Building Safety Bill

Public Bill Committee, 21 October 2021.

Clause 120 - Implied terms in leases and recovery of safety related costs

Peter Dowd (Labour, Bootle)

With this it will be convenient to discuss that schedule 7 be the Seventh schedule to the Bill.

Eddie Hughes (Conservative, Walsall North)

It is a pleasure to have you back in the Chair and to serve under you, Mr Dowd.

The Government are committed to ensuring that leases reflect the duties and obligations placed on landlords and tenants to keep buildings safe, and that the costs associated with the regime are fair and transparent. Clause 120 implies terms relating to building safety into leases, so that both landlord and tenant have obligations associated with the new regime clearly set out in their leases. This cements the duties set out in other parts of the Bill.

Clause 120 also ensures that the landlord passes costs associated with the new regulatory regime, via the building safety charge, to leaseholders with long leases of seven years or more. The overriding principle behind the building safety charge is to give leaseholders further information about what they are paying for to keep the building safe and assurance that the manager of the building is charging reasonably. Without the building safety charge, many of these costs would be charged via a service charge. We are introducing this separate mechanism to deliver greater protection to leaseholders, ensuring that costs are transparent and reasonable. By introducing the building safety charge, the Government are ensuring that costs are clearly set out to leaseholders and that certain costs, such as the cost of enforcement against an accountable person, can never be recovered from leaseholders. In well-run buildings, leaseholders will likely see costs partially offset by a corresponding reduction in service charge costs.

Schedule 7 will enable the Government to set out certain obligations for the landlord to fulfil, including providing details of the building safety charge together with a summary of their rights and obligations to leaseholders. Schedule 7 will also give leaseholders the right to request further information about the charge, and they will be able make a written request for a summary of the relevant building safety costs. Once a summary has been obtained, the leaseholder can request more detailed accounts.

We expect that the protections included around the building safety charge will provide the necessary transparency to drive competition to reduce costs for leaseholders. Leaseholders will be able to challenge the costs associated with keeping a building safe in the same way as they can challenge the costs of unreasonable service charges—that is, through the first-tier tribunal.

Clause 120 is key to ensuring the smooth implementation of the new regulatory regime. Setting out further requirements in respect of the building safety charge in secondary legislation—for example, on the obligations of landlords, consultation requirements and excluded costs—ensures that the provisions remain relevant and responsive to changes in the duties of the accountable person or broader leasehold reform. Leasehold law is a highly technical policy area, and it would be inappropriate and counterproductive to include it in the Bill.

We wish to make it clear that remedial costs are not included in the building safety charge. This clause does not make leaseholders liable for the costs of remedial works. Whether or not leaseholders are liable for works is governed by the terms of their existing leases. Clause 120 is vital to ensure transparency on the costs of the new regime, empowering leaseholders to interrogate bills and hold their building owner to account.

Mike Amesbury (Labour, Weaver Vale)

It is a pleasure to serve once again under your chairmanship, Mr Dowd.

I have a number of questions. The building safety charge has proved to be somewhat controversial among leaseholders, residents, tenants and cladding campaigners—the UK Cladding Action Group, the Leasehold Knowledge Partnership, the National Leasehold Campaign and so on. The Minister has mentioned that charges will be fair and transparent. What is the definition of fair and transparent? What is the Department’s assessment of what will be fair and transparent? Given that on 17, if not 18, occasions a promise was made not to put charges for historical remediation costs, which we will get on to in a moment, on to the shoulders of leaseholders, there is a real fear that there could be considerable interplay between the building safety charge, historical remediation costs, service charges and so forth. I would like the Minister to expand on that. Of course, many leaseholders over the past two weeks have had massive invoices arrive through the door for remedial costs relating to historical building safety defects. Some are going bankrupt, as I know he and Department officials will know.

Ruth Cadbury (Labour, Brentford and Isleworth)

Does my hon. Friend agree that the existing service charge system for too many leaseholders is opaque and inconsistent? They never know what they will be charged for and, more important, how much they will be charged in future quarters. Leaseholders need not only an improvement to the current service charge system but to be confident that any new charging system will be far better than the current one.

Mike Amesbury (Labour, Weaver Vale)

My hon. Friend makes a powerful and pertinent point, which I am sure the Minister will respond to. I know that it has been a particular issue in shared ownership properties, particularly in London and the south-east. I look forward to the Minister’s response to the points that I and other Members have raised.

Eddie Hughes (Conservative, Walsall North)

The point about fairness and transparency is incredibly important, not least given the comments that the hon. Member for Brentford and Isleworth made about the opaqueness or otherwise of the existing service charge system. The reason why we will have two clearly defined separate charging systems is to ensure that everybody—leaseholders, landlords and tenants—understands completely what is being covered within the charging system. We will set out further details in secondary legislation, but it is critical that we know—I am sure the hon. Member for Weaver Vale was not confusing the two—that the charges that will be covered by the system are those that result from the introduction of the Bill, and safety aspects that will be applied going forward. It is not about retrospective remediation. There is a clear delineation between the two, and we will make very clear what is covered.

With regard to what might be considered fair, I genuinely feel that, as the system develops people will be able to see within one building what amount is being charged for a particular service or constituent elements of it, and to make a direct comparison with other buildings, how they are being managed and what charges are being applied. They will then be able to use that as evidence to challenge their own bill in the future. Ensuring that people can challenge their bill and ask for further details will be pivotal to the success of the process.

Ruth Cadbury (Labour, Brentford and Isleworth)

With respect, although it is good to know that there may be yet another, possibly complex, mechanism by which leaseholders can challenge, would it not be better if they did not need to challenge, except in exceptional circumstances? If the system were clear, transparent and honest at the outset there would be less need for challenges.

Eddie Hughes (Conservative, Walsall North)

If there was any ambiguity in what I said, I apologise. The expectation is that this will be clear and transparent from the start. We are not setting out in any way to obfuscate; however, it will be reassuring to know that the safety net of challenge exists should it need to be deployed, which I hope will be a rarity.

Clause 121 - Provision of building safety information

Eddie Hughes (Conservative, Walsall North)

We recognise the need to ensure that the building safety regime is compatible with existing legislation, especially when it comes to ensuring that tenants of higher-risk buildings receive important building safety information from their landlords. Clause 121 aligns the Landlord and Tenant Act 1987 with the Bill by ensuring that dedicated provisions are in place for tenants of higher-risk buildings, including those who may be subletting from a long leaseholder, to receive relevant building safety information from their landlords. The clause makes it mandatory for the landlord of a dwelling in a higher-risk building to give the tenant a notice containing the relevant building safety information. The clause states that, where a landlord fails to give such notice to a tenant, any rent, service charge, administration charge or building safety charge that is due from the tenant to the landlord is not due before the landlord gives the notice to the tenant.

The clause amends the Landlord and Tenant Act 1987 by placing a requirement on landlords to include relevant building safety information when giving a tenant a written demand for payment. If the relevant building safety information is not provided with the written demand, any amount demanded, other than in respect of rent, will not be treated as due until such time as the information is provided. The clause specifies that the relevant building safety information will include information about the higher-risk status of the building, and the name and contact details of each person responsible for building safety in their buildings, including details of the Building Safety Regulator. It also makes an exception to those requirements where a court or tribunal-appointed receiver or manager is in place.

Finally, clause 121 allows the Secretary of State to prescribe additional information that must be included in the notice or the written demand. These are key provisions to ensure that tenants have access to vital building safety information about their building—an important principle of our new reforms, which give residents a more transparent understanding of their building’s safety information.

Clause 122 - Amendments to the Commonhold and Leasehold Reform Act 2002

Eddie Hughes (Conservative, Walsall North)

In July 2020 the Law Commission published a report on reinvigorating commonhold, and it has made recommendations to make the tenure a workable alternative to leasehold tenure. In partnership with industry and leaseholders, the Government have also established a new commonhold council, which will prepare homeowners and the market for the widespread take-up of commonhold. Although there are no existing commonhold tenure buildings that fall into the scope of the new building safety regime, it is necessary that we ensure that our new building safety regime applies to new, higher-risk commonhold buildings, as they may be developed in the future.

Clause 122 amends the Commonhold and Leasehold Reform Act 2002 to ensure that building safety management is adequately considered in higher-risk commonhold buildings. As per clause 69, the commonhold association will be the accountable person and will be subject to the fire and structural safety building regime. Clause 122 makes it mandatory for a commonhold association to include in its commonhold community statement provision to ensure compliance with its duties under part 4 of the Bill. It also makes amendments to the Commonhold and Leasehold Reform Act 2002 to ensure that the directors of the commonhold association make an annual estimate of the income required to meet the building safety expenses. That must be detailed in the commonhold community statement of a higher-risk commonhold building.

The clause also ensures that each commonhold unit holder makes payments in relation to building safety expenses to meet the building safety expenses income requirement. The amendments made by the clause are necessary to ensure that the commonhold legislation aligns with the Bill’s requirements.

Mike Amesbury (Labour, Weaver Vale)

I want to address a couple of points, for clarity. I thank the Minister for the explanation. Her Majesty’s official Opposition support commonholds and have argued for them for a long time. I am pleased to see the emerging consensus as we listen to stakeholders, whether the Leasehold Knowledge Partnership, the national leaseholder campaign or others in the housing sector. I have one question in relation to the Minister’s opening narrative. In commonhold, are building safety expenses on top of the building safety service charge?

Eddie Hughes (Conservative, Walsall North)

I completely understand. No, that is not separate; it is one of the items that would typically be covered by the building safety charge in other buildings. Exactly the same principle applies.

Clause 123 - Interpretation of part 4

Eddie Hughes (Conservative, Walsall North)

The clause contains key definitions used in part 4 of the Bill. It also clarifies the fact that the requirements in part 4 do not apply to the Palace of Westminster. For example, the clause refers to clause 59, citing that we have defined a “building safety risk” as

“a risk to the safety of people in or about a building”

due to “the spread of fire” or “structural failure”. We see those definitions as appropriate and considered, and they are an important addition to aid the understanding of the various clauses that refer to those terms. The clause provides for a specific place in part 4 that can act as a helpful index of the defined terms used in said part.

Ruth Cadbury (Labour, Brentford and Isleworth)

I am intrigued to know why the Palace of Westminster is included. I do not believe it comes under a definition of a residential building, because I thought only one household lives here. We also know that it is a historic building that is a fire risk and has lots of risks, but it cannot be unique in that, either. Why is it in particular drawn out in the Bill?

Eddie Hughes (Conservative, Walsall North)

On the question of one person officially residing here, it may be that two people end up officially residing here at some point due to historical reasons, so it was worth taking it out, just in case that situation could fluctuate. With regard to other elements of the building’s safety, other legislation applies and ensures safety.

Ruth Cadbury (Labour, Brentford and Isleworth)

I realise that the other person who once resided here was Emily Davison, who resided one night in the broom cupboard downstairs. I wonder whether that is the second resident to whom the Minister refers.

Eddie Hughes (Conservative, Walsall North)

I am embarrassed to say that historically I am not completely clear about that.

Peter Dowd (Labour, Bootle)

Order. I would appreciate it if Members intervened while the Minister is on his feet. Otherwise, if we are not careful, we will end up with some sort of badminton.

Clause 124 - Service charges in respect of remediation works

Christopher Pincher (Conservative, Tamworth)

I welcome you back to the Chair, Mr Dowd. On the point raised by the hon. Member for Brentford and Isleworth about the late Emily Davison, if she is still resident here, she has rather a lot of back council tax to pay because she has been here for 108 years.

The Government are committed to ensuring that landlords exhaust all other avenues of cost recovery before billing leaseholders, and this clause puts that commitment in statute. It places a new legislative requirement on landlords to take reasonable steps to pursue other cost recovery avenues before passing on the cost of remediation works to leaseholders. We know that some building owners are not fully exploring all the cost recovery avenues and are passing costs on to leaseholders as a default. Many are, but too many are not. The clause will help to bring those unfair practices to an end.

The clause will enable the Secretary of State to prescribe the reasonable steps that the landlord must take, and how that landlord can demonstrate to leaseholders that they have taken them. Landlords will need to comply with guidance issued by the Secretary of State, which will provide clarity on the reasonable steps that the landlord must take. The guidance should act as an important resource for all leaseholders and landlords alike, providing clarity and transparency for landlords, and assurances for leaseholders that the requirements have been met.

The clause also requires landlords to provide leaseholders with details of the steps that they are taking and their reasons for their course of action. The Government will be able to prescribe in regulations the information that must be provided to leaseholders. That will mean that leaseholders have sufficient understanding of decisions taken about their building and why any remediation costs have been passed on to them. Landlords will be required to have regard to observations made by leaseholders or a recognised tenants association.

Selaine Saxby (Conservative, North Devon)

Could the Minister clarify whether the provisions on special measures will apply solely to leasehold blocks, or whether they will apply to rented commonhold blocks as well?

Christopher Pincher (Conservative, Tamworth)

They will apply to all appropriate buildings—my hon. Friend can take it as read that it is a wide definition.

The clause contains a power to define the scope of works that can be classified as remediation works for the purposes of this clause. That will ensure that the Government have sufficient flexibility to make sure that works defined as remediation works are those that are essential for ensuring that buildings are safe. We will define remediation works and relevant buildings in secondary legislation, and that will create scope to amend the regulations at pace, so that they remain relevant and respond to changes in our analysis of risk over time.

The clause is vital to ensuring that all possible avenues for funding remedial works are explored by the landlord and evidenced to the leaseholder before any remediation costs are sought from them. Leaseholders should not have to pay for works when there are other routes for funding. I commend the clause to the Committee.

Rachel Hopkins (Labour, Luton South)

The Minister raises a pertinent point for many leaseholders in my constituency relating to cases in which builders, companies or developers have folded since they built a building. Those companies may have been originally responsible for remediation costs. I seek reassurance from the Minister that the need in the guidance and any regulations to explore every avenue will cover subsequent builders who took on folded companies or the relevant buildings. Just because the landlord cannot find the original company, or the company no longer exists and so that avenue does not exist, that is not an excuse for bundling the costs on to leaseholders. Those concerns have been raised with me and we need reassurance. I hope we will get that in any regulations and guidance.

Mike Amesbury (Labour, Weaver Vale)

I thank the Minister, and my hon. Friend the Member for Luton South for her contribution.

In principle, the clause seems to be a step forward, but in reality, it will hardwire into the Bill the injustice that thousands—indeed, millions—of people are familiar with: they are trapped in their properties, and the Bill will ensure that historical remediation falls on the shoulders of leaseholders. The Ministers and the Department have been in a difficult position because it looks as though the Treasury’s door has been closed to any further financial progress.

Ian Byrne (Labour, Liverpool, West Derby)

Let me read out something to put in context what my hon. Friend says about hardwiring and what the clause does. Darren Matthews says:

“I am ruined. Shared owner (50% for £63,000) and in May was billed £101,500 for remedial works. Block 13.5m tall so doesn’t qualify for BSF but possibly new loan scheme that’ll take 161 years to repay. Madness!”

That is a perfect example of what we are talking about. The clause hardwires unfairness into the Bill. As my hon. Friend the Member for Luton South has just mentioned, many leaseholders will be in the same position as Mr Matthews. How can that be fair?

Mike Amesbury (Labour, Weaver Vale)

I thank my hon. Friend for his powerful and insightful intervention. He mentions the case study of somebody who is trapped in this nightmare, which the Ministers and the Department are very familiar with. I will give the Minister another example from social media; it is 47 minutes old. Lucy Brown is a leaseholder trapped in this nightmare that we are, hopefully, collectively trying to resolve. She wrote:

“15 months in the BSF”—

that is, the building safety fund—

“application process. Our managing agent/FH”—

that is, the freeholder—

“won’t agree to the BSF terms (likely those requiring the FH guarantee the works be done to an acceptable standard). The joys of the leasehold system—you own nothing, you control nothing + you pay everything.”

How will the clause solve the problem when that particular landlord—the freeholder in this case—has already decided that they have exhausted the process? The levy is thousands and thousands of pounds, and people are going bankrupt in the current climate. How will this move things forward?

Christopher Pincher (Conservative, Tamworth)

I am grateful for the questions that the hon. Gentleman and the hon. Member for Luton South asked. I will try to address them in toto.

The Government have already committed a significant amount of public money to the remediation of unsafe tall buildings—£5.1 billion—and I am sure we will discuss these matters further when we come to the new clauses tabled by various members of the Committee, so there will be several opportunities to come back to this point.

In the clause, we are attempting to change the Landlord and Tenant Act 1985 to allow leaseholders, under regulations, to ask their landlord to demonstrate that they have taken all reasonable steps to find means of paying for mediation before asking the leaseholders for the money. “Reasonable steps” could be: going back to the original builder; checking warranties; or—in the instance that the hon. Member for Weaver Vale raised—asking for grant funding through the various mechanisms that have been made available. If the landlord cannot reasonably show that they have done those things, the leaseholders can seek redress. It will be for the first-tier tribunal to determine whether those reasonable steps have been taken. There is plenty of case law to that effect. As we develop the regulations through secondary legislation, we will have a mind to exactly how those terms are defined.

Shaun Bailey (Conservative, West Bromwich West)

Will statutory guidance be issued to landlords on what constitutes “reasonable steps”? If not, what engagement work will the Department do to ensure that landlords properly understand their regulatory duties under the clause?

Christopher Pincher (Conservative, Tamworth)

Yes, we will produce statutory guidance, and will consult on it. We will certainly make sure that we consult not only landlords but leaseholders on the guidance, so that leaseholders have input on what constitutes “reasonable steps”. I appreciate that not all leaseholders are legally savvy, so we will make that guidance as plain as possible, to allow them as much power as possible to seek redress when they need to.

Daisy Cooper (Liberal Democrat, St Albans)

Will the Minister give way?

Christopher Pincher (Conservative, Tamworth)

I will, and then I will make some progress.

Daisy Cooper (Liberal Democrat, St Albans)

Does the Minister recognise that throughout the Bill, leaseholders are not only being left to pick up the tab for these enormous costs, but are having to become lawyers to navigate complex statutory instruments that have not even been published, so that they can get their head around what “reasonable steps” might be? Once that guidance is published—it has not been published yet—there will be reams and reams of litigation, which can drag and drag, because there may well be a disagreement about what constitutes reasonable steps. Does he honestly think it is fair that leaseholders, who are entirely innocent and have done everything absolutely right, are being left to pick up the tab, and are having to become lawyers in order to understand the guidance and the clause?

Christopher Pincher (Conservative, Tamworth)

I am obliged to the hon. Lady for that point; I understand it, and the passion that she brings to the issue. We need to get this right, and to make the process as transparent and digestible as possible. She refers to reams and reams of litigation; if we get the guidance right by consulting the right people, including leaseholders and their groups, we can make it as simple, clear and effective as possible. As for applying to the first-tier tribunal, there is plenty of case law already, and the tribunal has experience of working expeditiously; we will try to make sure that that continues.

I am grateful to Committee members for their questions. Clause 124 is key to making certain that the landlord explores and evidences to the leaseholder—that is very important—all possible avenues for funding remedial works before any remediation costs are sought from the leaseholder. I commend the clause to the Committee.

Peter Dowd (Labour, Bootle)

Before we come to clause 125, for the smooth running of the sitting, may I exhort Members to intervene when the Minister, shadow spokesperson or whoever is speaking is still on their feet? Secondly, may I also exhort Members to be clear if they want to intervene, especially if they are sitting behind the person they want to intervene on? It is the person speaking who decides whether to allow the intervention, not me. Thirdly, when Members intervene, can they keep it as short and sharp as possible? Otherwise, they should make a more substantive intervention in due course. I hope that is clear. Thank you.

Clause 125 - Duties relating to work to dwellings etc

Christopher Pincher (Conservative, Tamworth)

To aid Committee members in making interventions, I will try to sit down slowly, so that I am standing for as long as possible. In conjunction with clause 126, which is to come shortly, clause 125 makes changes to the operation of the Defective Premises Act 1972. That Act creates a right to bring a claim for compensation where a dwelling is not “fit for habituation” on completion of that dwelling. The Act currently applies only in relation to the provision of a dwelling, mainly when a property was built defectively in the first place. It does not apply to work done to a dwelling beyond its initial completion—not even to major or complex refurbishment works, such as the cladding of a block, which is what Grenfell Tower underwent. The clause seeks to remedy that.

The clause expands the Defective Premises Act by inserting proposed new section 2A into it. The new section will create a duty to ensure that any work done to a dwelling does not render that dwelling unfit for habitation. It will cover subsequent works done to the building after construction. The clause applies where a person takes on work in relation to any part of a relevant building in the course of a business. That means that it does not apply, for example, to homeowners doing work on their own properties. As in the case of the 1972 Act, the person to whom the duty is owed—the person who has the right to bring a claim—is the person for whom the work is done and any person who holds or subsequently acquires a legal or equitable interest in a dwelling in the building. That includes the freeholder of a block of flats as well as leaseholders.

The “fit for habitation” test is the same test used in the 1972 Act. Subcontractors also owe the same duty for the work that they take on. The clause applies to any relevant building defined as a building consisting of or containing one or more dwellings. The new provision will apply to work completed after the clause comes into force. Clause 126 will provide for a 15-year limitation period in relation to this clause.

Ian Byrne (Labour, Liverpool, West Derby)

On the ability of a leaseholder to bring a civil claim against a contractor, there is a real fear about the ability of David to challenge Goliath. In our discussions on the Bill, we have talked a lot about cultural change and historical problems and what is required. I am listening to what the Minister says, but once again my great fear is that unless the provisions can be outlined in terms, how can David challenge Goliath? Will leaseholders get legal aid to challenge contractors? Will there be a level playing field for people who want to bring civil cases against contractors? Historically, as Opposition Members have outlined, many people have been dragged into the realms of the law, and have basically had to devote their life to challenging unfair decisions.

Christopher Pincher (Conservative, Tamworth)

I am grateful to the hon. Gentleman for his question. Legal aid is not available in these cases, but there are various remedies people can take, either individually or collectively. It is not necessarily the case that the leaseholder would be bringing the claim. It could be the landlord or freeholder. With clause 125, we want to define a very strict provision. That means that the appellant does not have to demonstrate that fault or negligence has taken place. All they have to demonstrate is that the building is not fit for habitation under the terms of the 1972 Act, and the case law already develops that. Adding new section 2A into the Act strengthens the provision. We consider clause 125 to be an important additional safeguard for homeowners against shoddy work done to their dwellings.

Ruth Cadbury (Labour, Brentford and Isleworth)

Will the Minister clarify the term “fit for habitation”? Does it mean fit for habitation only with a waking watch? I am trying to get to the bottom of the difference between “fit for habitation” and a building at risk in the more general sense. I have mentioned the example of the Paragon many times. Two years after the flammable cladding was removed, all residents—students and shared owners—had to leave with a week’s notice. Clearly, the risk assessment is that it is not fit for habitation. We all have examples of blocks where waking watch is put in or cladding works are planned. Where is the cut-off?

Christopher Pincher (Conservative, Tamworth)

I am obliged to the hon. Lady. It gives me the opportunity to remind the Committee that, by altering the 1972 Act, we are not simply specifying these changes to taller buildings. It applies to all premises. That is one of the reasons why a whole range of people might use this legislation. To be clear, it is for a court to decide the facts of a specific case—whether a dwelling is fit for habitation. The existing case law, which may be built up and amplified in future, suggests that, in order for a dwelling to be fit for habitation, it must be capable of occupation for a reasonable time without risk to the health or safety of the occupants and without undue inconvenience or discomfort to the occupants. That is the case law definition that the court would understand. Should an appellant bring action against a developer or provider of a building that is defective, that is the definition the court will look at to see whether they have a case. With that, I commend the clause to the Committee.

Mike Amesbury (Labour, Weaver Vale)

I thank the Minister and all those who have intervened. Clause 125 is welcome on this side, but it does not go far enough. We welcome the extension to refurbished properties, which we have debated at considerable length with regard to permitted development and additional floors. I know that the Minister will clarify whether the clause captures that scenario in the new building safety regime.

The Minister referred to case law. Others have referred to the nightmare of litigation and the costs in a David and Goliath process. How many claims have been made under the existing regime? The Minister referred to the existing case law, so I am assuming that the Department has made an assessment.

We heard evidence from Justin Bates and Giles Peaker. They suggested that the chances of litigation were minimal. They have considerable expertise in this field on a national and probably an international level. There are learned lawyers on the Government side of the Committee. I am sure that, with their learned experience, they will have something to say on taking litigation forward under this clause.

Christopher Pincher (Conservative, Tamworth)

I am grateful to the hon. Gentleman for his support for the clause. He asks two questions. The first is on the volume of case law that has been built up. I will have to write to him or inform him at a later point about the specific number of cases. I remind him that the Defective Premises Act 1972 was passed some 49 years ago—many members of the Committee were not born when that Act was passed. The case law is presumably quite voluminous and therefore the courts will be well able to assess any new cases in the light of that established case law of 49 years.

The hon. Gentleman mentioned the evidence given eloquently by Justin Bates—I think that was his name; I apologise if I have got that wrong.

Mike Amesbury (Labour, Weaver Vale)

Yes, Justin Bates and Giles Peaker.

Christopher Pincher (Conservative, Tamworth)

Yes. He gave us some eloquent testimony in one of the Committee’s witness sessions. The reason why our court processes work so very well and why there are court actions—sometimes rather voluminous actions such as there may have been under the 1972 Act—is that there is always more than one view. There will be another lawyer countering the arguments made by someone such as Mr Bates, who will say that there are in fact very good chances for an individual to seek redress using this mechanism. I invite those who wish to use the new powers we are giving them to so do, to test the courts and test Mr Bates. I commend the clause to the Committee.

Clause 126 - Limitation periods

Mike Amesbury (Labour, Weaver Vale)

I beg to move amendment 14, in clause 126, page 133, line 1, leave out “15 years” and insert “30 years”.

This amendment changes the period for claims under the Defective Premises Act 1972 and the Building Act 1984 to 30 years.

Peter Dowd (Labour, Bootle)

With this it will be convenient to discuss clause stand part.

Mike Amesbury (Labour, Weaver Vale)

The former Secretary of State, the right hon. Member for Newark (Robert Jenrick), admitted that most cladded buildings were built in the period between 2000 and 2017. Given that the Bill is likely to become law only in July 2022 or later, the limitation period is likely to capture only buildings completed up to and around July 2007, assuming that the Bill keeps making pace as quickly as it has. By the Government’s own admittance, then, extending the period for claims under the Defective Premises Act by only 15 years would miss a significant number of buildings, which is why our amendment proposes a change to 30 years. That is based on evidence, which I know other Members will bring to the debate today.

It is important that we do not mistake this change to the Defective Premises Act as giving more than some relief to a small number of leaseholders and residents in the current building safety crisis. Many of their building owners have become insolvent, as Ministers know. As has been mentioned, many leaseholders will simply not be able to tie themselves up in lengthy legal battles with wealthy developers. The Government must fund remediation up front. That does not require a Bill—it is a political decision. The polluter pays principle should be used to recoup the costs. That is the only way to address this.

Ruth Cadbury (Labour, Brentford and Isleworth)

It is a pleasure to serve under you again, Mr Dowd. I reinforce what my hon. Friend the Member for Weaver Vale has said about the number of dwellings that will fall outside the 15-year catch. Obviously, we welcome its being extended from six to 15 years, but a case from my constituency illustrates why 30 years would be more appropriate.

I have had the honour and pleasure to represent Brentford for over 30 years, and a lot of new homes have been developed during that time. My office is keeping tabs on construction issues with blocks of flats, including those in Brentford ward. I can tell which blocks have required no casework during all my years of representation—it is those that were built more than 30 years ago under a regime of good quality construction and in a culture of safety. Those constructed after that were built at a time when standards were starting to fall. The culture of competition and the privatisation of building control meant that there was price competition and a reduction in inspections. There was the demise of the role of the clerk of works, corners were cut, and there was a skills shortage in the construction industry. Taken together, as we have said many times, that created this crisis. My casework shows that well over 25 separate estates in my constituency that were built in the last 20 years—since around 2000—have issues with cladding, lack of compartmentalisation, and shoddy workmanship.

I also picked up casework on damp and safety as a councillor. I will give two examples Even before Grenfell, leaseholders at Holland Gardens, which was built by Barratt, had forced Barratt to replace all the window fixings because they had not been done properly. It was subsequently found that the building had flammable cladding, so scaffolding was put up again. I have already mentioned the Paragon, which was built in about 2003. We do not know what its future is, but it is empty because it is too dangerous to occupy. I absolutely endorse the amendment’s aim of extending the timescale from 15 to 30 years. There is so much evidence. I can see it on my own patch, but we all have evidence.

Rachel Hopkins (Labour, Luton South)

It is a pleasure to speak under your chairship again, Mr Dowd. I want to add my voice in support of the amendment tabled by my hon. Friend the Member for Weaver Vale and of the points raised by my hon. Friend the Member for Brentford and Isleworth. I have similarly seen many developments go up in my home town of Luton, where I live. I am speaking for the leaseholders of Point Red, who have been in touch with me. Point Red was redeveloped in the mid-2000s, and it is touch and go whether the leaseholders would have any recourse under the current 15-year rule, so it is absolutely right that I stand up and support this amendment.

The metaphor of David and Goliath comes to mind. If the Government are committed to supporting leaseholders who, through no fault of their own, have found themselves in very difficult situations with regard to their homes, the period of time that we are talking about should be longer. That could have a life-changing effect on people working in our communities—we are talking about social workers and teachers—who may be made bankrupt, and who may therefore lose their professional accreditation and no longer be able to work. As one small step among many that we are trying to take, the Government’s acceptance of this amendment would be life-affirming for so many of our leaseholders. I urge the Government to consider it carefully and adopt the 30-year period.

Peter Dowd (Labour, Bootle)

I call Mike Amesbury.

Christopher Pincher (Conservative, Tamworth)

rose—

Peter Dowd (Labour, Bootle)

I apologise. I call the Minister.

Christopher Pincher (Conservative, Tamworth)

I am grateful to the hon. Members for Weaver Vale, for Brentford and Isleworth and for Luton South for the points that they have raised, and I appreciate that this is an important matter. We are mindful of the challenges faced by leaseholders who are specifically affected by the consequences of the Grenfell tragedy, and I hope that when I have spoken, the hon. Member for Weaver Vale will feel able to withdraw the amendment.

The Defective Premises Act 1972 applies not simply to the tall buildings that we are addressing primarily through the Building Safety Bill, but to all buildings. This clause extends the limitation period of the 1972 Act, and under section 38 of the Building Act 1984, from six to 15 years. That is a highly unusual retrospective change, which we believe will provide a legal route to redress that previously would not have been possible for hundreds of buildings, benefiting thousands of leaseholders.

Limitation periods serve several important purposes. They give legal and financial security and certainty; they protect defendants from stale claims, which may be difficult to counter—that is important, too, and we must remember that we are talking about all buildings covered by the Defective Premises Act—and they prevent injustice that may arise from the courts being required to decide on past events on the basis of evidence that may have become unreliable because of the passage of time.

Various limitation periods are set in the Limitation Act 1980 for different types of civil claim, of which this would be one. They range from 12 months for defamation or late payment of insurance claims, to six years for claims relating to some types of contracts, and to 15 years for cases involving negligence. That is where this type of case sits.

Shaun Bailey (Conservative, West Bromwich West)

My right hon. Friend will also be aware that it is possible, in the course of litigation, to make an application for those periods to be disregarded in the event that it can be proven to the tribunal that there are circumstances that make it possible to do so. Notwithstanding the conversations that we have had in Committee on the cost of litigation, does he agree that there are avenues by which that limitation period can, in extreme circumstances, be extended?

Christopher Pincher (Conservative, Tamworth)

I believe that my hon. Friend is correct in terms of the Limitation Act 1980, rather than the Building Safety Bill.

We cannot go back indefinitely, and a proportionate longstop needs to be arrived at. It is clear, I think, to the Committee and the House that the present six-year limitation period is too short. The 15-year limitation period that we are proposing brings the Defective Premises Act in line with other types of serious civil claim. Of course, were we to choose to go further, we would have to consider what the effect might be on actions brought in relation to the 1980 Act. Any choice of limitation period could be viewed to some extent as arbitrary. There will always be somebody who falls either side of the line. And when we consider a retrospective change, that is even more the case. However, we are clear that hundreds of buildings will be able to benefit from the extension to 15 years. Therefore, and having listened carefully to the hon. Member for Weaver Vale and other members of the Committee, I consider that a 15-year limitation period is appropriate.

To speak specifically to clause 126, it means that claims will be able to be brought for buildings completed up to 15 years prior to commencement of this clause. There has been some criticism—or some other criticism—of the clause, on the basis that individual leaseholders would have neither the expertise nor the funds to bring actions against large developers. We have said that building owners are responsible for ensuring that their buildings are safe, and as we have set out in clause 124, which we have discussed and agreed, they must meet the costs of remediation without passing them on to leaseholders, wherever possible—for example, by recovering costs from applicable warranty schemes, or from the developers or contractors who were responsible for the building and the defects in the first place. Making a claim under the Defective Premises Act will be one of the measures that we would expect building owners to explore. This clause and the previous one expand their opportunity for taking such action, and thereby amplify the culture that we are trying to inculcate across the sector.

Clause 126(1) makes the substantive change to the limitation periods by inserting new section 4B into the Limitation Act 1980. As a result, where a claim is brought under either section 1 or new section 2A of the Defective Premises Act, which we discussed under clause 125, the time limit to bring proceedings is extended from six to 15 years. The same extended limitation period will also apply to actions brought under section 38 of the Building Act 1984.

It might assist the Committee if I explain briefly how the various types of action differ. Section 1 of the Defective Premises Act allows an action for damages to be brought where a dwelling is unfit for habitation as a result of the way it was constructed or converted into a dwelling in the first place. Section 2A, which we have just discussed, allows action to be brought where a dwelling is unfit as a result of other work done to it. That is an addition to the existing Act. Finally, section 38 of the Building Act, which we will bring into force alongside the Defective Premises Act changes, allows an action to be brought for damages where a breach of building regulations in respect of any building, not just domestic premises, has caused damage. That “damage” is a human term rather than damage to a building, so, for example, poor ventilation or a crack in the wall that caused damage to a lung would be a reason for utilising that particular provision in the Act.

Clause 126(2) is technical and reflects changes to limitation provisions since the 1972 Act was passed. Subsections(5) and (6) provide protection for the legal rights of those against whom legal action may be brought under the retrospectively extended limitation period. In very limited circumstances—this is another reason why the hon. Member for Weaver Vale might consider withdrawing his amendment—there is the potential for the defendant’s convention rights, human rights, to be breached by the retrospective extension of a limitation period. I suggest that the longer that period is, the more appetite there might be for a defendant in a case to bring forward action under human rights legislation. We have therefore included subsections (5) and (6), which are important safeguards to ensure that our changes to the Defective Premises Act do not conflict with human rights legislation. That does not mean to say that people may or may not choose to bring court action under human rights legislation.

Mike Amesbury (Labour, Weaver Vale)

On counter-litigation under the Human Rights Act, will the Minister elaborate on that scenario and the right to private property?

Christopher Pincher (Conservative, Tamworth)

I am not a lawyer and I cannot second-guess why an individual might choose to go to court using one particular Act of Parliament to defend themselves against another. However, we know that the Human Rights Act is cross-cutting. In any legislation that we scrutinise, we see reference to the Human Rights Act in its annexes. All I suggest to the Committee is that the longer the retrospective limitation period, the greater the chance that individuals may choose to go to court and test the legislation under the Human Rights Act.

Finally, I draw the Committee’s attention to subsection (3), which provides that the clause will be commenced automatically two months after Royal Assent. That will be the date from which the extended limitation period is calculated, including the retrospective period for action under section 1 of the Defective Premises Act. With that, I commend the clause to the Committee.

Peter Dowd (Labour, Bootle)

I apologise, Minister, for my inappropriate limitation on your intervention. As a pre-’69 person, my levels of concentration are not what they should be, I suspect.

Mike Amesbury (Labour, Weaver Vale)

I suspect that we will probably come back to this subject on Report, perhaps in a different form of amendment. I thank the Minister for his detailed and considered response. I beg to ask leave to withdraw the amendment.

Clause 127 - Establishment of the new homes ombudsman scheme

Peter Dowd (Labour, Bootle)

With this it will be convenient to discuss the following:

Clause 128 stand part.

That schedule 8 be the Eighth schedule to the Bill.

Clause 129 stand part.

Eddie Hughes (Conservative, Walsall North)

This is an exciting day for me. I hope that the Committee will indulge me briefly while I refer back to my time as the chair of the all-party parliamentary group on excellence in the built environment. Our report seeking better redress for homebuyers came just a year after I became an MP, working with the Government and hoping to enjoin them to create a new homes ombudsman—so, an exciting day.

The Government are committed to improving redress for new build homebuyers and improving the quality of new build homes. The clause places a duty on the Secretary of State to ensure that a new homes ombudsman is—finally, I might say—established in England. The clause should be read alongside clause 128, which sets out the conditions that must be met for the new homes ombudsman scheme.

There is no existing provision in legislation for purchasers of new build homes to complain to an ombudsman or redress scheme. The new homes ombudsman is intended to provide clearer and more comprehensive means of redress when problems arise. It will provide a place for new build homebuyers to go with complaints, and it will be able to undertake objective determinations based on its investigations. By creating a trusted independent redress system that is easily accessible, we can drive up performance and create a better housing market.

Brendan Clarke-Smith (Conservative, Bassetlaw)

I thank the Minister for giving way, and may I say what a pleasure it is to serve under your chairmanship, Mr Dowd? Have the Government considered extending the new homes ombudsman provisions to Scotland, Wales and Northern Ireland?

Eddie Hughes (Conservative, Walsall North)

Regardless of where in the UK people live, it is important that they have access to the redress that we have set out in the Bill. Discussions are ongoing with the devolved nations, because housing is a devolved matter and so it is for them to determine. Those negotiations seem to be going well, and the feeling seems to be warm, so we may have to return to the matter at a later stage of proceedings on the Bill.

The arrangements are flexible to ensure that the best provider can establish and maintain the service. The scheme will be free for homebuyers and is intended to be funded by fees that are paid by the scheme’s members. However, should it be necessary, the clause provides the power to give financial assistance to a person for the establishment and maintenance of the scheme.

Shaun Bailey (Conservative, West Bromwich West)

Will my hon. Friend confirm that the provisions will allow the new ombudsman scheme to work effectively with other ombudsmen and redress schemes to maximise its impact for affected residents?

Eddie Hughes (Conservative, Walsall North)

Schedule 8 allows the scheme to include provision about a person exercising functions under the new homes ombudsman scheme, and it allows them to do so jointly with persons exercising functions from other redress schemes. It is important that we make it possible to work collaboratively. That may include the making of joint determinations by the new homes ombudsman and an independent person making determinations under another redress scheme. We are considering whether amendments may be required further to facilitate joint determinations and other forms of co-operation between the new homes ombudsman and other ombudsmen or redress schemes. I thank my hon. Friend for that helpful intervention, and it is something we are considering.

Clause 128 relates to the conditions that the new homes ombudsman scheme must meet under clause 127, and it sets out who can make a complaint to the scheme. The clause requires the scheme to be open to all developers to join as members so that qualifying complainants can escalate complaints about the scheme’s members. A qualifying complainant is a person who, at the time of the complaint, is a relevant owner of a new build home in England. The scheme is given the flexibility to set out other persons who can complain about the scheme’s members.

Schedule 8 details the other provisions that the scheme must or may include. This includes provision on which matters may be complained about; how complaints are to be made, investigated, determined and enforced; and complaints about the scheme itself. The scheme must also contain certain provisions required by schedule 8, such as the procedure for developers to become and remain members of the scheme.

To avoid duplication, the scheme may provide that the ombudsman will not be required to investigate and determine complaints that are dealt with under another redress scheme, or complaints that are subject to legal proceedings. The scheme may make provision about working with another redress scheme.

The scheme will require developers to provide complainants with redress if a complaint is well founded. This includes the ombudsman requiring the scheme members to provide compensation, make an apology, provide an explanation or take such other action in the interests of the complainant as the new homes ombudsman may specify. The scheme may also include provision about how the ombudsman’s determination will be enforced. This may include provision for the ombudsman to request a member to take action and, where a developer does not meet its requirements, the scheme may as a last resort include the expulsion of a member from the scheme. In such cases, provision must be made for how they can then rejoin the scheme.

Ian Byrne (Labour, Liverpool, West Derby)

I thank the Minister for giving way, and it is an honour to serve under your chairmanship, Mr Dowd. The independence of the scheme is critical and the Minister has not really outlined the make-up of the ombudsman, and how people will be able to have confidence in it. I will keep going back to the culture change point because if the ombudsman is seen as reputable and upstanding, people will have confidence in it. Culture change can then derive from the ombudsman. I welcome the scheme, but I would like a bit more clarity on who will sit on the ombudsman. The explanatory notes say that the scheme could also select a third party to be established to run it, so may we have some clarity on that point, too?

Eddie Hughes (Conservative, Walsall North)

I thank the hon. Gentleman for his intervention. I completely agree with the premise of his point, which is that that independence needs to be present in such a way that those making complaints can have confidence in it. The scheme could be set up in a number of ways. For example, it would be possible for it to be done in-house so that the Government have tighter control of it, or it could be done by another party. With the New Homes Quality Board, a shadow version is being constituted at the moment. We will be able to see further details on that, but there is no presumption that the shadow board would become the final board once the Bill is passed into law. We will be able to get some indication of how the scheme will work by looking at the workings of the shadow board, and details are available for that, but as I say it will be for the Secretary of State to determine in what form it continues to ensure that there is the confidence that the hon. Gentleman so rightly says is important.

Ruth Cadbury (Labour, Brentford and Isleworth)

May I ask the Minister a question on another aspect of the scheme? It is a voluntary scheme, so I believe that for the developers it is voluntary whether they join or not. Can he clarify that point, and if that is correct, what is the redress for leaseholders and other affected parties in blocks developed by developers that are not voluntary members of the scheme?

Eddie Hughes (Conservative, Walsall North)

I apologise if there was any ambiguity in the point that I was making. Housebuilders will have to be a member of the scheme, so if they do not comply with the scheme requirements and are therefore rejected from it, that will effectively prevent them from developing in the future, and that is why we are making provision for them to rejoin subsequently.

Ruth Cadbury (Labour, Brentford and Isleworth)

May I get absolute clarification? Is the default that all developers of defined blocks are members of the ombudsman scheme, unless they are excluded? Is that correct?

Eddie Hughes (Conservative, Walsall North)

That is correct.

Ruth Cadbury (Labour, Brentford and Isleworth)

Thank you.

Eddie Hughes (Conservative, Walsall North)

The purpose of the ombudsman is not only to resolve complaints but to drive up standards of quality. Therefore, the scheme must include provision for the making of recommendations by the ombudsman to improve widespread or regular unacceptable standards of conduct or quality of work by the scheme’s members. Additionally, the scheme must include provision about the provision of information to the Secretary of State and reports on the operation of the scheme. The clause sets out a comprehensive framework for an effective ombudsman scheme that will afford homebuyers substantially more protection and redress than they currently receive.

The new homes ombudsman scheme will allow new build homebuyers to complain to the new homes ombudsman about a developer for up to two years following the purchase of a home from a developer. Clause 129 provides definitions which determine who may complain to the new homes ombudsman, and a definition of a developer, who the Government can require to belong to the ombudsman scheme. The definition of developer includes those constructing new homes and converting existing buildings into new homes, so that complaints about developers of converted homes under permitted development rights, or those creating additional homes from larger buildings with the intention to dispose, sell or grant them to someone else, can be required to become scheme members and subject to the scheme’s rules under clause 130. I hope that offers the hon. Lady some reassurance. Clause 129 also includes a power to include an additional description of a developer, which could include organisations connected to developers.

Mike Amesbury (Labour, Weaver Vale)

I thank the Minister for the explanation, and his enthusiasm for the creation of the new homes ombudsman scheme, which by his admittance he has rightly argued for in principle since before coming to this place as a Member of Parliament. In principle, the new homes ombudsman is a good thing, though some Committee members have raised concerns and advocated for ensuring that it will be truly independent. I think new build homes have an average of 157 snags at the moment. We will all be familiar from our casework, regardless of where we represent in Britain, that this is a big and very live issue. I would hope that the ombudsman will change the landscape.

On the New Homes Quality Board, which is operating as a shadow board at the moment, sits Jennie Daly, a group director of Taylor Wimpey. The board has representatives of housebuilders and the finance sector, and the hon. Member for Dover (Mrs Elphicke) is the independent chair. I can think of examples in my constituency of Taylor Wimpey homes that have considerable snags and are what we call leaky homes. The 19 million leaky homes that are not properly insulated have been constructed with gas boilers, fossil fuels and the rest of it. All of them will need to be retrofitted and a number have snags. In fact, there is one such development that will probably go forward in the Sandymoor and Daresbury part of my constituency, on former farmers’ fields, despite all the rhetoric that we hear in this place. I would hope that they will not be leaky homes, full of snags. It is very important that those on the shadow board take things forward in future.

On the reassurance about independence, if someone is part of the club, whether they be Taylor Wimpey or another housebuilder, they are paying for that service. Then the complaint goes from our constituents—our residents—to the ombudsman. I have real concerns about the checks and balances, and the independence. The Minister mentioned that there are various models to take it forward. It could be done in-house or at arm’s length as a Government agency. That would certainly by the Opposition’s preference, via a principle, to ensure that checks and balances are hardwired into the process. In principle, we welcome the new homes ombudsman, which is very much needed, but we already have concerns about the evolution of the process, if we look at the shadow board.

Eddie Hughes (Conservative, Walsall North)

I thank the hon. Gentleman for bringing some of his casework for us to consider. The hon. Member for Brentford and Isleworth mentioned the demise of the role of the clerk of works. I started life as a civil engineer but then moved into building site management for housing projects. At that time, we would have had a clerk of works whose job it was solely to monitor the progress of the work and ensure that it complied with the relevant standards. With cost-cutting and other things, we no longer have that, but thanks to the clause and the prospect of the new homes ombudsman, the industry has bought into the concept that quality has to rise and that people will be held more accountable in future.

On the point that the hon. Member for Weaver Vale made regarding the number of snags in a property, we will all have seen that. A comparison that has been made previously is that someone has more rights if they buy a faulty kettle than if they buy a faulty home that has minor problems that do not qualify under the National House Building Council regulation. They do not have something such as subsidence; they just have niggly problems. The developer has taken the money and perhaps trades are no longer on site, and the buyer wants to see those things addressed.

I genuinely think that we will see the industry taking quality much more seriously than they might have previously, particularly with that line of accountability coming back to Parliament. I understand that the hon. Gentleman may have reservations about members of the shadow board. We need to draw the sector into the programme and get them bought into the idea that we will raise quality. I do not think that this Secretary of State or any future one would want to be associated with a product that was not delivering for the public, so they will ensure that that confidence remains.

Mike Amesbury (Labour, Weaver Vale)

One of the roles that the ombudsman will be charged with will be dealing with rogue builders. What would happen if one of the members of the board seemed to be classed as a rogue builder? How would the checks and balances be assured going forward?

Eddie Hughes (Conservative, Walsall North)

Such a complex question may be outwith the coverage of the Bill; however, it would be beholden on the Secretary of State to ensure that the process was managed appropriately. Given that the scheme allows for builders who are not complying with the code to be ejected from the ability to develop, I am sure that the opportunity would be there for us to deal with members of the board appropriately. If we can chuck a builder out of the scheme, I am sure that we can deal with a member of the board.

Clause 130 - Power to require persons to join scheme and to provide information

Philip Davies (Conservative, Shipley)

With this it will be convenient to consider clause 131 stand part.

Eddie Hughes (Conservative, Walsall North)

It is a pleasure to serve under your chairmanship, Mr Davies. To ensure that the developers of new build homes are accountable for their actions, they will be required to become and remain members of the new homes ombudsman. The principle of requiring organisations to belong to an ombudsman or redress scheme by law is not new. Clause 130 provides the legal basis for the Secretary of State, by regulations, to require developers to become members of the scheme, and to remain members for a specified period. That may extend to when they are no longer developers, which will ensure that they meet their responsibilities to the people to whom they sell homes.

The clause also allows the Secretary of State to require members to inform purchasers of the scheme, which may include requiring members to obtain, display or produce on request a copy of a certificate confirming their membership of the scheme. It also provides for an enforcement framework to be put in place to protect against rogue developers who breach the requirements in the regulations, and that includes the imposition of civil sanctions for breach of the requirements.

The proposal will create a flexible enforcement framework, allowing the Government to task an existing or new regulator or enforcement body with investigating and sanctioning breaches of membership and publicity requirements, and to resource that body accordingly. Proportionate safeguards are attached to the new power. Where provision is made for sanctions to be imposed, there must also be provision for the right to appeal the imposition of a sanction. The clause is vital as the basis for a future-proofed and comprehensive redress, accountability and enforcement framework.

Clause 131 places a requirement on the person who maintains the new homes ombudsman scheme to keep a register of the scheme’s members and make it publicly available. That will help instil more confidence in the transactional process, given that a prospective purchaser will, for example, have greater assurance that issues with their new build home, if they happen to arise, can be resolved via the new homes ombudsman.

Mike Amesbury (Labour, Weaver Vale)

It is a pleasure to serve under your chairmanship once again, Mr Davies. I have a brief question for the Minister about examples of civil breaches and sanctions. He referred previously to the fact that, under current protections, new homeowners have fewer rights than those purchasing a new toaster, so enforcement measures and sanctions will be vital. Will the Minister briefly expand on that?

Eddie Hughes (Conservative, Walsall North)

I think, in terms of the spectrum of powers, that we are better focusing on the ultimate power: that developers could be expelled from the scheme if they do not comply with the ombudsman’s code. That would prevent them from developing in the future, which feels like a heavy stick with which to beat them should they decide not to comply. It is therefore important for that ultimate action to be available, so that people know that a developer not prepared to comply with the code will ultimately be prevented from building homes in the future.

Clause 132 - Developers’ code of practice

Mark Logan (Conservative, Bolton North East)

I beg to move amendment 57, in clause 132, page 137, line 9, at end insert—

“(1A) The code of practice must include measures on the standards of quality of work to promote building safety, including but not limited to, preventing water ingress.”

This amendment requires the developers’ code of practice to include standards relating to the prevention of water ingress.

Philip Davies (Conservative, Shipley)

With this it will be convenient to discuss clause stand part.

Mark Logan (Conservative, Bolton North East)

It is a great pleasure to serve under your chairmanship, Mr Davies.

I am speaking to the developers’ code of practice. The hon. Member for Weaver Vale mentioned earlier that, right across this country in every one of 650 constituencies, we receive a huge amount of casework. I will talk a little about my own constituents, their issues and how we may rectify matters through further consideration.

My constituents in Holden Mill in Astley Bridge have been considerably let down by the substandard workmanship of P J Livesey, a Cheshire building contractor, and by the insurers, the National House Building Council. Both parties appear to be protecting themselves, rather than the 450 residents of Holden Mill. I am pleased that the Government have already supported my residents with several schemes and through the work of the Building Safety Bill. I hope that we can ensure further protection of such residents and greater accountability.

The residents of Holden Mill have been at the mercy of NHBC and PJ Livesey for far too long. They face the dread of water ingress caused by the slightest downpour, and are surrounded by cladding deemed to be high risk. Every night, a physical waking watch travels through each and every corridor of their building to ensure that they are safe. However, that comes at significant cost, both financially and psychologically.

For example, Anita Brooks, who should be looking forward to welcoming her first child shortly—perhaps today—is in the midst of this unwanted lingering distress, unable to sell her apartment due to the unacceptable workmanship. Similarly, Kirit Raja owns two properties in the Holden Mill, both of which were uninhabitable for several months. He, too, was unable to sell them on the market, because of the historical incompetence of P J Livesey and others.

Rather than peaceful enjoyment or seeing a return on their investments, my residents are being forced to pay out thousands of pounds of their hard-earned money for mistakes for which they are not responsible. I suggest that that is happening up and down the country, which is why it is of paramount importance that we establish a new code of practice for the industry. The code must include measures on the standards of work quality to promote building safety for residents such as Anita and Kirit, ensuring that the industry is held accountable.

Ruth Cadbury (Labour, Brentford and Isleworth)

I am really interested in this amendment. The hon. Gentleman specifically mentions water ingress, but the amendment says:

“including, but not limited to, preventing water ingress.”

I have had casework that involves water ingress. Does the hon. Gentleman agree that there are other examples of people living in poor-standard accommodation due to poor workmanship? People have reported windows falling out, gaps in external walls and windows, unacceptable barriers between flats—stud walls where there should be brick walls, so that smoke, noise and fumes pass between—and so on. Does he agree that such examples should be considered, as well as water ingress?

Mark Logan (Conservative, Bolton North East)

I thank the hon. Lady for that intervention. I appreciate that she is an expert in this field, having worked in the industry for many years, like my right hon. Friend the Under-Secretary—apologies if I have given him a promotion. It will come. The hon. Lady raises an important point. That is why I would like to probe the Government even further. Water ingress is one part of this, but further consideration should be given to some of the elements that she has rightly raised.

If this provision had been in place 15 years ago, the likes of NHBC and P J Livesey could have been brought to task instead of my blameless constituents at Holden Mill. I encourage the Government to put more work into considering whether to apply the clause retrospectively to ensure that the residents of Holden Mill in Astley Bridge are protected. Will my hon. Friend the Minister help me by saying whether decompartmentalisation issues will be addressed in the code of practice and whether he is considering applying the code retrospectively?

Mike Amesbury (Labour, Weaver Vale)

I thank the hon. Gentleman for tabling this important amendment. It is something that we are familiar with. My good friend and colleague, the hon. Member for Brentford and Isleworth has alluded to the fact that the amendment could be somewhat broader. I am sure that the Minister and the Department will address that in the code of practice. The Opposition are happy to support the amendment.

Eddie Hughes (Conservative, Walsall North)

I thank my hon. Friend the Member for Bolton North East for raising this important matter. It is clearly an area of great concern in his constituency. Too many people have been let down, and I am sorry to hear about the terrible experience his constituents have faced. Unfortunately, this is something that happens far too often. When a new home is built or an existing building is converted poorly water ingress is a serious issue and may cause serious distress and detrimental effects to homebuyers and their properties.

My hon. Friend is right to raise the issue in the wider context of improving the quality and safety of our built environment. Developers and warranty providers must meet their responsibilities and resolve issues quickly and fairly. It is unacceptable that people are stuck in homes through no fault of their own. However, in this case, the Government consider that the amendment is not necessary and that we have already met its intentions elsewhere in our statutory framework.

Developers are already under a legal duty to prevent water ingress. Requirements are set out in building regulations, in particular part C of the Building Regulations 2010, which already include requirements for resistance to contaminants and moisture. That includes ensuring that buildings are protected from ground moisture; precipitation, including wind-driven spray; condensation; and spillage of water. Guidance is available in approved document C on how to comply with this requirement.

In addition, the Building Safety Regulator has a duty in clause 5 to keep under review the safety and standards of all buildings, which would include ensuring that building regulations are fit for purpose and making recommendations if changes are needed. The developers’ code of practice provided for in this clause is about the standards of conduct and standards of quality of work expected of members of the new homes ombudsman’s scheme more generally, and may include developers complying with existing standards and requirements.

Once the new homes ombudsman is established, it will be able to hear complaints relating to a failure to abide by legal requirements and technical standards, as well as non-compliance with the code of practice, where one has been issued or approved by the Government. The code of practice is deliberately broad to allow flexibility in its content, including in the consideration of what should be said on promoting building and fire safety, which includes the issues of compartmentation and water ingress.

On retrospective application of the code of practice, the Government consider that such a change would not meet its intention. The code of practice will set out the expectations for the members of the new homes ombudsman’s scheme, which is yet to be established. The Bill as a whole aims to address the serious issues raised by my hon. Friend the Member for Bolton North East, including building safety and redress, to make those responsible more accountable. That includes extending retrospectively the limitation period to bring an action under section 1 of the Defective Premises Act 1972. The Bill also extends the scope of the Act to cover work done after the initial provision of a dwelling, such as refurbishment work.

Having said all that, it is important that the issues are considered further for the code of practice, so that new build homes are safe and high quality. I thank my hon. Friend for raising the matter. I hope he will agree that the Government consider water ingress a serious issue. It is one that the Government have already placed a legal duty on developers to prevent. I therefore hope he will consider withdrawing the amendment.

Clause 132 enables the Secretary of State to issue or approve a developers’ code of practice on the standards of conduct and quality of work expected of members of the new homes ombudsman’s scheme. The code of practice is a way of setting out what is expected of the developer so that they and the homebuyer have a clear framework to work within. The code of practice may also help compliance and improve quality.

The code can be revised or replaced over time, and the current version must be made public. The new homes ombudsman must have regard to any code of practice approved or issued under this clause when determining complaints, and the scheme may allow complaints to be raised about non-compliance by developers with such a code. However, complaints to the ombudsman against its members will not be restricted to the failure to comply with the code of practice and will depend on the individual circumstances of the complaint.

Philip Davies (Conservative, Shipley)

I call Mark Logan.

Mark Logan (Conservative, Bolton North East)

I am not sure what I am meant to do at this point, Mr Davies.

Philip Davies (Conservative, Shipley)

You should indicate whether you wish to push your amendment to a Division or withdraw it.

Mark Logan (Conservative, Bolton North East)

Oh, I see. I look forward to coming back to aspects of this issue in the future. I thank the Minister for his thorough response today, and in the light of his comments, I beg to ask leave to withdraw the amendment.

Clause 133 - Construction products

Philip Davies (Conservative, Shipley)

With this it will be convenient to consider that schedule 9 be the Ninth schedule to the Bill.

Eddie Hughes (Conservative, Walsall North)

The Government are committed to ensuring that construction products placed on the United Kingdom’s market are safe. The clause and schedule create a power to make regulations for the marketing and supply of construction products in the UK.

Not all construction products are covered by the existing regulatory framework, which derives from EU law. Schedule 9 contains powers to extend the regulatory framework to cover all construction products available on the UK market. The Government intend to use this power to ensure that construction products are safe before they are placed on the UK market. In addition to this general safety requirement, schedule 9 will give the Secretary of State the power to create a statutory list of safety-critical construction products where their failure as part of a construction would risk causing serious injury or death.

The power will enable the Government to require manufacturers to declare the performance of these products to a specific standard and put in place measures to ensure that this performance is consistently met. This will bring the regulation of safety-critical products in line with those covered by the existing regulatory framework, so that any purchaser or user of a safety-critical product will have reliable information about how it will perform. Schedule 9 will enable the Secretary of State to amend the existing regulatory framework or replace it in Great Britain so that it continues to meet the needs of Great Britain’s market.

We know the importance of claims made in the marketing of products. Schedule 9 will give the Secretary of State power to address false and misleading claims made about the performance of construction products. Dame Judith Hackitt recommended that the Government should ensure a more effective enforcement regime with national oversight to cover construction product safety. That is why schedule 9 paves the way for a national regulator for construction products and enables us to strengthen market surveillance and enforcement powers. It enables the Secretary of State to make provision for the national regulator and local trading standards to issue civil penalties and recover costs from economic operators where appropriate. Setting out regulatory requirements for construction products in secondary legislation will enable us to amend regulations quickly when needed so that they remain appropriate within a continuously changing industry landscape.

Mike Amesbury (Labour, Weaver Vale)

I thank the Minister for outlining the provisions in this clause, which we support. There is a need to strengthen the regulatory regime, so this regulator is welcome. We have seen the evidence of the building safety scandal. The Grenfell inquiry has shown that companies literally re-engineered—gamed—the system to ensure that their products seemingly met the appropriate standards at the time. This will strengthen that process and ultimately ensure that the building safety landscape is improved in future, and hopefully in the here and now, when the Bill passes through Parliament. [Interruption.] If I start smoking and steam starts coming from me, do excuse me—I seem to be surrounded by radiators. We are happy to support the clause.

Eddie Hughes (Conservative, Walsall North)

I welcome those comments. We have definitely seen during the course of the Grenfell inquiry that products have been either tested or marketed in an inappropriate way, and it is good to see agreement across the House. The clause will strengthen our hand in that regard.

Clause 134 - Amendment of Regulatory Reform (Fire Safety) Order 2005

Christopher Pincher (Conservative, Tamworth)

Welcome to the Chair, Mr Davies. I am pleased to see that you are putting the Government’s heat and buildings strategy into full effect in the Committee.

The Government are committed to strengthening the Regulatory Reform (Fire Safety) Order 2005 in order to better protect people’s safety in all regulated premises. Clause 134 delivers on 10 proposals that received significant support from respondents to the 2020 fire safety consultation, to address weaknesses that were commonly reported by stakeholders and to better align the order to the new building safety regime. New duties on responsible persons, informed by best practice, will support greater compliance with the order and its effective enforcement, mainly through the improved recording and sharing of fire safety information.

For all multi-occupied residential buildings, the owner or manager will be required to provide relevant and comprehensible fire safety information to residents, as will be specified in the order and may be set out in regulation. That will reassure residents that fire safety is effectively managed and will empower them to hold responsible persons to account. For higher-risk buildings, responsible persons will be required to identify the accountable persons and to co-operate with them. The co-operation duties in this clause and clause 118, with which we dealt on Tuesday, will support a co-ordinated approach to safety in higher-risk buildings between those duty holders, subject to either the building or the fire safety regime.

For all regulated premises, responsible persons will be required to record their fire safety risk assessment in full, including measures taken in response to risk. When appointing a person to assist them with making or reviewing a fire risk assessment, they will be required to ensure that that person is competent to do so. We also need to strengthen the existing co-operation duty between responsible persons sharing premises by requiring them to identify themselves to each other, provide United Kingdom contact details, explain the parts of the premises for which they consider themselves to be a responsible person and record that information. Where responsibility for fire safety changes hands, the outgoing responsible person must provide critical information for the incoming responsible person, as will be specified in the order and as may be set out in regulation.

Our amendment to article 50 of the order will enable the courts to consider a responsible person’s failure to follow all statutory guidance issued to support compliance with their duties as tending to establish a breach of the order. We will also increase the maximum financial penalty available to the courts from £1,000, which is level 3, to unlimited fines, level 5, for offences of impersonating an inspector, breaching requirements imposed by an inspector or in relation to the installation of luminous tube signs, which brings the measure in line with the fire safety order.

Clause 135 - Architects: discipline and continuing professional development

Philip Davies (Conservative, Shipley)

With this it will be convenient to consider clause 136 stand part.

Eddie Hughes (Conservative, Walsall North)

Clause 135 relates to the competence of architects. It was developed in response to a proposal in the independent review that advised that the Government and the Architects Registration Board should consider the current and future competence of architects on the register of architects. It provides the ARB with the power to specify the practical experience and training requirements for architects. That will enable the ARB to monitor the competence of all architects on the register. It allows the ARB to determine which practical experience or training should be assessed and how the assessment should take place.

Theo Clarke (Conservative, Stafford)

Will architects be able to appeal against a decision taken by the Architects Registration Board to remove them from the register for not meeting the new competence requirements?

Eddie Hughes (Conservative, Walsall North)

An architect may appeal to the High Court if they are aggrieved by a decision taken by the Architects Registration Board to remove them from the register for not meeting the new competence requirements, but we will need to consider further how a non-judicial appeal route could be made available for architects to make such challenges in future. The clause sets requirements for the ARB to consult bodies representing architects as well as such other professional and educational bodies as it thinks appropriate. Currently, the Architects Act 1997 does not provide powers for the ARB to scrutinise competence after the initial registration and throughout an architect’s career unless an allegation of unacceptable professional conduct is brought before the ARB. This means that an architect may be practising for a prolonged period without any further proactive regulatory oversight.

Ruth Cadbury (Labour, Brentford and Isleworth)

I am interested to know whether “architect” means the individual named person or the company or practice for which they work, or which they are a member of. There is a very famous architect who is responsible for some iconic buildings and structures; some of those failed, notoriously, but that individual managed to avoid any litigation because of the way he structured his relationship with the building or structure that was constructed. That is a risk, and I wonder whether that has been considered in drawing up this clause.

Eddie Hughes (Conservative, Walsall North)

I thank the hon. Lady. My understanding is that clause 138 will deal with the point she makes.

To continue with clause 135, this proposal brings the architects’ profession in line with best practice in other professions and gives greater assurance to those procuring and inhabiting buildings. The objective of the clause is to ensure that all registered architects are suitably competent to undertake their work and that their knowledge is up to date.

Clause 136 relates to the list of services for which the Architects Registration Board may charge. Currently, the 1997 Act provides for a small number of services for which the ARB may charge. The costs of all the ARB’s functions are currently met by the annual retention fee, which is charged by the ARB to all registered architects.

However, the ARB offers a number of other services. This clause will allow the Secretary of State to make regulations to expand the list of services for which the ARB may charge a fee on a cost recovery basis, meaning that only those using the services will cover the costs. The aim of this clause is to keep the retention fee low for all of the architects on the register. An example of a potential additional charge would be to charge a fee to international institutions that wish their architectural qualifications to be recognised by the Architects Registration Board in the UK.

Clause 137 - Housing complaints made to a housing ombudsman

Mike Amesbury (Labour, Weaver Vale)

I beg to move amendment 16, in clause 137, page 142, line 36, at end insert—

“(c) after sub-paragraph (1), insert—

‘(1A) He must as part of his investigation consult tenants or bodies representing the interest of tenants.’”

This amendment would ensure the Housing Ombudsman consults tenants as part of complaints made against social housing providers.

Philip Davies (Conservative, Shipley)

With this it will be convenient to discuss clause stand part.

Mike Amesbury (Labour, Weaver Vale)

The Minister has spoken before about his work on the upcoming social housing reforms. We are grateful to him for his hard work and to all those stakeholders currently involved, and I am glad to be able to add to the debate about reforming the social housing sector, with particular reference to this clause.

Clause 137 is a good clause, implementing something that was raised in the social housing Green Paper from 2018. Getting rid of the democratic filter for complaints from tenants to the housing ombudsman is a good thing, and I am pleased that the Government are using this opportunity to implement those parts of the social housing reforms that they have been saying they will make for some considerable time—since all the way back to Grenfell. We have tabled the amendment because we believe there is one other, related change that can be implemented now as part of the Bill.

The recent television series with ITV journalist Dan Hewitt has highlighted the unacceptable conditions in which some social housing tenants live. People are living in overcrowded, cold homes with mould, damp and holes in the ceiling, and some have considerable rodent problems—the kinds of issues that no Member present would tolerate for a single day. Thanks to the excellent investigation by Dan Hewitt and “ITV News”, we recently saw shocking examples of tenants not being listened to by housing providers. “Surviving Squalor” was an appalling reminder not only of the conditions in which some people are forced to live, but of the fact that such conditions continue because their pleas are ignored by social housing providers.

Ruth Cadbury (Labour, Brentford and Isleworth)

I gave examples earlier of the two blocks built in the early 2000s in my then ward, which is now in my constituency. As a councillor, I received complaints from tenants and leaseholders about damp, repairs and so forth. They were dealt with, or not dealt with, individually by the housing managers. Tenants and leaseholders were not listened to, and they were treated as individual complaints. Had the residents been listened to—they were meeting collectively—it would have been picked up a lot earlier that the individual problems were caused by systemic building faults in those blocks of flats. Does my hon. Friend agree that this is exactly why a voice for tenants is absolutely essential?

Mike Amesbury (Labour, Weaver Vale)

I definitely agree with my hon. Friend—I wouldn’t dare not—and this cannot be allowed to continue.

Shaun Bailey (Conservative, West Bromwich West)

On Monday I met the National Housing Federation, and a point was made about tenant engagement. Sometimes the risk is that those who do not speak up have the most serious issues and are not being heard. As part of the hon. Gentleman’s amendment, which is very interesting, how does he feel that, operationally, we can ensure that tenants who often do not make complaints are actually heard? Quite often it is the same people time and again, which is great, but those from whom we do not hear often have serious issues. How does he feel that we could do that?

Mike Amesbury (Labour, Weaver Vale)

I think it is about ensuring that the voice of tenants, residents and leaseholders is central to the new process—it is about bringing that to life. Throughout the Bill’s journey so far, Members from across the House have spoken eloquently about that, regardless of their political affiliation.

The programme that I refer to, and the issues it raises, brought shame on the country’s housing system and those involved in the neglect shown on ITV. It also highlights how the Government have defunded, diminished and undervalued social housing, and how little progress has been made since 2017 to bring in full social housing reform. The amendment brings us back to the reason the Bill was introduced: the tragedy at Grenfell Tower. Survivors of the fire at Grenfell are very clear that they were let down by the process. As tenants, they had no voice. They, more than anyone, support tenants having a voice and being heard.

Ian Byrne (Labour, Liverpool, West Derby)

It is a pleasure to serve under your chairmanship, Mr Davies. We are back to the point about a change of culture. The amendment would hardwire into the Bill a requirement to hear the voices of tenants. In the evidence sessions, we heard many examples of tenants feeling that their voice was not listened to. As my hon. Friend the Member for Brentford and Isleworth said, tragedies would have been averted if their voices had been listened to. The amendment hardwires into the Bill a change of culture, and fairness. It would ensure that everyone here strives to move forward. I would really like the Minister to consider it.

Mike Amesbury (Labour, Weaver Vale)

I thank my hon. Friend and not-far neighbour for that powerful intervention. Many scenarios were highlighted this summer by ITV, following a segment on the failings of a large housing provider, Clarion, which has, over years, failed to listen to what tenants said about collapsed ceilings, damp, mould, and rats. An investigation was opened, but just as the housing associations have ignored tenants, so did the social housing watchdog. In its investigation, it did not speak to a single resident on the estate in question. In its defence, I suppose, it is not in the social housing regulator’s remit to seek out residents’ views on the housing provider. That is absolutely crazy. We need to strengthen the legislation, and the amendment would certainly help with that.

Rachel Hopkins (Labour, Luton South)

It is a pleasure to serve under your chairship, Mr Davies. In the health service, the patient’s voice is at the heart of everything. It is absolutely right that residents’ voices should be at the heart of housing issues.

Mike Amesbury (Labour, Weaver Vale)

I thank my hon. Friend for her intervention, and for reiterating the point about residents’ voices. Clarion was cleared, despite the fact that hundreds of repairs took place once the television segment was aired, which demonstrates the depth of the issues that developed in homes. People from across the Committee and beyond have seen that programme. On Clarion’s board is a former Housing Minister, so it does have insight at a senior level.

Clearly, the amendment is only part of the reform needed to ensure that our social housing sector provides safe housing and listens to the needs of tenants. To reaffirm what the hon. Member for West Bromwich West said, tenants must be heard at all times, not just when issues develop to such an extent that tenants complain. There should be engagement over a period of time—and not just with, let us say, the usual suspects.

We have an opportunity to make a difference today. I urge the Government to strengthen the laws and support the amendment.

Eddie Hughes (Conservative, Walsall North)

It is unfortunate that my prescribed speech starts with the statement, “The Government are not able to accept the amendment.” However, context is important. The hon. Gentleman suggested that the Government had defunded and diminished social housing, and said that gave rise to the problems. However, in the same speech he also pointed out that one of the housing providers that was shown to be at fault during the programme that he referred to manages approximately 140,000 houses. This is an organisation with substantial resources—millions and millions of pounds in the bank—so clearly defunding was not the problem at play. There was a structural problem with regard to the organisation and its ability to communicate appropriately with residents.

That leads us on to another very unfortunate point: sometimes people either do not know how to complain, or do not feel that anything will happen if they do. We need to work collectively to ensure that both those points are addressed. The Government have launched an advertising campaign through social media and other platforms to try to ensure that residents understand how to complain. The most valuable thing that they can do is raise their complaint, particularly if they are not alone and complaints are coming in from several directions to add weight to their concerns and ensure that their collective voice is heard. Also through the review that the hon. Gentleman referred to, with regard to the social housing White Paper, we are seeking to ensure that the tenant’s voice is at the heart of everything that registered providers do in future. During the summer, I had the opportunity to visit some social housing providers and, through the power of Teams, take part in discussions that they were having with tenants’ panels that they had set up to improve communication.

The hon. Gentleman has spoken previously of the complexity with regard to the accountable person, the principal accountable person and so on. To a degree, we might have that problem sometimes with the number of regulators and what their roles are. He referred to the regulator of social housing not speaking to residents. That is not the job of the regulator of social housing; its job is to manage, monitor and scrutinise the providers themselves.

Mike Amesbury (Labour, Weaver Vale)

Surely, going forward, if complaints from tenants are going to the new regulator of social housing, and a systemic problem is picked up—as with, for example, Clarion housing and that particular estate—it is just common sense that engagement with tenants will be part of the remit.

Eddie Hughes (Conservative, Walsall North)

I have heard it often said that one of the problems with common sense is that it is neither common nor sensible sometimes, and so it proves to be in this case, because a different organisation is meant to take that duty: the housing ombudsman. Through this process, the removal of the democratic filter will mean that people who want to complain do not have to go to a councillor or their local MP; they will be able to escalate the complaint themselves directly.

We are trying to ensure that residents know how to complain and that the system is fair, easily navigated and, hopefully, brings clarity to the situation. Although I have seen the programme that the hon. Gentleman refers to, and I completely sympathise with his intentions, I do not believe that the amendment is appropriate. I must point out our concern about the unintended effect that it would have. I assume that the amendment seeks to ensure that wider issues arising from or relating to an individual complaint, and which may affect multiple tenants, are picked up and addressed. However, the approach to which the amendment would give effect raises issues of privacy and data protection. Under the amendment, a resident making a complaint about their landlord would face the prospect of having information that they submitted to an ombudsman—personal and perhaps highly sensitive information—disclosed to third parties.

It would not be appropriate to require the housing ombudsman to consult unrelated third parties as part of its investigation into an individual’s personal issue. Cases that enter the housing ombudsman’s formal remit may be resolved through early resolution. The housing ombudsman works with complainants and landlords to try to agree a negotiated solution, within a time limit. The housing ombudsman’s approach to investigations into individual complaints is inquisitorial; evidence is sought from both the resident and landlord. There is engagement with the resident at different stages of the process to determine the scope of the complaint, the outcome being sought and the evidence. This engagement is with the individual resident and their landlord and should not be fettered through consultation with unrelated third parties.

Regarding engagement with residents, landlords and other organisations, the housing ombudsman service regularly engages with and consults residents and landlords on a range of activities relating to the service in a range of ways. Activities include consulting on their three-year strategic plan, their annual business plan, and revisions to the housing ombudsman scheme. The scheme enables residents, and others, to have complaints about members investigated by the housing ombudsman. It sets out, for example, how the service investigates complaints, membership terms and conditions, who may use the scheme, which complaints the housing ombudsman service may or may not investigate, how it will investigate and its powers and functions.

Consultations are open to individual residents and representative bodies and groups, and the housing ombudsman engages proactively with both. The housing ombudsman service has a resident panel that is open to all social housing tenants, and has a membership of over 600 residents. It provides an opportunity for residents to be involved in the development of the housing ombudsman’s service as well as giving direct feedback on their experience of the service, and to engage with many different aspects of the housing ombudsman’s work—for example, providing views on its investigations into sector-wide issues such as damp and mould.

Further engagement work takes place through regular meetings with resident bodies, and quarterly “Meet the ombudsman” events across the country. Issues discussed at these events have included the housing ombudsman’s role in providing advice and assistance while complaints are within the landlord’s process, as well as how it formally investigates once the landlord’s process is complete; the housing ombudsman’s expectation that all landlords should adopt a positive complaint-handling culture and what this means in practice; and how the housing ombudsman works with the regulator of social housing. Another issue discussed has been the learning reports that the housing ombudsman produces for landlords, which are focused on different categories of complaint. These reports identify failings and make recommendations for improvement.

The housing ombudsman service publishes a range of other information to inform and support residents, including all of its determinations on individual cases, anonymised so that residents’ names are not used; annual landlord performance reports; guidance on making and progressing complaints; and insight reports that look at complaints data, individual cases and wider learning points, and that share knowledge and learning from its casework. The housing ombudsman service has agreed a memorandum of understanding with the local government and social care ombudsman and the regulator of social housing, which commits it to sharing information on issues which affect multiple residents.

Earlier this year, the housing ombudsman published a new systemic framework, which set out how it will look beyond individual disputes to identify key issues that affect multiple residents and signal wider issues with landlord services. Again, learning is shared across the sector to promote good practice and support a positive complaint-handling culture. I hope that the hon. Member for Weaver Vale will withdraw the amendment.

Turning to clause 137, removing the democratic filter is one of a range of measures the Government are committed to in “The Charter for Social Housing Residents”—the social housing White Paper referred to earlier. It will ensure that landlords provide good services and engage positively with residents, treating them with courtesy and respect, and being accountable and transparent in how they operate. The charter sets out that this includes:

“To have your complaints dealt with promptly and fairly, with access to a strong Ombudsman who will give you swift and fair redress when needed.”

The housing ombudsman service, created in 1996, delivers an independent and impartial service to ensure that disputes are resolved and residents receive redress where appropriate. We are clear that residents should be able to raise concerns without fear, and get swift and effective resolution when they do. Currently, however, social housing residents who wish to seek redress because they believe they have received unsatisfactory service from their landlord have to refer their complaint to a designated person. This can be an MP, councillor or recognised tenant panel. Alternatively, residents have to wait eight weeks from the time that their complaint has exhausted the landlord’s complaints process before they can formally refer their complaint to the housing ombudsman. That is known as the democratic filter.

Clause 137 relates to the removal of the democratic filter stage—a requirement that was introduced by the Localism Act 2011. This gave a role to a designated person in dealing with disputes between social landlords and their tenants or leaseholders. The democratic filter was intended to strengthen the accountability of social landlords, enable housing complaints to be resolved using local knowledge, and help reduce the number of formal investigations by the housing ombudsman. In practice, it has resulted in social housing residents having less direct access to redress rather than consumers accessing other redress schemes.

The Green Paper consultation in 2018 identified this as an issue, which we then tested at consultation. We asked whether we should reduce the eight-week waiting period to four weeks or remove the requirement for the democratic filter stage altogether. Some 5% supported no change, 38% supported the option to reduce the waiting time, but 47% supported the option to remove the democratic filter stage.

Separate consultation undertaken by the housing ombudsman also established that although some designated persons’ arrangements work well, in many cases they do not operate effectively. It also emerged that in some areas tenant panels either do not exist or are not used. During 2019-20, only 6.9% of the cases entering the housing ombudsman’s formal remit were referred by a designated person. Removal of the democratic filter received support from the majority of respondents when the housing ombudsman service consulted on its 2019-22 corporate plan and 2019-20 business pan, with low support for the designated person role.

We all know how important our homes are to us. When things go wrong with our homes, we should expect to be listened to, have repairs carried out quickly, faults rectified, and maintenance work carried out to prevent faults from recurring. We want to know that our homes are safe for us to live in, safe for our families, and fit for purpose. When repairs are required, they should be carried out speedily and efficiently. When we are not listened to, landlords need to rectify issues. It is stressful, worrying and frustrating. I commend the clause to the Committee.

Mike Amesbury (Labour, Weaver Vale)

Neither clause 137 nor the explanatory notes mention the voice of residents, tenants or leaseholders. The Minister correctly referred to the current structure of the housing ombudsman and the recommended changes, including the democratic filter. Labour Members agree with that. It is very sensible to speed up the process. I speak regularly to representatives of Grenfell United —I know that Ministers and departmental officials do, too—and their view is crystal clear. They are dissatisfied with the measure because it does not capture or build on the principle of active engagement with residents, tenants and leaseholders. We will not, therefore, withdraw the amendment; we wish to press it to a vote.

Clause 138 - Liability of officers of body corporate etc

Christopher Pincher (Conservative, Tamworth)

The purpose of clause 138—rather as clause 39 does for the Building Act 1984—is to make it clear that where individuals who control a corporate body participate in committing criminal offences under parts 2 and 4 of this Bill, they, too, are criminally liable for those offences. Many of the persons who will have duties under the new regime will be corporate bodies—legal persons, as they are known—rather than individuals, who are often known legally as natural persons. Any corporate body operates only through the actions of its employees, controlled by its managers and directors. Therefore, if there is an offence by a corporate body, there is likely to be some measure of personal failure by those in positions of seniority.

This liability is already provided for in a number of other pieces of legislation, including notably the Health and Safety at Work etc. Act 1974; the Committee has heard me speak about that in previous sittings. The end result is that directors and managers are just as criminally responsible as the company where either they have made decisions that led directly to the offence being committed, or they have been negligent in allowing the offence to occur.

We have addressed similar points that were raised in debates on previous clauses. If there is one director of a company, it is likely that two prosecutions—for both the company and the director—would be brought, although in practice there would be one case to answer. If the company had dissolved, the company itself would not be liable for prosecution, but that would not prevent a prosecution from coming forward against any one or a number of the managers or directors of the company who were there at the time the offence was committed.

The potential for criminal liability of directors and managers reinforces the duty of those who direct the actions of companies to uphold and promote building safety throughout the operations of their companies—again, inculcating the culture that we want to see. The Government consider that this is a key contributor to our stated purpose of embedding building safety at all levels of the industry, contributing to residents both being and feeling safe in their homes. I commend the clause to the Committee.

Mike Amesbury (Labour, Weaver Vale)

I want to draw out a point that the Minister referred to. In the construction sector, as has been mapped out in the journey of the Bill so far, special delivery vehicles or special purpose projects are set up and then dissolved. How would this provision apply to the individuals and directors involved? We welcome this clause, which is a real step forward, but we just want to draw out that point.

Christopher Pincher (Conservative, Tamworth)

I am happy to help the hon. Gentleman. In my previous remarks, I may have said, “if a company folds”; what I hope I said was that if and when a company dissolves, the dissolution of the company does not prevent an individual—a senior person, a manager or a director—from being liable for offences if they were there at the time the offence was committed. I hope that that confirms the issue that the hon. Gentleman rightly draws out. We are essentially in agreement, and I commend the clause to the Committee.

Clause 139 - Review of regulatory regime

Christopher Pincher (Conservative, Tamworth)

The Government are committed to the continuous improvement of the building regulatory regime and the construction products regulatory regime, including the Building Safety Regulator and the national regulator for construction products. The purpose of the clause is to legislate for the appointment of an independent person to carry out a periodic review of the system of regulation for building safety and standards, and of the system of regulation for construction products. We believe that such a review will act to assure the functioning of the systems and provide independent recommendations for improvement.

The independent review recommended a periodic review of the overall system of building regulation, including accountabilities, responsibilities, guidance and the effectiveness of the regulator. It recommended that the review should be undertaken by an independent person at least once every five years. The clause meets that recommendation and goes further.

The review must consider the Building Safety Regulator and the system of regulation established by parts 2 and 4 of the Bill and by the Building Act 1984. It must also consider the regulation of construction products, including the effectiveness of the national regulator of construction products. However, the independent person is not limited and may review connected matters. The Secretary of State may also indicate areas of specific interest that they would like the reviewer to consider. I stress, however, that the Secretary of State has no ability to limit the remit of the review.

An independent person must be appointed at least once every five years, although the Secretary of State has scope to appoint a person more regularly should they so wish. By ensuring that the report produced by the independent person must be published, the Government have created a system of public accountability in building safety. In seeking to define “independent”, we have struck a balance that discounts those with a clear conflict of interest, without overreaching and excluding everyone with relevant experience. Under that approach, the exemplar for an experienced but independent person is Dame Judith Hackitt, prior to her appointment to the lead the independent review.

The Government have provided a structure to ensure that an independent review of the system of building safety and standards will occur at least once every five years, and we have ensured that the reviewer can operate unfettered. The clause will help to protect the integrity of the system and help to make sure that the system continues to create a safe built environment in the future. I commend the clause to the Committee.

Clause 141 - Crown application

Christopher Pincher (Conservative, Tamworth)

The clause provides that the Crown is bound by parts 2 and 4 of the Bill, and by the provisions relating to the new homes ombudsman.

The Crown Estate manages an extensive property portfolio on behalf of the Crown, and that portfolio includes a number of in-scope buildings. The Duchy of Lancaster on behalf of Her Majesty, and the Duchy of Cornwall on behalf of His Royal Highness the Prince of Wales, also manage property portfolios that may include in-scope buildings. Some properties owned and occupied by Government Departments may include permanent accommodation, which could bring them within scope.

It is right that those buildings should be subject to the new regime we are setting up for existing buildings. This clause therefore provides that the Crown is subject to parts 2 and 4 of the Bill. This is in line with the approach taken in the Regulatory Reform (Fire Safety) Order 2005 and the Health and Safety at Work etc. Act 1974, which apply to the Crown. It will mean that the Crown will be an accountable person for in-scope buildings and, as such, will be bound by all the duties placed upon an accountable person. The Crown will also be bound by the provisions of the new homes ombudsman, so any Crown bodies developing new residential properties that are within the scope of that ombudsman may need to join the scheme as required by regulations, as my hon. Friend the Member for Walsall North has mentioned in other contexts.

In line with long-standing legal and constitutional principles, the Crown as an entity cannot be subject to criminal sanctions. However, individual Crown servants can be, and that is provided for in clause 141(3) of the Bill.

Selaine Saxby (Conservative, North Devon)

The Bill applies parts 2 and 4 to Crown buildings. Do the Government intend to extend the application of part 3 of the Bill to Crown buildings, too?

Christopher Pincher (Conservative, Tamworth)

Clearly, there should be a consistent approach to the application of all the provisions of the Bill to the Crown. There is an existing power in section 44 of the Building Act 1984 to enable building regulations to be applied to the Crown, although it has not been brought into force. We have been looking at whether we should switch this power, but there are gaps in how it would operate. In particular, as drafted, the power in section 44 of the 1984 Act would not allow us to make regulations setting out the gateway requirements for work carried out by Crown bodies. We are working through the issues and what might be needed by way of new provisions in the hope that we can resolve these matters at a later stage of proceedings on the Bill. I thank my hon. Friend for her intervention.

Ruth Cadbury (Labour, Brentford and Isleworth)

I want to be clear that this clause has been included because of the new legal status of the Crown, not because it owns a number of historic buildings that include some residents and that may be within the scope of the Bill. I can think of other owners of historic buildings in which people live that may be within scope, such as the National Trust, English Heritage and museums. If we establish that the Palace of Westminster is a residential building, it appears to be out of scope. I would be grateful if the Minister could help me through that confusion.

Christopher Pincher (Conservative, Tamworth)

I am sorry that the hon. Lady is confused. I appreciate that some of these matters are exceptionally dry and very technical, but none the less, they are extremely important. The Crown has a unique legal position in our country, as I have said. Because of long-standing legal and constitutional principles, it is not an entity subject to criminal sanction, but it does operate a very significant property portfolio, and in that portfolio there are in-scope buildings. That is why this clause has been included in the Bill, for the sake of specificity and clarity.

While the general principle of applying part 2 and 4 of the Bill to Crown buildings is right, we need to recognise that there may be some buildings where, for example, security or other operational considerations mean it would not be appropriate to apply the regime. In the draft statutory instrument on scope, we therefore proposed to exclude military premises, including barracks and buildings occupied solely for the purposes of the armed forces. Those will remain subject to the Ministry of Defence’s existing building and fire safety arrangements, which we believe to be strong ones. Clause 141 therefore ensures that the protections provided by the Bill are available to leaseholders, tenants and users of existing Crown buildings. I commend the clause to the Committee.

Mike Amesbury (Labour, Weaver Vale)

If the Crown commissions a new build above 18 metres or seven storeys, the new regime applies. Can the Minister expand on this scenario? If there is a serious fire that results in deaths, and those acting on behalf of the Crown are found to be culpable, who would be criminally liable? Would the Crown be exempt?

Christopher Pincher (Conservative, Tamworth)

I will try to help the hon. Gentleman as best I can. As I have said, the effect of this clause will be that the Crown is regarded as an accountable person for in-scope buildings. The clause will cover the responsibilities of an accountable person, and it will ensure that they apply to the Crown. The Crown is also responsible for adhering to the provisions of the new homes ombudsman. In the event of a specific fire in a specific place, I imagine that it would be for the prosecuting authorities to determine where culpability lies. A range of measures are set out in the Bill and in existing Acts of Parliament to ensure that those who are culpable for criminality can be charged, tried and, if necessary, brought to justice. I hope that helps the hon. Gentleman with his question.

Clause 142 - Power of Secretary of State to make consequential provision

Christopher Pincher (Conservative, Tamworth)

I beg to move amendment 19, in clause 142, page 145, line 10, at end insert—

“(3) Regulations under this section may not make provision that may be made under section 143.”

This amendment provides that the Secretary of State may not make consequential provision that may be made by the Welsh Ministers under clause 143.

Philip Davies (Conservative, Shipley)

With this it will be convenient to discuss clause stand part and clause 143 stand part.

Christopher Pincher (Conservative, Tamworth)

This is a technical amendment to ensure that the devolution settlement is protected.

Clause 144 - Regulations

Daisy Cooper (Liberal Democrat, St Albans)

I beg to move amendment 39, in clause 144, page 146, line 24, at end insert—

“(8) But the Secretary of State may not—

(a) lay before Parliament a statutory instrument under subsection (6), or

(b) make regulations in a statutory instrument under subsection (7)

(9) That condition is that the Secretary of State has consulted—

(a) fire safety experts,

(b) leaseholders and their representatives,

(c) local authorities, and

(d) safety and construction industry bodies”.

This amendment would require the Secretary of State to consult with stakeholders before making regulations.

Philip Davies (Conservative, Shipley)

With this it will be convenient to discuss clause stand part.

Daisy Cooper (Liberal Democrat, St Albans)

I apologise for not being ready—I have some rather urgent constituency things coming in that have consumed my mind for the past few minutes.

There has been a lot of talk about how much detail is in the Bill and how much information is not in it. When we took evidence, a number of people said that they had worked closely with officials in the Department and they were hopeful that that would continue. They also emphasised the importance of scrutinising any legislation that came through via statutory instrument.

I think the purpose of the amendment is fairly obvious. Any statutory instruments that are laid should receive proper democratic scrutiny by Members of this House, the public, leaseholders and everybody in industry. It is self-explanatory. I hope that hon. Members will see it merits and I look forward to the Minister’s assurance that the Government are looking to ensure proper democratic scrutiny of any statutory instruments laid under the Bill.

Mike Amesbury (Labour, Weaver Vale)

I thank the hon. Member for St Albans for tabling the amendment, which we support. This culture change in building safety—making people safe in buildings in the here and now, and in the future—requires consultation with the maximum number of stakeholders to help shape legislation and regulations going forward. This is a very common-sense amendment; it strengthens the Bill.

Christopher Pincher (Conservative, Tamworth)

I thank the hon. Lady for introducing the amendment and the hon. Member for Weaver Vale for his comments. The amendment would require the Secretary of State to consult with specific stakeholders before making regulations.

I entirely understand the hon. Lady’s intention and I agree with the principle that there should be appropriate consultation on regulations made under the Bill. I hope that, by the time I have concluded my remarks, she will see that the amendment is at best superfluous and at worst could be rather confusing. I will explain why. I do not mean in any way to detract from what she is trying to achieve.

The Government have introduced provisions to ensure appropriate consultation in clause 7, which we debated some little while ago, before the rather long conference recess, in the proposed new section 120B of the Building Act 1984 in schedule 5, and in the specific procedures to ensure appropriate scrutiny of changes to the scope of the higher-risk building regime. I am grateful to the Committee for agreeing those provisions already.

I remind the Committee that we have already said that we will include consultation provisions when making regulations. Those regulations will always be subject to consultation.

Save for certain limited special procedures, the independent Building Safety Regulator may propose regulations to the Secretary of State after consulting on them and drawing on the benefit of its technical expertise and expert committees. Where the Secretary of State initiates proposals, they must first consult with the independent Building Safety Regulator and other persons they consider appropriate before regulations can be made. It pays to stress that I appreciate the spirit of the amendment, but maintaining the existing provisions in the Bill has three fundamental advantages.

First, on a technical point, the amendment would apply only to regulations made under this Bill and not to regulations made under the Building Act 1984, including under the provisions inserted by part 3. Committee members may remember that I spoke, some might say monotonously, about the 1984 Act in previous sessions. We need a consistent approach to consultation across building safety standards legislation, to make sure that it is simpler and fairer, and I think this approach is preferable.

Secondly, the amendment would create a degree of confusion and duplication, because it would insert an additional consultation provision into the Bill on top of the existing one in clause 7. The practical effect would be some duplication and delay. To give an example, where the Building Safety Regulator has proposed regulations to the Secretary of State after a full and proper consultation under clause 7, the effect of this amendment would be that the Secretary of State was required to conduct a further consultation with the key stakeholders listed in the amendment. We believe that that would create unnecessary delays in tackling important building safety issues.

Thirdly, we believe that the general requirements to consult in the Bill are more likely to support effective consultation than the approach set out in the amendment, which seeks to list a specific set of consultees in primary legislation. That would, as we all know, be much more difficult to unwind and change as the building safety landscape changes.

A wide range of regulations will be made under the Bill. They will range from technical regulations setting out what functions the Building Safety Regulator and the local authorities may share information on, or the form on which certain applications must be made, through to very complex regulations that are necessary to deliver the new national regulator for construction products. We do not think that a one-size-fits-all approach to which parties need to be consulted is appropriate to that range of subject matter. Instead, we believe that the consultation requirements stipulated in clause 7 will support more effective and tailored consultation.

Members of the Committee should be reassured by the fact that the Bill’s approach to making regulations learns from the approach that has successfully been taken in respect of health and safety regulations. The Health and Safety Executive, with the Secretary of State, has taken a proportionate approach to consulting parties before regulations are made, and it has been doing that for more than 40 years.

We understand that expertise will not stop at the door of the Building Safety Regulator, nor, for that matter, the Secretary of State. We agree that consultation on regulations is necessary, but we think that adding this amendment would unintentionally create duplication, confusion and—because of its disapplication from the Building Act 1984—a narrowing of the application of the provision. Given the assurances that I have provided to the Committee, and the fact that the Bill already ensures appropriate consultation mechanisms, I hope that the hon. Lady will withdraw the amendment.

Daisy Cooper (Liberal Democrat, St Albans)

I thank the Minister for his assurances that he agrees with the spirit of the amendment, and I am sure that during proceedings on the Bill, others may look at the scope of the application of this measure. I am grateful for his assurances on the parliamentary record that he agrees with the spirit of the amendment, which is designed to continue the democratic scrutiny of secondary legislation. I beg to ask leave to withdraw the amendment.

Clause 146 - Commencement and transitional provision

Written evidence reported to the House