in this update we summarise the UK Government's new proposals to speed up the pace of remediation work and further to protect residents and leaseholders.
Summary
On 2 December 2024 the UK Government announced a detailed "Remediation Acceleration Plan" to respond to the perceived slow pace of remediation to buildings with unsafe cladding, and to protect and support residents and leaseholders further in such buildings. Steps include:
significant legislative proposals to ensure landlords etc identify and remediate relevant buildings promptly, including in relation to properties 11m or more in height;
the introduction of a voluntary "joint action plan" under which developers who have signed up to the Developer Remediation Contract (DRC) / the Responsible Actors' Scheme commit to taking certain steps within more concrete time frames;
further measures to improve leaseholder/resident experience of remediation and to ensure leaseholders are protected from remediation cost.
The announcement also provides a brief update on the implementation of the Building Safety Levy, and the Government's intentions in relation to building Fund recovery under the DRC.
It remains to be seen how the proposals will be implemented in practice, and the Government intends to make a further announcement about the plan in Summer 2025.
The "Remediation Acceleration Plan"
A summary of some of the key objectives of the plan, and some initial comment, is set out below.
Additional or new obligations on landlords/persons with repairing obligations: the Government considers that those responsible for remediating unsafe cladding are acting too slowly, despite the existence of various Government funding schemes which are said to "create a route for every residential building 11m and over with unsafe cladding to be remediated". The Remediation Acceleration Plan outlines the steps the Government intends to take to address the pace of building remediation with landlords etc, which include:
Letters outlining expectations:the Government has written to set out its "expectations" that those who are responsible for building safety in high-rise buildings which have unsafe cladding will have started remediation work as soon as is possible in 2025, and for work to have started on site byend March 2025 for buildings with the "most" unsafe cladding (i.e. those which have ACM).
Proposals to legislate:
the Government intends to legislate to create a "clear and legal duty" on those responsible for buildings 11m and over to take necessary steps to fix their buildings within clear time scales. This duty is going to be "supported by significant financial consequences for inaction, and a new criminal offence for those who ultimately fail to remove unsafe cladding".
to close an information gap which it has regarding buildings which are 11m or more but below 18m (which presently do not need to be registered with the Building Safety Regulator) the Government intends to require registration of such buildings, in order to allow them also to be identified and assessed. The Government also intends to "tighten the rules around building assessments" in order to drive action by those responsible for assessing buildings, and ensuring that unsafe cladding is identified. By these steps, the Government expects to be able to identify all 11m+ buildings that need remediation, and again they propose to legislate to ensure "the strongest possible penalties for those that do not comply."
to deal with the problem enforcement agencies face in identifying who is "responsible in practice" for a building, the Government intends to legislate to (i) provide powers to compel entities to disclose beneficial ownership chains; and (ii) to "improve transparency more broadly" for buildings 11m and over in height, to introduce requirements to provide beneficial ownership information as part of the plans to expand the existing building register.
Other steps regarding medium height buildings: the Government is also analysing Ordnance Survey data to identify 11m+ residential buildings and by April 2025 hopes to contact landlords or freeholders to ask them to confirm if their buildings have been assessed and of the outcome of that assessment; and/or to provide support to allow the building to be assessed and for a funding scheme to be accessed if needed. Responses will be shared with local authorities and other regulators.
Supporting regulatory bodies in taking enforcement action regarding buildings: the Government is to provide funding to enable local authorities to "double" enforcement activity, and to engage with the Building Safety Regulator about whether it can play a more prominent role in monitoring and enforcing the pace of remediation. A remediation enforcement support fund has been set up for local authorities and fire and rescue services to access, and the Government will also publish new remediation enforcement guidance for regulatory bodies. The Plan makes it clear that "Landlords should be in no doubt that [the Government] can and will pursue them directly if needs be".
For Social housing landlords, a long term strategy will be announced in Spring 2025 in relation to accelerating remediation in social housing buildings, and further steps will be taken to encourage social housing landlords to apply to applicable remedial schemes.
The above proposals and steps will obviously be of significance to those who own and/or manage existing residential or mixed use buildings in England which are 11m (and/or possibly also 5 storeys) or above, given that the Government's previous focus to date has largely been on higher-rise (i.e. 18m/7 storey or more) properties. We anticipate that a number of these medium-rise properties may have already had appropriate fire risk assessments performed since May 2022 (when new rules came in requiring fire risk assessments also to cover external walls in properties with two or more domestic premises) with remediation steps identified if necessary. However, a number may not, particularly if their facades do not present any clearly known risk (such as the use of ACM). Further, where defects have been identified, there may be debates around work required and responsibility for the same, which may mean it has not yet begun. These proposals are clearly aimed at forcing landlords or those with repairing obligations to get on and identify and remediate fire safety etc defects promptly if they have not yet done so. This may therefore open up a wider pool of properties which may require remedial work, and for which recovery actions against those who originally developed, designed or built the properties may in future be necessary.
Joint developer - MHCLG action plan: Separately, the Government has also issued a voluntary joint action plan between MHCLG and the developers who signed the DRC. Developers who choose to join the joint action plan commit to, among other things:
Save for situations reasonably outside the developers' control, meeting certain time frames in relation to identification of and remediation of works to which the DRC applies. In particular, among other things, work should have started on all qualifying buildings by end July 2027, with all determinations as to whether a building requires works to be complete by end July 2025. Developers also commit to using independent competent fire risks assessors for such determinations.
improving resident experiences of remedial works, including by adhering to (and making sure sub-contractors adhere to) the Code of Practice for the remediation of residential buildings and by providing certain information to leaseholders and residents.
Pursing reasonable endeavours rapidly to conclude outstanding negotiations and to agree any remediation contributions with Registered Providers of Social Housing for remediation of social housing buildings, "in cases where the [developer] acted as a contractor on social housing buildings and is obligated to contribute towards remediation". This commitment therefore applies even if the building is not one which otherwise falls within the terms of the DRC (as the DRC does not cover buildings on which the developer acted as a contractor only). For any buildings currently subject to cost-recovery negotiations, the developer is also to "make every effort" to reach an agreement by July 2025; and for relevant buildings which subsequently come to light, every effort to reach agreement should be made as quickly as possible and within 6 months.
Working with MHCLG to establish Remediation Action Group to overcome barriers to remediation and to improve the resident experience. The group will consider issues such as tougher enforcement against third parties blocking remediation, options for securing contributions from construction product manufacturers (including by way of further legislative changes), and best practices on resident engagement.
The joint action plan is voluntary and not legally binding, but the expectation will be that the commitments contained within it are implemented in good faith. However, the joint action plan does not presently set out any specific sanction should a developer decide not to enter into it, or be unable to meet the commitments if it does do so.
So far, the Government's Remediation Acceleration Plan statement sets out that at least 29 qualifying developers have endorsed the commitments in the joint action plan, and that more may join. For developers who are eligible to, but have not yet, joined, they and their group companies may need to pay particular attention to the remediation time frames imposed and whether these are achievable to meet. They may also need to consider whether or not the commitments in relation to negotiations regarding certain social housing buildings impact upon a wider cohort of properties than those which are otherwise subject to the DRC, as well as whether any disputes regarding such buildings could reasonably be capable of resolution in short order or not.
Ensuring capacity within the supply chain: the Government will look to publish "pipeline data" from its major remediation programmes to generate confidence and encourage contractor investment in skills, resource and training, and will continue to engage with industry leaders to monitor and identify capacity blockers. They will also publish remediation project cost benchmarks to "provide greater insight into anticipated project costs for projects moving into remediation and to support in negotiations throughout the supply chain". Modular training will be developed for "cladders" to increase skills and improve quality; and cladders will be added to the Home Office immigration salary list.
Construction product manufacturers: the Government recognises that further steps need to be taken beyond what has already been achieved via the Building Safety Act (e.g. the creation of the National Regulator for Construction Products and the new causes of action for building owners against manufacturers). Steps may include introducing a "system-wide reform" of the construction products regime and the introduction of future sanctions and liabilities against manufacturers as part of that process.
Further support and protections for residents / leaseholders. This includes:
Improving resident experience of remediation: For buildings which receive Government funding for remediation work, adherence will also be required to the Code of Practice for the remediation of residential buildings. The obligation on those responsible for remediation to consider and take steps to mitigate impact on residents will be strengthened.
Direct leaseholder/tenant contact with MHCLG: An online tool has also been set up for leaseholders or tenants directly to contact Homes England to raise any concerns about external walls of their buildings (11m or more). If complaints are raised, Homes England will check to obtain positive proof of any assessment of the building, and referral may be made to enforcement bodies if necessary. Leaseholders will be kept informed of any investigations. The Government will also engage directly with residents in affected buildings on a rolling basis to ask for details of their experiences of remediation to inform future practice.
Closing gaps in relation to funding and other issues affecting leaseholders:
The Landlord & Tenant Act 1987 will be amended to make clear that a court appointed manager can also be responsible for building safety duties, which will ensure that remediation funds can be provided to that manager in order to progress remediation. Other measures will also be put in place to ensure further available processes, support and clarification for leaseholders where freeholders/landlords of relevant properties become insolvent.
Changes will be made, among other things to (i) ensure that funds recovered via Remediation Contribution Orders (see s 124 Building Safety Act) will only be applied for the purposes set out in the Order and will be ringfenced if the party holding the funds becomes insolvent; and (ii) "tighten existing enforcement routes with clear sanctions" and to introduce stronger protections for residents should they have to leave their homes due to building safety issues.
The Government will work with insurers to consider whether it may - for the duration of remediation works programmes - support the industry to reduce fire-related liabilities, and thus reduce the high building insurance premiums that leaseholders face due to fire safety issues. It is also consulting upon a potential permitted insurance fee arrangement for work to place insurance on behalf of leaseholders.
Amendments have already been made to the Building Safety Act (by way of the Leasehold And Freehold Reform Act 2024) among other things to clarify that certain leaseholders can recover costs from landlords for other losses or steps they have paid towards, such as waking watches, alarms, expert advice, alternative accommodation etc. The Waking Watch replacement fund is also being extended until March 2026 (this is intended to provide funding for those responsible for building remediation to install alarms and thus cease the need for a waking watch).
Updates on Government schemes for ensuring those responsible pay for the building safety crisis:
Building Safety levy: the Plan sets out that this will be charged on all new residential buildings in England (subject to certain exemptions) which require building control approval, and will come into effect in Autumn 2025. The levy aims to raise £3.4 billion over the next 10 years.
The Developer Remediation Contract requires its developer participants to repay certain government funding, and the Government estimates that this repayment programme will recover up to £700 million. The Government has now confirmed that its initial focus will be on seeking such repayments where buildings have already reached completion and that it plans to send out the first invoices "before the new year".
Timing of next steps
The Government has emphasised that this announcement as to the Remediation Acceleration Plan is just their first step, and that they will bring for the various legislation to advance the above requirements when Parliamentary time allows. An update will be provided in Summer 2025 which will assess progress and outline further necessary steps.
