Commons Sense

House of Commons · Westminster Hall

Building Safety Remediation: Leaseholders

22 June 2022 · 2 other contributors · 4,523 words

Opened by Shabana Mahmood Lab Birmingham Ladywood

Responding minister: Stuart Andrew

Housing

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

Read the full transcript on Parliament.uk

At a glance

Shabana Mahmood raised concerns about building safety remediation: leaseholders in Westminster Hall. A government minister responded.

Key points

  • Ms Mahmood is concerned about the financial impact of building safety remediation on leaseholders, including insurance premiums increasing by up to 1025%.
  • Ms Mahmood asks the Government to remove the cap on leaseholder contributions and provide direct assistance for those who have already paid for remediation work.
  • Ms Mahmood seeks inclusion of insurance payments within the 10,000 cap and stronger action against insurance companies profiteering from the situation.

Key requests to Government

Ms Mahmood asks the Government to remove the cap on leaseholder contributions, provide direct assistance for those who have already paid towards remediation work, and include insurance payments within the £10,000 cap. She also seeks stronger action against insurance companies profiteering from this situation.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Shabana Mahmood Lab Birmingham Ladywood

Ms Mahmood is concerned about the financial impact of building safety remediation on leaseholders, including significant cost increases for insurance premiums. She cited examples where premiums increased by up to 1025%, leaving residents struggling with unaffordable costs despite their efforts to improve fire safety measures in their buildings. She also highlighted that many residents have been living without proper light and facing ongoing construction noise due to cladding remediation work.

Other contributors (2)
  • Daniel Poulter

    Congratulates Shabana Mahmood on securing the debate and expresses concern about developers making huge profits from ground rent payment arrangements. Proposes that further action should be taken to hold developers accountable.

  • Jonathan Lord

    Congratulates Shabana Mahmood on securing the debate and raises concerns about leaseholders facing high insurance premiums, which can be three to five times more than historical rates. Suggests this issue could prevent people from selling their flats.

Government Response

Stuart Andrew

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for Birmingham, Ladywood (Shabana Mahmood) for organising this important debate and for noting the fifth anniversary of the Grenfell disaster. The Government are on the side of leaseholders affected by building safety issues and are making good on that sentiment with sweeping reforms to building safety, mortgage and lending market, and building insurance. Stuart Andrew emphasised the Government's commitment to force developers to take responsibility for buildings they have developed and acknowledged the injustice faced by Islington Gates residents. He committed to work closely with pledge signatories to agree the list of buildings covered by their pledge and push developers to take ownership of remediation work. The Building Safety Act introduces protections relating to non-cladding defects, ensuring no qualifying leaseholder in a building taller than 11 meters or five stories will face bills for dangerous cladding, with costs capped at £10,000. Significant new powers allow firms to be held accountable for creating building safety defects, and the Department's recovery unit pursues firms through courts if they fail to do the right thing. Stuart Andrew also highlighted efforts to unlock insurance markets and work closely with industry to address affordability issues, including working on an insurance pool. He committed to continue working with hon. Members who have constituents affected by this issue as benefits of the Act are rolled out.

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