Government has full house for developers’ remediation contract
An updated list published this week shows all 51 developers have now signed up to the government’s building safety remediation contract.
Four developers who had signed up have been found to be outside the scope which covers properties of 11 metres or higher built in England over the last 30 years.
A spokesperson from the department for levelling up, housing and communities said: “It’s good news. We are glad that all the developers we have approached have now signed.”
The government initially gave developers until March to sign or face the threat of being banned from building new homes under building safety laws.
However, at that point, there were still eleven major developers who hadn’t signed including Rydon Homes a sister company of Grenfell contractor Rydon Maintenance.
They had originally resisted on the basis they were a smaller housebuilder developing an average of 16 homes a year but eventually signed on 18 September.
The House Building Association of the National Federation of Builders, NFB, was pleased the government took on board their comments that SME housebuilders be excluded. However, they had lobbied that the criteria of less than ten homes on a site should have been fewer than 40.
Abbey Developments Ltd was the last signatory, finally putting their name to the contract on 24 October.
The remediation contract requires all signatories to fix critical fire safety defects in buildings they had a role in refurbishing or developing. They must also reimburse the taxpayer where government funds have already paid for remediation.
The four developers who were found to be outside the scope of the contract were Davidsons, MacTaggart & Mickel, Robertson and Wain Homes.
Developers outside the ‘responsible actors’ scheme’ can’t house build
The government is to create a responsible actors’ scheme to prevent developers who have not signed up to the contract from operating freely in the housing market.
The NFB has criticised the government for failing to chase international developers and for lowering the height of buildings included in remediation from 18 metres, seven storeys, to 11 metres, five storeys.
Brokers Hank Zarihs Associates said development finance lenders were pleased there was now clarity over who are the responsible actors.
Levelling up, housing and communities secretary Michael Gove, said the contract was to address the wrongs of the past and protect ‘innocent leaseholders’ from huge remediation bills.
“Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair,” he said when launching the scheme in January.
“In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much-needed certainty to all concerned.
“There will be nowhere to hide for those who fail to step up to their responsibilities – I will not hesitate to act and they will face significant consequences.”
The government is introducing a building safety levy to all new homes in England regardless of height which is expected to raise £3bn for funding remediation repairs. Affordable homes, community buildings such as refuges and developments of less than ten units will be excluded.
