Help to Buy home sellers hit by building safety issues

Housing Secretary Michael Gove has committed to look into issues with the Building Safety Act after MPs claimed leaseholders and Help to Buy property owners are still facing high bills and are unable to sell their homes.

Gove appeared at his first Levelling Up, Housing and Communities Committee hearing since being reappointed to the Cabinet yesterday.

The hearing raised issues such as social housing quality, rental and planning reform. 

Labour MP Florence Eshalomi also highlighted that homeowners are still being left with large bills to fix cladding and building safety defects.

It comes as the Building Safety Act introduced a “waterfall” where developers had to pay first for any repairs, followed by building owners.

Costs should only fall on leaseholders where building owners need support covering the full costs of remediation of a building.

Eshalomi highlighted that leaseholders are still being hit with high bills and said those who have purchased under Help to Buy are finding they can’t redeem their equity loans, are unable to move or remortgage.

She said many Help to Buy homeowners feel trapped.

Gove said:

“I will be more than happy to look into specific examples of people who found that the system isn’t working.

“The waterfall approach was intended to see if the developer can pay and then the freeholder, and then only in the extreme and with a cap to rely on leaseholders.

“In any scheme, however well intentioned, it may well be the case where there are people not being protected.

“This is not a perfect solution but just the best we can at this stage.”

Kindly shared by Estate Agent Today

Main article photo courtesy of Pixabay