Update on Developers' Remediaton Contract Signatories
Posted by The Property Institute on 17th March 2023 -
13th March 2023 marked the six-week deadline Michael Gove gave housebuilders to sign the new developer remediation contract, in order to bring the building safety crisis to an end and ensure unsafe buildings in need of remediation are fixed urgently.
This afternoon, Gove announced that thirty-nine developers – including the top ten biggest housebuilders in the UK – all put pen to paper on the legally binding document and irreversibly committed themselves to fix unsafe buildings they developed or refurbished.
A full list of developers who have signed, and a list of a further 11 who have yet to sign can be found here.
The signatories represent a substantial proportion of the housing market, and the signed agreements will raise at least £2 billion for remediation costs, a welcome relief for thousands of innocent leaseholders and tenants whose homes are covered by the contract. The developers’ obligations start immediately. Leaseholders will benefit from a common framework of rights and responsibilities that will get their buildings fixed without them having to pay, and developers will be required to inform residents in affected buildings how they will be meeting these commitments.
Eligible developers who have not signed the contract will not be able to operate freely in the housing market.
Following the contract deadline passing, Secretary of State for Levelling Up, Housing and Communities, Michael Gove, commented:
“I have been clear all along – those that are responsible for this crisis must pay. So, I am grateful to those developers who have done the right thing today by signing this legally binding contract. We will be monitoring their progress on remediation very closely, to ensure this work is completed urgently and safely. For those developers that have taken responsibility, today offers the chance for a reset, so we can get on and build more of the safe, decent and affordable homes we so desperately need.
“To those developers that have failed to sign the contract without good reason, let me be very clear – we are coming after you. If you do not sign, you will not be able to operate freely in the housing market. Your investors will see that your business model is broken – only responsible developers are welcome here.
“I want to put on record my apology to all leaseholders for the years of misery and hardship you have endured. You should never have been ignored, asked to pay and let down.”
Signatories are required to fix all life-critical fire-safety defects in all English buildings over 11 metres they had a role in developing or refurbishing. It also requires them to reimburse the taxpayer where government funds have already paid for remediation, with that money being used to make other buildings safe faster.
It is understood that the Government will publish further information next week (w/c 20th March) on how developers will be prohibited from carrying out major development or from receiving building control approval unless they sign and adhere to the contract, using Building Safety Act 2022 powers. New regulations will establish the Responsible Actors Scheme (RAS) and set out the criteria for eligibility and the conditions of membership. Eligible developers who do not sign the remediation contract will not be able to join the Scheme and will be subject to the prohibitions.
Read the full press statement from DLUHC here
Read article on ARMA website
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