A landlords complete guide to the Cladding and Building Safety Act 2022
In recent times, the implementation of the Building Safety Act 2022 and the Fire Safety Regulations 2022 has marked a significant milestone, signifying "the most substantial advancements in building safety in a generation" according to the Department for Levelling Up, Housing and Communities.
In 2017, a devastating fire claimed the lives of 72 individuals in Grenfell Tower, located in West London. This tragic event highlighted a widespread failure in building regulations, leading to significant reforms in safety protocols for multi-occupied buildings.
Approximately two years ago, in March 2021, it was estimated that roughly 1.5 million flats in the United Kingdom were covered in flammable materials or had other fire safety concerns, impacting around 750,000 landlords. As of June 2022, the Association of Residential Managing Agents reported that approximately half a million individuals still resided in buildings with some form of hazardous cladding.
Despite significant efforts made thus far, there remains a continued need to ensure the utmost safety of all multi-occupied buildings through ongoing remedial actions.
In recent times, the implementation of the Building Safety Act 2022 and the Fire Safety Regulations 2022 has marked a significant milestone, signifying "the most substantial advancements in building safety in a generation" according to the Department for Levelling Up, Housing and Communities.
We will explore the changes that have taken place since the Grenfell incident and examine their implications for property owners, landlords, leaseholders, and the broader industry.
- The EWS1 form
- Responsibility for covering the costs of cladding remediation work
- Overview of the Building Safety Act 2022
- Understanding the Fire Safety (England) Regulations 2022
- Implications of the new rules for Responsible Persons
- The impact of the Fire Safety Regulations 2022 and the Building Safety Act 2022 on HMOs
- Multi-occupied buildings exceeding 11 meters in height
EWS1 Form for Apartment Blocks
Following the Grenfell tragedy, the government introduced stricter fire safety regulations for flats. Consequently, flat sales experienced setbacks as mortgage lenders demanded evidence that the properties adhered to the prescribed safety guidelines.
To address this concern, the Royal Institute of Chartered Surveyors (RICS) introduced the External Wall System form (EWS1) in December 2019. The purpose of this form is to furnish lenders and buyers with confirmation that an evaluation has been conducted on the external walls of residential apartment buildings. The assessment aims to ensure that the cladding is appropriately designed to minimize combustibility and prevent the spread of fire.
Qualified professionals, such as Chartered Construction Professionals, are responsible for conducting this assessment to verify compliance with safety standards or identify the need for remedial work. According to RICS, the designated professional must possess the necessary expertise to identify the relevant materials used in the external wall cladding and attachments, including the correct installation of fire-resisting cavity barriers and fire-stopping.
Upon completion and signature, the EWS1 form remains valid for the entire building for a period of five years, eliminating the need for individual assessments of each flat.
Is an EWS1 Certificate required for your flat?
To determine whether your building necessitates an EWS1 certificate for selling or re-mortgaging purposes, an initial assessment must be conducted.
Initially, the EWS1 form exclusively applied to buildings exceeding 18 meters in height. However, in January 2020, the government revised the criteria to potentially encompass residential buildings of any height. Nevertheless, not all buildings will require an EWS1 assessment.
In March 2021, RICS released guidance for valuers, providing updated criteria to assist them in determining whether a specific building necessitates an EWS1 certificate.
In addition to the building's height, factors such as the type and quantity of cladding present, as well as the presence of balconies and combustible materials, are taken into account. However, it is important to note that valuers must ultimately follow the instructions provided by their lender clients.
Who is responsible for arranging the EWS Assessment?
The responsibility for arranging the EWS assessment rests with the building owner (freeholder) or the managing agent.
If you are in the process of selling a flat, the first course of action is to inquire with the owner or agent about the existence of a valid EWS certificate or whether an assessment has determined that one is not required. In either scenario, they are obligated to provide you with the necessary information.
In the event that an assessment has not yet been conducted, it is their responsibility to arrange for one to take place.
If the building owner or managing agent fails to provide you with the required information and refuses to initiate the assessment, it is advisable to contact your local council authority for guidance and assistance.
How long does the EWS process typically take?
As previously mentioned, conducting intrusive checks on external walls necessitates the involvement of specifically qualified engineers.
When the new regulations were initially implemented, there was a limited number of fire engineers who possessed the qualifications to assess properties. Consequently, this resulted in a backlog and delays for both sellers and buyers.
According to the Fire Protection Association, by the end of 2020, 43% of leaseholders had been informed that the process could extend beyond two years.
To address the shortage of qualified assessors, RICS launched a training program in January 2021, enabling their chartered surveyors to undertake these assessments. Additionally, a government-backed professional indemnity insurance scheme for EWS1 assessors was introduced in September 2022.
However, given the high demand for assessments from numerous housing associations, building owners, and management companies, combined with the time-consuming nature of the process from assessment to final certification, it could take anywhere between six and twelve months, or possibly even longer, to obtain the EWS1 certificate.
Furthermore, there is the significant issue of what happens if a building fails to meet the safety requirements. A survey conducted by the Fire Protection Association in September 2020 revealed that 89% of buildings that underwent an external wall fire assessment necessitated remediation work. Addressing structural facade issues in large buildings is undoubtedly a challenging endeavour.
Consequently, some landlords and homeowners who wish to sell or purchase flats find themselves effectively trapped in a bottleneck until the EWS1 certificate can be obtained.
Who is responsible for covering the costs of remediation work if the block is deemed unsafe?
Previously, leaseholders were solely responsible for the costs associated with remediation work on unsafe cladding until 2021. However, in February 2021, the Government announced a £3.5 billion funding scheme to address the issue of unsafe cladding.
For buildings exceeding 18 meters in height, the Government fully funds all remediation works. Leaseholders residing in buildings ranging from 11 to 18 meters in height were eligible for a finance scheme that limited their payment for the removal of unsafe cladding to no more than £50 per month.
Under the Building Safety Act 2022, qualifying leaseholders of flats in buildings over 11 meters or five storeys now enjoy improved financial protection. Building owners are prohibited from charging leaseholders for the removal of cladding or other necessary remedial works. Additionally, leaseholders are protected from bearing the costs associated with interim fire safety measures for the building, such as waking watches.
However, it is important to note that this financial protection applies only to individuals who own no more than three residential properties in the UK.
Leaseholders facing any issues in this regard can seek advice and assistance from The Leasehold Advisory Service and the Leasehold Knowledge Partnership.
What is your responsibility as a landlord regarding obtaining an EWS1 certificate for your tenants?
As a landlord, ensuring the safety of your tenants in their home should be your utmost priority.
If you own a flat and have not yet done so, it is crucial to promptly inquire whether the freeholder has initiated an EWS assessment or possesses knowledge about the cladding and exterior wall materials used. If they are unable to provide this information, it becomes their responsibility to arrange for an assessment.
However, it is important to recognize that there are certain factors beyond your control when it comes to EWS assessments and obtaining an EWS1 certificate.
The combination of a limited number of engineers and a backlog of remedial building works implies that it may take years before you can obtain an EWS1 certificate for your tenants. Nevertheless, this should not discourage you from starting the process, particularly if your building falls into a higher-risk category (18 meters or above).
While awaiting the EWS1 certificate, it is essential to reassure your tenants that the matter is being pursued. Additionally, ensure that you are taking all necessary measures within your power to maintain their safety within the property.
What is the Building Safety Act 2022? (England only)
The Building Safety Act (England) received Royal Assent on 28 April 2022. It encompasses the entire homebuilding industry in England and introduces significant changes to the way buildings are designed, constructed, managed, and made safe. A key aspect of the Act is that it establishes accountability for those responsible for historical building safety defects.
One of the initial steps taken was the establishment of a building safety pledge. Developers who signed up to the pledge committed to the following actions:
- Remediation of life-critical fire safety works in buildings over 11 meters that they have developed or refurbished in the past 30 years.
- Repayment of any funding received from government remediation programs related to buildings they have developed or refurbished.
The government website maintains a list of developers who have pledged their commitment.
Regarding legislative changes, many provisions were still awaiting clarification at the time the Act was passed. However, the government expressed its intention to introduce the necessary legal frameworks to support the new building safety regime, such as amendments to the Regulatory Reform (Fire Safety) Order 2005, within 12 months.
While some legislation has been enacted since then, certain aspects remain subject to interpretation and could undergo further changes.
The following is a summary of our current understanding of the legal changes and their implications for landlords and agents. However, as this legislation is new and relatively untested, we strongly recommend seeking specialist advice, particularly regarding safety measures, including fire safety, specific to your individual property.
The Fire Safety (England) Regulations 2022
The Fire Safety (England) Regulations 2022, which came into effect on 23 January 2023, are separate from the Building Safety Act but work in conjunction with the new regime established by the Act.
These updated fire safety regulations carry significant implications for landlords, as they introduce new responsibilities for "Responsible Persons," such as building owners or property managers, for all multi-occupied buildings.
The regulations apply to properties that consist of two or more domestic premises with shared areas (e.g., hallways or stairwells) that residents would use to exit the building during an emergency.
For houses in multiple occupations (HMOs) and flats in buildings up to four storeys, the changes are relatively straightforward. However, if your property is located in a building taller than 11 meters, the new rules become much more intricate.
New updates for the Responsible Person
Every multi-occupied building covered by the regulations is required to have a designated "Responsible Person." This individual or organisation is typically the managing agent, freeholder, or residents' management company.
The Responsible Person has the responsibility to ensure specific legally mandated duties are carried out, including:
- Displaying fire safety instructions prominently within the building, including information on how to report fires and the evacuation strategy.
- Providing information regarding fire doors and fire door regulations, particularly for individual flat entrance doors. This includes emphasising that fire doors should remain closed when not in use and that self-closing devices on the doors should not be tampered with. Residents should also be encouraged to report any faulty fire doors to the Responsible Person.
- These instructions and information must be provided to residents as soon as reasonably possible after they move into the building and annually thereafter.
Comprehensive details regarding the duties of the Responsible Person can be found on the government website.
Note: For multi-occupied buildings exceeding a height of 11 meters, the Responsible Person has additional responsibilities, which are outlined in the section below.
Impact of the Fire Safety Regulations 2022 and Building Safety Act 2022 on HMOs
In the majority of cases, privately rented HMOs (Houses in Multiple Occupation) will have a maximum of four storeys. This means that the main change for HMO landlords will be the requirement to appoint a Responsible Person who will carry out the specified duties mentioned earlier.
With the increased emphasis on fire safety, it is essential to ensure that you are already fulfilling all of your existing obligations as a landlord. This includes:
- Conducting regular checks to ensure the fire resistance of your property and the safety of your electrical systems
- Verifying if your internal doors are fire compliant and equipped with self-closing mechanisms
- Installing smoke alarms and multi-purpose fire extinguishers on every floor of the property
- Installing carbon monoxide detectors
- Ensuring that stairways and corridors are kept clear of obstructions
- Providing clear instructions to your tenants on the evacuation procedures in case of a fire emergency
Addressing all these safety aspects is crucial in ensuring the utmost safety of your tenants.
Multi-occupied buildings over 11 metres in height
Buildings that are over 11 meters in height, and particularly high-rise buildings that exceed 18 meters or have more than seven storeys, are subject to stricter rules and regulations under both the Building Safety Act 2022 and the Fire Safety (England) Regulations 2022.
Due to the complexity of these regulations, it is advisable to seek expert advice from professional building safety specialists like RICS or local Fire Safety Officers for comprehensive guidance.
In addition to the duties mentioned earlier, the Responsible Person for buildings over 11 meters must also:
Conduct specific checks on fire doors in communal areas of the building at least every three months.
Inspect all flat entrance doors at least once every 12 months.
Identify any defects in fire doors and ensure prompt rectification.
For buildings over 18 meters or seven storeys, additional responsibilities of the Responsible Person include:
Providing and maintaining wayfinding signage in the building.
Preparing a record detailing the design of the external walls and submitting it to the local fire and rescue service.
Creating floor plans that highlight the location of lifts and fire-fighting equipment, and sharing a copy with the local fire and rescue service.
Conducting monthly routine checks of lifts intended for firefighter use or evacuation of disabled individuals during a fire.
Performing monthly checks of fire systems such as smoke control systems, fire alarm systems, and fire suppression systems.
Maintaining records of all monthly checks, which should be accessible to building residents.
For a comprehensive understanding of the Responsible Person's fire safety responsibilities, refer to the government website.
Additionally, the Building Safety Act introduces two other significant changes for high-rise residential buildings:
New Building Safety Regulator
All residential buildings classified as high-rise are required to register with the newly established Building Safety Regulator, which is a part of the Health and Safety Executive (HSE). This registration must be completed within six months starting from April 2023, and it entails appointing a designated individual who will be responsible for ensuring the ongoing safety of the building.
For detailed information on this requirement, please refer to the HSE website.
Charging for remedial works calls for landlord certificates
Obtaining Landlord Certificates is a crucial step in a complex process. When it comes to compliance with the new building safety regulations and seeking financial contributions from individual flat leaseholders for remedial works, landlords must provide them with a Landlord Certificate.
The Landlord Certificate is also required during the sale of a leasehold property or if a leaseholder specifically requests one. It is important to note that the certificate should be based on the circumstances of the relevant landlord as of 14 February 2022.
If you are a leaseholder of a flat, you may be eligible for financial protection. In such cases, you will need to complete a 'leaseholder deed of certificate'.
For more detailed information, please consult the government website.
If you're a landlord who has a letting and management agent
If you rely on a letting and managing agent for your property, it's important to be aware of two key considerations:
- Ensure that your agent is knowledgeable about the new laws and regulations governing building safety. It is essential to confirm that they are still willing to provide you with their management services.
- If you intend to appoint a managing agent as the Responsible Person, it's worth noting that they may face challenges in obtaining liability insurance to cover potential issues. Therefore, it's important to clarify who will ultimately be held responsible in such cases.
Additionally, landlords will have an increased responsibility to conduct their own due diligence regarding how agents market their property and disclose relevant information. Given the extensive and time-consuming assessment process, and the likelihood of remediation work being required for many buildings, landlords should consider what material information should be disclosed to tenants regarding building safety, particularly if the EWS1 form cannot be provided.
It is advisable to consult legal and professional resources to ensure compliance and proper disclosure practices.
Fire safety regulations on leasehold conveyancing
The implementation of the Building Safety Act 2022 and fire safety regulations has had a significant impact on the process of leasehold conveyancing. The new rules and the increased responsibility placed on legal professionals to ensure the correct certification and paperwork are in order have resulted in higher costs for leasehold conveyancing services.
In fact, some legal firms have decided to no longer handle leasehold properties in high-rise buildings due to challenges in obtaining indemnity insurance.
Therefore, if you are involved in buying or selling a leasehold property in a block, it is important to find a conveyancer who can handle the necessary work. Additionally, be prepared for the costs of conveyancing to be two or three times higher compared to pre-legislation rates.
It is advisable to research and engage with conveyancing professionals experienced in dealing with the complexities of the new regulations to ensure compliance and a smooth transaction.
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