As a landlord, there are numerous obligations under the new Building Safety Act 2022 (the Act) that you will need to comply with when leasing property to tenants. The Act came into force on 6 April 2024 and aims to improve high-rise building safety following the Grenfell Tower disaster in 2017.
The Act defines higher-risk buildings (HRBs), sets out clear building safety standards which must be adhered to and also requires efficient, hands-on management, oversight and maintenance of HRBs. Our landlord guide to the Building Safety Act looks at the key requirements and the importance of compliance for all individuals and companies involved with high-rise residential buildings.
The new legislation applies to those dealing with construction as well as landlords and other industry professionals. HRBs will need to be carefully designed, constructed and kept in good repair, with all works and materials complying with the safety rules. Following the implementation of the new rules, it will be easier for the authorities to bring charges in respect of failures, and those involved with all aspects of HRBs need to be aware of the law and take steps to comply.
Implementation of the Building Safety Act 2022
The Act came into force over two years, giving building owners and others time to prepare for full implementation.
As of 1 October 2023, all building owners must register residential HRBs with the Building Safety Regulator (BSR).
From 1 October 2024, building control professionals were also required to register with the BSR.
The transitional period ended on 1 April 2024, and the Act was implemented in full, except in the following circumstances:
- Full plans were deposited with the local authority, or an initial notice was given and accepted by them before 1 October 2023
- Approval for the works is still in force
- The initial notice remains in force
- A notice has been provided to the local authority confirming that the works have ‘sufficiently progressed’
- Any inspectors involved with the initial notice are now Registered Building Control Approvers (RBCA) and registered with the BSR.
Where the above does not apply, all matters are governed by the new Act.
What is a Higher-Risk Building?
The Act defines a higher-risk building or HRB as one with seven storeys or more, or one that is 18 metres high or more and with two or more residential units.
What is in the Building Safety Act 2022?
As well as defining an HRB, the Act creates the role of the Building Safety Regulator, who has responsibility for the regulation of HRBs, raising building safety for all buildings and assisting professionals in improving building design, construction and control.
Building Safety Regulator duties include consulting with building residents through the residents’ panel. This is a panel representing people who live or rent homes in HRBs.
Each project must have a principal contractor who is responsible for all construction work and a principal designer responsible for all of the design issues. These will be appointed by the party who owns the building or land which is being developed, known as the client. The client must ensure that the principal contractor and principal designer are competent professionals who are able to deal with matters under the Act.
In addition to setting standards for building design and construction, the BSR assists with the management of building safety and oversees the registration of building control bodies and professionals.
HRBs will be subject to regular safety inspections, and each building must have an Accountable Person (AP). This individual or organisation will be responsible for the management of the building and for structural and fire safety.
The Act also requires transparency, allowing residents to access information, and co-operation between those involved with the construction of an HRB, including those dealing with procurement, planning and the construction itself.
The Role of the Accountable Person Under the Building Safety Act 2022
The Accountable Person, which could be a business, a company or an individual, is the building owner and has responsibility for maintaining and repairing the fabric of the building and any communal parts.
They must ensure that the HRB is registered with the BSR and, in the case of a new HRB, obtain a building assessment certificate before the property is occupied.
Landlord Responsibilities
Landlord Certificates have been introduced to provide leaseholder protections. Before the Act and following the Grenfell Tower fire, leaseholders found themselves in great difficulty when landlords sought to recover from them the costs of remedial works to deal with fire safety defects, including the replacement of unsafe cladding.
A Landlord Certificate requires a landlord to confirm whether the relevant landlord, ie, the landlord on 14 February 2022:
- Has a group net worth of more than £2 million times the number of relevant buildings owned by the landlord, known as the ‘net worth test’; and
- Held responsibility for relevant defects, the ‘developer test’, which includes any associated companies with responsibility
Where landlords meet the net worth test, they will not be able to pass on building safety costs to leaseholders. Similarly, where the landlord meets the developer test, they can no longer recover the costs from tenants by levying service charges.
When buying a property in an HRB, a buyer can request a copy of the Landlord Certificate during the pre-contract enquiries stage of the purchase process. If a buyer is taking out a mortgage, the lender will also need to see the certificate before they will agree to the transaction.
If a landlord intends to require a tenant to pay towards remediation works in respect of relevant defects, it will need to serve a Landlord Certificate on the tenant when doing so, or within four weeks of being notified that the tenant is selling the property or being asked for a certificate or becoming aware of a relevant defect.
Remediation Orders Under the Building Safety Act 2022
The Act introduces remediation contribution orders to provide funding for works to remedy building safety defects.
An order can require a company, developer or landlord to pay for the costs of remediation, taking steps to reduce safety risks and to provide temporary accommodation and related reasonable travel, removal and storage costs for residents who have had to be relocated because of building safety issues.
Unsafe Cladding
Qualifying leaseholders under the Building Safety Act will no longer have to pay to have unsafe cladding replaced. Where the developer responsible cannot be identified, funding will be made available by the government to pay for cladding system repairs and remediation.
Complying with the Building Safety Act 2022
If you are involved with the construction, management or leasing of a higher-risk building, it is essential to understand your responsibilities and take relevant steps to comply. Failures can be heavily penalised, and should you wish to sell your property in the future, being able to demonstrate robust adherence to the rules will be highly beneficial.
Contact Our Leasehold and Commercial Property Solicitors
Our leasehold, construction and commercial property solicitors have wide experience of legal compliance in the complex area of building safety. If you need assistance, please call us today, and we will be happy to advise you.
To learn more about what we offer, visit our commercial property page. We also handle a wide range of matters related to property construction. If you'd like to speak with one of our knowledgeable solicitors in property and leasehold law, feel free to call us on 0330 173 3980, email info@witansolicitors.co.uk, or fill out our contact form. We're here to discuss your needs and explore how we can help.
