Yahoo Finance Unsafe cladding: What new government ruling means for homeowners
Manufacturers and developers could be effectively blocked from the housing market if they do not cover the costs of removing dangerous cladding from buildings under government plans.
The Department for Levelling Up, Housing and Communities has outlined plans to make developers and manufacturers bear the costs of replacing cladding in a move that will protect most leaseholders.
The risk posed by some kinds of composite cladding was exposed by the Grenfell Tower fire in 2017, which resulted in 72 deaths. It is estimated that three million people live in unsellable and potentially dangerous flats.
Under existing rules, flat owners are responsible for taking down the cladding and fixing defects, leaving families with crippling bills that in some cases have exceeded £100,000 ($135,511).
The plan targets companies that manufactured defective cladding and will force them and housebuilders to shoulder the costs for historical defects. Removing dangerous cladding across the UK could cost more than £9bn, the government has said.
Developers that still own a building over 11 metres in height that they built or refurbished, or even landlords linked to the original developer, will be forced to pay in full to fix historic building safety issues in their properties.
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Among the proposals is a rule enabling flat owners and landlords to take legal action against manufacturers that supplied defective materials for any home built in the past 30 years.
Another proposal is the power to block developers from the housing market by refusing them planning permission and building control sign-off if they do not pay for cladding remediation.
Courts will also be given powers to stop developers from setting up shell companies to oversee individual blocks in order to avoid future liability.
Housing secretary Michael Gove said it was "time to bring this scandal to an end".
"We cannot allow those who do not take building safety seriously to build homes in the future, and for those not willing to play their part they must face consequences," he said.
Gove announced last month that no leaseholder living in a building higher than 11 metres — around four to six storeys high — "will ever face any costs" for fixing dangerous cladding.
However, freeholders who “can afford to pay” will also be required to put up the money.
Under the plans, there would be a cap on the amount leaseholders would pay to fix safety defects other than dangerous cladding on blocks of flats.
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The cap will only apply to leaseholders where building owners do not have the resources to pay to fix any defects. Such costs may include fixing other building defects such as missing fire breaks or defective insulation, as well as fire patrols.
The Department for Housing said the cap would be £15,000 for leaseholders in London and £10,000 in the rest of England.
Any money paid out by leaseholders since the Grenfell Tower fire will count towards the cap amount.
“These measures will stop building owners passing all costs to leaseholders and make sure any repairs are proportionate and necessary for their safety. All industry must play a part, instead of continuing to profit whilst hardworking families struggle,” Gove said.
The proposals will be added to the building safety bill, which is scheduled to pass into law within the next few months.
