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Leaseholder Remediation (Building Safety) Bill [HL]

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A bill to Make provision for the remediation of building safety defects in residential leasehold properties; to extend protections for qualifying leaseholders from the costs of historical building safety failures; to place enforceable duties on freeholders and building owners to initiate and complete remediation works within prescribed timeframes; to provide leaseholders with rights to seek mandatory remediation orders where responsible parties fail to act; and for connected purposes.

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 — Prohibition on passing remediation costs to leaseholders

1 General prohibition

(1) No remediation cost in respect of a systemic defect in a relevant building may be—
(a) passed on to a protected leaseholder by way of service charge or otherwise,
(b) recovered from a protected leaseholder under any term of a lease, or
(c) otherwise demanded from a protected leaseholder.
(2) The prohibition in subsection (1) applies regardless of—
(a) when the systemic defect arose, including whether it arose as part of the building’s construction or as part of subsequent works on the building, and whether it arose before this Act was passed or later;
(b) when the systemic defect was identified, as long as the defect was identified on or after the day on which this Act was passed;
(c) the terms of any lease or service charge provision;
(d) any agreement entered into by the leaseholder before the coming into force of this Act;
(e) whether or not the responsible person is identified or solvent;
(f) whether or not the building is a relevant building for the purposes of the Building Safety Act 2022 under section 117 (meaning of “relevant building”) of that Act.
(3) Any term of a lease or contract that purports to render a protected leaseholder liable for a remediation cost is void to the extent of that liability.
(4) Nothing in this section prevents the recovery of remediation costs from a responsible person under Part 3.

2 Buildings to which the prohibition applies

(1) For the purposes of this Act, a “relevant building” is any residential building in England or Wales containing one or more leasehold properties.
(2) There is no minimum height or storey threshold for a building to be a relevant building.

3 Systemic defects: meaning and categories

(1) In this Act, “systemic defect” means a defect in a relevant building that—
(a) arises from the design, construction, conversion, extension, alteration, refurbishment, or repair of the building or any part of it (the “relevant works”),
(b) was not caused by, or contributed to by, the leaseholder seeking protection, and
(c) falls within one or more of the categories in subsection (2).
(2) The categories of systemic defect are—
(a) unsafe cladding systems, including aluminium composite material, high-pressure laminate, and other materials that do not meet the standards required by applicable building regulations;
(b) deficient or missing fire stopping, fire breaks, or fire suppression systems;
(c) unsafe balconies, decking, walkways, or external structures forming part of the building envelope;
(d) structural deficiencies, including defective load-bearing elements, foundations, or ground conditions not meeting building regulations;
(e) defects in internal wall cavity fire barriers or compartmentation;
(f) defects in electrical, gas, or other utility installations forming part of the common parts or building fabric;
(g) such other defects as the Secretary of State may by regulations specify.
(3) A defect is a systemic defect for the purposes of this Act if it presents an immediate or potential risk to the safety of persons in or about the building.
(4) It is for the building owner or responsible person to demonstrate that a defect does not fall within the categories listed in subsection (2); no burden of proof falls on the leaseholder.

4 Leaseholders protected by this Act

(1) A leaseholder is a “protected leaseholder” for the purposes of this Act if they hold a lease of a dwelling in a relevant building, unless subsection (2) applies.
(2) A leaseholder is not a protected leaseholder if the leaseholder is, or was at any material time, the developer of the relevant building.
(3) There is no requirement that the lease be a long lease, that the leaseholder be resident, or regarding the number of properties owned by the leaseholder.
(4) The protection under this Act applies to the current holder of a lease and, where the lease is assigned after the systemic defect is identified, to any subsequent holder.

5 Service charge demands: voidness and recovery

(1) Any service charge demand that purports to require a protected leaseholder to contribute to a remediation cost is void.
(2) Where a protected leaseholder has, on or after 14 February 2022, paid a service charge that is void under subsection (1)—
(a) the leaseholder may apply to the First-tier Tribunal (Property Chamber) for an order that the sum be repaid, and
(b) the Tribunal must make such an order unless the building owner satisfies it that the charge did not relate to a remediation cost.
(3) An application under subsection (2) may be made no later than six years from the date of payment.

Part 2 — Liability and recovery

6 Responsible persons: primary liability

(1) For the purposes of this Act, the following persons are “responsible persons” jointly and severally liable for remediation costs in respect of a systemic defect—
(a) the developer of the relevant building;
(b) the building owner at the time the relevant works were carried out;
(c) any contractor who carried out the relevant works that gave rise to the systemic defect;
(d) any manufacturer or supplier of a component or material that constitutes or contributes to the systemic defect.
(2) The current building owner is also responsible for remediation costs unless the building owner demonstrates that—
(a) they had no knowledge of, and could not reasonably have discovered, the systemic defect at the time of acquisition, and
(b) they have taken all reasonable steps to identify and pursue the responsible person or persons as described in subsection (1).
(3) Insolvency of a responsible person does not extinguish liability under this section.

7 Enforcement by the Building Safety Regulator

The Building Safety Regulator has power to—
(a) investigate alleged breaches of section 1;
(b) issue remediation notices to building owners or responsible persons;
(c) apply to the High Court for injunctions restraining breaches of this Act;
(d) prosecute offences under this Act.

Part 3 — Remediation obligations

8 Remediation notices

(1) Where the Building Safety Regulator is satisfied that a systemic defect exists in a relevant building, the Regulator may serve a remediation notice on the responsible person or persons requiring them to—
(a) carry out such works as are specified in the notice, and
(b) provide the Regulator and all affected leaseholders with a remediation programme within 28 days of service of the notice.
(2) A responsible person served with a remediation notice may appeal to the First-tier Tribunal within 28 days of service.
(3) Non-compliance with a remediation notice without reasonable excuse constitutes an offence.

9 Remediation completion certificates

(1) On completion of remediation works carried out in respect of a systemic defect, the responsible person or persons must apply to the Regulator for a remediation completion certificate.
(2) The Building Safety Regulator must issue a remediation completion certificate if satisfied that the systemic defect has been fully remedied to the standard required by applicable building regulations.
(3) The Regulator may refuse to issue a certificate and must give reasons for any refusal.
(4) A leaseholder may apply to the Regulator for a determination that remediation works have been inadequately completed.

10 Remediation acceleration plan

(1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a Remediation Acceleration Plan setting out—
(a) the number of relevant buildings in which systemic defects have been identified;
(b) target dates for the completion of remediation of all such buildings;
(c) how the Government intends to resource and monitor compliance with those targets;
(d) measures to ensure that leaseholders are kept informed of progress.
(2) The Secretary of State must update the Plan annually.

11 Prohibition on new development by non-compliant developers

(1) A developer who is a responsible person in respect of an unremediated systemic defect may not—
(a) commence, continue, or complete any new residential development, or
(b) apply for any planning permission for a new residential development, until the developer has remediated the systemic defect.
(2) A planning authority must not grant planning permission for a new residential development to a developer who is prohibited from applying under subsection (1).
(3) The Secretary of State must maintain and publish a register of developers subject to the prohibition in this section.

Part 4 — Recoupment and licensing

12 Recoupment of costs from manufacturers

(1) Where a developer or responsible person has incurred costs in remedying a systemic defect that is attributable in whole or in part to a defective product, the developer may bring a claim for recoupment of those costs against the manufacturer or supplier of the defective product, irrespective of the country in which the manufacturer or supplier operates.
(2) For the purposes of this section, a product is “defective” if it fails to meet the standards required by applicable building regulations or any relevant British or harmonised European standard in force at the time the product was installed.
(3) A claim under subsection (1) may be brought in the High Court and must be commenced within six years of the date on which the developer incurred the remediation costs to which the claim relates.
(4) In proceedings under this section, the manufacturer or supplier bears the burden of demonstrating that the product met the applicable standards; the developer need only show that the product was installed in connection with the systemic defect.
(5) The court may award the developer the full costs of remediation attributable to the defective product, together with interest and such other relief as it considers just.
(6) The Secretary of State may by regulations make provision about the procedure for claims under this section, including provision for group proceedings where the same defective product has contributed to systemic defects in multiple relevant buildings.

13 Licensing of developers of large residential buildings

(1) No person may act as a developer of a large residential building unless that person holds a developer’s licence issued by the Building Safety Regulator under this section.
(2) For the purposes of this section, a “large residential building” means a residential building that is at least 11 metres in height or has at least five storeys (whichever is lower).
(3) The Regulator must issue a developer’s licence to an applicant who demonstrates to the Regulator’s satisfaction that—
(a) the applicant is not subject to any prohibition under section 11,
(b) no director or senior officer of the applicant has been convicted of an offence under this Act, and
(c) the applicant has in place appropriate arrangements for the identification, reporting, and remediation of building safety defects arising from its developments.
(4) The Regulator may suspend or revoke a developer’s licence if satisfied that—
(a) the licence holder has failed to comply with this Act, or
(b) the licence holder no longer meets the criteria in subsection (3).
(5) A person who acts as a developer of a large residential building without holding a licence under this section commits an offence and is liable on conviction on indictment to a fine.
(6) The Regulator must maintain and publish a register of developers holding, or who have been refused, suspended or had revoked, a licence under this section.
(7) The Secretary of State may by regulations make further provision about the licensing regime under this section, including provision about application procedures, appeals, and fees.

Part 5 — Leaseholder rights and remedies

14 Right to remediation information

(1) A protected leaseholder may serve a notice on the building owner requiring the building owner to disclose within 28 days—
(a) all fire safety and structural assessments of the building,
(b) all correspondence with the Building Safety Regulator about the building,
(c) all warranty and insurance documentation relevant to the building,
(d) the identity of all responsible persons in respect of any systemic defect, and
(e) the remediation programme and timetable for any known systemic defect.
(2) Failure to comply with a notice under subsection (1) without reasonable excuse is an offence.
(3) A leaseholder may apply to the First-tier Tribunal if a building owner fails to comply with a notice.

15 Individual remediation claims

(1) A protected leaseholder who has suffered loss as a result of a systemic defect may bring a claim against the responsible person or persons in the county court or the First-tier Tribunal.
(2) No limitation period begins to run in respect of a claim under this section until the leaseholder knew, or ought reasonably to have known—
(a) that the systemic defect existed, and
(b) the identity of the responsible person or persons.
(3) In proceedings under this section, the court or Tribunal may—
(a) award damages including in respect of associated losses,
(b) order repayment of any remediation cost paid by the leaseholder, and
(c) grant injunctive relief requiring remediation to be carried out.
(4) A protected leaseholder may claim compensation for associated losses from the responsible person or persons.
(5) Associated losses for which compensation is available include (without limitation)—
(a) increased insurance premiums resulting from the systemic defect;
(b) costs of interim protection measures including fire monitoring patrols;
(c) mortgage costs or remortgage costs attributable to the systemic defect;
(d) diminution in the value of the dwelling.

16 Leaseholder remediation ombudsman

(1) The Secretary of State must, within 12 months of the day on which this Act is passed, appoint or designate a Leaseholder Remediation Ombudsman.
(2) The Ombudsman—
(a) must be independent of Government, developers, and building owners,
(b) may investigate complaints from protected leaseholders about unremediated systemic defects or contraventions of this Act, and
(c) may make recommendations and publish reports arising from investigations.
(3) The Ombudsman must report annually to Parliament on the state of building safety remediation in respect of relevant buildings.

17 Remediation work timeframe

(1) This section applies where works are required to remedy a relevant building under this Act.
(2) The responsible person or persons must ensure that the remediation works are completed within the applicable remediation period.
(3) The “applicable remediation period” is—
(a) six months beginning with the date on which the Building Safety Regulator has issued a remediation notice, in relation to interim or emergency safety works;
(b) 24 months beginning with that date, in relation to all other relevant works.

Part 6 — Final provisions

18 Consequential amendments

(1) The Building Safety Act 2022 is amended as follows.
(2) In Schedule 8 (remediation costs under qualifying leases etc)—
(a) for paragraphs 1 to 10 substitute—
1 No service charge is payable under any lease in respect of any remediation cost as defined in the Leaseholder Remediation (Building Safety) Act 2026, subject to the provisions of that Act.
;
(b) omit paragraph 14;
(c) in paragraph 16, sub-paragraph (8), omit the definition of “relevant reserve fund”.
(3) In section 120 (meaning of “relevant defect”), after subsection (5) insert—
(6) For the avoidance of doubt, the Leaseholder Remediation (Building Safety) Act 2026 applies in addition to and not in substitution for the provisions of this Act.

19 Regulations

(1) Any power to make regulations under this Act is exercisable by statutory instrument.
(2) A statutory instrument containing regulations under this Act may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

20 Interpretation

(1) In this Act—
associated loss means any financial loss suffered by a leaseholder in consequence of a systemic defect in a relevant building;
building owner means the person who is the owner of the freehold or superior leasehold estate in a relevant building at the relevant time;
contractor means any person who carried out, or procured the carrying out of, relevant works in connection with a relevant building, whether or not under a contract with the developer;
protected leaseholder has the meaning given by section 4;
relevant works has the meaning given by section 3;
remediation cost means any cost of identifying, investigating, designing, managing or carrying out works to remedy a systemic defect;
Regulator means the Building Safety Regulator established under section 2 of the Building Safety Act 2022;
responsible person has the meaning given by section 6;
service charge has the same meaning as in section 18 of the Landlord and Tenant Act 1985;
systemic defect has the meaning given by section 3.
(2) References in this Act to a dwelling include a flat, maisonette, or any other unit of residential accommodation held on a lease.
(3) For the purposes of this Act, a building is a “residential building” if it contains at least one dwelling.

21 Extent, commencement and short title

(1) This Act extends to England and Wales.
(2) This Act comes into force on the day after the day on which it is passed.
(3) This Act may be cited as the Leaseholder Remediation (Building Safety) Act 2026.