Contribution
I thank the hon. Member for raising a valid point about what lessons can be learned from what happens in the UK. As he has outlined, buildings right across the UK need to be safe. Every home needs to be safe; it does not matter where a person lives. I am very open to looking at areas of best practice, which we can share as we develop legislation.
Several Members, including the hon. Member for Surrey Heath, outlined the big issue with EWS1 forms, which has caused many homeowners a great deal of stress. The Government recognise the difficulties in selling and remortgaging homes, and the concerns for residents living in buildings impacted by building safety issues. We have continued to work with major mortgage lenders to improve access to lending for affected buildings and support the functioning of the housing market while remediation progresses.
The hon. Gentleman referred to concerns about the validity of certain EWS1 forms. I can confirm that my Department is aware of those concerns, which relate to a fire engineer who was removed from his professional accrediting body and is, as I understand it, no longer operating in the field. Although I cannot comment on individual cases, it is important to reiterate that the EWS1 form is not an official Government form but an industry tool used by lenders and valuers to help them to understand the remediation status of participating buildings.
My officials continue to engage with the mortgage lending industry to encourage it to take a proportionate approach when using EWS1 forms. The Government consider that lenders should be moving away from the forms, but there is still an over-reliance on them. The hon. Gentleman highlighted an additional bill of £4,500 because of the delay in getting an EWS1 form. We understand that EWS1 forms continue to be used by individual lenders, and the Government will continue to stress loudly that lenders should move away from that requirement.
A number of Members highlighted the issue of cost and who pays for historical remediation. The Building Safety Act puts the responsibility for undertaking, and in most cases paying for, remediation on the building’s landlords, while making it very clear that developers must pay to fix buildings that they have developed or refurbished even if they no longer own them. Courts have new powers to extend liability to associated companies, thereby stopping complex corporate structures being used to dodge responsibility. This was not fair and took a mental toll on many homeowners.
Where a developer cannot be identified or has not yet agreed to pay, public funding is available to address life-threatening cladding risk on residential buildings over 11 metres high, so that no leaseholder in those buildings will face cladding remediation costs. Many holders of qualifying leases are protected in full from non-cladding and interim measures—for example, where the landlord or its group meets the contribution condition or where the property value is below the set threshold.
Other qualifying leaseholders have their costs firmly capped and spread over 10 years, with costs already paid out since 28 June 2017 counting towards the cap. For obvious reasons, in Greater London the cap is £15,000 and across the country it is £10,000. That rises to £50,000 for properties valued between £1 million and £2 million, and to £100,000 for properties valued at more than £2 million.
The hon. Member for Taunton and Wellington mentioned the building safety levy, which will come into force on 1 October and will raise funds to pay for the remediation of cladding on residential buildings where the developer cannot be held responsible or identified. That is a key element for ensuring trust.
Under the work started by the previous Government, 53 developers signed the developer-led remediation contract with the Government. The contract covers more than 2,000 buildings in England that are over 11 metres high and have life-critical fire safety defects. Developers have contributed and committed to pay or fix the matter, at a cost of around £4.2 billion. Any developer that fails to comply with the remediation obligations faces significant commercial consequences, including the imposition of statutory prohibitions, effectively preventing them from building new homes in England. We expect all developers to accelerate their remediation work without compromising safety.