3 February 2023
On Monday 30 January, DLUHC announced that developers have received legally binding contracts that will commit them to pay to repair unsafe buildings.
The government has set a six-week deadline for developers to sign the legal agreements and is warning that companies who fail to sign and comply with the terms of the contract will face significant consequences.
Under the legislation to be brought forward this spring, a Responsible Actors Scheme (RAS) will be created, allowing the Secretary of State to block developers who have not signed the contract, or failed to comply with its terms, from carrying out development and from receiving building control approval. This will prevent them from operating as normal in the housing market for as long as they do not resolve the situation.
DLUHC will also take action to ban managing agents and freeholders from taking commissions when they take out building insurance. This is in response to a report from the Financial Conduct Authority that suggested commissions make up almost a third of premiums.
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