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Housing secretary to look at prosecuting directors of defunct development companies over fire safety issues
The housing secretary has promised to look at bringing in new measures that would prosecute directors of development companies that are closed down in a bid to avoid building safety charges.
Answering questions yesterday afternoon in parliament, Michael Gove agreed that he would look at the possibility of prosecution in examples where directors had closed down firms to escape penalties.
It came after John Cryer, Labour MP for Leyton and Wanstead, brought up the issue of situations where developers that built dangerous buildings collapsed their companies and just a few days later set up a new organisation to develop more blocks.
When asked by Mr Cryer if he would look at the possibility of allowing for the prosecution of individual directors in “extreme cases” like this, Mr Gove said he “absolutely” would.
As part of the new Building Safety Act, Mr Gove vowed to bring in new additional powers when a company is wound up. These powers would require an associated company to contribute to the liabilities of the organisation being closed down.
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Later in the questioning, Mr Gove was asked by Michael Fabricant, MP for Lichfield, whether there would be protection for developers that met building regulations at the time of construction but had only later been found to be unsafe.
Mr Gove said that house builders had acknowledged that they were a part of the regulatory regime which ensured these buildings were built and said that many developers and house builder organisations had now accepted an “ethical responsibility”.
He added: “These builders have accepted it and because of that, leaseholders who have no responsibility are protected.”
New housing minister Stuart Andrew was later quizzed by Labour MPs regarding the potential of the government extending the Right to Buy policy to housing associations.
This came after The Telegraph reported earlier this month that Number 10 was considering reviving the idea and would look to allow banks to take housing benefit income into account when households are seeking a mortgage.
Mr Andrew said that the government remained committed to the rights of spreading the dream home ownership and was currently reviewing an evaluation looking into the Midlands Voluntary Right to Buy pilot.
The Midlands Voluntary Right to Buy pilot was launched in 2018 and would be open to all housing association tenants in the Midlands region, with a deadline of spring 2020.
A report into the scheme in September last year found that 1,892 homes were sold through the scheme, under the initial estimates of 3,000 homes. While it also found a nationwide scheme would cost the government £14bn over the next 10 years.
Later in the session, Mr Andrew was asked by Birkenhead MP Mick Whitley why the extension was being considered at a time when there was a huge shortage of social housing that was causing misery for so many millions.
In response, Mr Andrew said these statements were completely wrong in his statements, said that the government was bringing in moves to boost affordable housing delivery and said he couldn’t understand the why he’s got a problem with giving people in social housing to become homeowners.
He said: “On the council estate I grew up on, it made a real transformation diff to the social mobility of families that could enjoy that great policy.”
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