediation.
David Linden
SNP
Glasgow East
Question
The Member congratulates on securing the urgent question and raises issues with buildings under 18 metres being impacted by decisions based on England's building safety programme, leading to problems for leaseholders in Scotland. He asks what measures will be brought forward considering the spending review and if discussions have been had with lenders and insurance companies. The Member also questions why the practice of leaseholding continues in England.
Minister reply
The Minister acknowledges that financial services sectors share commonalities across UK nations and mentions ongoing meetings to address issues such as EWS1 forms not applying to buildings without cladding, which will help many leaseholders. He says an agreement has been reached but suggests more work needs doing. He also confirms a leasehold reform White Paper is forthcoming.
David Amess
Con
Southend West
Question
The Member expresses concerns about constituents in his constituency who have been unable to get insurance due to cladding issues, making service charges escalate. He asks the Minister to reiterate that these costs should not be passed on to tenants or leaseholders.
Minister reply
The Minister confirms Lord Greenhalgh has held meetings with the insurance industry ensuring they understand and take on board this point.
David Lammy
Lab
Tottenham
Question
Expressing his disbelief at still needing to address the issue three and a half years after Grenfell Tower tragedy, the Member raises concerns about Bellway Homes’ profit levels while disregarding residents with combustible cladding. He asks what will be done for leaseholders in that situation given the inadequacy of the building safety fund.
Minister reply
The Minister acknowledges the challenges and mentions a summit convened by Lord Greenhalgh involving London Mayor and London Fire Brigade to address remediation work. He also notes there have been significant applications for £1 billion set aside for non-ACM cladding, with funding now starting to be allocated.
Liam Fox
保守党
Portishead
Question
福克斯议员对政府承诺保护业主权益表示欢迎,但指出不应由纳税人承担开发商、保险公司和所有者的责任。他询问部长将如何强制执行这些责任。
Minister reply
平彻部长回应说,首要的责任在于房产的开发者、所有者以及保修持有人身上。政府计划从2020年底开始公开点名那些未能按照预定时间表进行整改工作的房产所有者。
Tim Farron
自由民主党
Westmorland and Lonsdale
Question
法伦议员对开发商和政府无视安全问题导致的无辜业主面临高昂维修成本表示担忧,询问部长是否会接受上议院通过的第13号修正案。
Minister reply
平彻部长回应说,该修正案似乎具有追溯性,并且会使得建筑物所有者承担正常的磨损责任。虽然政府会在详细审查后给出最终意见,但目前他无法支持该修正案。
Tom Hunt
保守党
塔姆·亨特
Question
亨特议员询问部长是否可以解决业主在不确定性的压力下被迫支付高昂维修费的问题,并请求与部长会面讨论具体时间表。
Minister reply
平彻部长表示愿意与亨特议员及其同事会面,讨论该问题。他还提到政府正致力于使开发商尽快整改以减少居民面临的不确定性。
Clive Efford
工党
Eltham and Chislehurst
Question
埃弗福德议员对业主在三年后仍不知道自己房产是否安全表示担忧,询问部长将如何解决这个问题。
Minister reply
平彻部长回应说政府正致力于通过培训更多评估师来加速EWS1表的审查过程,并已经拨款70万英镑用于相关培训。
Chris Grayling
保守党
奇泽尔
Question
格雷林议员询问部长是否可以对不当应用规则和EWS表的情况保持压力,确保这些问题得到解决。
Minister reply
平彻部长回应说他们会听取格雷林议员的意见并继续施加压力。
Gorton and Denton
Question
吉恩议员询问有关建筑安全基金的申请和分配情况。
Minister reply
平彻部长回应说政府已经收到2704份申请,并且已经有100多个项目成功进入下一阶段。他还表示,他有信心在本财政年度结束前完成拨款并开始实施整改工作。
Roger Gale
保守党
Herne Bay and Sandwich
Question
盖尔议员询问部长是否可以保证租户不会面临不合理的费用。
Minister reply
平彻部长回应说政府已拨出16亿英镑资金,确保在开发商无法自行解决的情况下,由纳税人承担翻修工作。
Question
巴克议员质疑部长关于不再需要EWS1表的声明,并询问这一提议是否得到了金融部门的支持。
Minister reply
平彻部长回应说政府计划免除45万栋无外墙包层建筑提供EWS1表的要求。
Question
奥福德议员再次追问UK Finance是否已经正式确认不再需要EWS1表。
Minister reply
平彻部长回应说他相信行业确认了对于无外墙包层的建筑不需要提供EWS1表。
Dean Russell
Con
Watford
Question
I welcome the EWS1 form measures as they will have a real impact and provide certainty for many in my constituency. However, a number of Watford residents, especially in places such as Outlook Place, are still finding it difficult to sell or remortgage their homes, so what reassurances can my right hon. Friend offer to those living in buildings with cladding that are under 18 metres?
Minister reply
I am obliged to my hon. Friend and acknowledge his campaign on this issue in Watford. As a result of negotiations with the financial services sector, EWS1 forms will not be necessary for buildings not clad similarly to those currently facing issues, helping approximately 450,000 people around the country.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Question
I need to declare my interest in that I am a leaseholder in an affected block. The Government must acknowledge this is one of the biggest consumer and safety failures in a generation, and we need 10 times more pledged money than currently committed.
Minister reply
The Government have stepped up with £600 million for ACM-clad buildings, and about 79% of these are remediated or beginning remediation. We also committed an additional £1 billion through the building safety fund to address non-ACM cladding issues.
Felicity Buchan
Con
Kensington
Question
I welcome the funding for assessor training, but I am frustrated that three and a half years after Grenfell we still have many outstanding issues. What assurance can my right hon. Friend give me?
Minister reply
The £700,000 allocated will train about 2,000 assessors over the next year to expedite remediation efforts, alongside £1.6 billion for immediate building safety measures.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
My constituent is in one of 2,700 blocks applying to the building safety fund but does not know if her flat is safe or how much she might have to pay. Will the Minister guarantee that leaseholders will not face costs?
Minister reply
The Government will provide £1 billion through the Building Safety Bill by end of financial year, and the leasehold system reform will be addressed separately in a White Paper.
Kevin Hollinrake
Con
Thirsk and Malton
Question
In many cases there are legal problems involved, and responsibility lies with developers, manufacturers of insulation and cladding, and ambiguous building regulations. Should the Government step in now?
Minister reply
The Government have provided significant public money to remediate buildings but it must be right that we ask developers and those responsible for these buildings to pay first.
Daisy Cooper
Lib Dem
St Albans
Question
Leaseholders in St Albans are already facing bills of between £50,000 and £120,000 each for fixing safety defects. What urgent action can the Government take?
Minister reply
The work by Michael Wade aims to ensure that leaseholders are protected from any charges for historical remediation that are unfair.
Question
Will the Minister encourage housing associations funded to do this work to get it done as quickly as possible, especially after seeing Desmond House in East Barnet?
Minister reply
I will take my right hon. Friend’s advice to ensure that remediation efforts are expedited.
Stella Creasy
Lab Co-op
Walthamstow
Question
Hundreds of families in Walthamstow face huge bills after managing to get their foot on the property ladder through shared ownership. Will the Minister reconsider excluding those incurred before 11 March?
Minister reply
The decision was to prioritise buildings most in need and where owners cannot pay for remediation, but we want to find solutions so that unfair bills do not fall upon leaseholders.
Question
What steps is the Minister taking to ensure that all landlords are acting on their tenants’ concerns regarding building safety?
Minister reply
The Minister has written to responsible parties in buildings where remediation hasn't started and expects it by year-end. Roundtable meetings have been convened with owners and local authority leaders, and those who fail will be publicly named from December.
Ruth Cadbury
Lab
Brentford and Isleworth
Question
What are the Government doing to protect leaseholders after incidents like at Paragon Estate in Brentford?
Minister reply
The building safety fund is available for removal of unsafe non-ACM cladding. The Minister will discuss specific cases out-of-chamber and continues to work with developers to ensure responsibility and support.
Bob Blackman
Con
Harrow East
Question
Will the Government make it clear that costs of remediating unsafe cladding on buildings must not be passed onto leaseholders?
Minister reply
The Minister will look closely at proposed amendments to ensure this issue is addressed properly.
Question
When did the Minister last engage with Scottish Government counterparts on building safety issues, and when will he next meet them?
Minister reply
Discussions take place regularly between officials from both governments. The Minister is willing to discuss specific arrangements.
Question
What steps have been taken to keep people safe who are living in buildings that require remediation?
Minister reply
The Minister has put public money aside through the ACM and building safety funds. They work closely with industry to ensure other buildings are remediated safely.
Andrew Slaughter
Lab
Hammersmith and Chiswick
Question
Does the Minister understand that his statements leave leaseholders in limbo and will he define what “unaffordable” means better?
Minister reply
Through funds and work with the sector, costs should be protected for leaseholders. Affordability is subjective but efforts are being made to ensure people can live normally.
Barry Gardiner
Lab
Brent West
Question
Will the Minister accept responsibility to get those responsible to pay up, if necessary with a windfall tax on the industry?
Minister reply
The buck stops with those who built or own these buildings and efforts are being made to ensure they pay.
Gareth Bacon
Con
Orpington
Question
Will my right hon. Friend confirm whether an EWS1 form is required for buildings under 18 metres in height with cladding?
Minister reply
Buildings without cladding should not require an EWS1 form, and work is ongoing to obviate the need for leaseholders to provide these forms.
Munira Wilson
Lib Dem
Twickenham
Question
Will the Minister commit to covering the costs of assessment and remedial work for buildings with dangerous cladding?
Minister reply
Public money will be spent where necessary, but responsibility should first fall on those who built or own these buildings.
Question
The Minister is right that the buck should stop with those who are responsible, but for leaseholders in the Landmark in Bexhill whose builder and developer have gone out of business, what can be done to ensure they are not responsible and do not face years of court action or bankruptcy? Surely we need an industry levy.
Minister reply
The work by Michael Wade aims to address these challenges. We have put aside public money for buildings at risk without other means of funding. The aim is to mitigate costs on leaseholders, especially in the interim.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Question
This is a national scandal affecting many constituents due to amoral behaviour from developers like Redrow. Has the Minister named and shamed these companies, and what measures will be taken to make them pay? Will it involve a levy or other measure?
Minister reply
We have named and shamed non-compliant owners and developers. We are working on solutions with Michael Wade to mitigate costs for leaseholders and address the issue without providing an open cheque to taxpayers.
Question
While welcoming funding, what more can be done besides naming and shaming building owners who do not remediate unsafe cladding?
Minister reply
Local authorities have enforcement measures. Michael Wade is working on innovative solutions to mitigate costs for leaseholders without relying solely on government funds.
Warrington North
Question
Leaseholders should not be liable for remedial works due to buildings being potentially dangerous and built with inherent faults. Is this principle correct?
Minister reply
Our actions aim to ensure leaseholders are not responsible for costs related to cladding. We work on solutions to mitigate costs but developers must take primary responsibility.
Question
What measures can support Harlow in improving the quality of social housing given its urgent need?
Minister reply
We are investing £12.2 billion through our affordable homes programme to deliver 180,000 new affordable homes and reforming housing revenue accounts to enable local councils to build more social homes.
Lilian Greenwood
Lab
Nottingham South
Question
Leaseholders are being told to pay thousands for fire safety works, which they cannot afford. What advice can the Minister give?
Minister reply
We sympathise with leaseholders' situations and work on solutions through Michael Wade's efforts and continue making public funds available via the ACM fund and building safety fund.
Caroline Nokes
Con
Romsey and Southampton North
Question
Leaseholders are living in fear with high insurance costs. Can my hon. Friend please impress upon him the urgency of resolving these issues?
Minister reply
We will continue to work on insurance challenges, mortgage costs, and remediation efforts swiftly and effectively.
Stephen Timms
Lab
East Ham
Question
Will the Minister set out criteria for grant funding more clearly? A recent B1-rated development is considering applying to the building safety fund despite no need for remediation.
Minister reply
We will work with Michael Wade on solutions and hope to make further announcements soon. Specific criteria are available in the Building Safety Fund.
Question
What updates can my right hon. Friend provide regarding applications to the building safety fund for removing unsafe non-ACM cladding?
Minister reply
More than 100 applications have been advanced and first payments will be made soon. The full £1 billion allocation should be made by the end of this financial year.
Lyn Brown
Lab/Co-op
West Ham
Question
Hundreds of constituents are affected by safety problems, from social housing tenants in Canning Town to leaseholders in Stratford. Those in the Prime Minister’s flagship Olympic park have had the Olympic dream turned into a nightmare. This crisis is getting worse. Just two weeks ago, four more blocks were placed on waking watch. They have been told there is a risk of fire, which increases their fear. They are trapped in unsellable homes and there is a dread that, at the end of all this, there is going to be an unaffordable bill for them to pay. Why can the Government not understand that this continuing uncertainty and punishing of leaseholders is plain wrong and that the notion of affordability is massively contentious and concerning? Perhaps we can have a meeting.
Minister reply
I entirely understand the concern of the hon. Lady and her constituents. The Government are working hard and at pace to remediate these buildings and resolve the issues that her constituents face. I am very happy to meet her to discuss the specific issues in her constituency, but she can be assured that I have every sympathy with the plight of her constituents. We are working very hard, very quickly to make sure those issues are resolved.
Neil O'Brien
Con
Harborough
Question
Will my right hon. Friend update the House on what progress is being made in removing both ACM and non-ACM cladding in the social housing sector?
Minister reply
Something like 97% of buildings with ACM cladding in the social sector have been remediated or have remediation under way. Of course, we continue to work on the remediation of non-ACM cladding, and we will work with local authorities to make sure that that is done as swiftly as possible. Another Member previously asked me if I would encourage housing associations to work more swiftly to remediate their properties—I think it was my right hon. Friend the Member for Chipping Barnet (Theresa Villiers)—and I said to her that, yes, we will. I say to my hon. Friend: yes, we will work harder with social housing operators to make sure that their properties are remediated.
Question
Could I just say to my right hon. Friend that I have an outstanding meeting request with his colleague Lord Greenhalgh, and I wonder whether he might facilitate that for me? I heard the Minister’s answer a moment ago to the question about whether or not the Government would look at the amendment from the House of Lords, and I listened carefully to his answer. Can he tell me whether or not the Government are sympathetic to the amendment, and whether or not the Government might bring forward their own amendment that would be in order?
Minister reply
My hon. Friend encourages me to facilitate a meeting with Lord Greenhalgh, and I am happy to try to assist him in that regard. Regardless of the rather byzantine practices in the other place, I trust that we can make that happen for him. My hon. Friend asks whether we have sympathy with the amendment sent down to us from the House of Lords. I understand what the amendment is trying to achieve. I believe it is defective, but of course we will look at it from the point of view that another Chamber in this Parliament has sent us an important amendment, and we will give it appropriate consideration.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Question
I receive emails from constituents in Vauxhall on an almost daily basis about this cladding scandal. My constituent who lives at Beregaria Court on Kennington Park Road emailed me yesterday and said: “I am a leaseholder and do not own any other part of the building, I had no say in how this was built, until recently I didn’t know what cladding was, have just been working and saving for years and putting it all into 1-bedroom apartment that now is worth nothing.” Such constituents bought their homes in good faith, so I have one question to the Minister: do the Government agree with me that in principle it is wrong to make leaseholders pay for these bills?
Minister reply
I pay tribute to the hon. Lady. I know she campaigns hard for her constituents, and we have had many exchanges across the Chamber about the concerns that her constituents have raised with her. We entirely agree that it is not right that leaseholders who have done the right thing—who have invested in a property or have chosen a place to call home—should find themselves burdened by costs for which they are not responsible. That is why we are working with the financial services sector—Michael Wade is working on this—to try to make sure that any costs respecting historical defects of buildings are obviated. She will understand when I say that the taxpayer should not be held responsible for an open-ended cheque. We have already spent over £1.5 billion of public money to ameliorate those buildings most in need of it. The fundamental responsibility must lie with developers, but I entirely understand the point of view that the hon. Lady has raised on behalf of her constituents. Leaseholders who have done the right thing should not fall liable to unfair costs.
Question
On behalf of my constituents who are affected by and anxious about this situation, can I add my voice to the cause that leaseholders should not have to pay for these charges? They have done nothing wrong. Can my right hon. Friend assure me that he will push lenders not to require the EWS1 form if it is not really needed, and also push the Royal Institution of Chartered Surveyors, which is training 2,000 other assessors, to deploy those in the areas of the country that most need them? If they are too thinly spread across the country, it will not do enough to reduce the delays.
Minister reply
I am grateful to my hon. Friend for his thoughtful contribution. Yes, we will continue to work with the lending sector to ensure that the EWS1 form is fully and properly understood and is not misused, or that its use does not bleed across in a way that is inappropriate. We will of course roll out the 2,000 assessors as quickly as we possibly can. I will take on board his point and consider how those assessors can be best and most effectively deployed.
Hilary Benn
Lab
Leeds South
Question
For the past hour and a half, the Minister has had to listen to testimony about the nightmare that all our constituents, including mine in Leeds city centre, are living with. He knows that leaseholders simply do not have the billions that are still required to fix the problem. He knows that without funding from elsewhere, they will continue to live in unsafe homes, as waking watch and insurance bills mount. He knows that some of them will eventually lose their homes, because they will be made bankrupt by those costs. He knows how much anguish this nightmare is causing them. He also knows that an answer must be found, but I think the question that leaseholders who have been listening to this urgent question would like to put to him is: when will the Government come forward with that answer?
Minister reply
I am grateful to the right hon. Gentleman. The question he puts is a fair one, and the way in which he puts the issues he raised was entirely reasonable and fair. We will bring forward proposals as quickly as we can, to ensure that costs to leaseholders are mitigated. He will understand that this is a complicated issue that tracks back over political generations. To unpick that challenge, and to ensure that remediation is done effectively, that liability falls where it should, that the taxpayer is not subjected to unfunded commitment and that leaseholders have the right thing done by them is a challenge, but one that we are rising to and one for which we will bring forward proposals as quickly as we can.
Question
The Minister may well have seen on Sunday on the television my constituent Ritu Saha talking not for the first time about the agony that she and her neighbours in Northpoint in Bromley are going through, for all the reasons that have just been set out by the right hon. Member for Leeds Central (Hilary Benn) and many others. Of course there are complications in sorting out liability and dealing with some of the technical issues of remediation. I entirely accept that, and the work being done, but will the Minister recognise that the moral point is not complicated? At the end of the day, leaseholders who have done nothing to create this situation and who relied in good faith on a regulation that ultimately Government—of whatever description—own should not be out of pocket for whatever reason. If that takes more money, will he at least give the commitment that where it is a failure of regulation and no fault of the leaseholder, they will not ultimately have to pick up the tab?
Minister reply
I am grateful to my hon. Friend. I have heard the testimony of Ritu Saha and others in his constituency. I understand the point that he makes. I hope that in answering him quickly, he will not in any way think that I am diminishing that point, because it has also been made by colleagues across the House. We will work at pace to ensure that leaseholders who through no fault of their own find themselves in this terrible situation are not subjected to unfair costs. Costs ought to fall in the first instance to the developers and owners—and their warranty providers—who built the properties. The Government have set aside funds in this financial year to support those buildings that require immediate remediation and where there is no other means of so doing. We will continue to keep the situation under review, but we will work with the sector to ensure that remediation is done by those where responsibility lies.
Shadow Comment
Clive Betts
Shadow Comment
The shadow Minister expressed concerns over the provisions in clause 89 of the draft Building Safety Bill, which could allow leaseholders to be charged for historical defects such as dangerous cladding removal. He requested confirmation that leaseholders should not bear any costs and questioned the adequacy of the £1.6 billion funding allocated so far, suggesting it may be insufficient given potential total costs of up to £15 billion. The shadow also urged the Government to step in if developers fail to pay.
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