To ask the Secretary of State for Housing, Communities and Local Government, what financial support is available to leaseholders at high-rise residential buildings with unsafe cladding who are issued with increased insurance premiums as a result of their buildings being classed as not fire-safe.
20 April 2021
We are aware that some leaseholders have received significant increases in their insurance premiums where their block has building safety concerns. We are working with the insurance industry to understand this issue and are engaging with a range of proposals put forward to address it. We are encouraging insurers to take a proportionate approach to risk.
With an unprecedented over £5 billion investment in building safety, including £3.5 billion announced in February 2021, leaseholders will now need to pay either nothing, or up to £50 per month towards fixing the problem. This helps gives lenders certainty both that the cladding will be remediated, and of the total potential financial implications for a leaseholder and their property.
This announcement is therefore an important step towards restoring confidence in the housing market. It provides certainty for lenders where unsafe cladding is present and complements the wider work we have underway to continue to develop a proportionate risk-based regulatory environment on fire safety.