High Rise Flats: Insulation
The question
To ask the Secretary of State for Housing, Communities and Local Government, what guidance her Department has issued on the levying of service charges in residential buildings that have been fully decanted pending remediation works; and whether she will take steps to restrict the recovery of such charges in those circumstances.
Answered by Samantha Dixon
Some levying of service charges in the event of a decant may be necessary to help pay for remediation. However, leaseholders with qualifying leases will still benefit from the caps on service charges for building safety defects, as set out at Schedule 8 of the Building Safety Act, irrespective of whether their building has been decanted.
Any service charges wrongfully raised from leaseholders for building safety defects can be recovered from building owners via Remediation Contribution Orders. RCOs can include associated costs of alternative accommodation when residents are decanted from relevant buildings on building safety grounds. This has been set out in extensive guidance on the UK Government website.
Local authorities can apply to the Court to recover their costs if they pay to rehouse residents in these circumstances. There is also limited scope for Resident Management Companies to recover the legal costs of raising an RCO from leaseholders where they might otherwise struggle to find the funds to do so. Relevant guidance can be found here: Amendments to the Building Safety Act introduced through the Leasehold and Freehold Reform Act 2024 - GOV.UK.
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