Cladding scandal firms could be barred from building more properties unless they pay to fix problems

Developers who refuse to help end the cladding scandal could be banned from the housing market under tough new laws.

Leaseholders living in blocks above 11 metres will also be legally protected from paying to fix unsafe cladding, while building owners will have to cover the costs of other fire safety defects in most cases.

The announcement by Housing Secretary Michael Gove today was hailed as a ‘big step forward’ by MPs previously critical of the Government’s approach to the crisis.

But questions remain over how many families will still have to pay up to £15,000 each to fix non-cladding related defects – and whether Mr Gove was backtracking on plans to protect all leaseholders from these costs.

Mr 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.

‘We cannot allow those who do not take building safety seriously to build homes in the future, and for those not willing to play their part they must face consequences.’

In January, ministers asked developers to agree a £4billion plan to fix dangerous cladding on flats by early March or risk new laws forcing them to act.

Today’s announcement made clear that those who failed to play their part would effectively be banned from building and selling new homes.

If passed by Parliament, amendments to the Building Safety Bill will allow the Government to block planning permission and building control sign-off on developments.

Manufacturers found guilty of making unsafe products will also be ordered to pay for repairs, with building owners allowed to take legal action against them.

Plans announced by former Housing Secretary Robert Jenrick last year to end the crisis caused outrage after he offered no safeguards for hundreds of thousands of leaseholders facing average bills of £25,000 for non-cladding related defects, such as timber balconies and missing fire breaks.

But ministers say the new proposals will mean most families will no longer have to shoulder these costs.

Developers that still own a building over 11 metres that they built or refurbished will be required to pay for all fire safety issues in their property.

Building owners who are not linked to the developer but can afford to pay in full will also be required to do so.

The Government said that ‘in the small number of cases’ where building owners can’t pay, leaseholder contributions will be capped at £15,000 for those living in London and £10,000 for others.

This will be spread over five years.

However, it is not known how many leaseholders will eventually have to fork out.

Mr Gove had previously told Parliament that he would work to ‘ensure that statutory protection extends to all the work required to make buildings safe’, suggesting no leaseholder would have to pay for any fire safety repairs.

Tory MPs Sir Peter Bottomley and Stephen McPartland, who have both voted against previous plans to end the crisis, voiced support for the new approach.

Mr McPartland said: ‘Today is another big step on this journey and although we are not all the way there, the direction of travel is really helping us achieve victories for leaseholders. I am pleased leaseholders will be protected in law and the Government has accepted this is not just about cladding.’   

A spokesman for the End Our Cladding Scandal campaign group said yesterday’s announcement was ‘the most positive step forward yet’