The Building Safety Pledge

Secretary of State for Levelling Up, Housing and Communities, Michael Gove, said:

"Today marks another significant step towards righting the wrongs of the past and protecting innocent leaseholders who are trapped in their homes and facing unfair and crippling costs.

Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair.

In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much needed certainty to all concerned.

There will be nowhere to hide for those who fail to step up to their responsibilities - I will not hesitate to act and they will face significant consequences."

The Home Buyers Federation, whilst being committed to the principle that leaseholders should not have to pay the necessary remediation costs arising from the design and construction of the buildings in which they live, previously criticised the terms of the contract and told the Government that it was impossible to sign. Should a developer refuse to sign the contract, the Government intends to establish a scheme allowing the Secretary of State to block developers who have not signed the contract or failed to comply with its terms from carrying out development and receiving building control approval. The scheme will prevent them from operating as normal in the housing market for as long as they do not resolve the problems of the past.

The Government is looking to significantly impact the progress of the remediation of unsafe buildings, which is welcome news for many. However, there are also concerns about the financial liabilities that this will create when combined with the implementation of the other parts of the Building Safety Act 2022 when the industry is currently facing challenging economic conditions.