Advertisement
Housing

Some leaseholders will still face huge bills under Michael Gove’s cladding crisis plan, MPs warn

Michael Gove has been told to scrap caps on costs, compensate leaseholders for cash already paid out to fix homes and end ‘political games’ with affordable housing.

Michael Gove’s plan to end the building safety crisis does not protect all leaseholders from paying to fix cladding on their homes, according to MPs.

The housing secretary this week gave housing developers a final deadline of the end of March to come up with a funding plan to pay £4bn to remove dangerous cladding from buildings between 11 and 18 metres in height.

But MPs from the Levelling Up, Housing and Communities (LUHC) Committee warned Gove’s plan will not protect all of the leaseholders facing bankruptcy or homelessness over bills to fix their homes or social housing residents at risk of rising costs.

Committee chair Clive Betts said: “Leaseholders should not be paying a penny to rectify faults not of their doing in order to make their homes safe. Nearly five years after the tragic Grenfell fire, it is shameful this situation is yet to be properly resolved. While we welcome Michael Gove’s commitment to fixing these issues, we are concerned there are gaps in the secretary of state’s proposals which risk leaving leaseholders to pick up the bill.”

In a report released on Friday, MPs called for Gove to compensate leaseholders for money already paid out to fix their homes and to set up a building safety fund to cover costs for remediating properties where the original “polluter” cannot be traced.

The housing secretary was also urged to go beyond developers and manufacturers in covering costs – seeking cash from product suppliers, installers, contractors and sub-contractors – as well as scrapping the cap on non-cladding costs. Under plans announced by Gove in January, leaseholders will not pay more than £10,000 out of London and £15,000 in the English capital to fix fire defects on their homes.

Advertising helps fund Big Issue’s mission to end poverty
Advertisement

MPs also disagreed with Gove’s plan to exclude buy-to-let landlords with more than one property from protections, warning that there are other options to exclude wealthy property tycoons who can afford to pay for repairs from receiving support.

The National Residential Landlords Association backed this stance. Chief executive Ben Beadle said landlords were “no more to blame than other leaseholders for historic building safety defects”.

Gove has previously been unable to confirm that the government’s £11bn Affordable Housing Programme will not be affected if he cannot convince developers to come up with the funding solution he has demanded.

But both Betts and cladding campaigners have warned the minister against playing “political games”.

“The government needs to stop pitting the building safety crisis against the housing crisis,” said Betts. 

He added: “The government should also come forward with a cast-iron guarantee that the Affordable Homes Programme is protected at its current level in the event that the government fails in its bid to secure sufficient funds from industry.”

Advertising helps fund Big Issue’s mission to end poverty

A spokesperson for campaign group End Our Cladding Scandal said: “It is vital to cease the games being played with affordable housing budgets simply because the chancellor is continuing to ignore our plight.

“Solving both the building safety and housing crises is, and always has been, a matter of political will and choice.

The campaigners added: ‘We ask that Mr Gove holds true to his promises and shows he has the will, authority, and nerve to free us from this nightmare.”

Article continues below

Archbishop of Canterbury Justin Welby is among the supporters calling for the building safety crisis to end.

The archbishop met campaigners from Manchester Cladiators on Thursday. He said: “Although we know the facts around the building safety and cladding crisis, when you meet the people and see the trauma they have been through it really brings it home. We need action to deal with this injustice which is impacting millions of people across the country.”

A Department for Levelling Up, Housing and Communities spokesperson said the measures they have announced to tackle the building safety crisis are the “most radical and far-reaching” 

Advertising helps fund Big Issue’s mission to end poverty

“Industry, not leaseholders, must pay to fix the problems they caused. We will consider the committee’s report carefully and respond in detail.

“However, asking taxpayers to pay more upfront instead of developers, and to cover costs for overseas property investors, would be entirely the wrong approach.”

Advertising helps fund Big Issue’s mission to end poverty

Never miss an issue

Take advantage of our special subscription offer. Subscribe from just £9.99 and never miss an issue.

Recommended for you

Read All
Tenants win more than £250,000 of rent back from billionaire landlord in five-year legal battle
Somerford Grove Renters in Hackney
Renting

Tenants win more than £250,000 of rent back from billionaire landlord in five-year legal battle

This is the devastating impact growing up in temporary accommodation has on children’s GCSE results
school children at desks
Education

This is the devastating impact growing up in temporary accommodation has on children’s GCSE results

Electric van to help charity deliver 50,000 meals to homeless people
Four people stand around an electric van
Homelessness

Electric van to help charity deliver 50,000 meals to homeless people

Doubt cast on Rachel Reeves’ claim Labour will be in ‘touching distance’ of building 1.5 million homes
Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner meet construction workers at the Bournes Bank site in Stoke-on-Trent.
Housing

Doubt cast on Rachel Reeves’ claim Labour will be in ‘touching distance’ of building 1.5 million homes

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue