Two firms have yet to sign the government pledge to protect leasholders from physical and financial loss from high-rise defects.
The Department for Levelling Up, Housing and Communities (DLUHC) launched its developer remediation contract in late January and expected housebuilders to sign it by 13 March 2023.
The document represents an agreement from developers to ensure that buildings that are 11 metres or more meet fire safety standards.
This contract applies to buildings that firms built or refurbished in the last 30 years before 5 April 2022.
Following the Grenfell Tower fire, where a 24-storey residential building caught fire and killed 72 people, the DLUHC wrote a letter in March 2022 to major developers about defects in high-rise buildings.
The letter urged that leaseholders should not have to pay for any costs associated with life-critical fire-safety remediation work.
Instead, firms will front the bill for repair works, and pay specific fees, on a case-by-case basis, to the DLUHC for buildings that do not comply with building and fire safety standards.
49 developers signed the letter, and currently, 49 have signed the contract, legally binding them to the above pledge.
Besides taking responsibility for remediation works, contractors must also inform residents about building works and repairs and reimburse taxpayers for the funding they use for these works.
Developers on the contract
The following firms have signed the contract:
|1. Allison Homes Group Limited|
|2. Ballymore Limited|
|3. Barratt Developments PLC|
|4. Bellway PLC|
|5. Bewley Group Limited|
|6. Bloor Investments Limited|
|7. Broadthorpe Limited (parent company for William Davis Homes)|
|8. Cala Group (Holdings) Limited|
|9. Canary Wharf Group PLC|
|10. C.G. Fry and Son Limited|
|11. Churchill Retirement PLC|
|12. Crest Nicholson Holdings PLC|
|13. Croudace Homes Group Limited|
|14. Dandara Living Holdings Limited|
|15. Emerson Developments (Holdings) Limited (parent company for Jones Homes)|
|16. Fairview Holdings Limited|
|17. Frasers Property (UK) Ltd|
|18. Galliard Group Limited|
|19. Grosvenor Group Limited|
|20. Hill Holdings Limited|
|21. Hopkins Home Group Limited|
|22. Inland Homes PLC|
|23. Jelson Holdings Limited|
|24. Keepmoat Limited|
|25. Land Securities Group PLC|
|26. Lendlease Europe Holdings Limited|
|27. Lifestory Holdings Limited (also covers Anthology Group)|
|28. London Square Development (Holdings) Limited|
|29. McCarthy & Stone Limited|
|30. Miller Homes Limited|
|31. MJ Gleeson PLC|
|32. Morgan Sindall Group PLC (parent company for Lovell and Muse)|
|33. Morris Homes Group Limited|
|34. Persimmon Public Limited Company|
|35. Redrow PLC|
|36. Regal Holdco Limited (parent company for Regal London)|
|37. Rowland Group Limited|
|38. Sorbon Group Limited (parent company for Shanly Homes)|
|39. St Modwen Group Holdings Company Limited|
|40. Story Homes Limited|
|41. Strata Homes Group Limited|
|42. Taylor Wimpey PLC|
|43. Telford Homes Limited|
|44. The Berkeley Group Holdings PLC|
|45. The British Land Company PLC|
|46. Tilia Homes Limited|
|47. Vistry Group PLC|
|48. Viva Midco Limited (parent company for Avant Homes)|
|49. Weston Group PLC|
The DLUHC excluded four firms that had initially signed the contract but had not developed buildings that fit the scope of the agreement. These companies are:
- MacTaggart & Mickel.
- Wain Homes.
The two developers that have not signed the contract are Abbey Developments and Rydon Homes.
Along with the contract, the government has put forward the Responsible Actors Scheme, informed by sections 126-129 of the Building Safety Act 2022.
This scheme will impose planning and building control prohibitions on eligible developers who do not comply with it.
Penalisations can include the secretary of state’s power to block contractors from delivering building work, even if they have planning permission.
Further controls, like blocking building approval, will also be used by the government to uphold the benefits signatories hold above non-signatories.
If you found this article helpful, try Alan Ryder, RSK Group: A CEO’s vision for strategic growth.
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