Building Safety Bill — House of Lords, 2022-03-29
Topic: Housing
Stephen Greenhalgh (Conservative, Centre-right): My Lords, I open this group by introducing a set of amendments that respond to many of the issues raised during previous debates on this Bill. I hope that these changes will be welcomed I start with a change that I trust will be welcomed across the House: the removal of the building safety manager. Following feedback from leaseholders and persuasive interventions from noble Lords during Committee, we are scrapping the legal requirement to appoint a building safety manager. I thank noble Lords, including the noble Baronesses, Lady Fox of Buckley, Lady Pinnock and Lady Hayman of Ullock, the noble Lord, Lord Thurlow, and my noble friend Lady Neville-Rolfe for their thoughtful contributions on this important matter The Government are clear that accountable persons are responsible for ensuring that their buildings are safe and must not pass on unnecessary costs to leaseholders. We must restore common sense on building safety. There are more effective ways of discharging the responsibilities set out in the Bill than recruiting managers on high salaries for individual buildings Accountable persons should reflect on their current management arrangements. If they are confident that they deliver safe outcomes, there is no reason for change. We are committed to driving up standards of safety management and maintenance in high-rise buildings and the competence of those who deliver it. In the first instance, this should be done by supporting the development and upskilling of those already managing buildings. The Government will continue to work towards raising professionalism and standards among property agents and are considering the recommendations of the working group of the noble Lord, Lord Best, on regulating the market. We will continue to work with industry on improving best practice I turn now to our amendments to the building safety charge. I have listened to the feedback that we have received from stakeholders and in the other place and I thank my noble friend Lord Young of Cookham for raising this matter during Committee on the Bill. I recognise the concerns raised—that the building safety charge as previously envisaged could have created additional bureaucracy for landlords and leaseholders alike—and I have listened to those concerns The amendment simplifies how the costs are managed by removing the building safety charge as a separate charging mechanism. We will do this by changing the modifications that we are making to the Landlord and Tenant Act 1985. Building safety costs will now be accounted for as part of the service charge, as my noble friend recommended. The costs will be clearly identifiable and part of a system that is familiar to both landlords and leaseholders, thereby ensuring transparency of the costs. As the building safety charge will be incorporated into the service charge, the legislative protections against forfeiture will already be in place, so I am removing the amendments related to forfeiture that were laid in the other place I move on to how we can strengthen the voice of disabled residents. I am particularly grateful to the noble Baroness, Lady Grey-Thompson, for tabling amendments in Committee to highlight this important matter. The Government and the Health and Safety Executive are committed to providing residents with diverse backgrounds and lived experiences—including, in particular, disabled residents—with a strong voice in the new regulatory system. We have therefore brought forward amendments to ensure that the building safety regulator will have to pay particular attention to the safety of disabled people in high-rise residential buildings and engage with them Amendment 3 ensures that the building safety regulator must particularly focus on the safety of disabled persons when undertaking its broad Clause 4 functions around safety in higher-risk buildings. Amendments 5 and 6 are consequential amendments. Amendment 9 provides that the building safety regulator must take all reasonable steps to ensure that its residents panel contains representation from individual disabled residents of high-rise residential buildings or groups that represent or support disabled residents. Groups may be represented corporately or by an individual member expected to be sponsored by the organisation. Amendment 12 requires the building safety regulator to report publicly about its engagement with disabled residents of high-rise residential buildings in its wider annual statement on resident engagement. Amendment 14 defines "disabled", using the widely used definition from the Equality Act 2010 I thank those noble Lords who made important points about resident engagement in Committee, particularly the right reverend Prelate the Bishop of St Albans. We have listened carefully to them and are making appropriate amendments to the Bill. The Bill puts residents at the heart of the building safety regime and gives them a clear voice in building safety matters. These amendments take this even further and oblige the principal accountable person to consult residents at prescribed times on the residents’ engagement strategy. This means that residents have the opportunity to comment on the form of the strategy and that those responsible for the safety of the building must listen to such comments To avoid any doubt, we have also made it clear that the principal accountable person will be obliged to act in accordance with the strategy. This means that residents and the building safety regulator will be able to hold principal accountable persons to account for their commitments made in the residents’ engagement strategy I thank the noble Lord, Lord Best, and my noble friend Lady Neville-Rolfe for raising the important matter of resident management companies assuming accountable person duties under the new regime. I have sought to address this issue through collaboration with the noble Lord and will accept his technical, non-government Amendment 86 to my Amendment 85. This will ensure that all resident management companies that are an accountable person have the option to appoint a professional director to support them with their Part 4 building safety duties. These amendments give a power to the Secretary of State to set out in regulations the detail of provision that will be implied into articles of association of resident management companies to enable this. They imply terms into leases so that costs of the appointment can be recoverable as a service charge under the lease. The amendments apply retrospectively. Through secondary legislation, we will apply leaseholder consultation requirements to protect leaseholders from paying unnecessarily large sums as a result of appointing a professional director and ensure that, where professional directors are appointed, they can also be easily removed when required Amendment 263 provides that, where a paid professional director is appointed to support building safety, all unpaid directors of the resident management company will be relieved of their personal criminal liability under Part 4. Resident management companies will continue to be liable for any contraventions that may occur, maintaining the principles embodied throughout the Bill of clear responsibilities and accountability. All the elements of this amendment enable resident management companies to remain in control and responsible for their buildings, while enabling them to obtain the professional support that they may need to meet the duties of our new building safety regime I am grateful to noble Lords and the Delegated Powers and Regulatory Reform Committee for their careful scrutiny of the delegated power in Clause 12. Noble Lords will be aware that we have responded to the committee’s report in detail. The provision in Clause 12 to repeal statutory committees was included in the Bill on the expert advice of the Health and Safety Executive that this power is needed to enable the committee structure to adapt and improve over time. I understand that the House has concerns that this power might be used by Ministers for other reasons I am grateful to the chair of the Levelling Up, Housing and Communities Committee in another place for suggesting a potential safeguard, which the Government propose to accept, through Amendments 10 and 11. These amendments ensure that the power to repeal provision for a statutory committee may be used only following a proposal by the building safety regulator. A statutory committee could not be repealed merely on the initiative of Ministers. Proposals for regulations would come to Ministers only after the regulator had consulted on them and regulations under this clause would continue to be subject to the affirmative procedure I hope that the House will welcome these changes and additional safeguards and that it will support these amendments.