The Welsh Government has promised to bring forward new rights for leaseholders whose homes are undergoing building safety remediation as part of the Building Safety Bill.
During Stage 2 scrutiny of the legislation at the end of January, housing secretary Jayne Bryant responded to amendments seeking to incorporate provisions similar to those that already apply in England under sections 116 to 124 of the Westminster Building Safety Act 2022.
These include remediation orders to require landlords to undertake remediation work and remediation contribution orders to require landlords to pay towards the costs of remediation.
Up to now, the Welsh Government has resisted these on the grounds that it already has a more comprehensive approach to the cost of remediating in-built fire safety issues for buildings over 11m and could take non-compliant developers to court on residents’ behalf.
The cabinet secretary explained: ‘This comprehensive approach to remediation has largely negated the need for legal protections here in Wales. However, I am aware that there have been ongoing calls from leaseholders and others who would prefer to have the additional security that these legal protections potentially offer. I’m also conscious that we have started to see structural safety issues emerge that may require a different approach.
‘Furthermore, the long-term future of the Welsh building safety programme is not guaranteed. It will depend on who forms the next Government. In the light of these factors, I have concluded that it is time to futureproof the protections for leaseholders from certain service charges related to remediation of relevant defects by placing them on a statutory footing.’
She said she could not accept amendments tabled by independent MS Rhys ab Owen and Plaid Cymru MS Siân Gwenllian as currently drafted as there were issues with them that needed to be addressed.
However, she said she was willing to bring forward government amendments at Stage 3 to deliver similar legal protections for leaseholders in Wales and to work with them to secure agreement.
The minister said it would be ‘foolhardy’ to accept other amendments that would have included statutory deadlines for remediation works and sanctions for failure to meet them as they could have ‘far-reaching and potentially crippling effects on the Welsh building safety programme, and, potentially, the wider housing sector in Wales, with no consultation’.
The Welsh Cladiators campaign group called on the Welsh Government and Senedd to act decisively to protect leaseholders and highlghted the deadline for Stage 3 amendments of Tuesday, February 24.
‘All efforts must now be directed to ensure that the minister delivers on her promise,’ it said. ‘The window for action is narrow, with a Stage 3 vote on the Bill scheduled for 3 March. The campaign group is concerned that any delay could see these efforts fail, leaving leaseholders exposed for many years as a new, enlarged and inexperienced Senedd group takes office.’
The group said that recent leaseholder and resident forum meetings had confirmed the scale of the crisis: ‘Confusion reigns in many developments, with residents facing spiralling service charges, insurance fees, ineffective managing agents, and unresponsive developers and freeholders. Invasive building inspections are revealing not only known fire safety defects but also other serious building safety issues—none of which are covered under the current Welsh Developers Contract (DBC).
‘Without the protections of Sections 116-125, the financial burden of these defects will fall squarely on leaseholders. Many face the prospect of having to litigate against rich and powerful developers at their own cost and risk.’
The minister also promised amendments at Stage 3 to extend the compliance deadline for certain buildings with a lower fire risk and to clarify whether landlords need to vary tenancy contracts.
For a fuller account of Stage 2 proceedings on the Building Safety Bill, see this research article by Senedd Research.