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Residential Leaseholders and Interim Fire Safety Costs
10 March 2021
Lead MP
Florence Eshalomi
Vauxhall and Camberwell Green
Lab Co-op
Responding Minister
Christopher Pincher
Tags
Housing
Word Count: 12573
Other Contributors: 18
At a Glance
Florence Eshalomi raised concerns about residential leaseholders and interim fire safety costs in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks the Government to agree that no leaseholder should pay for interim fire safety measures. They also request the inclusion of provisions in the upcoming Building Safety Bill to protect leaseholders from such costs. The MP further calls for an extension of the waking watch relief fund to match the number of affected buildings and a mandate for a timetable for remediation work completion.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The MP is concerned about the financial burden on leaseholders for interim fire safety measures following building assessments. Over 250 leaseholders in Vauxhall have faced costs such as waking watches and alarm systems, with estimates of £17,000 per block for a waking watch and £50,000 to £150,000 for alarm systems. These measures can lead to monthly bills of approximately £500 per household, causing some leaseholders to face potential bankruptcy and homelessness.
Andrew Gwynne
Lab
Denton and Reddish
The interim measures required for fire safety repairs can be extremely costly for leaseholders, often amounting to thousands of pounds. This is an urgent issue that requires immediate attention from the Government.
Apsana Begum
Lab
Poplar and Limehouse
The Government's commitment to waking watches is concerning as it could become a permanent state of affairs. Constituents face bankruptcy due to the high costs associated with these measures. The example of the Limehouse West estate highlights that leaseholders who are also freeholders may be unfairly burdened with interim and remediation costs, potentially leading to financial distress.
Bob Blackman
Con
Harrow East
He highlighted the issue of cladding on tall buildings and the costs associated with fire safety measures. He questioned the inclusion of external areas like balconies in the grant scheme and suggested that developers, building owners, and material suppliers should pay for remediation.
Bob Neill
Con
Bexleyheath and Crayford
The Government's funding is inadequate, leaving many flat owners with massive bills they cannot afford. Key statistics show that nearly 60% of affected homeowners earn less than £50,000, while some are paying tens of thousands per month for waking watches and fire safety measures. Insurance premiums have also skyrocketed in some cases from £130,000 to £690,000.
Gillian Keegan
Con
Horsham
We need a comprehensive solution to help leaseholders who are burdened with excessive costs for fire safety improvements in their buildings. The Government must take action to mitigate these financial pressures.
Hilary Benn
Lab
Leeds South
[Inaudible.] My constituent Hayley Tillotson declared bankruptcy due to waking watch fees that matched her mortgage. Leaseholders cannot afford ongoing interim costs and need financial assistance from the Government through loans or grants. The Minister was asked about delaying works on dangerous cladding if funds are insufficient for other fire safety issues.
Ian Byrne
Lab
Liverpool West Derby
Residential leaseholders are bearing the brunt of costs for interim fire safety measures following Grenfell, leading to significant financial and mental health impacts. The lack of clarity from the Government is causing distress among leaseholders who have no responsibility for the dangers they face. The speaker highlighted that 40% of families struggle to feed their children due to these costs, and questioned the support provided by the Department for those facing such choices.
Janet Daby
Lab
Lewisham East
Residents in Lewisham East are facing severe debt, overcrowding and safety concerns due to interim fire safety costs. The Government's recent announcement falls short of addressing these issues adequately, and the lack of action is protecting developers rather than leaseholders. Leaseholders should not have to pay for remediation work that they did not cause.
Hayes and Harlington
Mr McDonnell highlighted the distress experienced by residents in the Ballymore development at High Point Village, due to safety concerns following Grenfell. He criticised the developer's handling of communication and costs related to cladding removal and interim measures such as waking watches. Mr McDonnell called for urgent action from the Government regarding service charge control and comprehensive coverage under the building grant.
Justin Madders
Lab
Ellesmere Port and Bromborough
The Government's current proposals are not credible or fair, leaving leaseholders in a precarious position without legal certainty about who will be responsible for remediation costs. There is a risk that innocent leaseholders may end up paying these costs, alongside increased insurance premiums and the ongoing expenses of interim safety measures.
Kate Osamor
Lab Co-op
Edmonton and Winchmore Hill
Expressed disappointment in the Chancellor's speech for not mentioning cladding or fire safety. Cited a constituent's case where increased interim safety measures led to financial strain, leaving them unable to move and feeling unsafe at home. Called on the Government to fully fund interim fire safety costs without penalising leaseholders.
In West Ham, residents are facing massive insurance premiums and waking watch costs, leading to financial strain and mental health issues. A resident named Zain is facing a £20,000 bill for interim measures with no guarantee of government assistance for future remediation costs.
She discussed the impact of cladding on leaseholders in Barking and Dagenham who face high costs for interim safety measures like waking watches and EWS surveys. She pointed out that some residents are unable to sell or remortgage their homes due to these issues.
Mr Whitley praised the efforts of Member for Vauxhall in raising awareness about leaseholders' issues. He criticised the government's response to safety concerns, citing insufficient funding from the £3.5 billion announced by the Communities Secretary and a lack of action on non-cladding-related fire risks such as wooden balconies.
Mike Amesbury
Lab
Newton Abbott
Leaseholders are facing astronomical insurance costs and interim safety measures that have become a financial burden, with waking watches costing £174 million annually. The Government's funding for fire alarms is insufficient to cover the 800 buildings requiring waking watches, and insurance costs have risen by an average of 400%, with some blocks seeing hikes of up to 1,000%. Leaseholders are also concerned about potential additional costs for non-cladding defects once their buildings become safe.
Representatives of central Sheffield buildings affected by cladding issues face substantial costs without any solutions from the Government. The Metis building leaseholders have paid £120,000 and are still waiting for funding despite applications being made weeks ago. A commercial leaseholder faces a bill of £327,000 due to cash limits in the remediation scheme, fearing it will drive them out of business. Blomfield also called for Government intervention on insurance issues, suggesting they underwrite solutions as a precedent exists.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Mr Doughty highlighted the unacceptable defects in buildings, including issues with fire safety, cladding, foam inside walls, balconies, and foul water systems. He mentioned interim costs such as waking watches, insurance premiums, and investigations into building materials which residents cannot afford, especially during the pandemic. He welcomed Welsh Government's additional £32 million investment for fire and building safety defects on top of the existing £10.6 million promised.
Stevenage
I am concerned about the fire safety costs faced by leaseholders in high-rise buildings. The Government must address these issues urgently to provide relief for those who are struggling financially. Concerned about the skyrocketing costs of intermediate waking watch measures and insurance premiums, with some premiums increasing by up to 3,000%. He highlighted that the Government is collecting higher taxes on these increased premiums than they were before. Also mentioned that management companies are using waking watches as a first resort instead of a last one, leading to financial strain for leaseholders.
Government Response
Christopher Pincher
Government Response
It is a great pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Vauxhall and all other Members who have spoken on behalf of their constituents and contributed so passionately and eloquently to this debate on a matter that we all care deeply about. The consequences of the Grenfell fire were catastrophic for the people and the community involved, and have been complex and wide ranging for many people across our country as a result. That is why—then, since and now—we are taking clear and decisive action to provide an unprecedented sum of money, more than £5 billion of taxpayers' funds, for building safety to protect those most at risk.
The biggest cost facing leaseholders affected by building safety is cladding remediation. It is unacceptable for leaseholders to face those unaffordable costs. That is why we committed £1.6 billion of taxpayers' money to accelerate the removal and replacement of unsafe cladding on the highest risk buildings—those over 18 metres in height—after the Grenfell tragedy. As a result, 95% of high-rise buildings with ACM have either begun or completed remediation work. Additionally, we have allocated £3.5 billion to remediate all buildings above 18 metres that have unsafe cladding, an investment that totals over £5.1 billion.
The minister explained why 18 metres is the threshold trigger, noting it represents the greatest risk to residents in case of a fire. Buildings between 18 and 30 metres are four times more likely to suffer a fire with fatalities or serious casualties than any other apartment building. Building standards become more restrictive over 18 metres; the presumption on firefighting tactics changes over 18 metres.
The minister clarified that no leaseholder will be required to fund additional works as a condition of receiving Government funding for cladding remediation and confirmed discussions with devolved Assemblies in Scotland and Wales continue monthly. He also addressed concerns about waking watch costs, announcing £30 million to install alarm systems in high-rise buildings where costs are being passed on to residents.
The minister emphasised the need for interim measures to ensure building safety while working towards a long-term solution through the Building Safety Bill.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.