Commons Sense

House of Commons · Ministers' Questions

Leaseholders: Fire Safety Costs 2021-01-11 (2)

Monday 11 January 2021 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Ministers expect developers and building owners to cover remediation costs for safety defects.
  • A 1.6 billion fund has been established to support remediation where owners cannot pay.
  • Government is working on a long-term solution to protect leaseholders from unfair costs.

Topics (select to filter)

Questions & Answers

Q1 Bob Neill Con
Housing
Context

The question addresses the ongoing issue of leaseholders being unfairly burdened with the cost of remediating dangerous cladding on buildings.

Question

I am concerned that leaseholders are often held responsible for remediation costs despite no fault of their own. What steps is his Department taking to ensure they are not?

Answer from Christopher Pincher (Minister of State for Housing)

We expect developers, investors and building owners with the means to pay to cover remediation costs themselves. In cases where this may not be possible, we have introduced funding schemes, providing £1.6 billion to accelerate work on high-risk defects. We are working on a long-term solution.

Answered
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Q2 Bob Neill Con
Housing
Context

Continuing the discussion, there are concerns about leaseholders being forced into loan schemes to cover these expenses.

Question

My right hon. Friend has always rightly said that leaseholders should not be held responsible. Will he confirm it is unacceptable for leaseholders to meet costs through a Government-supported loan scheme as some press reports suggest?

Answer from Christopher Pincher (Minister of State for Housing)

We have always been clear that it is unacceptable for leaseholders to bear costs of historical safety defects they did not cause. We are determined to remove barriers to fixing these defects and identify financial solutions to protect leaseholders while protecting taxpayers.

Answered
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Q3 Clive Betts Lab Sheffield South East
Housing
Context

Concerns persist that even a low-interest loan scheme could impose significant financial burdens on leaseholders, leading to negative equity and unsellable properties.

Question

It would be remiss not to acknowledge the local football team's start this year. While wishing the Minister well for 2023, I reiterate his failure to address the original question from my hon. Friend Bob Neill. A loan scheme adding debt would unfairly burden leaseholders; should he look instead to industry and government to cover these costs?

Answer from Christopher Pincher (Minister of State for Housing)

We expect developers and building owners to remedy defects. £1.6 billion has been made available to support those unable to remediate defects quickly. We are working on a long-term solution to ensure costs are met, defects are remedied, and leaseholders are supported.

Partly answered

Not addressed: Whether the industry should take responsibility for covering the cost of putting defects right

How: Looking To Developers

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Q4 Mike Amesbury Lab
Housing
Context

The Government's proposed Building Safety Bill imposes a charge on leaseholders rather than developers, with ongoing concerns over transparency and developer accountability.

Question

Happy new year to the Speaker. Clauses 88 and 89 of the Building Safety Bill will impose charges on leaseholders instead of developers. Is it not time for Ministers to ensure that developers shoulder their responsibility?

Answer from Christopher Pincher (Minister of State for Housing)

The Government have spent £1.6 billion on remediating challenging buildings and provided further funding for waking watch measures. The Building Safety Bill will prevent similar issues in future, and we are working to find solutions that protect leaseholders from unfair taxes.

Not addressed: The need for developer responsibility and transparency

How: Changing The Subject To Ongoing Measures

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