The Building Safety Act 2022 is in place to improve the design, construction and management of buildings. It also aims to improve building standards, ensure the safety of residents, and protect leaseholders from cladding remediation costs.
A range of measures have been put in place, including a new Building Safety Regulator for buildings over 18 metres, and a New Homes Ombudsman to help with leaseholder complaints against developers.
The changes were in response to the Grenfell Tower tragedy to ensure residents in buildings are safe.
What action is A2Dominion taking?
A2Dominion has a 5 year cladding remediation programme underway, working with fire engineers and building surveyors to ensure we have the best expert advice.
We have around 500 buildings on our programme and at least 90 where some remediation work is required.
Buildings are scheduled for remediation work according to risk. The height of a building is an important factor, meaning that high-rise buildings will generally be remediated first. These will then be followed by mid-rise and then low-rise.
What does this mean for buildings over 11 metres?
The Act ensures that leaseholders living in buildings of 11 metres or higher will not have to pay for essential fire cladding remediation work.
A2Dominion will not charge leaseholders or shared owners in buildings over 11m for any essential works relating to cladding fire safety. This is because of the leaseholder protections set out in Schedule Eight of the Building Safety Act 2022.
Fire Safety cladding/external wall works in buildings over 11 metres are paid for by either a relevant government scheme, such as the Building Safety Fund or by the original developer.
The equivalent Fire Safety costs for our rented properties are covered by A2Dominion. These costs are not passed on to Leaseholders.
What does this mean for buildings under 11 metres?
The government has confirmed that blocks below 11 metres (also known as low rise buildings) that have already been deemed in need of remediation will be reviewed on a case-by-case basis. It has said there is no systemic fire risk in buildings below 11metres, and that mitigation measures, such as adding fire alarms may be more appropriate.
Additionally, external wall systems are checked as part of routine fire risk assessments, meaning that a fire engineer can identify potential issues with cladding or fire safety and request a further inspection. This may lead to a low-rise building requiring cladding remediation work.
We are keen not to pass on costs to leaseholders if possible and will explore all funding options. This includes approaching the original developer when the remediation is required because of a defect in how the building was originally built or designed.
The implementation of the Building Safety Act has extended the length of time we have to take action from 6 years to 30 years for homes completed before 28 June 2022, or 15 years for homes completed after 28 June 2022
What about non-cladding fire-safety works?
For non-cladding works, such as insulation, fire breaks and compartmentalisation work, the new law seeks to make developers and cladding manufacturers pay. It will then move on to building owners, where they have the means to do so.
Building owners who did not build the blocks but can afford to pay for the works must pay non-cladding costs.
In the small number of cases, where the building owner cannot pay, leaseholders will be protected by a cap on non-cladding work. The caps are £15,000 in London and £10,000 outside the capital. Any costs paid out by leaseholders towards these fixes in the past five years will now count towards the cap, meaning some leaseholders will pay nothing more.
What if I want to sell or remortgage?
Since the new building safety regulations have been introduced lenders will ask for evidence that the building has been inspected by a fire engineer and any necessary remediation has been completed or planned. This evidence is usually in the form of an EWS1 certificate and not being able to provide one may lead to difficulties in securing a mortgage. However, several lenders have agreed to lend where there are plans for remediation to take place and costs are not being passed on to the leaseholder.
Additionally, the government has recently introduced the Landlord’s Certificate to help those in 11m + buildings.
All lenders have different requirements and it is worth trying different lenders if you are having problems.
We encourage you to talk to your lender about their requirements early in any lending application process, and before spending money on advice, valuations and other fees involved in buying, selling or remortgaging.