Recommendation 25

HM Government Rejected

64. The Government believes it is right to focus on ensuring that people are not unable to sell their homes due to building remediation issues. We are working hard to improve the situation for all leaseholders, including shared owners, affected by building safety issues, and we will continue to do everything within our power to ensure that people can move on with their lives. 65. We are, for example, taking steps to restore confidence to the market and to make sure that leaseholders, including shared owners, are not facing unreasonable barriers should they wish to sell or re-mortgage their homes. 66. On 18 December 2023, UK Finance and the Building Societies Association, updated the joint industry statement on cladding, which has now been signed by nine major lenders. This confirmed that, subject to their normal policy requirements, lenders will consider mortgage applications on properties in buildings in England of 11 meters or 5 storeys and above in height with building safety issues. There is no requirement for a building to have been remediated or for works to have started, provided it is being self-remediated by developers, is covered by a recognised government scheme, or the property is covered by the leaseholder protections in the Building Safety Act, as evidenced by a leaseholder deed of certificate. 67. We also expect all registered providers to assess and remediate their buildings at pace, and we are working with regulators to make sure that this is the case. 68. Nevertheless, the Government recognises the need to take specific action to assist affected shared owners. As noted by the Committee, the Secretary of State wrote to registered providers on 19 December 2023 to notify them of a series of changes to Homes England’s and the Greater London Authority’s Capital Funding Guides to clarify and improve the support options available to shared owners affected by building safety issues. 69. The letter explains that registered providers may use a financial resource known as a Recycled Capital Grant Fund to meet 100% the costs of any buy backs they choose to engage in. This option applies to both homes funded through the AHP and to homes delivered through the planning system via Section 106 developer contributions. 70. We encourage registered providers to consider this option where shared owners are finding it particularly difficult to sell their homes and they, for example, need to move to take up employment or for family reasons. We do, however, recognise that registered providers will need to take account of their financial position when making these decisions. 71. The Secretary of State’s recent letter outlined the government’s expectation that registered providers make clear and accessible information on relevant policies available to their shared owners via their websites. As part of this information, registered providers must make it clear if they have a buy back policy and if so, what criteria a shared owner must meet in order to access this option. We have continued to make these expectations clear in our discussions with registered providers since publishing the letter.