Housing developers have just six weeks to sign a legally binding agreement to had over more funds to fix unsafe buildings.
The government set the deadline as it sent the contracts to housebuilders this morning, saying that “companies who fail to sign and comply with the terms of the contract will face significant consequences”.
The Department for Levelling Up, Housing and Communities said legislation would be brought forward in the spring to give the secretary of state powers to prevent developers from operating freely in the housing market if they fail to sign and comply with the remediation contract.
Under the contract, developers will commit an estimated £2bn or more for repairs to buildings they developed or refurbished over the past 30 years. This means that together with the building safety levy, industry is directly paying an estimated £5bn to make their buildings safe.
Levelling up secretary Michael Gove said: “Today marks another significant step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and facing unfair and crippling costs.
“There will be nowhere to hide for those who fail to step up to their responsibilities – I will not hesitate to act and they will face significant consequences.”
But he also indicated that the net would be widened to take in other parties deemed to be responsible. “Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair,” he said.
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