4. Statement by the Minister for Climate Change: Building Safety

Part of the debate – in the Senedd at 3:29 pm on 28 June 2022.

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Photo of Julie James Julie James Labour 3:29, 28 June 2022

Diolch, Dirprwy Lywydd. Diolch, Dirprwy Lywydd, for the opportunity to update Members on our action to tackle what is a complex and sensitive issue. Members will know that I am committed to addressing building safety in Wales and continue to take forward our building remediation programme, alongside a significant programme of reform, to establish a fit-for-purpose building safety regime in Wales.

At the heart of our approach to remediation is the principle that developers should contribute towards the costs of fixing these problems, and leaseholders should not be made to pay for fire safety issues that are not of their own making. Since the opening of the Welsh building safety fund we have received 258 expressions of interest from responsible persons who know or suspect that their building may have fire safety defects. 

We have completed digital surveys for all of these and have identified 161 buildings that require further, intrusive survey work. This will involve our surveyors undertaking a detailed investigation of both internal and external fire safety issues, such as cladding and compartmentation. The work has begun and will continue over the summer.

While we continue to receive expressions of interest, I understand there are still some responsible persons who have not engaged and are still passing on costs to leaseholders. This is extremely disappointing, and I urge any leaseholder in this situation, who know or suspect that their building is affected by fire safety issues, to contact my officials, who can support them in taking forward an expression of interest.

I have spoken to many leaseholders and continue to meet residents in buildings affected by fire safety issues across Wales. I am very well aware of the impact of increased insurance costs, higher service charges, and the difficulties people are experiencing in remortgaging or selling their homes. I have written to all managing agents in Wales to make clear that I have set aside £375 million to cover the costs of remediating buildings, and I've repeatedly stated publicly that leaseholders should not foot the bill for fire safety defects.

I am also taking action on developers.  I was very disappointed that the UK Government chose to pursue its building safety pledges on an England-only basis, despite a number of meetings in which the devolved Governments made it clear that a UK-wide approach was the best for leaseholders. I am pleased to say, however, that we have moved the UK Government on this point and have also moved swiftly to implement a comparable approach here in Wales.

I have written to developers and invited them to meet with me. I am pleased to say that a number of developers have already agreed to meet and discuss their plans. I've also published a list of developers who have chosen not to engage, and I am exploring what further action this Government might take with developers who continue not to engage.

I do understand, though, for some residents in affected buildings, these changes will just not come soon enough. To support those in or facing the most urgent financial hardship, the leaseholder support scheme opened yesterday for applications. This new scheme will provide tailored, independent advice to leaseholders in affected homes. The package of support is targeted at leaseholders who are owner-occupiers, and those who have become displaced residents. However, we will be monitoring applications and reviewing eligibility criteria to ensure those who need support the most have access to the scheme.

All leaseholders who are eligible for this scheme will receive advice from an independent financial adviser, with the costs fully covered by the Welsh Government. The advice will support them in making the right choice for them, recognising that the circumstances will be different for each household. If the sale of their property is the right route, the Welsh Government will enable them to sell their property at a fair market value. Full guidance on the scheme, including the eligibility criteria, is now available on the Welsh Government website.

I would also like to take this opportunity to thank the external partners and sector experts who have assisted us in developing this scheme at pace. Their support and hard work have been critical to establishing the right qualifying criteria and the support processes.

Alongside this programme of support and remediation of buildings, we continue to take forward work on the cultural changes and legislative reforms needed to prevent this situation arising again. We have worked with the UK Government to ensure relevant elements of the Building Safety Act 2022 will apply here in Wales. The Act will allow us to reform the building control system, to help prevent a recurrence of a tragedy such as Grenfell. The Act also introduces a number of important provisions aimed at improving the rights of home buyers, including extending rights of action and the creation of the new homes ombudsman.

I want to ensure our building safety reforms are practical and accessible for people.  We will continue to undertake a series of measures to engage directly with leaseholders and tenants to gain a broad range of residents' views. This work will help to further strengthen the resident's voice so that it remains at the heart of our policy development.

Unfortunately, there are no quick or easy fixes, and I cannot compromise on achieving the right, sustainable solution. Anything else leaves the door open to further issues arising. It is important that these matters are resolved once and for all. We must do this properly to get it right now and for the future. 

I welcome the continued commitment from Plaid Cymru to this agenda and look forward to working in partnership with their designated Member on our collective aim, to ensure our buildings are as safe as possible from the outset. Diolch.