Building Safety

Clive Betts Excerpts

Wednesday 10th February 2021 Commons Chamber

[Robert Jenrick]

I praise my hon. Friend, who has been a fantastic Member of Parliament for Kensington since she was elected and has raised with me this and other issues arising out of the Grenfell tragedy almost every week—in fact, we meet every week to discuss these issues.

My hon. Friend is right to say that this is a very substantial intervention. We have already made £1.6 billion available, and we estimate that it will require another £3.5 billion to complete the remediation of unsafe cladding on buildings over 18 metres and to make good on the promise we have made today to leaseholders. In addition to that, we will bring forward the financing scheme, the details of which, as I said, will be published shortly, but it is a very generous scheme and there is a significant cost to the taxpayer in ensuring that the £50 cap gives that added level of protection and reassurance to leaseholders.

The total intervention that we are making today is, as my hon. Friend says, one of many, many billions of pounds. That is a difficult judgment, which the Prime Minister and the Chancellor have made with me, but we believe this is a fair and generous settlement to help everybody to move forwards.

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

On behalf of the Housing, Communities and Local Government Committee, I thank the Secretary for his statement and welcome it—as far as it goes, because in terms of the Select Committee recommendations, it only goes so far. I invite him to come back to the Select Committee to discuss the issues in more detail shortly after the recess. First, immediately, will he confirm that as a result of the loan scheme, no leaseholder will be placed in negative equity? Secondly, has he done any assessment of the total amount of additional non-cladding costs to deal with building safety that will fall on leaseholders? Finally, will he confirm that there is no help in his statement for councils and housing associations, and that as a result, to carry out essential safety work, they are going to have to put up rents, cut maintenance or cut the number of affordable homes that they can build?

[Robert Jenrick]

I thank the hon. Gentleman and the members of the Select Committee for their expert advice on this issue over a number of years, and to me personally as Secretary of State. I would of course be delighted to come before the Committee to discuss this issue further in the near future.

The hon. Gentleman says that this announcement does not go as far as he would have liked. I appreciate that sentiment, and no doubt there will be leaseholders watching today who would wish to go even further, but this is a very significant intervention—we do have to keep coming back to that fact. Broadly speaking, English property rights are based on caveat emptor—buyer beware—and the contents of the leases, contracts, warranties and insurance policies that we as homeowners sign. What we are doing today is stepping in in a way that Governments have not done in the past—that they have not done when people’s homes have been flooded or subject to subsidence or other unforeseen and incredibly difficult and challenging issues. We have chosen to do this because we have immense sympathy for the leaseholders affected and, as a matter of basic public safety, we have to get these unsafe materials off buildings as quickly as possible. I think this is the right judgment and the right balance to strike between the interests of the leaseholder and those of the broader taxpayer, but I would be delighted to come before the hon. Gentleman’s Committee to discuss this issue in more detail soon.