Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
- View Speech - Hansard - -

I am pleased to have the opportunity at this point, before the Bill progresses to the other place, to speak about some of the issues that will need to be addressed in the amendments that have been promised by the Secretary of State on protection for leaseholders—issues about which, today and for quite some time, there has been cross-party concern. I pay tribute to thehon. Member for Stevenage (Stephen McPartland) for the work that he has done in this regard, and to the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), for his contribution over a long period.

On both sides of the House there is clearly a consensus on what needs to be done, which has been reflected in the debates this afternoon, and it is right that there should be, because we are seeking to address a glaring injustice facing leaseholders who are victims not just of developers but, as was pointed out by the Chair of the Select Committee, myhon. Friend the Member for Sheffield South East (Mr Betts), of regulatory failure, for which we are responsible and over which successive Government have presided.

It is unfortunate that we have been debating the Bill so soon after the Government’s announcement last week, before the Secretary of State had the opportunity to table his amendments so that they could receive the scrutiny they deserved. However, his statement did constitute a step forward. Some of my constituents who have been affected met him before the statement, and they shared my view that while the narrative was good and the direction of travel felt right, there remained too many unanswered questions. I want to set out briefly the concerns that they have, which must be addressed in the Government’s amendments in the other place.

Residents of Mandale House, for instance, made an application to the building safety fund for cladding work, 80% of which was rejected because—my right hon. Friend the Member for Leeds Central (Hilary Benn) mentioned this earlier—the juxtaposition of zinc and timber failed to meet the current criteria. That left them facing bills for tens of thousands of pounds. In the Metis Building there is a problem with wooden balconies, while in Wicker Riverside the problem is compartmentation. Those problems clearly affect many other buildings as well, in my constituency and across the country. We therefore need an absolute assurance that the statutory protection will cover all non-cladding remediation.

Residents of Mandale House face a further problem, in that their developer is no longer in business. We know that is a problem in hundreds of buildings. Companies have failed, or have been deliberately collapsed to enable them to avoid responsibility. It needs to be made clear that those leaseholders will not be overlooked, and that the Government will give them full support in respect of all safety remediation costs.

One of my constituents in the Millsands building asked for reassurance that support should be provided for leaseholders not in occupation of their flats. As my right hon. Friend the Member for Leeds Central pointed out, many have been forced to leave to raise the funds to try to pay the bills demanded of them. Others have left as their families have grown. They have done the sensible thing: they have moved on and used the rental income from their property to fund their new house. For some, the investment was the use of a lump sum to provide a retirement income in a solitary flat. As the right hon. Member for Hemel Hempstead (Sir Mike Penning) argued earlier, those people are victims too, and they need to be fully supported. We also need a statement sending a clear message to freeholders and developers that they must not rush to carry out work in order to avoid their responsibilities by imposing costs on leaseholders now, before the protection becomes part of legislation.

There is another issue, faced by my constituents in Wicker Riverside, a building from which residents were evacuated just before Christmas 2020 because of fire safety concerns. They have a problem with insurance—not that of rising costs, on which other Members commented earlier and for which there should be compensation, but the fact that no insurance company will provide cover for their building. They have been uninsurable for more than a year. That is an untenable position that the Government must, and could, act to address. I have discussed the issue with Ministers.

Finally, there is overriding concern about how long the process proposed by the Government will take, as legal action drags on and there is resistance from developers and others whom the developers may hold accountable and endless litigation. There is a risk that the problem, rather than being solved, will be prolonged for a very long time indeed. If the Government are confident that money can be recovered from developers, they could and should simply act to fix all the faults now and then use the full resources of the state to recover the money from those responsible. That way, as Members on the Opposition and Government Benches have said throughout today’s debate, no costs will fall on those who have no responsibility for the predicament they are in.