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Building Safety Bill - Sitting 13

21 October 2021

Proposing MP
Peter Dowd Lab
Bootle
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses Clause 120 of the Building Safety Bill and Schedule 7, which aim to ensure that leases reflect building safety obligations and costs are fair and transparent. Eddie Hughes discusses amendments to ensure tenants and commonhold unit holders receive necessary building safety information. The statement discusses Clause 124 of the Building Safety Bill which aims to regulate service charges related to remediation works and ensure landlords exhaust other avenues for cost recovery before billing leaseholders. Peter Dowd is addressing the Committee on procedural matters for the smooth running of the sitting. Christopher Pincher is discussing clause 125 of the Building Safety Bill which amends the Defective Premises Act 1972 to include subsequent works done to a building after its initial completion. The MP is discussing the Building Safety Bill and proposing an amendment to extend the limitation period for claims under certain Acts from 15 years to 30 years. The statement addresses amendments to the limitation periods for claims under the Defective Premises Act 1972 and Building Act 1984. The statement discusses the establishment of a new homes ombudsman scheme in England to provide redress for new build homebuyers. The statement discusses the proposed New Homes Ombudsman Scheme and its role in resolving complaints from new homebuyers against developers. The MP discusses the Building Safety Bill and its impact on housing quality and accountability in the construction industry.

Action Requested

Eddie Hughes outlines the introduction of a new building safety charge mechanism to deliver greater protection for leaseholders by ensuring transparency and reasonableness in costs. The clause will be set out further in secondary legislation to remain responsive to changes. He also clarifies that remedial costs are not included in this charge.

Key Facts

  • Clause 120 implies terms relating to building safety into leases.
  • Leaseholders with long leases of seven years or more will see costs associated with the new regulatory regime passed via a building safety charge.
  • Schedule 7 enables setting out obligations for landlords and provides leaseholders with the right to request further information about the charge.
  • Clause 121 makes it mandatory for landlords of higher-risk buildings to give tenants a notice containing relevant building safety information.
  • The clause amends the Landlord and Tenant Act 1987 by placing a requirement on landlords to include relevant building safety information when giving a tenant a written demand for payment.
  • Clause 122 ensures that commonhold associations comply with building safety management requirements in higher-risk buildings.
  • Clause 124 of the Building Safety Bill addresses service charges related to remediation works.
  • Landlords are required to exhaust other avenues for cost recovery before billing leaseholders.
  • Guidance will be issued by the Secretary of State to provide clarity on reasonable steps and transparency requirements.
  • Peter Dowd provides guidance for the smooth running of the sitting.
  • The guidance includes rules for intervening during speeches.
  • Clause 125 amends the Defective Premises Act 1972.
  • New section 2A will apply to any relevant building defined as a building consisting of or containing one or more dwellings.
  • The clause does not apply to homeowners doing work on their own properties.
  • The amendment changes '15 years' to '30 years'.
  • Many cladded buildings were constructed between 2000 and 2017.
  • Extending the period would help leaseholders affected by building safety issues since around 2000.
  • Extends the limitation period from six to 15 years for claims under the Defective Premises Act 1972.
  • Benefits thousands of leaseholders affected by building defects.
  • Aligns with other serious civil claims where negligence is involved.
  • Safeguards included in clauses (5) and (6) protect defendants' human rights.
  • Discussions are ongoing with the devolved nations regarding extending the provisions to Scotland, Wales, and Northern Ireland.
  • Schedule 8 allows the scheme to include provision about working jointly with other ombudsmen and redress schemes.
  • The scheme must be open to all developers as members so that qualifying complainants can escalate complaints.
  • The new homes ombudsman scheme allows complaints against developers within two years of purchase.
  • Developers constructing new homes or converting existing buildings must join the scheme.
  • Clause 129 includes a power to add descriptions of developers, such as connected organisations.
  • The New Homes Quality Board is operating as a shadow board with representatives from housebuilders and finance sector.
  • The clerk of works role has been phased out due to cost-cutting.
  • Developers often do not address minor snags in properties, leaving buyers without recourse under current regulations.
  • The industry is expected to take quality more seriously with increased accountability.
  • The Secretary of State will ensure confidence in the product's delivery.
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