Recommendations & Conclusions
21 items
1
Recommendation
Seventh Report - Building Safety: Remed…
Acknowledged
We repeat our previous calls for further mental health support for those affected by the building safety crisis.
Government response AI summary
The government recognises the negative effect of the building safety crisis on residents' mental health and is working to ensure people get the help and support they need.
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Ministry of Housing, Communities and Local Government
2
Recommendation
Seventh Report - Building Safety: Remed…
Deferred
In the absence of PAS-79 guidance which was withdrawn in August 2021, it is imperative that the British Standards Institute publish its new standard as soon as possible. We urge the Government to report on its consultation on Personal Emergency Evacuation Plans at the earliest opportunity. (Paragraph 6) Protecting leaseholders …
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In the absence of PAS-79 guidance which was withdrawn in August 2021, it is imperative that the British Standards Institute publish its new standard as soon as possible. We urge the Government to report on its consultation on Personal Emergency Evacuation Plans at the earliest opportunity. (Paragraph 6) Protecting leaseholders from future costs
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Government response AI summary
The government redirects responsibility for PAS guidance to the British Standards Institution and states it will publish its response to the PEEPs consultation alongside the commencement of the Fire Safety Act 2021 in May 2022.
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Ministry of Housing, Communities and Local Government
3
Conclusion
Seventh Report - Building Safety: Remed…
Accepted
The Secretary of State said the Government would protect leaseholders from remediation costs, but too many leaseholders will fall through the cracks of the Government’s piecemeal measures. As the Government’s proposals currently stand, the only leaseholders who will not pay for building safety remediation are those who have already not …
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The Secretary of State said the Government would protect leaseholders from remediation costs, but too many leaseholders will fall through the cracks of the Government’s piecemeal measures. As the Government’s proposals currently stand, the only leaseholders who will not pay for building safety remediation are those who have already not paid anything, who either live in their flats or only own one other property, whose flats do not also have any non-cladding defects, and whose flats are in blocks at least 11m high.
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Government response AI summary
The government states that they have delivered robust protections for leaseholders and outlines these protections in detail.
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Ministry of Housing, Communities and Local Government
4
Conclusion
Seventh Report - Building Safety: Remed…
Accepted
Leaseholders are no more to blame for non-cladding defects than they are for faulty cladding on homes they bought in good faith. Buy-to-let landlords are no more to blame than other leaseholders for historic building safety defects, and landing them with potentially unaffordable bills will only slow down or prevent …
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Leaseholders are no more to blame for non-cladding defects than they are for faulty cladding on homes they bought in good faith. Buy-to-let landlords are no more to blame than other leaseholders for historic building safety defects, and landing them with potentially unaffordable bills will only slow down or prevent works to make buildings safe. Leaseholders of buildings under 11m in height are no more to blame than other leaseholders.
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Government response AI summary
The government states it has already delivered robust protections for leaseholders, reversing the presumption that they are responsible for historical building safety defects.
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Ministry of Housing, Communities and Local Government
5
Recommendation
Seventh Report - Building Safety: Remed…
Rejected
Our longstanding view is that leaseholders should not pay a penny to rectify faults not of their doing and to make their homes safe. The amendments tabled to the Building Safety Bill show that the Government does not share that view. The Government should scrap the cap on non-cladding costs …
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Our longstanding view is that leaseholders should not pay a penny to rectify faults not of their doing and to make their homes safe. The amendments tabled to the Building Safety Bill show that the Government does not share that view. The Government should scrap the cap on non-cladding costs for leaseholders.
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Government response AI summary
The government has rejected the recommendation to scrap the cap on non-cladding costs for leaseholders, citing existing protections for leaseholders.
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Ministry of Housing, Communities and Local Government
6
Recommendation
Seventh Report - Building Safety: Remed…
Accepted in Part
We do not agree with the Government’s proposal that only buy-to-let landlords with one other property should be included in the statutory protections for leaseholders. Should the Government continue to treat buy-to-let landlords differently to other leaseholders there are other options available to exclude wealthy property tycoons from the protections …
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We do not agree with the Government’s proposal that only buy-to-let landlords with one other property should be included in the statutory protections for leaseholders. Should the Government continue to treat buy-to-let landlords differently to other leaseholders there are other options available to exclude wealthy property tycoons from the protections without making landlords of more modest means liable, such as basing eligibility on the value of the company that owns the properties, or on the landlord owning a higher number of rental properties. We recommend that the Government publish an impact assessment of these options before undertaking a course of action. The Government should also publish an impact assessment on how its current proposals to exclude buy-to-let landlords with fewer than one other property could affect the progress of remediation. (Paragraph 15) 32 Building Safety: Remediation and Funding
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Government response AI summary
The government extended the number of protected properties from two to three, meaning leaseholders living in their own home and those with up to three UK properties in total will be protected; all leaseholders will be protected where the building owner is connected to the …
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Ministry of Housing, Communities and Local Government
7
Conclusion
Seventh Report - Building Safety: Remed…
Accepted
Our preferred option would be for the Government to table amendments to the Building Safety Bill to ensure that all leaseholders in buildings of any height have statutory protection from future costs for remediating historic building safety defects, both cladding and non-cladding.
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Our preferred option would be for the Government to table amendments to the Building Safety Bill to ensure that all leaseholders in buildings of any height have statutory protection from future costs for remediating historic building safety defects, both cladding and non-cladding.
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Government response AI summary
The government believes there is no systemic fire safety issue in buildings below 11 metres and that leaseholders in these buildings have access to protections through warranties and redress measures introduced through the Building Safety Act.
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Ministry of Housing, Communities and Local Government
8
Recommendation
Seventh Report - Building Safety: Remed…
Rejected
Instead of its piecemeal method of funding remediation according to building height and type of defect, the Government should implement our previously recommended Comprehensive Building Safety Fund. The fund should cover the costs of remediating all building safety defects on buildings of any height where the original “polluter(s)” cannot be …
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Instead of its piecemeal method of funding remediation according to building height and type of defect, the Government should implement our previously recommended Comprehensive Building Safety Fund. The fund should cover the costs of remediating all building safety defects on buildings of any height where the original “polluter(s)” cannot be traced. Overseas owners of affected properties should not be eligible for any funds for remediation. (Paragraph 17) Data
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Government response AI summary
The government rejects the recommendation for a Comprehensive Building Safety Fund, stating it would drive unnecessary remediation works and negatively impact the housing market and does not agree that overseas building owners should not be eligible for remediation funding.
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Ministry of Housing, Communities and Local Government
9
Recommendation
Seventh Report - Building Safety: Remed…
Accepted
It is completely unacceptable that, nearly five years after the Grenfell tragedy, the Government still does not seem to know how many buildings have unsafe cladding or other historic building safety defects. We commend the Secretary of State for finally seeking information from developers and manufacturers, and commend industry for …
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It is completely unacceptable that, nearly five years after the Grenfell tragedy, the Government still does not seem to know how many buildings have unsafe cladding or other historic building safety defects. We commend the Secretary of State for finally seeking information from developers and manufacturers, and commend industry for now working at pace to provide this information. The Government must publish, within two months, all available data on the number of buildings of all heights with historic building safety defects—cladding and non-cladding—including data it has received from developers and manufacturers. (Paragraph 21) Who should pay?
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Government response AI summary
The government states it is committed to publishing information in data releases as soon as it is appropriate to do so and currently publishes monthly data on progress with remediation of unsafe ACM cladding, quarterly updates on Building Safety Fund funding, and monthly data related …
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Ministry of Housing, Communities and Local Government
10
Recommendation
Seventh Report - Building Safety: Remed…
Accepted
We commend the Government for finally taking action to require industry players to remediate and pay for faults of their own doing, and we commend those organisations who have already done so. However, developers and manufacturers are not the only sectors that contributed to the building safety crisis, and we …
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We commend the Government for finally taking action to require industry players to remediate and pay for faults of their own doing, and we commend those organisations who have already done so. However, developers and manufacturers are not the only sectors that contributed to the building safety crisis, and we appreciate the Secretary of State’s openness to pursuing other sectors. The whole industry must take collective responsibility for remediation funding: while some organisations may feel they are more innocent than others, no party in this crisis is more innocent than the leaseholders whom such funding is supposed to protect. Government should identify all relevant parties who played a role in the building safety crisis, such as product suppliers, installers, contractors, and subcontractors. It should legally require them, as it has done for developers, to (i) contribute payment to put right any individual faults in which they played a part and (ii) contribute to collective funding for building safety remediation—ideally our recommended Comprehensive Building Safety Fund. So that efforts to identify responsible parties do not delay remediation works, the Government should, where necessary, fund works upfront and recoup its costs.
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Government response AI summary
The government agrees that those responsible should contribute to remediation costs and will hold construction product manufacturers accountable, using powers in the Building Safety Act and pursuing firms through the courts. They will continue to fund cladding remediation through the Building Safety Fund for buildings …
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Ministry of Housing, Communities and Local Government
11
Recommendation
Seventh Report - Building Safety: Remed…
Rejected
Governments share responsibility for the building safety crisis on account of their regulatory failings. Everyone involved would instantly have more funds to spend on remediation if the Government played its part by removing VAT on building safety activity, which would enable homes to be made safer. The Government should remove …
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Governments share responsibility for the building safety crisis on account of their regulatory failings. Everyone involved would instantly have more funds to spend on remediation if the Government played its part by removing VAT on building safety activity, which would enable homes to be made safer. The Government should remove VAT on building safety activity. (Paragraph 30) Building Safety: Remediation and Funding 33
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Government response AI summary
The government rejects the recommendation to remove VAT on building safety activity, stating that the supply of fire safety equipment is already eligible for VAT relief and that there is no guarantee savings would be passed on to leaseholders and that tax policy is a …
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Ministry of Housing, Communities and Local Government
12
Recommendation
Seventh Report - Building Safety: Remed…
Acknowledged
While insurance premiums for leaseholders have gone up, buildings have become safer as a result of remediation works that have been carried out. The risk to insurers has reduced as a result. Insurers should be required to contribute to funds for remediation as they covered the actions of developers who …
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While insurance premiums for leaseholders have gone up, buildings have become safer as a result of remediation works that have been carried out. The risk to insurers has reduced as a result. Insurers should be required to contribute to funds for remediation as they covered the actions of developers who failed to comply with building safety and have since received increased premiums despite remediation works being undertaken. The Government should ask the Financial Conduct Authority to publish an analysis to illustrate on an annual basis since the Grenfell fire how the level of pay-outs by insurers for fire safety claims in medium and high-rise buildings compares with the increase in premiums for buildings insurance for medium and high-rise buildings.
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Government response AI summary
The government has asked the FCA and CMA to review buildings insurance premiums for medium and high-rise blocks of flats and is awaiting their recommendations.
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Ministry of Housing, Communities and Local Government
13
Conclusion
Seventh Report - Building Safety: Remed…
Accepted
Product manufacturers found to have been criminally responsible for defective products extending back 30 years must be legally required to automatically replace faulty materials free of charge, including compensating others who have already paid to replace the materials in question.
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Product manufacturers found to have been criminally responsible for defective products extending back 30 years must be legally required to automatically replace faulty materials free of charge, including compensating others who have already paid to replace the materials in question.
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Government response AI summary
The government states that the Building Safety Act introduces provisions for construction products companies to contribute to remediation costs, including a new cause of action and powers to make costs contribution orders, and that it is establishing a Recovery Unit to pursue firms that have …
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Ministry of Housing, Communities and Local Government
14
Recommendation
Seventh Report - Building Safety: Remed…
Accepted
The Government rightly proposes to take strong action against UK firms, however its options against overseas firms who have also contributed to the building safety crisis are more limited. The Secretary of State told us that to reveal its options would be showing too much of the Government’s hand. The …
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The Government rightly proposes to take strong action against UK firms, however its options against overseas firms who have also contributed to the building safety crisis are more limited. The Secretary of State told us that to reveal its options would be showing too much of the Government’s hand. The Government must take steps to hold overseas developers and other relevant foreign firms to account. When it is appropriate to do so, the Government should set out the actions it has taken. (Paragraph 33) Costs already paid out
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Government response AI summary
The government states they are already engaging with overseas developers and firms to provide a funded solution for the remediation of unsafe cladding. They also point to the powers in the Building Safety Act 2022 that allow the Secretary of State to prohibit developers from …
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Ministry of Housing, Communities and Local Government
15
Recommendation
Seventh Report - Building Safety: Remed…
Rejected
As they stand, the Government’s proposals create a bizarre lucky dip in which some leaseholders may see their costs capped at £10,000 (£15,000 in London); some, because they have not yet paid for cladding remediation, may pay nothing at all; and others, who have already paid for cladding remediation, will …
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As they stand, the Government’s proposals create a bizarre lucky dip in which some leaseholders may see their costs capped at £10,000 (£15,000 in London); some, because they have not yet paid for cladding remediation, may pay nothing at all; and others, who have already paid for cladding remediation, will have paid well in excess of the proposed non-cladding cap. Leaseholders who have already paid for remediation and other interim measures to make their homes safe are no more responsible for the crisis than leaseholders who will now be protected in law from such costs. The Government should collect and publish data on the costs paid out by leaseholders since the Grenfell fire and the costs that leaseholders have not yet been billed for. It would have had to collect data on the amount paid out for its proposed cap on non-cladding costs, so the administrative burden is not a reason not to.
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Government response AI summary
The government states that this information has not been collected systematically and the department does not have plans to collect it from leaseholders.
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Ministry of Housing, Communities and Local Government
16
Recommendation
Seventh Report - Building Safety: Remed…
Accepted in Part
The Government should table new amendments to the Building Safety Bill to ensure that, where the “polluter(s)” still exist, industry players must compensate leaseholders for remediation and interim costs already paid out and must pay for works that have been started or specified. In line with principles already set out …
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The Government should table new amendments to the Building Safety Bill to ensure that, where the “polluter(s)” still exist, industry players must compensate leaseholders for remediation and interim costs already paid out and must pay for works that have been started or specified. In line with principles already set out by Government, where the original polluter no longer exists or cannot be identified, funding for building safety remediation—ideally our recommended Comprehensive Building Safety Fund—should cover the costs of compensating leaseholders for costs already paid out, including interim measures and exorbitant rises in insurance premiums. The additional costs for leaseholders generated by increases in insurance premiums are another reason why insurers should be required to contribute to funds for building 34 Building Safety: Remediation and Funding safety remediation. (Paragraph 40) Impact on social housing
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Government response AI summary
The government will not repay leaseholders for work already undertaken, but states that the Building Safety Act makes it a legal requirement for building owners to exhaust all other routes to fund essential building safety work before passing costs onto leaseholders. It states that caps …
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Ministry of Housing, Communities and Local Government
17
Recommendation
Seventh Report - Building Safety: Remed…
Accepted
The Government must stop pitting the building safety crisis against the housing crisis. Without access to funds for remediation where social tenants live, residents of social housing are paying the price through the diversion of funds from maintaining their homes and other vital services provided by housing associations and councils. …
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The Government must stop pitting the building safety crisis against the housing crisis. Without access to funds for remediation where social tenants live, residents of social housing are paying the price through the diversion of funds from maintaining their homes and other vital services provided by housing associations and councils. Those on waiting lists and those who are homeless are paying the price through the decimation of planned new builds for affordable homes, with one in 10 planned developments axed. The principle that a leaseholder should be protected from costs, while a tenant, perhaps a neighbour in the same block, should contribute through their rent, is deeply unfair. Social landlords must have full access to funds for building safety remediation—ideally our recommended Comprehensive Building Safety Fund.
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Government response AI summary
The Government states that social housing providers have access to the £400m Social Sector ACM Cladding Remediation Fund and were eligible for the Building Safety Fund for other combustible cladding types and can submit claims to the Building Safety Fund for the proportion of eligible …
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Ministry of Housing, Communities and Local Government
18
Conclusion
Seventh Report - Building Safety: Remed…
Deferred
Social housing providers must be exempt from the Building Safety Levy and any other taxes or levies connected to building safety remediation. Social housing providers must be exempt from requirements to fund and undertake necessary remediation on buildings they played a role in developing where they were the customer of …
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Social housing providers must be exempt from the Building Safety Levy and any other taxes or levies connected to building safety remediation. Social housing providers must be exempt from requirements to fund and undertake necessary remediation on buildings they played a role in developing where they were the customer of a developer.
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Government response AI summary
The government is considering an exemption from the levy for affordable housing and will consult on the levy, with possible exemptions to be considered as part of that consultation before a final decision is made.
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Ministry of Housing, Communities and Local Government
19
Recommendation
Seventh Report - Building Safety: Remed…
Accepted
The Government must commit to protecting the Affordable Homes Programme at its current level should it fail to recover sufficient funds from industry. (Paragraph 51) Guidance on building safety
Government response AI summary
The Government is confident that funding from industry will cover the cost of remediation of unsafe cladding in buildings between 11-18 metres and will not be required to provide additional funding beyond that which it has already committed.
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Ministry of Housing, Communities and Local Government
20
Recommendation
Seventh Report - Building Safety: Remed…
Accepted in Part
Given that the introduction of the PAS 9980 will not result in the elimination of EWS1 forms, we remain concerned that uncertainty will remain about the safety of buildings and will continue to stymie those trying to sell their homes. We welcome the work being done with lenders to try …
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Given that the introduction of the PAS 9980 will not result in the elimination of EWS1 forms, we remain concerned that uncertainty will remain about the safety of buildings and will continue to stymie those trying to sell their homes. We welcome the work being done with lenders to try to share information and reduce the demand for EWS1 forms. We also welcome the funding that has been provided to the Royal Institution of Chartered Surveyors to train assessors. However, we are concerned that these assessors are still in training and will not be able to undertake surveys for some time. This raises questions about how quickly the backlog of buildings requiring assessments can be cleared. Furthermore it is uncertain whether their work in respect of PAS 9980 assessments will be covered by the professional indemnity insurance scheme that has been established. In addition to the Secretary of State’s commitment to update us on the coverage of the professional indemnity insurance scheme, the Government must ensure that there is professional indemnity insurance cover for those conducting PAS 9980 assessments—whether as an extension of the scheme for external wall assessors or as a separate scheme. We ask the Government to monitor and report back to this Committee with its assessment of the impact of the introduction of PAS 9980 on the numbers of buildings that need to be inspected and remediated. We also ask the Government to report back to the Committee with its estimate of the number of currently qualified fire risk assessors and how this will increase in the coming months. (Paragraph 60) Building Safety: Remediation and Funding 35
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Government response AI summary
The government is committed to a state-backed professional indemnity insurance scheme for EWS1 assessors, is assessing the fire risk assessor market, and has funded RICS to train assessors; but does not directly commit to monitoring and reporting back to the committee on the impact of …
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Ministry of Housing, Communities and Local Government
21
Recommendation
Seventh Report - Building Safety: Remed…
Rejected
The evidence we received clearly indicates that it should be the regulator—and not building owners—who decides whether a building needs a fire risk assessment. As such, we recommend that the Building Safety Regulator decides whether a building needs a fire risk assessment; sets the standard that a building need to …
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The evidence we received clearly indicates that it should be the regulator—and not building owners—who decides whether a building needs a fire risk assessment. As such, we recommend that the Building Safety Regulator decides whether a building needs a fire risk assessment; sets the standard that a building need to meet; sets out the methodology for undertaking assessments; and provides a review process which enables consistency of decisions. (Paragraph 63) 36 Building Safety: Remediation and Funding
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Government response AI summary
The government rejects the recommendation, stating that the Responsible Person under the Fire Safety Order should determine the need and timing of fire risk assessments. The Building Safety Regulator will focus on higher-risk buildings and will assess safety risks including the spread of fire.
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Ministry of Housing, Communities and Local Government