Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 9

9 Paragraph: 39

The Government must announce, before they publish the Bill, its proposals for funding all historical...

Recommendation
The Government must announce, before they publish the Bill, its proposals for funding all historical building safety remediation works. These proposals should impose no costs on leaseholders and explicitly acknowledge that in the short term the Government must foot the bill, until such time as mechanisms for cost recovery have been developed. We also urge the Government to explore the options for reform of the law preventing building owners with no contractual remedy claiming against developers for defective construction more than 6 years old which has not caused damage. The New South Wales legislation offers a possible model.
Paragraph Reference: 39
Government Response Acknowledged
HM Government Acknowledged
26. The Government has made an unprecedented investment in building safety to protect leaseholders from unaffordable costs. The Government has committed to fully fund the cost of replacing unsafe cladding for all leaseholders in higher-rise buildings of over seven storeys (18 metres) - ensuring tax-payer funding is targeted at removing the most dangerous materials from the highest risk buildings in line with independent expert advice. 27. We recognise that the industry that was responsible for this legacy of unsafe buildings should be made to contribute for compromising public safety. This is why we will look to introduce a levy on developers as part of the process of the new regime. 28. We are also are extending the limitation period under section 1 of the Defective Premises Act 1972 from six years to fifteen, with retrospective effect. The Defective Premises Act creates a right to bring a claim for compensation in the civil courts for work which has made a dwelling unfit for habitation. Our change means that claims for compensation will be able to be brought for buildings that were built defectively up to fifteen years prior to the provision coming into force.