- Contract requires developers to fix buildings and reimburse taxpayers
- Developers have six weeks to sign
- Estimated £2bn expected to be committed by developers to fund repairs
- Responsible Actors Scheme to be committed to law in spring 2023
The Secretary of State for Levelling Up, Housing and Communities made an announcement earlier today on the progress of the negotiations with industry regarding the funding of building safety repairs, and on actions being taken to provide relief from high building insurance premiums.
Today, developers received legally binding contracts that will commit them to pay for life-critical fire-safety repairs and to reimburse the taxpayer for money already spent making their buildings safe. Under the agreement, which will be legally enforceable, homebuilders must fix all buildings over 11 metres that they have played a role in developing or refurbishing in the last 30 years in England.
The government has set a six-week deadline for all developers who were invited to discussions to sign the contract. Further developers will be invited to sign the contract in the near future.
Regulations will be laid in the Spring to create a Responsible Actors Scheme in England, which we intend to establish under powers in the Building Safety Act. All those who fail to sign or comply with the terms of the contract will be ineligible to join the scheme. Being outside the scheme means that those companies may face new restrictions to their ability to operate in the housing market, including, ultimately, being prevented from developing land in England until they comply.
We have also announced action on buildings insurance, in response to the Financial Conduct Authority’s review into the market. The Secretary of State intends to legislate to ban managing agents, landlords and freeholders from receiving commissions and other payments from insurers and insurance brokers, replacing these with more transparent fees. He will also arm leaseholders with more information to enable them to better scrutinise their insurance costs and will ensure leaseholders are not subject to unjustified legal costs and can claim their legal costs back from their landlord.
These steps will ensure that leaseholder insurance costs are fairer and more transparent and will rebalance the legal costs regime to give leaseholders greater confidence to challenge their costs. He has also urged insurers to accelerate their work on an insurance scheme that is expected to reduce exorbitant premiums.
The Secretary of State has also reminded building owners that they must fix unsafe buildings without delay, and that there will be consequences should they fail in that obligation.
For more information about the announcement, you can go to gov.uk, read the developer remediation contract and check our press notice.
