Recommendation 28

In 2020 the previous Committee concluded that MHCLG had not done enough to address spiralling insurance costs affecting leaseholders and ‘nil’ mortgage valuations. It found that private leaseholders in blocks with dangerous cladding had received ‘nil’ valuations for their properties, meaning they had found it impossible to sell or remortgage, while their insurance premiums had risen over 400% in some cases. At the time of its evidence session, MHCLG told the Committee that this was an ‘industry issue’, but in the Committee’s view MHCLG needed to step up and ensure matters were resolved quickly. It recommended that MHCLG should ensure that leaseholders were not facing escalating insurance premiums and MHCLG committed to working with insurers to address these concerns.48