Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, if she will hold discussions with the British Insurance Brokers' Association on the potential merits of producing industry guidance for meeting fair value rules to ensure that leaseholders benefit from such rules.

I have met both the British Insurance Brokers’ Association and the Association of British Insurers, along with companies providing services in these sectors, on multiple occasions during 2023 to highlight the concerns of leaseholders regarding excess insurance costs and the need to make progress in this important area.

The Government is committed to making sure that buildings insurance costs are fair and transparent, and that leaseholders have confidence in challenging costs where necessary. Insurers must price risk in a responsible manner. It is clear from the Financial Conduct Authority reports into this market that leaseholders have not always been getting the service that they should, and this must change.

Regarding broking fees, in April 2023 the Financial Conduct Authority (FCA) consulted on giving leaseholders rights under their fair value rules and increasing requirements on the disclosure of information to leaseholders by brokers, and I strongly welcome its initiatives in this direction. The British Insurance Brokers' Association have already confirmed that they are in the process of testing new guidance for their members on how to comply with FCA fair value rules.

The Association of British Insurers has been developing a scheme for buildings with fire safety risks experiencing particularly high premiums for a significant period of time. I continue to highlight the Government’s clear expectation that this be delivered as soon as possible.