Building safety has again been in the headlines as RP owners and mortgagees of flats of any height struggle to obtain clarity on what certificates are necessary to sell and charge these buildings. The government’s latest offering is summarised in our Construction briefing, which sets aside a further £3.5bn to remediate only cladding in buildings exceeding 18m, leaving a total of £5bn in the fund.
The costs of non-cladding defects are not covered but such defects are still required to be remedied. Estimates to complete all the outstanding building safety work in the country are close to £15m, so who will pay for the difference? Will developers be paying a levy on future development to help the government recoup the cost of the fund over several years?
The situation will be explored in our Building Safety talk on Tuesday 2 March from the viewpoint of the valuer, the funder and the Registered Provider as owner. Several questions remain unanswered, including will the UK Finance invention of EWS1 forms still be required when the new Building Safety bill and Fire Safety bill are actually passed and will it be replaced by other certification, what duties are proposed by the new building safety regulator, what does the RICS consultation recommend and does it work alongside the new legislation, will leaseholders bear the cost, and if so, are low interest loans being considered and how will they work? How quickly these can be resolved will determine when the market can be unlocked and stakeholders can move on. It is expected that unravelling the situation may take years, all we know for certain is there will be uncertainty for some time.