HBF response to the Remediation Acceleration Plan

2 Dec, 2024

HBF response to the Remediation Acceleration Plan

The Ministry for Housing, Communities and Local Government has today, Monday 2 December, published the Remediation Acceleration Plan.

The document outlines Government's aim to expedite the removal of fire safety risks in buildings with unsafe cladding and other defects. It includes a new joint plan with developer signatories to the building safety self-remediation pledge, signed in 2023, to accelerate remediation projects where possible. The Remediation Acceleration Plan also includes confirmation of a new tax on all home builders which will take the sector’s contribution to addressing the building safety crisis to £9.4 billion while other sectors have failed to contribute a single penny.

On the joint plan to accelerate remediation projects in self-remediation portfolios, Neil Jefferson, Chief Executive at the Home Builders Federation (HBF) says: “Through voluntary self-remediation commitments and new taxes, the industry has committed £6bn to addressing building safety issues and significant progress is being made. This new plan sets out how the industry will continue to implement remediation works as quickly as is safely practicable. The plan underlines the UK home building industry’s absolute commitment to ensuring all buildings are safe while removing any financial burden from leaseholders, and it is also welcome recognition by government that the role of other actors, such as freeholders, product manufacturers and the government’s own regulator, is critical if we are to remediate buildings even more quickly.

“Without reasonable access to buildings provided by building owners and management companies, it is difficult to agree the scope of works and progress. Developers agreed, 18 months ago to voluntarily remediate buildings they had developed included a government commitment to introduce a dispute resolution system for cases where freeholders or management companies obstruct remediation. We welcome the government re-committing to establishing this overdue process. We also welcome the commitment to ensure the Building Safety Regulator has the capacity to deal with applications in a reasonable timeframe such that it isn’t delaying remediation or new build projects.

“Today’s announcement should mark the start of a new approach to addressing ongoing failures. While home building companies have stepped up to support remediation efforts, other sectors have receded into the background without rebuke from government. We welcome the Deputy Prime Minister’s clear commitment to pursue other sectors and actors who should, by now, have made a proper financial contribution to this national effort.”

The plan also includes further detail on the Building Safety Levy, confirming its £3.4 billion revenue target and providing updates on its timeline, rate calculation and any applicable exemptions.

On the Building Safety Levy, Neil Jefferson, Chief Executive at the Home Builders Federation says: “We fully support the principle that leaseholders should not pay to remediate their buildings. UK housebuilders have today committed to accelerate the remediation of all their own buildings, plus are paying £2bn in additional Corporation Tax to pay for those built by foreign builders, local authorities and other parties. This further levy is punitive, targeting small builders many of whom have never even built apartments and poses a threat to jobs, investment and the delivery of private and affordable housing.

“This new tax was dreamt up by the previous government with political motivations to impose costs on building homes in certain parts of the country. Its need remains unproven and the implications of reducing housing supply even further have been ignored. Taxes may be rising for all businesses but the new costs for home building firms is punitive. It is disappointing that a new government with ambitious housing supply targets has followed its predecessor in arguing that it’s "too hard" to obtain contributions from the very sectors shown to have played the system and caused the building safety crisis, and instead resorted to yet another tax on home building. Its introduction will accelerate the loss of SMEs in the home building industry.”