Building Safety Defects: Costs

Baroness Thornhill Excerpts

Monday 18th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend is right that we need more detail. Details of the residential property developer tax will be announced at the Autumn Budget on 27 October, so we will have to wait till then. However, I want to make it clear that the figure of £2 billion over 10 years is an absolute minimum and I hope that we will go far further than that when the rates are finalised.

[Baroness Thornhill (LD)]

As has already been stated, social housing providers are having to pick up the bill for all of their properties. These sums are having a significant impact on their budgets and are detrimental to their ability to provide more, and better-quality, social housing going forward. Are the Government monitoring the impact of this on providers’ budgets, in particular the opportunity cost that is lost to the sector, and looking at how this will affect their ability to do the jobs that they want to do to improve their social, affordable and supported housing properties in the future?

[Lord Greenhalgh (Con)]

My Lords, we are working very closely with the sector. I point out that there was a £400,000 fund specifically for providers in the social sector to remove aluminium composite material, the most serious form of unsafe cladding. In addition, where social landlords are thinking of passing costs on to leaseholders, there is an opportunity for them to apply to the building safety fund, which many of them have indeed done.