Developers Told To Fix Cladding Failures Or Lose The Right To Build

30 January saw developers told to sign contracts to fix flammable cladding or find themselves prevented from operating freely in the housing market – and given a six-week deadline to send the legally binding contracts back.

Legislation will be brought forward in the spring giving the Secretary of State powers to prevent developers operating freely if they do not comply.

The remediation contract, which has been drawn up by the Department for Levelling Up, Housing and Communities, will protect thousands of leaseholders living in hundreds of buildings across England. These innocent households would otherwise face costly repairs for serious safety defects - including for non-cladding related issues.

 

£5 billion commitment

Under the contract, developers will commit an estimated £2 billion or more for repairs to buildings they developed or refurbished over the past 30 years. This means that together with the Building Safety Levy, industry is directly paying an estimated £5 billion to make their buildings safe.

The contract also requires developers to reimburse taxpayers where public money has been used to fix unsafe buildings.

Michael Gove is the current Secretary of State for Levelling Up, Housing and Communities. He has been a force for demanding developers are held to account. 49 of the country’s leading developers have pledged they would take responsibility to fix their own buildings, which will now be turned into the legally binding commitments.

 

 “This is another significant step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and facing unfair and crippling costs.”

– Michael Gove 

Secretary of State, Levelling Up, Housing and Communities

 

Certainty

“Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair,” says Gove. “In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much needed certainty to all concerned.

“There will be nowhere to hide for those who fail to step up to their responsibilities - I will not hesitate to act and they will face significant consequences.”

Under legislation to be brought forward this spring, a Responsible Actors Scheme will be created, allowing the Secretary of State to block developers who have not signed the contract or failed to comply with its terms from carrying out development and from receiving building control approval. This will prevent them from operating as normal in the housing market for as long as they do not resolve the problems of the past.

 

Picture: Developers and housebuilders will be obliged to legally commit to fixing unsafe cladding or face restrictions on them trading.

Article written by Cathryn Ellis
07th February 2023

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