The Leasehold and Freehold Reform Act 2024 (“the Act”) received Royal Assent on 24 May 2024. The Act seeks, amongst other things, to amend and clarify the Building Safety Act 2022 (“BSA 2022”), which was introduced to reform building safety legislation with particular emphasis on ‘higher-risk buildings’. Landlords, developers and insolvency practitioners need to be aware of these changes and the evolving law surrounding building safety in England.
These changes to the BSA 2022 will come into force on 24 July 2024.
The Act amends Part 5 of the BSA 2022, which provides for the remediation of defects affecting building safety and the rights of recourse in relation to such defects.
Remediation of Defects
The Act introduces a requirement for ‘relevant steps’ to be taken by a relevant landlord to remediate historical building safety defects.
A “relevant step” is defined as a step which has as its purpose:
- Preventing or reducing the likelihood of a fire or collapse of a relevant building (or any part of it) occurring as a result of the relevant defect;
- Reducing the severity of any such incident; or
- Preventing or reducing harm to people in or about the building that could result from such an incident
The addition of this definition of ‘relevant steps’ extends the grounds on which the First Tier Tribunal may make a remediation orders (RO). An interested party may apply for an order requiring a relevant landlord to remedy a relevant defect and, in the meantime, to take a ‘relevant step’ in relation to that defect, such as one to reduce harm to people in the building.
Remediation Contribution Orders (RCOs)
The Act provides further definitions as to those costs which would fall within the scope of RCOs. These include the costs incurred in taking relevant steps, obtaining experts reports and costs of temporary accommodation.
These amendments to ROs and RCOs apply to both future applications and to any applications pending as at the date the amendments came into force.
Repeal of Section 125 of the BSA 2022
Section 125 of the BSA 2022 is repealed, whereby if there is an insolvent landlord, an associated corporate body or partnership might be liable to pay or contribute to the landlord company in respect of remediation costs.
Notification requirements
There are increased duties on insolvency practitioners appointed in relation to ‘responsible persons’ (as defined in the BSA 2022) to give information to the local authority, fire and rescue authority and Building Safety Regulator within 14 days of its appointment.
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