Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Paragraph: 42
The requirement to pay the building safety charge within 28 days of demand and the...
Conclusion
The requirement to pay the building safety charge within 28 days of demand and the lack of effective consultation protection simply compound the unfairness, and potentially catastrophic consequences, of allowing leaseholders to be charged the cost of remedying historic defects. The 28-day deadline seems particularly unreasonable.
Paragraph Reference:
42
Government Response
Acknowledged
HM Government
Acknowledged
The ‘Building Safety Charge’ clauses in the draft Building Safety Bill are intended to give leaseholders additional assurance and transparency on costs for the ongoing costs of building safety. It was never the intention that payment for large scale remedial works should be paid by leaseholders within 28 days. Where there is a need to fund remediation of historical defects we will introduce provisions to provide greater protection to leaseholders, ensure they have the collective ability to seek redress and/or require the building owner to do so; and, are not faced with unaffordable upfront costs. Even without special arrangements being made in relation to capital costs there will be no question of such demands landing on leaseholders without notice, as those are costs in respect of which a detailed consultation process will be required. If leaseholders are liable for building safety works, these should be made payable via the service charge and all the existing provisions will remain. Leaseholders will have the protection that, unless they have been properly consulted (or the First Tier Tribunal grants the landlord dispensation from the strict consultation requirements) the charges will be capped. As is the case currently, consultation requirements can only be dispensed with when the landlord makes an application to the Tribunal to dispense with the need to consult.