Fire Safety Bill — House of Lords, 2020-10-29
Topic: Housing
Ilora Gillian Finlay (Crossbench, Unknown): My Lords, I apologise that I could not participate at Second Reading. I had wanted to raise carbon monoxide detection—a silent killer production of combustion—with fire detection, but I understand it is outside the scope of this Bill. I would like to speak to Amendment 8, to which I have added my name. Let me explain why I remain haunted by seeing the blazing Grenfell Tower from my daughter’s window, and I have every sympathy with those whose flats all over the UK find their leasehold purchases are now valueless and are still paying out their mortgage and charges. Back in the 1970s, we financially squeezed ourselves to buy our first flat, only later to find it was built with high alumina cement and, until deemed safe, completely worthless. That is why I feel a commitment to others caught in this plight. This amendment would bring further clarity to the meaning of a "responsible person", and ensure that leaseholders who are not also freeholders are not made liable or responsible for any remediation work needed as a result of poor building and development decisions on flats which they believed, and were told on checks, comply with building regulations. I want to read the Minister’s response to the previous amendment very carefully, as I hope that it allays some of my concerns, but I note that the noble Baroness, Lady Neville-Rolfe, has raised some ongoing questions The huge costs of fire safety checks, materials testing, removal and replacement of dangerous materials, and the retrofitting of sprinklers and other fire safety equipment, all currently fall to leaseholders. Let me illustrate this with information from one such leaseholder. For residents of three blocks of flats in Baltic Avenue, Brentford—which probably should never have been signed off—fire safety checks have been quoted between £15,000 and £24,000, the mock testing of current cladding and insulation will cost £50,000, and rectifying all identified issues has been initially quoted to be at least £6 million. The previous group of amendments highlighted the huge burden on leaseholders, so who is responsible? This is surely the responsibility of developers and their team of architects, builders, et cetera, and the freeholders—and what about the banks that earn an income from the loans As the Minister has pointed out, he is well aware of the crippling costs, and he is clearly committed to doing something about the many leaseholders living in flats that are currently valueless, that cannot be sold or re-mortgaged. Many leaseholders are already financially stretched and bought their flats using the Help to Buy scheme, but if they cannot afford to pay for the fire safety checks they need to obtain an ESW1 form, Homes England will not value any properties bought under the scheme. Despite living in flats that are valued at zero, many leaseholders still find themselves having to cover interest payments on a loan that was given on the basis that if it fell in value you paid less. If the flats are worth zero, have all these loans been reset to zero, and are we sure that that has happened Even more seriously, these leaseholders are now suffering real mental health problems, not only from the financial burdens but because they know they are stuck in flats tonight that could go up in flames at any moment. The removal of cladding and other dangerous materials really is a matter of life and death. All this means that insurance costs will be sky high for buildings that are still considered to pose such a high risk. Can the Government give us some evidence of really speedy action In July, the housing Minister agreed that all costs should not have to be met by leaseholders and should be met by the developers or building owners. Many leaseholders believe the Government have changed their position, saying that leaseholders would still have to foot some of the bill, but they just do not have the money to do it. This amendment rectifies this by being absolutely clear about who is responsible for what, and that is why I support it.