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Government-funded advice agency tells leaseholders they are ‘likely’ to be liable for cladding removal costs
A government-funded advice service has been telling residents of blocks with Grenfell-style cladding that they are “likely” to be liable for the cost of removing the dangerous material.
The Leasehold Advisory Service (LEASE) has received funding from ministers to help leaseholders facing crippling bills for the removal of aluminium composite material (ACM) cladding – like that used on Grenfell Tower.
But its advice to residents, seen by Inside Housing, tells them that they are likely to be liable to foot the costs, which can be as much as £80,000 each, as long as their freeholder has included a ‘sweeping-up clause’ in the contract.
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The government has insisted that residents should not be required to pay for cladding removal and has called on developers and building owners to “do the right thing” by not passing on costs.
But many have ignored this advice and proceeded to issue increased demands for service charges to cover the multimillion-pound bills for removal work.
LEASE’s advice note to an affected leaseholder said: “Modern leases will include an obligation on the freeholder to comply with statutory requirements, with a right to recover the cost of this from leaseholders.
“Even if the lease does not contain a clause specifically allowing the freeholder to recover the cost of complying with [fire safety rules] the freeholder may be able to rely on other clauses in the lease, for example, a ‘sweeping-up clause’.
“Such clauses do not automatically allow recovery of all such charges and there has been a lot of case law on the wording they need to contain. However it is likely that such expenditure would fall within a comprehensive ‘sweeping-up clause’.”
Last week, housing minister Kit Malthouse told MPs that the government was funding LEASE to ensure that “leaseholders can access independent initial advice”.
“[LEASE] has supported a number of affected leaseholders to understand the terms of their leases and the legal process for challenging a building owner if they attempt to pass costs on,” he said, during a debate on the slow removal of cladding for private buildings.
Alex di Giuseppe, a resident of City Gate in Manchester and a member of the campaign group Manchester Cladiators, added: “The government has repeatedly told us help is available, but so often those words have proved empty. This is another example: the advice does not help us fight the crippling bills we are being threatened with – in fact it effectively encourages many leaseholders to give up.
“The system of leasehold in this country is so badly broken that the law is not on the side of justice. The only way out of the situation we are in is for the government to provide a fund to make our buildings safe and for them to do it now.”
Inside Housing’s End Our Cladding Scandal campaign calls on ministers to provide a public fund to remediate all affected buildings within two years.
Anthony Essien, chief executive of LEASE, said: “LEASE, like the government, wants to see an end to the worries faced by leaseholders about cladding removal and remediation costs. The government has repeatedly said that it expects freeholders, not leaseholders, to bear these costs.
“As an advisory service, we advise on the facts presented to us and the questions posed, and so this means that we have to address potential liability, and consultation processes as in this case, where those questions are posed.”
A spokesperson for the Ministry of Housing, Communities and Local Government said: "LEASE provides independent, free, initial advice to leaseholders to ensure they are aware of their rights and are supported to understand the terms of their leases. Leaseholders can challenge the costs in courts if they are unreasonable."
End Our Cladding Scandal: campaign aims
- Government provides a fund to cover the cost of cladding removal and remedial works on private blocks
- A firm timescale is set out of no more than two years for the work to be carried out
- Residents are reimbursed for the interim fire safety costs incurred, and funding is to be provided for necessary internal fire safety measures identified by a competent fire risk assessor
- Terrie Alafat, chief executive of the Chartered Institute of Housing, added: “It is shocking that out of the 176 private blocks with dangerous cladding that have been identified since Grenfell, only 10 have had the necessary safety work completed. While the government has pledged to fund the replacement of dangerous cladding in the social housing sector, there is no such promise for residents in private flats, which is why we are supporting Inside Housing’s new campaign to change this now.”
Kate Henderson, chief executive of the National Housing Federation said: "It should go without saying that everyone must be safe in their own home.
"But dangerous cladding has been used on tower blocks of all tenures across the country because government fire safety regulations were not fit for purpose. The government must now take financial responsibility for ensuring that each and every home affected, no matter who owns it, is made safe and fast.”
- Jane Duncan, chair of the Expert Advisory Group on Fire Safety at the Royal Institute of British Architects, said: “It is appalling that nearly two years on from the Grenfell Tower tragedy there are still buildings with cladding systems that have been identified as a risk to public safety. This must be rectified with immediate effect and individuals should not face financial hardship because of a past failure in regulation.”
Suzanne Richards, executive member for housing and regeneration at Manchester City Council, said: “I have heard first-hand the stories from residents about how living in a block that is not deemed fire safe can impact on their emotional health and well-being.
“On top of this they have the additional worry of the threat of bills, of up to £80,000 in some cases, landing on their doormat.
“This is unacceptable and government must now step in and fund post-Grenfell remediation works.”
Paula Higgins, chief executive of the HomeOwners Alliance, said: “Cladding has not been removed because freeholders and warranty providers do not want to take responsibility. These homeowners are stuck in a void with no end in sight.
“Government needs to bang heads together and find a solution quickly because these people have been sold a duff product. If no one will take responsibility then government must step in and take action to protect people urgently.”
Andy Dark, assistant general secretary of the Fire Brigades Union, said: “It’s a scandal that residents who are living in tower blocks covered in flammable cladding and where basic fire safety is substandard have no certainty whatsoever that their homes will be made safe.
“Whether publicly or privately owned, the remedial work needs to be completed quickly and the government must take responsibility for getting the job done.”
Martin Boyd, chair of the Leasehold Knowledge Partnership, said: “It has taken far too long for government to take action to remove dangerous cladding from thousands of people’s homes.
“This has always been either the fault of regulations or the failing of the developer but nobody seems willing or able to challenge either group.”
Jim Fitzpatrick, Labour MP for Poplar and Limehouse and co-chair of the All-Party Parliamentary Group on Leasehold and Commonhold Reform, said: “No one should be left in the position of having worked and saved for years to become a property owner, to then learn – through no fault of their own – their home is no longer safe.
“This campaign rightly highlights the consequences of inaction and I urge the government to take responsibility as a matter of urgency.”
John Biggs, mayor of Tower Hamlets said: “I fully support the campaign from Inside Housing calling on the government to fully fund all works needed to remove dangerous cladding from all housing blocks.
“Ministers have rightly said their top priority must be to ensure that people are safe in their own homes, and it is entirely unfair to expect residents to find tens of thousands of pounds to fund this without any help whatsoever.”
Rushanara Ali, Labour MP for Bethnal Green and Bow, said: “It is outrageous that two years after the Grenfell disaster there are still 40,000 leaseholders across the UK who are stuck living in unsafe blocks with dangerous cladding.
“The government must move fast to replace flammable cladding on every building, no matter who owns it, and must do it now.”
- David Walker, bishop of Manchester, said: "In Manchester and beyond, many months after the Grenfell tragedy, too many people are still living in apartments that do not adequately protect them against fire. Many are now faced with five figure bills to make good the deficiencies, and find their homes have become practicably unmortgageable. I applaud the efforts of Manchester Cladiators to bring together residents and others who share their concerns. The challenge is simple, to get developers, freehold owners and government to step up to the plate and accept responsibility for urgently rectifying this scandalous state of affairs."
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