17th Report - The Remediation of Dangerous Cladding

The Home Builders Federation (HBF) raised concerns that insurance companies were seeking to profit from the building safety crisis. The Shared Owners Network similarly wrote that many shared owners were struggling to pay housing-related costs such as insurance. End Our … Read more The Home Builders Federation (HBF) raised concerns that insurance companies were seeking to profit from the building safety crisis. The Shared Owners Network similarly wrote that many shared owners were struggling to pay housing-related costs such as insurance. End Our Cladding Scandal (EOCS) raised exorbitant insurance as one of the many costs that risked putting residents “at risk of life-changing debt or forfeiture”.49 MHCLG’s Plan acknowledged that as well as needing to find thousands of pounds to pay for insurance, high insurance can make it difficult for people to sell their properties. We asked what efforts had been made to discuss the issue with insurance companies. MHCLG recognised that this was “a very serious problem”. It told us that it had asked the Financial Conduct Authority to undertake research into the high-rise buildings market in 2022. This found that the price of insurance premiums in high-rise buildings had doubled between 2016 and 2021. In its plan, MHCLG noted and that some individuals were facing annual bills of over £3,000.50 47 Q 117; MHCLG, Building Safety Remediation: monthly data release - December 2024, 23 January 2025 48 Committee of Public Accounts, Progress in remediating dangerous cladding, Sixteenth Report of Session 2019-21, HC 406, 16 September 2020, recommendation 4 49 RDC0006, Written evidence submitted by the Home Builders Federation; RDC0143, Written evidence submitted by the Shared Owners’ Network; RDC0145, Written evidence submitted by End Our Cladding Scandal 50 Q 50; Financial Conduct Authority, Report on insurance for multi-occupancy buildings, September 2022 para 1.16; MHCLG Remediation Acceleration Plan 20 Show less

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MHCLG told us that, as well as options for intervening in the market to reduce premiums while buildings are awaiting remediation, it expected the insurance industry to hold to its word in reducing premiums as risk is reduced. It said … Read more MHCLG told us that, as well as options for intervening in the market to reduce premiums while buildings are awaiting remediation, it expected the insurance industry to hold to its word in reducing premiums as risk is reduced. It said it would monitor if premiums were falling as buildings remediated through the PAS 9980 standard came through the process. However, the Association of British Insurers (ABI) indicated that without significant changes to the government’s remediation approach, premiums may remain high even after remediation.53 The PAS 9980 standard takes a more proportionate approach to remediation that prioritises risk to life and not risk to the building. This approach calls for greater use of lower cost mitigations such as sprinklers and in some cases, where the risk to life is deemed low or ‘tolerable’, it can mean some flammable material staying in place.54 Show less

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We are appalled that those living in affected buildings continue to suffer an unacceptable financial and emotional toll. Far too many people continue to feel trapped in unsafe homes, many facing financial uncertainty and many unable to sell their homes and move on with their lives. Residents face ongoing delays …

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Under the PAS 9980 methodology, competent professionals conduct Fire Risk Appraisals of External Walls (FRAEWs) in which they make conclusions about the risk to life posed by a building’s cladding and make proposals about remedial measures to reduce the level of risk to ‘tolerable’,57 The National Fire Chiefs Council (NFCC) …

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