Flats: Insurance
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will make an estimate of the number of leasehold flats containing combustible material with higher insurance costs that will be classified as permanently impaired under the Basel 3.1 requirements.
Answered by Matthew Pennycook
My Department has engaged with the Bank of England with a view to understanding the potential impact of implementing the Basel 3.1 standards on properties with extant building safety issues or those that have carried out remediation works recommended by a fire professional following the PAS 9980 guidance.
The Bank does not expect these changes to have a material impact on current industry practice for determining property valuations, including for properties with cladding.
Officials in my department are in regular contact with the lending and insurance industry on issues related to fire safety affected buildings and will continue to work with them to ensure leaseholders in buildings with cladding are able to re-mortgage and sell freely.
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