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

2021-01-11

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Response quality

Questions & Answers

Q1 Direct Answer
Context
The question addresses the ongoing issue of leaseholders being unfairly burdened with the cost of remediating dangerous cladding on buildings.
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?
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.
Assessment & feedback
Response accuracy
Q2 Direct Answer
Context
Continuing the discussion, there are concerns about leaseholders being forced into loan schemes to cover these expenses.
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?
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.
Assessment & feedback
Response accuracy
Q3 Partial Answer
Clive Betts Lab
Sheffield South East
Context
Concerns persist that even a low-interest loan scheme could impose significant financial burdens on leaseholders, leading to negative equity and unsellable properties.
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?
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.
Assessment & feedback
Whether the industry should take responsibility for covering the cost of putting defects right
Looking To Developers
Response accuracy
Q4 Partial Answer
Context
The Government's proposed Building Safety Bill imposes a charge on leaseholders rather than developers, with ongoing concerns over transparency and developer accountability.
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?
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.
Assessment & feedback
The need for developer responsibility and transparency
Changing The Subject To Ongoing Measures
Response accuracy