Source · Select Committees · Public Accounts Committee
Recommendation 19
19
However, the process has not been working as intended.
Conclusion
However, the process has not been working as intended. The process can be expensive and lasts for only five years, with costs often passed onto leaseholders.57 The process has been slow; the demand for the work to inspect external walls has outweighed the supply of the professionals with the skills to do so. This has been compounded by the difficulties these professionals have had in acquiring indemnity insurance to undertake the work.58 The Association of British Insurers wrote to us saying that the EWS1 form had been created without any consultation with the insurance industry.59 The scope has also drifted; we received written evidence to suggest that the process may be being used on buildings below 18 metres, beyond its intended remit of 18 metres and above.60 This 50 C&AG’s report, para 1.21 51 Q 49 52 Q 144 53 Qq 125–126 54 Building Societies Association (RDC0009), Local Government Association (RDC0003), Greater Manchester High Rise Task Force (RDC0014) 55 Q 138 56 Royal Institution of Chartered Surveyors, Form EWS1: External Wall Fire Review, December 2019. 57 Housing, Communities and Local Government Committee, Cladding: progress of remediation, Session 2019–21, HC 172, 18 May 2020 [12 June 2020]. 58 Q 58; Housing, Communities and Local Government Committee, Cladding: progress of remediation, Session 2019–21, HC 172, 18 May 2020 [12 June 2020]. 59 Association of British Insurers (RDC0007) 60 UK Finance (RDC0010), National Fire Chiefs Council (RDC0008) 14 Progress in remediating dangerous cladding has been acknowledged by the Minister for Housing.61 The uncertainty by the sector is reflective of changes to departmental guidance in January 2020, which now includes the need to assess and manage the risk of external fire spread to buildings of any height.62
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2021 5.2 The External Wall Fire Review process (EWS1 form) was introduced by the Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies Association in December 2019, to support the valuation of high-rise residential buildings over 18 metres. Industry did not design the form to be used on residential buildings under 18 metres, except in very specific and justifiable circumstances. The EWS1 form is not a departmental document or regulatory requirement. Guidance published on the advice of the Independent Expert Advisory Panel (IEAP) in January 2020 highlighted the requirements in existing building regulations around fire spread on external walls. 5.3 The department is aware that some lenders and valuers are using the RICS EWS1 valuation process for multi-storey, multi-occupancy residential blocks of any height. The department does not support this blanket approach, especially for lower rise blocks. The department has therefore been encouraging lenders to adopt a more proportionate response and use other equivalent evidence to support building safety and valuation assessments. 5.4 The department is aware of challenges with the capacity of professional fire expertise and associated public indemnity insurance constraints. With industry, the department has several joint workstreams actively seeking to address this. 5.5 The department is also aware of challenges in accessing affordable buildings insurance for some blocks with building safety concerns. Officials are working with industry to understand this better. 5.6 The department will write to the Committee updating them on progress by the end of December 2020.