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Government asks developers to pay to repair high-rise buildings

Developers must sign new contract agreeing to pay for fire-safety improvements across England by March.

09 Feb 2023, 2 min read

On 30th January, the Department for Levelling Up, Housing and Communities (DLUHC) wrote to developers requiring them to sign legally binding contracts that commit them to pay to repair unsafe buildings.

The “Developer remediation contract” (Self Remediation Terms and Deed of Bilateral Contract) must be signed no later than 13 March 2023, and DLUHC must be informed about timeline for deciding to sign and legal process by Friday 10 February.

Once signed, the contract will require developers to:

  • take responsibility for all necessary work to address life-critical fire-safety defects arising from design and construction of buildings 11 metres and over in height that they developed or refurbished over the last 30 years in England.
  • Keep residents in those buildings informed on progress towards meeting this commitment.
  • Reimburse taxpayers for funding spent on remediating their buildings

DLUHC is intending to introduce secondary legislation in Spring under the Building Safety Act 2023 called the Responsible Actors Scheme (RAS). Developers who have not signed the contract or failed to comply with terms will not be allowed to join the RAS. More details are not yet forthcoming.

Key notes

  • Contract has been drawn up by DLUHC and legal firm on behalf of leaseholders.
  • Applies only to England.
  • Applies only to buildings over 11 metres high.
  • Applies only to necessary work relating to life-critical fire-safety defects arising from design and construction.
  • Applies to buildings developers have been involved in building and/or refurbishing.
  • Estimated to cost £2bn total.
  • Funding is separate to the Building Safety Levy.

Next steps

Developers must inform DLUHC by 10 February about their timelines for deciding to sign the contract.

Failure to inform DLUHC or failure to sign the contract by 13 March 2023 (unless an extension with DLUHC is agreed) could result in developer names being made public.

It is expected that details of the RAS legislation will be made public during this parliamentary session.

To discuss with the CBI’s construction lead, contact Muraad