New laws force developers and manufacturers to pay for cladding costs
The government is to introduce new laws forcing developers and manufacturers to foot the bill for cladding remediation.
The Department for Levelling Up, Housing and Communities has unveiled new criteria, with the threat that it will block planning permission and building control sign-off for companies that do not comply.
DLUHC said the steps will force the industry to pay for historical problems or face being frozen out of the market.
The government is to introduce new laws forcing developers and manufacturers to foot the bill for cladding remediation.
The Department for Levelling Up, Housing and Communities has unveiled new criteria, with the threat that it will block planning permission and building control sign-off for companies that do not comply.
DLUHC said the steps will force the industry to pay for historical problems or face being frozen out of the market.
Courts will be granted powers to prevent shell companies, which the department said makes companies harder to trace and means they can “avoid taking responsibility for their actions”.
The building safety levy will be extended to more developments, with scope for higher rates for developers which do not agree to collaborate to find a way to pay for cladding issues.
The amendments to the Building Safety Bill will allow building owners and landlords to take legal action against manufacturers which have used defective products on a home over the past 30 years.
Additionally, Cost Contribution Orders will be able to be placed on manufacturers which have been prosecuted under construction products regulations, requiring them to pay “a fair share” for remediation.
The measures, if passed by parliament, aim to prevent leaseholders from bearing the brunt of costs related to cladding remediation. Where building owners do not have the resources to pay, leaseholder costs will be capped at £10,000 outside of London, or £15,000 in London.
Levelling up secretary Michael Gove said: “It is time to bring this scandal to an end, protect leaseholders and see the industry work together to deliver a solution.
“These measures will stop building owners passing all costs on to leaseholders and make sure any repairs are proportionate and necessary for their safety.
“All industry must play a part, instead of continuing to profit whilst hardworking families struggle.”
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Photo: James Veysey/Shutterstock
