14 March 2023
The Department for Levelling Up, Housing and Communities (DLUHC) is currently consulting on alternative cost recovery for remediation works.
The Building Safety Act introduced regulations to protect leaseholders from paying towards the cost of building safety and remediation works. The protections mean that where a building owner or landlord is, or is connected, to the developer responsible for a relevant defect, they cannot legally pass on the costs associated with remediating the defect to any of their leaseholders.
However, should certain conditions be met, where a building owner or landlord is not connected to the developer, some remediation costs can be passed to leaseholders.
For the costs that can be passed to leaseholders, the government will create a new duty that will require landlords to take reasonable steps to ensure that all alternative avenues of cost recovery have been explored before passing remediation costs on to leaseholders.
As part of this consultation, DLUHC is seeking views on:
This briefing summarises the key points of the consultation.
The NHF will be submitting a sector response to this consultation. To help shape our response and share your views, please get in touch with Annie Owens, Policy Leader by 24 March 2023.
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