The Building Safety Act, originally passed by the UK government in 2022, proved to be a noteworthy step forward in enhancing the safety of buildings across England, as well as giving residents and homeowners more rights, powers, and protections. As a supplier of high-quality building materials, we also recognise the importance of building safety, which is why we are here to inform you about the latest amendments made to this legislation, and what they mean.

A Brief History of the Building Safety Act

This Building Safety Act came around after the Grenfell Tower fire in London, 2017. This tragic event, which claimed 72 lives, highlighted several critical issues around English building in terms of how they were constructed and managed. The disaster firstly uncovered serious flaws in current building regulations, such as the use of aluminium composite material cladding (ACM), which not only contributed to the rapid spread of the fire due to its flammability, but was also found to be used on as many as 486 other high-rise buildings across the UK. As well as this, it also came to light that existing safety regulations were not enforced sufficiently enough, allowing buildings like Grenfell Tower to function with hundreds of non-compliant fire doors, that did not form tight seals or close behind residents.

The Building Safety Bill was first introduced to the UK Parliament in July 2020 before gaining Royal Assent and becoming a formal law in April 2022. The Act promised to outline measures to deliver far-reaching protections for leaseholders from the costs of fixing historical defects, overhaul existing regulations, as well as create three new bodies to provide effective oversight of the new regime.

The Latest Amendments

There have been several amendments made to the Building Safety Act which were enacted through the Leasehold and Freehold Reform Act 2024. These measures, which recently came into force on the 24th July, make the following changes:

Cost of Litigation

Section 117 of the Leasehold Act states that residents in a ‘Right to Manage’/Resident Management company who run their own buildings can apply for a Remediation Contribution Order and split the costs among a group of leaseholders by permitting these to be passed on via the service charge.

This is a limited exemption to the leaseholder protections under the Building Safety Act, which otherwise protects qualifying leaseholders from freeholders passing on the costs of litigation.

Repeal of Section 125

Section 118 of the Leasehold and Freehold Reform Act 2024 resolves a conflict between Insolvency Law and Section 125 of the Building Safety Act, which would have allowed amounts recovered through the courts for remediation costs under the Building Safety Act to be distributed to creditors in the first instance. It is Insolvency Practitioner’s legal duty to prioritise paying off creditors under the Insolvency Act. The new Section 118 of the Leasehold Act repeals section 125 of the Building Safety Act and so prevents the latter legislation from being used to secure funds for creditors rather than being used for remediation.

This amendment means that leaseholders and owners cannot take advantage of the Leasehold Act and use it to apply for remediation funds to pay off creditors, maintaining the integrity and intended purpose of Remediation Contribution Orders.

Notification of Insolvency

The insolvency of an accountable person can have implications for the safe management of a building which is subject to the Building Safety Act. The new Section 125A of the Building Safety Act (as amended by Section 119 of the Leasehold Act) puts a duty on Insolvency Practitioners who are appointed to the insolvency of the owner or leaseholder of a residential building, which is at least 5 storeys high, to notify local authorities and fire and rescue services. In the case of higher risk buildings (buildings which are 7 storeys high), Insolvency Practitioners must also notify the Building Safety Regulator.

This amendment will ensure that regulators can engage with both the Insolvency Practitioner and/or residents to check the building is being safely managed during insolvency proceedings. This amendment takes steps to make sure that buildings remain safe even in the event of their owners/leaseholders landing themselves in debt.

These latest amendments to the Building Safety Act focus on ensuring that Remediation Contribution Orders are distributed fairly and lawfully, as well as making certain that buildings are kept safe even in the event of their owners amassing debt, overall increasing the effectiveness of the act and helping keep English houses safe.

At BS Fixings, we fully understand the importance of carrying out construction and DIY safely to minimise the risk of injury or structural failures and believe this is only achievable when you invest in quality products and equipment. In support of this, we only stock high-quality building materials and fixing tools that can help you build and secure your next project. Browse our collection to find the right products for your needs or email us at info@bsfixings.co.uk with any questions.