The government has announced plans to extend financial protections for homeowners facing substantial bills to fix historic building safety defects, while also increasing pressure on construction product manufacturers to contribute to remediation costs.
The measures were unveiled during the second reading of the Remediation of Unsafe Cladding Bill, legislation designed to accelerate the repair of unsafe residential buildings and strengthen enforcement against those responsible for delays.
While the Building Safety Act introduced protections for many leaseholders affected by unsafe cladding and other fire safety defects, ministers have acknowledged that some homeowners continue to fall through gaps in the system because of complex ownership arrangements.
The latest proposals aim to address those gaps and provide support for more leaseholders who face significant costs for issues they did not cause.
A key element of the reforms will see construction product manufacturers linked to historic unsafe cladding and insulation products contribute more towards remediation works.
For the first time, the government intends to introduce powers that would allow it to recover contributions directly from manufacturers at scale, ensuring greater financial accountability across the sector.
The proposed changes focus on three groups who currently receive limited or no protection under existing legislation.
Support for New Owners Missing Out on Existing Safeguards
Under current rules, eligibility for some building safety cost protections is based on the circumstances of the person who owned the property on 14 February 2022.
This has created situations where homeowners who later purchase a flat as their sole residence are excluded from protections because a previous owner did not qualify.
Ministers are now exploring ways to close this loophole, helping more owner-occupiers avoid unexpected remediation bills.
Funding for Collectively Owned and Enfranchised Buildings
Leaseholders living in collectively owned or enfranchised buildings have often faced some of the highest remediation costs because there is no separate freeholder against whom costs can be recovered.
The government has confirmed that new funding will be made available to help address high-risk and high-cost internal fire safety defects in these buildings, reducing the financial burden on residents.
Expanded Eligibility for Multi-Property Owners
Current protections generally apply only to individuals who owned no more than three residential properties on 14 February 2022.
The government now plans to increase that threshold to six properties, extending protection to leaseholders who owned between four and six properties and currently face liability for non-cladding building safety defects.
The change is expected to provide relief to landlords and investors who could otherwise face substantial bills for remediation work despite having no responsibility for the defects.
The Remediation of Unsafe Cladding Bill will also introduce a legal duty for those responsible for unsafe buildings to carry out necessary remediation works.
Organisations or individuals that fail to comply could face criminal sanctions, including fines of up to £500,000. The legislation will also give authorities powers to intervene directly and commission remediation works where responsible parties repeatedly fail to act.
Building Safety Minister Baroness Blake said:
“We are going further to protect more homeowners from unfair costs and make construction product manufacturers contribute towards putting things right.
“Alongside new powers to force those responsible to fix unsafe buildings, these measures will help give residents the safety and security they deserve.”
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