Glimmer of hope for landlords owning cladding leaseholds

Glimmer of hope for landlords owning cladding leaseholds


Todays other news
This is thanks to the Renters Rights Act...
A law firm has seen a programme of activity planned...
Landlords hoping for capital appreciation may be disappointed...
A buy to let lender has analysed its mortgage applications...


Landlords directly affected by the cladding scandal – because they own units in low and medium-rise blocks – have some good news at last. 

Advertisement

Since the Grenfell Tower tragedy there has been widespread confusion over the need for the now-infamous EWS1 cladding forms which indicate “no systemic risk of fire in these blocks of flats”.

Advertisement

As a result, thousands of landlords have been unable to sell or remortgage their properties – and in some cases have had difficulties even letting them – because of growing concern about the safety of many blocks. 

Advertisement

But now Housing Secretary Robert Jenrick has announced that leaseholders in blocks of flats with cladding should be supported to buy, sell or re-mortgage their homes after a deal with major lenders to pave the way to ending the need for EWS1 forms. 

It comes following expert advice that the forms should no longer be needed on buildings below 18 metres.

Advertisement

A group of major high street lenders has committed to review their practices following the new advice; HSBC UK, Barclays, Lloyds Banking Group and others have said that the expert report and government statement paves the way for EWS1 forms to no longer be required for buildings below 18 metres and will help further unlock the housing market.

The government now wants other lenders “to demonstrate leadership by working rapidly to update guidance and policies in line with the expert advice.”

Advertisement

A statement from the Ministry of Housing, Communities and Local Government says that risk to life in blocks of flats remains very low. 

The number of fires in homes in England has been on a general downward trend for many years, reaching an all-time low last year when 91 per cent were in houses, bungalows, converted or low rise flats, while only nine per cent were in blocks of flats of four storeys or more.

 

Jenrick himself says: “[This] announcement is a significant step forward for leaseholders in medium and lower-rise buildings who have faced difficulty in selling, anxiety at the potential cost of remediation and concern at the safety of their homes.

“While we are strengthening the overall regulatory system, leaseholders cannot remain stuck in homes they cannot sell because of excessive industry caution, nor should they feel that they are living in homes that are unsafe, when the evidence demonstrates otherwise.

“That’s why I commissioned an expert group to further examine the issue, and have already agreed with many major lenders that lower-rise buildings will no longer need an EWS1 form, and the presumption should be that these homes can be bought and sold as normal.

“We hope that this intervention will help restore balance to the market and provide reassurance for existing and aspiring homeowners alike. The government has made its position very clear and I urge the rest of the market to show leadership and endorse this propionate, evidence based, safety approach.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Landlord Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Magnifying glass over eviction notice sign for landlords and tenants.
This is thanks to the Renters Rights Act...
Colorful sticky notes with house icons and rental terms on a wooden surface.
Person cutting red tape with scissors, symbolising property restrictions.
Keychain with house charm and 'For Rent' blocks on wooden surface.
Second phase of rental reform set to dominate landlord forum...
The figures come from lenders' trade body, UK Finance...
Tenants are increasingly discerning, claims the agent...
A prominent agent says he’s expecting a “significant shift” in...
Recommended for you
Latest Features
Louisa Sedgwick is Managing Director of Mortgages at Paragon Bank...
Rent challenges may encourage annual reviews and put pressure on...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.