• Major homebuilders account for half of new homes committed to fixing all unsafe high-rises they played a role in development
  • Over £2 billion pledged by over 35 developers to make buildings safe
  • Extension to Building Safety Fee would add an estimated £3 billion to force the industry to pay and protect innocent tenants

The Government today (April 13, 2022) unveiled a broad agreement that will see industry contribute £5 billion to settle a building safety scandal.

In a win-win for landlords, Promotions Minister Michael Gove has agreed a solution with the housing industry that will see developers commit a minimum of £2 billion to repair their buildings. themselves. The industry will also pay up to £3 billion more through the expansion of the Building Safety Fee.

Under the new agreement that will come into force, more than 35 of the UK’s biggest homebuilders have committed to renovating all the buildings 11 meters or more in which they have played a role in development for 30 years. via.

As for companies that have yet to fulfill their commitments, the foreign minister also affirmed that there is very little time left for them to register, and those who continue to refuse will face consequences if they do not.

As outlined in January, a new government plan would also see the industry pay to repair buildings where those responsible cannot be identified or forced to comply with the law. This follows earlier confirmation that plans for a 30-year, tenant-paying loan program will be scrapped.

The new scheme will be funded through an extension to the Building Safety Fee that will be charged on all new residential buildings in the UK. The money is expected to raise an estimated £3 billion more over 10 years from developers and ensure no landlords in mid-rise buildings face lame bills. , even if their developer cannot be traced.

The proposed new laws, announced in February under the Building Safety Bill, would ensure eligible tenants are protected from the cost of previous building safety failures, including insurance. Full protection from cladding costs. Today’s agreement specifies that the industry responsible – not the innocent lessors – will pay.

Promotion Minister Michael Gove said:

Today marks an important step in protecting innocent lessors and making sure those responsible pay to address the crisis they have caused.

I welcome the move of many of the biggest developers to do the right thing.

But this is just the beginning. We will do whatever it takes to solve the industry problem and under our new measures there will be nowhere to hide.

The pledge announced by the government today commits developers to signing legally binding contracts and delivering on their promises as soon as possible.

The detailed agreement confirms the developers will:

  • Act as quickly as possible to repair buildings
  • Implement new commensurate building safety guidelines
  • Regularly report to landlords and government on their progress
  • Respect for the independent dispute resolution process established by the government; and
  • Refunds received from taxpayers for the repair of their buildings.

More information on how the government plans to enforce the agreement in the law will be released in due course.

The government is introducing new powers that can be enforced against a developer if they breach the agreement, as well as against any remaining unregistered companies. These new powers will allow the Secretary of State to block those who refuse to sign on from building and selling new homes.

The government is clear that construction safety is an industry-wide issue. Manufacturers of cladding and insulation materials have yet to accept their responsibility and offer a proposal. Today, the US Secretary of State also wrote to the Building Products Association and warned he will do whatever is necessary to hold manufacturers of cladding and insulation materials accountable.

Today’s announcement follows a statement made by Mr Gove in January, when he laid out a four-point plan to re-establish the approach to safe construction and give lessors more protection. against unfair costs.

More information

Building Safety Fees will be charged for new residential buildings of all heights – see clause 57 in the Building Safety Bill.

Landlords will be contacted by the developer in due time to confirm if their building is covered.

The Building Safety Bill includes sweeping provisions intended to protect eligible tenants, by law, from costs related to past building safety defects. Qualified lessors are those who live in their own home or with a maximum of three UK properties in medium and high rise buildings.

The Building Safety Bill would also give governments, regulators, landlords and others new ways to tackle companies that don’t do the right thing. More information is available here and further details on these measures will be published in due course.

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