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Building Safety Bill - Sitting 2

09 September 2021

Proposing MP
Basingstoke
Type
Public Bill Committee

At a Glance

Issue Summary

Maria Miller chairs a session where witnesses from the Construction Products Association and British Standards Institution discuss industry regulation and culture change in response to building safety issues. Maria Miller discusses improvements and clarifications needed in the Building Safety Bill, particularly regarding designated standards and regulatory roles. The statement discusses concerns over the clarity and practicality of defining construction products as safety-critical under the Building Safety Bill. Maria Miller discusses concerns raised about the Building Safety Bill, particularly regarding tenure and access to funds. Maria Miller is concluding the discussion on the Building Safety Bill and thanking the witnesses for their insights. The statement is about introducing witnesses from the National Housing Federation and Local Authority Building Control who are giving evidence on the Building Safety Bill. Maria Miller is chairing a discussion about the Building Safety Bill, addressing concerns raised by various stakeholders. Maria Miller addresses questions about funding for building remediation and the urgency of addressing fire safety defects. The statement addresses concerns about building safety for disabled residents and leaseholders facing financial difficulties. The discussion centres around the duty to co-operate and reasonable steps for addressing building safety issues, particularly concerning absent freeholders and communication with residents. Maria Miller introduces witnesses and sets the stage for questioning about the Building Safety Bill's flaws. Maria Miller responds to questions about the Building Safety Bill's impact on leaseholders and proposed improvements. The speaker discusses concerns about the Building Safety Bill and the responsibilities placed on accountable persons. The statement discusses issues related to leaseholder protections and the building safety charge within the Building Safety Bill. Maria Miller is addressing questions related to resident and tenant representation in the context of ensuring building safety. Maria Miller is thanking witnesses Liam Spender and Giles Grover for their testimony on the Building Safety Bill and introducing new witnesses Justin Bates and Giles Peaker. Maria Miller addresses questions about the Building Safety Bill and its impact on improving building safety practices and culture in the UK. Maria Miller addresses practical solutions related to the Building Safety Bill and its impact on leaseholders and developers. The discussion centres on the Building Safety Bill and its provisions regarding accountability and liability for building defects. The discussion centres around clause 124 of the Building Safety Bill, which addresses the responsibility for funding remedial works in buildings. The discussion focuses on the potential misuse of the Building Safety Bill for non-fire safety related works and the interaction between the Fire Safety Act and the Building Safety Bill. Maria Miller concludes the evidence session of the Building Safety Bill Committee.

Action Requested

The statement does not propose any specific action but rather facilitates discussion on the need for balanced regulatory measures that include both statutory requirements and voluntary initiatives to ensure proper reform without overreaction, particularly concerning insurance issues and cultural transformation within the construction sector.

Key Facts

  • Peter Caplehorn is the chief executive officer of the Construction Products Association.
  • Dr Scott Steedman is the director general of standards at the British Standards Institution.
  • The session aims to discuss statutory moves alongside non-statutory initiatives for industry reform.
  • The definition of designated standards in schedule 9, clause 133 needs improvement.
  • There is no provision allowing the Secretary of State to designate a British standard from BSI.
  • Clarity on roles between the Department and the Building Safety Regulator is needed.
  • There is an ongoing conversation about defining safe products under the Building Safety Bill.
  • Examples include plasterboard used differently in various applications (finishing element vs. compartment wall).
  • Performance-based criteria are suggested instead of prescribing specific product details.
  • The Building Safety Fund is not accessible for properties with social tenants.
  • 40% of all social housing built last year was without grant support.
  • The Building Safety Bill focuses on higher-risk residential buildings but aims to address other high-risk buildings over time.
  • Peter Caplehorn suggests that while the bill starts with buildings in scope, it will eventually lead to reforms affecting the entire construction sector and all buildings meeting technical standards.
  • Kate Henderson is the chief executive of the National Housing Federation representing housing associations in England.
  • Victoria Moffett leads building and fire safety programmes at the National Housing Federation.
  • Martin Taylor is the executive director at Local Authority Building Control supporting local authorities across England and Wales.
  • The Building Safety Bill aims to strengthen building safety systems, particularly for new buildings over 18 metres.
  • Concerns include lack of focus on converted buildings under permitted development rights and the need for a risk-based approach rather than height-based criteria.
  • There is discussion about the unintended consequences of competition in building control for out-of-scope buildings.
  • The National Housing Federation supports Government-funded up-front costs for remediation based on a risk-based approach.
  • Kate Henderson notes that £5 billion has been allocated through the building safety fund, but it is not sufficient to cover all costs.
  • The Local Government Association advocates for the Government to pay upfront remediation costs and seek reimbursement from responsible parties.
  • The Fire Safety Act 2021 is the legislative focus for addressing fire safety issues affecting disabled residents.
  • There is ongoing consultation on requiring personal emergency evacuation plans for those who need them.
  • Leaseholders face a significant building safety charge with only 28 days to pay, leading to potential eviction or homelessness.
  • The duty to co-operate aims to address challenges posed by absent freeholders.
  • Guidance needs to be developed for accountable persons to manage risks effectively.
  • Some housing association properties have damp or mould issues, ranging from 2% structural problems to 3% condensation-related.
  • Maria Miller introduces Liam Spender from the UK Cladding Action Group and Giles Grover from the End Our Cladding Scandal campaign.
  • Witnesses highlight that the Building Safety Bill fails to cover remediation costs for leaseholders as promised, making things worse by holding residents responsible for past, present, and future costs.
  • The panel discusses the history of Government promises made after Grenfell and the frustration over the lack of protection for leaseholders.
  • The Bill makes clear the legal responsibilities of leaseholders but does not address the responsibilities of developers.
  • People are facing six-figure bills for fire safety remediation.
  • There have been instances of suicide and bankruptcy due to these costs.
  • The latest figures for building safety funding approach £15 billion.
  • The cost of construction VAT zero rating is billions of pounds annually.
  • There are moral hazards and potential insurance issues with the roles of accountable persons.
  • The Building Safety Bill aims to address safety issues in buildings but lacks adequate protections for leaseholders.
  • New clause 4 proposes a building safety indemnity scheme similar to the Motor Insurers' Bureau.
  • Leaseholders have been paying VAT on fire safety measures and remediation works without the ability to claim zero-rating status.
  • There needs to be clearer language in the Bill about taking into account the resident’s voice.
  • Residents need a voice on the groups and committees that make the rules.
  • Programs can be set up to provide better advice for leaseholders and tenants.
  • Maria Miller thanked Liam Spender and Giles Grover for their comprehensive answers.
  • Justin Bates and Giles Peaker are the next set of witnesses.
  • Giles Peaker represents Anthony Gold Solicitors.
  • The Building Safety Bill aims to improve safety practices but may not have an immediate impact due to pending secondary legislation.
  • Statutory Instruments (SIs) are necessary for detailed regulations, but they may lack transparency, limiting public scrutiny and involvement.
  • Guidance on 'reasonable steps' is needed to clarify legal obligations and reduce potential litigation risks.
  • Legal profession is concerned with key areas of interest in the Building Safety Bill.
  • Extension of limitation periods under the Defective Premises Act 1972 is a significant change affecting developers.
  • SPVs (Special Purpose Vehicles) are used by developers to limit liability after building control sign-off.
  • Discussion includes making company directors personally liable for building defects.
  • Current Bill focuses on individual buildings rather than a collective approach.
  • There are concerns about the effectiveness of the accountable person framework and associated statutory instruments yet to be published.
  • Dame Judith Hackitt's report highlights a culture of cutting corners in the construction industry.
  • Clause 124 assumes that leaseholders have a contractual liability to pay for remedial works under their leases.
  • The Bill only applies to specific types of work as specified by the Secretary of State in regulations.
  • It imposes an obligation on freeholders to explore alternative funding sources, such as insurance or developer liabilities.
  • Clause 59 of the Building Safety Bill defines a building safety risk as including fire spread, structural failure, and other prescribed matters.
  • The Bill is not limited to fire safety issues; it can address broader safety concerns like asbestos if the issue were different.
  • There are concerns about the 'duty to co-operate' in addressing complex structures where accountable persons and responsible persons may differ under different legislations.
  • The session is concluded by Maria Miller.
  • Witnesses are thanked for bringing their expertise to the Committee.
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