Social Housing and Building Safety — House of Commons, 2022-06-09
Topic: Housing
Robert James MacGillivray Neill (Conservative, Centre-right): It is a privilege to speak in this debate. I, too, pay tribute to the families and survivors of the Grenfell tragedy, and I think all of us who served in Government at any time before that tragedy would join both Front Benches in the apology that is offered to them; there was a systemic failure that let them and many others down. As the shadow Secretary of State generously said, my right hon. Friend the Secretary of State has shown real energy in seeking to address these matters now, and I pay tribute to him for that. We have therefore seen marked progress, which I welcome, but I also want to put on record some areas in which I know the Minister currently on the Front Bench, my hon. Friend the Member for Walsall North (Eddie Hughes), will be keen to press for yet further progress The first of them relates to cladding. We have come a long way, and my constituents are very grateful for that. We have had campaigns, which I have raised in this House, for the residents of Northpoint in my constituency, and others are affected in other buildings, too: Iconia House and Azzura House in Homesdale Road; and William House and Henry House in Ringers Road. They happen all to be in the centre of Bromley, so this is not purely an inner-London issue; it affects town centres and suburban centres across the country. It is therefore all the more important that we get it right Eventually, after a very long campaign, the remediation work is starting at Northpoint, but it will take perhaps a year or so to complete. The landlord of the occupiers of Northpoint was a property company that was an offshoot of the Tchenguiz family trust, not an organisation noted for its generosity towards its tenants. It stood upon its legal rights and insisted upon the flat owners—the lease- holders—covering the costs, for example of a waking watch It is certainly to be welcomed that future costs of waking watches and remediation will be picked up, but these leaseholders are out of pocket to the tune of tens of thousands of pounds for the waking watch that they installed because the London Fire Brigade, in exercise of its duty, issued a notice saying that without it the property would not be habitable. They were caught between the devil and the deep blue sea: what else were they to do but acquire that waking watch? Otherwise their homes would have been unsafe, which would have been unfair on them. The mental and health pressures on some of these people was immense. Their landlord was remote and frankly not possible to go after. It was not signed up to the scheme that the Secretary of State has worked so hard on and responsible developers have joined. The occupiers of Northpoint therefore had to dip into their own pockets when most of them already had mortgages, especially as many of them were first-time buyers, and when the flats were unmortgageable—they could not increase the mortgage on them because nobody would lend on them—and until this work was done they were effectively uninsurable too So these people had been left in a hopeless situation, and while it is right that the Government seek to recover every penny they can from developers and builders who fail to come up to the standards, where there has ultimately been a failure of governance in the broadest sense over a period of many years it is legitimate for the state to stand behind those who have lost out. Where there is such a corporate failure, the state must pick up the ultimate responsibility. So I hope the Minister will look again at means of coming to the aid of such people for retrospective costs where it is clearly not realistic to pursue the builder or developer. There will be a number of such cases. In this instance the freehold had been sold on many times. There will also be cases where developers who may be at fault will no longer be in business; they may have wound up or amalgamated. In those circumstances, the moral and corporate responsibility must fall on the state There are also areas where there has been progress but there is more to do. Members have referred to building insurance. There has been a marked increase in premiums across the board. People have had major—threefold or fourfold—increases in their premiums. Again, these people are often in flats that are unmortgageable and unsellable, and now, on top of their service cost charges to pay for steps such as a waking watch, they are facing massive increases in their insurance premiums. The question has to be raised—many of my constituents have done so—whether the market is operating effectively. How genuinely competitive is the market in these areas? There is a real concern that at the very least there is an excessive risk-averseness now: having gone from having too lax an approach in the past perhaps, now the insurers’ approach is too risk-averse, resulting in unrealistically and unfairly high premiums for many flat owners. That, too, is an area where it is legitimate for the Government and regulators to step in.