New (Cladding) Remediation Acceleration Plan: prompt action and stronger powers!

On 2 December 2024, the Government announced its Remediation Acceleration Plan (RAP).

Investigations following the Grenfell Tower fire highlighted the significant number of buildings requiring remediation across England. At first, the Ministry of Housing, Communities & Local Government estimated that remediation works would be completed by 2035, however the National Audit Office’s report (NAO report), released on 4 November 2024, found that progress is falling behind this estimate. We previously published updates on the main findings of the NAO report (here) and the subsequent House of Lords debate (here).

Faster remediation

The RAP has two main goals for the end of 2029:

• Complete remediation of all buildings with unsafe cladding and 18 metres or taller in a government-funded scheme; and
• Every building 11 metres or taller with unsafe cladding to be remediated or have a date for completion.

The Government intends to introduce new legislation that will create clear legal duties for landlords of buildings over 11 metres in height to remediate unsafe cladding within clear timescales. If these timescales are not met, then duty holders will face significant financial consequences and potential criminal liability.

The Government has also developed a joint plan in collaboration with major developers. Their targets are ambitious and include that all buildings should be assessed by the end of July 2025; remedial works should start or be completed on 80% of buildings by the end of July 2026; and remedial works should start or be completed on all of those developers’ buildings by the end of July 2027. Currently, 29 developers have agreed to the target, covering 95% of buildings that developers need to remediate.

To support these advances, the Government has indicated that it will publish guidance to help in circumstances where a dispute with a third party is delaying remediation, and work with regulators to intensify enforcement action against third parties who unreasonably block remediation. Landlords who unreasonably block remedial works will face serious consequences.

The guidance about disputes and delays to remediation will be keenly awaited by the construction sector, given the significant number of claims in the market.

Identify buildings with unsafe cladding

It is estimated between 4,000 and 7,000 buildings in England that are 11m in height (or over) have unidentified unsafe cladding.  Although buildings over 18m in height now need to register with the Building Safety Regulator, those between 11 and 18m do not, creating a knowledge gap and uncertainty.

To accelerate the pace of identifying such buildings, the Government intends to create a comprehensive building register. The register will, amongst other things, require that all residential buildings between 11 and 18m in height be registered and include information on beneficial ownership.

Supporting residents

An important focus of the RAP is to make remediation work for residents and to ensure that they are protected from costs. To achieve this, the Government will:

• keep residents informed by driving compliance with the code of practice for the remediation of residential buildings;
• introduce shared ownership protections;
• protect residents during remediation, through the extension of the Waking Watch Replacement Fund to the end of March 2026;
• engage with the building insurance industry to consider how unaffordable high insurance bills can be reduced for the duration of remediation programmes; and
• introduce further reform to support residents through the remediation process, including where a freeholder is insolvent, or a court-appointed manager is in place for a building.

Action against construction product manufacturers

The Government has written to organisations named in the Grenfell Tower Inquiry report. Its decisions are expected to prevent the “most egregious companies” being awarded government contracts. To avoid a ban, it appears that the identified companies will need to show cooperation, corporate renewal and provide compensation. The RAP also acknowledges that the Government needs to introduce deterrents to ensure manufacturers are held to account, in turn mitigating the future use of unsafe cladding.

While the RAP indicates that a tighter sanction regime will be introduced, it contains limited information as to the measures that the Government will take. The RAP confirms the Government’s commitment to reform the construction products regulatory regime, and that the Government will consult on measures to introduce sanctions, penalties and liabilities against manufacturers. What this will amount to is currently uncertain.

Building Safety Levy (BSL)

The BSL was established by the Building Safety Act 2022. The RAP confirmed it will come into force in Autumn 2025 and be charged on all new residential buildings in England that require building control approval. The BSL is covered in more detail in our article here.

Conclusion

It remains to be seen whether the RAP will adequately address the issues highlighted in the NAO’s report, although political attention on the issue seems likely to lead to greater remediation of unsafe buildings. Disputes are sure to arise concerning which parties are responsible for funding remediation and the quality of those remediation works.

The effect of the Government’s proposed sanctions on the construction industry is also uncertain – developers, contractors and consultants need to remain vigilant to ensure that they do not breach any statutory or associated contractual obligations.

If you have any questions on this update, including how to alter your approach to remediation and avoid disputes following the Government’s RAP, and how to ensure you are meeting your obligations, please contact the authors or your Beale & Co lawyer.