As we go into 2022, the future direction of the planning system in England remains uncertain.

Planning Bill

The planning white paper proposals for a hybrid mix of discretionary decision making and codified zonal planning have proved particularly controversial with concerns about what could be seen as a ‘top down’ approach contributing to the outcome of the Chesham and Amersham by election.

As a consequence, the reforms have been ‘paused’ pending the outcome of a review.

In November 2021, housing minister Christopher Pincher indicated that the government’s final response to the planning white paper will “probably” come forward in the “earlier part of next year.”

Also, in November 2021, at a Department for Levelling Up, Housing and Communities Select Committee meeting, Michael Gove gave an update on current thinking. Gove suggested that the government will not be totally abandoning the white paper proposals and that the 300,000 per year homes target remains, but will be “stretching” because of factors including the labour market and the rising cost of materials.

Gove also expressed enthusiasm for an enhanced role for communities when it comes to new development, in particular proposals for a ‘Street Vote’ system of neighbourhood planning where residents could apply to their local council to hold a referendum on a design code for their street. If supported, planning permission for new homes or extensions which comply with the code would automatically follow.

So, it seems likely that localism will continue to have an important contribution to make in any reformed planning regime.

Levelling Up White Paper

The publication of the government’s much-anticipated levelling up white paper continues to be delayed. Whatever finally emerges, there is a compelling case for enhanced strategic planning powers to direct future investment into regional economic and housing growth.

Biodiversity net gain

The emergence of the planning system at the turn of the twentieth century was a response to the need to address public health issues resulting from rapid and largely unregulated urbanisation.

Looking ahead, planning will have an increasingly important role to play in addressing another consequence of urbanisation, namely habitat loss.

The Environment Act 2021 provides the statutory framework for biodiversity net gain (BNG) with the details to be fleshed out through secondary legislation, policy and guidance. BNG will apply to development for which planning permission is granted under the Town and Country Planning Act 1990 (with certain exceptions) and also for Nationally Significant Infrastructure Projects consented under the Planning Act 2008.

When it comes to planning permission, the mandatory requirement is to achieve at least a 10% biodiversity net gain increase from the pre-development biodiversity value. The mechanism for delivering BNG is through a pre-commencement condition which must be discharged before development can begin. Consultation on the “practical and legal implementation details of the new biodiversity net gain requirement for development” commenced in January 2022 and runs until 4 April 2022.

BNG is due to come into operation in November 2023, but one of the consultation questions is whether, when it comes to minor development, that deadline should be extended to November 2024. In the meantime, planning authorities and developers will continue to get to grips with the new requirements and identify practical approaches to securing BNG.

Source: Shoosmiths

The energy price crisis shows why we need to democratise the sector through solar self-generation

Spiralling UK energy prices and the collapse of several power suppliers recently has illustrated the danger of over-reliance for our energy needs on large companies. And with the rise of distributed renewable power sources, such as roof top solar and battery storage, the time is ripe for a re-think of our energy systems.

The fact that UK energy prices were caught up in geopolitical wrangles between Russia and Europe demonstrates the urgent need for energy self-sufficiency. And news our energy bills are projected to soar 30% next year further illuminates the risks of a volatile global energy market.

The situation is also severely affecting our economy and net zero emissions targets. High gas prices mean industries such as steel, chemical and fertiliser may have to suspend production or switch to dirty fuel. It is increasingly clear the UK will struggle to balance its recent COP26 net zero commitments with rising demand on overburdened energy grids.

Decentralising the market

The fundamental challenge is that the UK’s adoption of decentralised renewable power sources, such as solar, has not yet been matched by a parallel decentralisation of the energy sector. Market competition has failed to empower energy users to achieve best value due to the complexity of constantly choosing and changing tariffs or suppliers. And 6% of UK wind power was wasted or curtailed last year due to low demand, highlighting the inefficiency of a centralised grid which must balance local supply with national demand.

The current gas price crisis shows how a centralised grid also leaves the economy exposed to global market instability and price volatility. Meanwhile, the vulnerability of the economy to power outages from extreme weather events demonstrates how a national grid could become a single point of failure for services reliant on electricity.

Democratising energy

The recent energy market volatility reveals the urgent imperative for the democratisation of power generation to make businesses and communities more self-sufficient. We can only deliver reliable, cheap and clean power if we stop outsourcing all of our energy needs to centralised suppliers. Self-generation would create more dispersed, resilient grids without a single point of failure, and would safeguard businesses and local authorities against future fluctuations in energy prices.

Furthermore, it would dramatically ease the burden on the national grid and give communities a stable power source. Crucially, by easing demand for electricity from central suppliers, decentralisation would make it easier for energy firms to meet net zero commitments.

With the price of solar power dropping and its performance improving due to recent technology, solar self-generation offers an ideal way for businesses to decarbonise and protect themselves against recent market volatility. Employers could even provide free, self-powered solar car charging facilities in offices as an extra perk to encourage returning to the office.

Self-sufficient industries and regions

Organisations that need dependable 24-hour power sources such as e-commerce warehouses, cold storage facilities and farms could use solar to provide reliable low-cost, zero-carbon power off the grid. We recently worked with a local authority of a major UK city to develop recommendations for 375 electric vehicle charging points powered by a fully-integrated solar PV farm, battery storage system, vertical green wall and an integrated hydroponics facility in a car park. It offers a microcosm of how the UK could create self-sufficient, off-the-grid transport networks, businesses and public infrastructure.

Larger organisations could also supplement solar with additional power sources such as hydrogen fuelled combined heat and power (CHP) to provide extra generating capacity. For example, we’ve advised a large chemicals company on how they could harness crops from surrounding farmland as biofuel to generate their own power through a CHP plant. A fusion of different power sources could also be combined to extend devolved power across cities and regions, helping entire areas live off the grid.

Our current collaboration with SMEs, energy companies and a UK city council will see a smart cross-energy vector system integrating heat, power and transport to deliver decentralised power at city-wide scale. A smaller-scale version has already helped create a fully self-powered university campus and achieve 32% energy savings.

Re-imagining energy supply

These projects offer an example of how devolving power to businesses and local authorities across the country could help create more clean, stable and self-sufficient power. Hospitals often rely on power from backup diesel generators for emergencies for instance, but could instead use behind-the-metre renewable sources to provide clean on-site backup power.

Similarly, imagine logistics fleets using locally-produced hydrogen to fuel future hydrogen truck fleets. Surplus self-generated power could also be stored and sold back to the central grid by businesses and councils, helping balance national supply and demand from local sources. Ultimately, this could generate a national circular economy of energy where surplus power is stored and circulated to other industries so that waste is continuously converted into productivity. It would also produce peer-to-peer energy markets to challenge the monopoly power of major energy firms.

A bottom-up system of energy generation and trading would mirror the old grassroots financial system of locally-run credit unions and co-operatives. We could see smart storage and vehicle-to-grid technologies empowering ordinary people to product and profit from power, just as blockchain democratised financial services.

The key to escaping the cycle of energy price rises and missed climate targets is to restore control of our own power supplies and create sustainable low-cost, local power for local communities. Democratising energy will enable communities to manage their own resources and environmental footprint by literally and figuratively returning power to the people.

At Current Pace, the Government Will Take Almost 400 Years to Rectify Cladding Scandal

New research has revealed that at its current pace, the government will take almost 400 years to rectify the nation’s homes that are currently a danger due to unsafe cladding.

In the wake of the Grenfell tragedy in June 2017, the spotlight has been firmly fixed on the issue of unsafe cladding and the government’s monumental failure in addressing it.

Hopes were raised in July 2020, when the government announced a £5m building safety fund to help tackle the issue.

However, those to have applied say they’ve faced a bureaucratic nightmare and of the 3,191 buildings with non-composite material cladding to have been registered with the fund, just 3% have seen the work started and less than 1% (12) have seen it completed.

It’s been approximately 18 months since the fund was set up and, with just 12 properties rectified, the government are working at a rate of fixing eight properties per year.

With 3,179 left to rectify, they should be on course to solve the national cladding scandal in the next 397 years.

Last week, Michael Gove announced yet another initiative to address the issue, pledging a £4bn fund for homes affected between 11 to 18m, with the nation’s big housebuilders set to foot the bill.

An announcement that has been met with scepticism.

James Forrester, Managing Director of StripeHomes, the company that conducted the research, commented:

“We currently have thousands of homeowners living in fear due to the unsafe cladding on their buildings, some of whom are expected to pay considerable sums to have it rectified themselves, while others have no other choice but to sit tight until the government decides to pull its finger out.

The chances are they will be waiting a while as in the 18 months since the building safety fund was announced, the government’s efforts have been woeful and so the further pledge of £4bn announced last week will bring little reassurance.

As if that wasn’t bad enough, those without an EWS1 are effectively trapped in their homes unable to sell due to mortgage companies rendering their homes worthless.

It’s a dire situation and we need action, not PR spin and promises.

It’s also highly unlikely that the nation’s biggest housebuilders will simply roll over without a fight and so the only ones likely to benefit from Gove’s latest announcement are the legal teams representing the parties in question.”

 

Source: Property Notify

The Building Safety Bill contains a series of reforms to building safety and is the main legislative response to the Grenfell Tower fire in 2017.

The Government established the Building Safety Programme and the Independent Review of Building Regulations and Fire Safety (the Hackitt Report) in response to the fire. Due to the Building Safety Programme, remediation work on cladding and other fire safety defects has been required across thousands of high-rise residential buildings in England. The Independent Review concluded a new system of regulation was required for the design, construction and occupation of high-rise residential buildings.

This Bill would make changes to building regulation and management and takes forward the Government’s plans to implement the review, as well as other building-related measures.

What progress has the Bill made?

A draft Bill was published in July 2020. The Housing, Communities and Local Government Committee scrutinised its contents and reported in November 2020. The Government response to the Committee was published alongside the Bill on 5 July 2020. The Library briefing prepared for second reading gives an overview of the Bill: Building Safety Bill.

Second reading took place on 21 July 2022. The Bill’s committee stage took place over 16 meetings starting on 9 September and concluding on 26 October 2021. Remaining stages will take place in the Commons on Wednesday 19 January. It will then move to the House of Lords.

When the Bill was introduced the Government said it expected the parliamentary process to take at least nine months.

Changes made at committee stage

Government amendments 6-8, 17, 18, 22-38, 41-56, 19-21 were agreed at committee stage. These were mostly technical provisions, and many related to the extension of specific provisions to Wales. One new Government clause was added to the Bill which would prevent higher risk buildings being occupied in phases when there was no completion certificate. This was needed due to the way the three ‘gateways’ during construction for new higher risk buildings, and introduced by the Bill, would work.

Amendments and new clauses were tabled by the Opposition and other members of the committee on a range of issues, but any debated were withdrawn at the end of the debate. Opposition amendment 16, which would have required the Housing Ombudsman to consult tenants as part of complaints made against social housing providers, went to a vote and was rejected.

A revised approach to funding remediation on 11-18 metre buildings

On 10 January 2022, the Secretary of State for Levelling Up, Housing and Communities, Michael Gove, announced a revised approach to dealing with building safety for residential buildings between 11 and 18 metres. This included:

  • Scrapping the proposed loan scheme for cladding remediation for 11 to18 metre residential buildings and instead funding cladding remediation work for these buildings from developer contributions.
  • Promising further amendments to the Building Safety Bill to protect leaseholders from costs, forfeiture and eviction due to historic fire safety costs.
  • Amendments to the Building Safety Bill to retrospectively extend the legal right of building owners and leaseholders to seek compensation from their building’s developer for safety defects for a period of up to 30 years. The Bill currently provides for an extension of 15 years.

As part of the changes, the Secretary of State wrote to developers requesting the industry make financial contributions to support the revised plan, fund work on buildings they have played a part in developing and asked for relevant information they hold on buildings over 11 metres to be shared.

 

LGA FEARS ‘TWO TIER’ SAFETY SYSTEM click to read

Steel industry buoyant despite material price rises and shortages

Steel prices doubled in eight months last year but despite the potential dent to client confidence from price rises of that scale, steelwork contractors report strong order books into the third quarter of 2022.

The annual steel industry-commissioned Market Shares survey, which canvasses the views of more than 600 architects and designers, consistently points that steel is still the preferred solution over concrete for key sectors of the framing market. In the increasingly important industrial buildings sector, steel has over 90% market share and in multi-storey office buildings over 70%.

Steelwork contractors felt steel price rises attracted more headlines than it should have, possibly because it is such a high-profile strategic material and the steel manufacturing industry employs thousands in its supply chain.

“The steel manufacturing industry is almost constantly portrayed in the national press as in crisis of one sort or another, suffering from existential threats arising from issues like rising raw materials prices and higher energy prices than those faced by overseas rivals,” said British Constructional Steelwork Association (BCSA) chief executive David Moore. “It was very noticeable last year when prices rose, but in fact steel prices have only risen in line with other materials.

“Steel prices are as stable as those of any other construction material and its supply chain is performing strongly. Availability of steel sections has not been a problem but the message seems to be getting through that leaving ordering of steel to the last minute is not a commercially sensible business approach. Early engagement means that steel manufacturers can plan their production activities to ensure the grades and sizes of steel sections required are available when needed. Last minute ordering is not how the market operates any longer, procurement has become more strategic than that.”

Steelwork contractors also report that there was a collaborative and positive response to the price rises from construction’s clients like property developers and the healthcare and education sectors with a general understanding of why the price rises were needed. Rising prices around the world of raw materials like iron ore were a main driver, but British Steel said its price rises were essential after being at an unsustainably low level for several years, and the return to profit means that the steel manufacturing industry will be able to invest in the transition to net zero carbon as well as maintaining the large-scale investment that steel plants demand.

Government support to help create a “level playing field” in regard to energy prices in particular is still needed though. Moore said: “The UK needs home-based steel manufacturing for strategic reasons and government should heed industry calls for support. If there is no UK-based steel manufacturing, prices will be even higher. UK section sizes and specifications are less commonly produced elsewhere, so supply could be a problem if we relied entirely on imports.

“Steelwork contractors look at projects differently now from a procurement point of view and have convinced clients that it is important to focus on the quality and quantities of steel that will be needed and act to pin prices down as soon as possible. This helps steel manufacturers plan production.”

Steelwork contractors have long argued that early engagement creates a wide range of benefits, including being able to design up to 20% of tonnage out of structures. Design efficiency is a key lever in the drive to net-zero carbon set out in the recently published BCSA net zero roadmap, which spells out the steel construction sector’s commitment to achieving net zero carbon by 2050. Steel manufacturers like BCSA industry members Tata Steel and British Steel are also making their own efforts to support the global push to combat climate change. Net zero will create rising demand for refurbishment, repurposing, extensions, and remodelling of existing buildings. According to Moore, these are all easily achieved with steel-framed buildings, as recent large projects in London demonstrate.

Price is always an issue, but no more so than with other materials like concrete and timber, added Moore. Some changes in the way clients source projects were coming anyway. Projects are becoming bigger and clients demand they are delivered faster to catch commercial opportunities. More is at stake, so clients are more willing to adopt the risk minimising approach that early engagement implies.

Demand growth for industrial buildings, or sheds, is coming from logistics, data centres and energy from waste projects and these large commercial projects are still going ahead, as recent contract awards show. “The prospects for steel remain encouraging,” said Moore. “Constructional steelwork represents a modern method of construction, where offsite manufacture and just in time delivery to site have for long been standard practice.”

By Nick Barrett

Source: New Civil Engineer

Councils urge MPs to prevent Building Safety Bill creating ‘two-tier’ safety system

The Local Government Association is urging MPs to back amendments to the Building Safety Bill – tabled by LGA Vice President Daisy Cooper MP – to protect the future residents of new buildings under 18 metres not covered by the scope of the Bill,

The Building Safety Bill will establish a Building Safety Regulator (BSR) within the Health and Safety Executive (HSE) to implement a new, more stringent, regulatory regime for higher-risk buildings. These are defined as residential buildings, care homes and hospitals over 18m.

However, the Bill leaves residential buildings under 18 meters out of scope. This will create a two-tier system where buildings below 18 metres will face less rigorous safety regulations than buildings over 18 metres.

The current scope of Building Safety Bill would not have covered the Cube student residence in Bolton. In December 2019, the flammable cladding at the Cube rendered the only staircase untenable within half an hour and a resident was rescued from the top floor of the building moments before the flat from which she was rescued was destroyed by fire. This suggests that had the fire taken place later in the evening when more residents were asleep, it would probably have resulted in fatalities.

In addition, we have already seen serious fires in Barking and Worcester Park, among others, which have demonstrated the very real danger that the failings of modern construction pose to residents in buildings under 18m.

Cllr David Renard, housing spokesperson at the Local Government Association, said:

“The Building Safety Bill, along with the Fire Safety Act, are important pieces of legislation will strengthen the building safety system in the UK.

“The LGA has long-warned about the need for building safety reforms to avoid creating a two-tier building safety system which leaves buildings under 18 metres vulnerable and unprotected. The height of a building does not define the risk to its safety, as has been proven by a number of dangerous and potentially fatal fires in buildings below 18 metres.

“We urge MPs to back these amendments to ensure the extension of the Bill’s protection to those buildings under 18m that require it on the basis of risk is hardwired into the legislation.”

 

SEE A SUMMARY OF THE BILL HERE

For the second time in a week, a deadly fire has ripped through a low-income apartment building in an American city.

Last Wednesday morning, a fire broke out in the top unit of a duplex row house owned by the Philadelphia Housing Authority in the city’s Fairmount neighborhood. Twelve people were killed, nine of them children.

On Sunday morning, a faulty space heater ignited a blaze on the third floor of a 19-story Section 8 rental building in the Bronx. As of Monday afternoon, at least 17 people had died, and 15 more were in critical condition in local hospitals.

At first glance, each of these tragedies appears to be indicative of the culture of neglect that characterizes low-income housing in the United States. In Philadelphia, the three-story building was home to 26 people—representative of the dangerous overcrowding that plagues many urban U.S. ZIP codes where affordable housing is nearly impossible to find. It also may have had malfunctioning smoke alarms.

In New York, the question is how the smoke from a third-floor apartment fire managed to fill the entire building within minutes. Fire Commissioner Daniel Nigro said the apartment where the fire started had a door that didn’t close on its own, allowing smoke to quickly fill the building’s corridors and stairways and injure people on every floor. (The ownership group said the building did have self-closing doors, which are required by the city fire code.)

The Philadelphia row house and the Bronx tower are linked by history as well. Today, we might be more likely to associate the row house with high-quality lodging and the brick tower with maligned housing projects. But when Twin Parks North West, Site 4, was built in the Bronx in 1973, it was supposed to be a high-design antidote to two kinds of decrepit “slum” typologies: not just crumbling tenements and row houses, but also the troubled modernist tower blocks that replaced them. To see Twin Parks North West transformed into a site of tragedy and a symbol of disrepair is a bitter irony for a building once held up as the cutting edge of public design.

At the time, the Bronx’s East Tremont neighborhood was suffering from the consequences of highway construction, disinvestment, white flight, and a dwindling, substandard housing stock. In a Canadian documentary about the Twin Parks project, one pastor said the neighborhood was losing 1,000 housing units a year to fire and abandonment. “Back there is the kind of house we wanted to tear down,” Paul Matson, the longtime minister of Tremont Methodist Church, told the filmmakers, gesturing to a typical row house. “It’s wood frame, it may last two years, it may burn down tomorrow.”

To see Twin Parks North West transformed into a site of tragedy and a symbol of disrepair is a bitter irony for a building once held up as the cutting edge of public design.

The Twin Parks project—an archipelago of 1,900 income-restricted units on sites scattered around the neighborhood, named for nearby Bronx and Crotona parks—was a collaboration between Mayor John Lindsay’s Public Design Committee and an assembly of neighborhood faith groups. It was funded and built by New York’s Urban Development Corporation, headed by the crusading planner Ed Logue. Its architects included Skidmore, Owings & Merrill, Richard Meier, The Architects Collaborative, and Giovanni Pasanella, an unusually talented group for an affordable housing project.

Twin Parks was a closely watched experiment in getting inner-city housing right. Apartments, facades, and public spaces were built according to surveys of resident preferences. The buildings included three day care centers and three schools, family-size two-story apartments, programs like a tenant orientation course, and countless touches of thoughtful design. At the Twin Parks North West, Site 4, tower on 181st Street, for example, a ground-floor laundry room connected to an enclosed patio, playground, and herb garden labeled the “mother’s watch.” For two weeks in 1972, Logue, Meier, and several other UDC officials moved into one of the buildings themselves.

In addition to the documentary program, this curious exercise in neighborhood planning warranted a three-part feature in Architectural Forum, which noted how the buildings had been explicitly designed to avoid public housing debacles like the notorious Pruitt-Igoe buildings in St. Louis, which would meet the wrecking ball before Twin Parks was complete. “The theme of anti-project architecture permeated the entire planning process, shared both by the community and the architect-planners,” the magazine wrote. “All schemes emphasized the need for new buildings to fit into the existing physical fabric [and] remedied past deficiencies such as the appalling lack of convenient and usable open space.” Twin Parks North West, Site 4, got a full-page spread, complete with photographs, sketches, and floor plans.

Whether all the open space was truly welcome for crime-wary residents has been a topic of debate ever since. The Canadian documentary shows kids playing double Dutch and dancing to a merengue band in the courtyard. But at least one critic, Kenneth Frampton, concluded that the most successful buildings were those designed by Prentice & Chan, Olhausen, in part because they had embraced a more restricted, fortified concept of public space. (The architect Oscar Newman had popularized the idea in his book Defensible Space the year before, based partly on a study of New York public housing projects.*) Afterward, the Cornell sociologist Franklin Becker surveyed all the residents about the results and found that the best responses for an urban project came from Twin Parks North West, Site 4—by Prentice & Chan, Olhausen—in part because they had a single, guarded entrance lobby. (Two means of egress via a scissor stair, though.)

For a 2013 story in Urban Omnibus, Juliette Spertus and Susanne Schindler brought several Prentice & Chan alumni back to Twin Parks North West for a bittersweet survey of their work on its 40th birthday. As you might expect, many of the finer touches had been worn down or demolished, including the “mother’s watch” patio. The superintendent considered the vaunted “defensible” spaces that still existed to be “dead zones.” On the other hand, the group met a resident of three decades with the tower’s facade tattooed on his forearm. “I love this building,” he told them.

At the time, Spertus and Schindler used the reunion tour to muse on the paradox of “successful” architecture. “By which criteria, and in terms of which timeframe do you judge the ‘success’ of architecture in housing?” they wrote. “How can we advocate for better design if we can’t relate it to non-design issues such as management, maintenance, and use, in both the short and long term?” The practice of appraising buildings just after they’ve opened—or worse, just before!—is blind to the particular way that time and use reveal a place’s true nature. But it works both ways: Sometimes condemnation is unfairly put on design concepts compromised by poor upkeep and disinvestment.

In short, for many years Twin Parks North West remained a symbol of success—a symbol of New York’s commitment to rebuilding the Bronx at its lowest point, of sticking to project-based affordable housing as Washington gave up, of thoughtful design in public work. And of getting people out of the borough’s fire-trap, overcrowded row houses. In time we will learn more about what allowed a malfunctioning appliance to turn into the city’s deadliest fire in three decades. For now we can think of Twin Parks North West as a symbol of something else: the vulnerability of a building, however celebrated by architects and occupants, to a door that didn’t close right when it mattered most.

 

Source: Slate News and Politics

The Constructing Excellence Awards are back for 2022 to recognise the very best of the construction and built environment across the South West.

 

Open to all organisations and project teams, they celebrate those involved in delivering building and civil engineering projects in the region.

 

The awards are a clear demonstration of the core strength of construction in the South West and highlight the industry professionals’ commitment to delivering buildings, housing, infrastructure and facilities of all kinds in a collaborative and sustainable manner.

 

Andrew Carpenter, CEO of Constructing Excellence South West, said: “Being recognised by your peers for excellence in construction brings enormous benefits to your business. It not only helps to attract new clients but it also cements existing relationships and raises staff morale.

 

“We welcome entries from developers, clients, contractors, engineers, consultants, and members of the design team. If the project contributes to the South West built environment, we want to celebrate it as an example of best practice.

 

“This year is key for the construction sector as it navigates many challenges. Working collaboratively across the industry will be essential to tackle the issues, like building safety and the net-zero targets, head-on, and our awards are a great way to showcase how our region is already paving the way for the future.”

 

Companies who are interested in applying have until Friday 11 March 2022. To find out more information about the 15 categories and how to enter PLEASE CLICK HERE:

 

British Safety Council responds to Government’s cladding announcement

Commenting on an announcement today (10 January) by Michael Gove, Secretary of State for Levelling Up, Communities and Housing, in which he set out plans to raise £4bn to replace combustible cladding on buildings of heights between 11m and 18m, Mike Robinson, Chief Executive of British Safety Council said:

“Today’s announcement is a positive step forward as it will hopefully take the burden off many thousands of leaseholders facing large costs to replace unsafe cladding. It is also of course right that the construction industry continues to play its part in helping to resolve these issues.

“The Government must also shoulder its own responsibilities, having overseen the regulatory framework that led to Grenfell and other similar tragedies. We need to see all sides taking a positive and constructive approach to discussions between now and March.

“The sad truth is the funds announced today may also not go far enough. They will not pay leaseholders’ costs for other issues beyond cladding that aren’t included in these plans, such as balconies on a building that have been built with flammable material.

“The Grenfell fire showed how broad the building safety crisis is, spanning not just construction but design, manufacturing, fire safety and building management. However, there is no excuse for it having taken over four and half years to get to this point and these other issues also need to be approached with urgency.”

 

LGA Responds to Gove’s Cladding Crisis Announcement

 

Responding to warnings by government that developers must pay to fix cladding crisis, Cllr David Renard, housing spokesperson for the Local Government Association, which represents 350 councils across England and Wales, said:

“No leaseholder should have to pay the costs of making their homes safe and the Secretary of State’s threat to use the legal system to ensure developers meet their responsibilities to leaseholders is a positive step in the right direction. However, leaseholders are not the only innocent victims of the construction industry’s failure to build safe homes.

“The construction industry must also be made to fix the fire safety defects it has built into blocks owned by councils and housing associations. Unless the Government forces the industry to act – or provides funding – we are concerned that the costs of fixing social housing blocks will fall on council housing revenue accounts and housing associations.

“This will reduce the funding available to meet the Government’s ambitions for improvements to social housing, net zero and the provision of new social housing, leaving tenants and those on the waiting list to suffer the consequences of decades of industry failure and poor regulation. Like leaseholders, council tenants and those on the waiting list are innocent victims and the Government needs to help them too.”

 

 

 

House builders lost more than £1 billion in value today after the government gave the industry just a few weeks to come up with fully costed plans fix the £4 billion cladding scandal.

Michael Gove, Secretary of State for Levelling Up, Housing and Communities, today wrote to industry chiefs telling them to draw up plans to fix issues with building cladding by early March.

Builders are being asked to contribute £4 billion to a fund that will repair unsafe buildings between 11 and 18 metres tall. Developers must also fund and fix any issues with buildings over 11 metres that they have worked on and provide the government with data on developments done over the past three decades. Gove threatened legal action if companies fail to comply.

Shares in house builders slumped. Persimmon was the biggest faller on the FTSE 100, down 3.1%, while Redrow dropped 3.3% on the FTSE 250. Other major developers registered similarly sharp falls and £1.3 billion was wiped off the sector’s market value in early trade.

UBS analyst Gregor Kuglitsch said the cost of the new measures was “significant”.


LGA RESPONDS TO ANNOUNCEMENT


“The current market cap of the sector is around £40bn so a £4bn cost would equate to ~10% on a pre-tax basis,” he and his team wrote in a note to clients. “This assumes the listed sector would bear the brunt of the cost, although there are likely some private companies that will also need to pay.”

Gove’s announcement comes on top of the building safety levy and residential property developer tax. Both were announced last year to help fund the government’s £5 billion commitment to tackling the problem.

The new measures are an about turn on the government’s previous position, which had seen the leaseholders shoulder the burden of fixing cladding issues on tall buildings.

Stewart Baseley, executive chairman of the Home Builders Federation said: “The largest UK based house builders, who only built a minority of the affected buildings, have already spent or committed approaching £1bn to remediate affected buildings and the recently announced Property Developers Tax will raise billions more.

“We will engage directly with Government but any further solutions must be proportionate, and involve those who actually built affected buildings and specified, certificated and provided the defective materials on them.”

Rico Wojtulewicz, head of housing and planning policy at the National Federation of Builders (NFB), said: “The Government has already introduced one industry specific cladding tax, and now another is on its way. This piecemeal approach is confusing, unnecessarily complex and will likely impact the number of homes built.

“It’s also worth pointing out that the developer paying for remediation will almost certainly not have been responsible for the cladding put on the property – most of which was retrofitted long after construction and has nothing to do with the developer.

“Another construction industry related tax is neither fair, nor proportionate and industry will be dismayed at this scatter gun approach to fixing an issue that several governments set the regulation for.

“Perhaps all MPs will sacrifice a percentage of their salary and pensions to help fund remediation, see as the real responsibility lies with legislators?”

A spokesperson for Taylor Wimpey said it has “acted on this already for its customers” and “made sure Taylor Wimpey customers do not have to pay for these improvements.”

“We trust that we will not be penalised for our early action to do the right thing,” the company said. “There are many organisations involved in the issue of fire safety, including large business in our supply chain and indeed Government themselves, and so the proposed response must recognise this.”

Gove said: “Some developers have already done the right thing and funded remedial works and I commend them for those actions. But too many others have failed to live up to their responsibilities.”

Only 12 tower blocks from the many requiring removal of the unsafe cladding have seen this remediation financed by the £5 billion fund released from the taxpayer and annoucned by the Chancellor in February 21.

Source: Evening Standard