Builders have complained move is 鈥榙isproportionate鈥�
Housing association trade bodies have backed housing secretary Michael Gove鈥檚 controversial plans to force housebuilders to pay into a fund for fire safety works.
Both the G15 鈥� which represents large housing associations in London 鈥� and the National Housing Federation (NHF) welcomed proposed amendments to the 好色先生TV Safety Bill last week that are designed to stop developers from operating if they don鈥檛 pay into the proposed 拢4bn fund.
The move has been criticised as 鈥渄isproportionate鈥� by the Home Builders Federation, which is taking legal advice.
Geeta Nanda, chair of the G15 and chief executive of Metropolitan Thames Valley said: 鈥淩esponsibility for this crisis must sit with the constructors and product manufacturers that failed to build homes correctly, which the government has made clear in these amendments.鈥�
Housing associations will not be required to pay into the 拢4bn pot and they will be able to access funding from it.
Nanda added that G15 members have already spent 拢3.6bn on building safety work over 15 years and 拢450m since 2019. She added: 鈥淭his is already having an impact on our ability to build much needed new affordable homes and to invest in existing residents鈥� homes.鈥�
Kate Henderson, chief executive of the NHF, said housing associations were 鈥渟pending billions鈥� remediating social housing stock, which was diverting money away from new development and existing homes.
She added: 鈥淲e support measures to make those who are responsible for building safety defects and profited from them 鈥� developers and manufacturers 鈥� pay to make buildings safe.鈥�
The government this week tabled far-reaching amendments to the 好色先生TV Safety Bill as it stepped up its efforts to ensure housebuilders pay up.
The amendments would give the government the power to prevent companies building out schemes, including schemes with existing planning permission, for any purpose connected with 鈥渟ecuring the safety of people in or about buildings鈥� or 鈥渋mproving the standard of buildings鈥�. It would also allow the government to prevent companies applying for or receiving building control.
On Monday, Gove told a committee of MPs that getting non-UK based housebuilders and products firms to pay up for the government鈥檚 拢4bn cladding remediation fund will be 鈥減ractically difficult鈥�.
He said ministers may not be able to allocate the cost of building safety works to offshore companies 鈥減recisely and with total authority鈥�.
At-a-glance: the new 好色先生TV Safety Bill amendments
The amendments, if voted through, will give the government power to:
- Prevent companies or individuals from building out schemes, including schemes with existing planning permission, 鈥渇or any purpose鈥� connected with 鈥渟ecuring the safety of people in or about buildings鈥� or 鈥渋mproving the standard of buildings鈥�
- Prevent companies or individuals from applying for or receiving building control approval, again 鈥渇or any purpose鈥� connected with 鈥渟ecuring the safety of people in or about buildings鈥� or 鈥渋mproving the standard of buildings鈥�
- Expand the mooted building safety levy 鈥� currently targeted only at buildings of more than 18m in height 鈥� to all buildings containing 鈥渙ne or more dwellings鈥�
- Trace the ultimate developer of properties developed via shell companies, in order that leaseholders can secure contributions for fire safety repair costs
- Make developers primarily liable for fire safety repair costs, with building freeholders liable where developers cannot be traced, and with recourse only then to leaseholders, whose costs will be capped at 拢15k in London and 拢10k elsewhere
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