New Building Safety Act 2022 – Our Preliminary Guide

The Building Safety Act 2022 is a new legislation that aims to improve the safety of high-rise buildings in the UK. It can be said that the main cause for the introduction of Act was in response to the tragic Grenfell Tower fire in 2017, which claimed the lives of 72 people and raised serious concerns about the safety of buildings in the country. 

The Building Safety Act 2022 represents a significant overhaul of the building safety regulations in the UK. The act also introduces new requirements for building owners and developers to assess and manage the risks associated with high-rise buildings. The biggest change in our view is the Act’s attempt to place more obligations on the Landlord within qualifying developments to ensure remedial work, where necessary is carried out at cost to the landlord. This at least in theory would help those flat owners whose properties have been valued at zero and left penny less as a result of not being able to pay their portion of costs for remediation.  

The introduction of the Building Safety Act 2022 is a positive step towards ensuring that the UK’s high-rise buildings are safe for residents and occupants. The Act also exemplifies the commitment from the government to improve building safety standards and reduce the risk of future tragedies like the Grenfell Tower fire. In this blog post, we will explore the key provisions of the Building Safety Act 2022 and examine its potential impact on the construction industry and building owners. 

Key Features of the Act: A Comprehensive Overview 

A key aspect of the Building Safety Act 2022 is the regulation of costs that landlords can recoup from tenants in relation to any remediation works needed for high-rise buildings. The application of this regulation can be complex, but essentially, if on February 14, 2022, the building was occupied by the owner as their only or principal residence, and they owned no more than two other dwellings in addition to the property, the landlord is obligated to cover the cost of most remedial works, and they cannot recover these costs through the service charge. The leaseholder in this case is known as a qualifying leaseholder. 

However, if the owner does not meet these criteria, any required remedial works can usually be recovered through the service charge, meaning the costs are borne by non-qualifying leaseholders. There is an exception to this rule if the building requiring remediation is owned by the original developer or an associated company. In this case, the liability for remedial costs falls on the building owner. We would have considered this point to be obvious as this falls within the remit of build-to-rent developers and naturally, it is high unlikely that remedial costs may be recouped from tenants on short tenancies!  

It is worth noting that applying of these regulations, in context of practical issues can be complex and depend on several factors, including the ownership structure of the building and the specifics of the lease agreements. Landlords and tenants should seek professional advice to ensure that they understand their rights and obligations under the Building Safety Act 2022. 

Finally, it’s important to note that the Building Safety Act 2022 does not apply to buildings that have been enfranchised and are effectively owned by the tenants. This is as naturally, since the freehold is owned by the tenants themselves, who pays for remedial costs will ultimately be the tenants in which ever way you look at it. 

Understanding the Impact of the Building Safety Act 2022 on the Construction Industry 

The Building Safety Act 2022 is set to have a significant impact on the construction industry in the UK. The act introduces new regulations and requirements for both landlords and developers, which are likely to increase the cost and complexity of building high-rise structures. This is because the new regime for building safety risk management under the act will require building owners and developers to identify and manage the risks associated with their buildings, and to provide regular updates to the regulator on the steps they are taking to mitigate these risks. 

In addition to the increased costs associated with complying with these regulations, the act also introduces new liabilities for building owners and developers.  

Another important impact of the Building Safety Act 2022 on the construction industry is the potential for delays in the planning and construction process. Building owners and developers will need to invest significant time and resources into complying with the new regime for building safety risk management, which may cause delays in the planning and construction process. In addition, the new regulations and requirements may require more complex and time-consuming building designs, which could also lead to delays. 

The Building Safety Act 2022 may also have an impact on the availability of professional indemnity insurance for building owners and developers and also the standard block buildings insurance which is required for the normal operation of a high rise building. The increased liability and regulatory requirements under the Building Safety Act 2022 may make it more difficult for building owners and developers to obtain this type of insurance, which could increase the cost of construction projects. 

In summary, the Building Safety Act 2022 is likely to have a significant impact on the construction industry in the UK. The act introduces new regulations and requirements for building owners and developers, which will increase the cost and complexity of building high-rise structures. The act also introduces new liabilities for building owners and developers, which may result in significant financial penalties for non-compliance. The act may also cause delays in the planning and construction process, and could make it more difficult for building owners and developers to obtain professional indemnity insurance. 

How will the new Building Safety Act 2022 affect property sales and purchases? 

The Building Safety Act 2022 has significant implications for property sales and purchases, particularly in relation to flats within residential buildings that fall under the Act’s remit. Clients intending to sell such flats will need to serve a “Leaseholders Deed of Certificate” on their landlord to determine whether the lease of the flat is a “qualifying lease” for the purposes of the Act. If it is, the tenant will have additional protections against costs for any remediation works required by the landlord. Establishing whether the lease is qualifying is critical, and understanding the leaseholder’s circumstances as of 14 February 2022 is key to this. 

After receipt of the Leaseholder’s Certificate, the landlord must serve a “Landlord’s Certificate” within four weeks, setting out whether any remediation works are due to the building. Potential buyers will want to know whether these certificates have been sent and received to assess the level of costs payable in respect of any remediation works relating to the building and whether they can be recouped by the landlord via the service charge. These requirements are now incorporated into standard forms provided by sellers to buyers, including the Form LPE1 and Leasehold Information Form. 

From a practical transactional standpoint, the requirements for the service of a Leaseholder Deed of Certificate and a Landlord’s Certificate may cause delays in the sale of a flat if they have not been dealt with in advance. It is worth noting that the Act does not negate the requirement for an EWS1 Form, which may still be required even if it does not specify any fire safety remediation works. 

For buyers seeking a mortgage, conveyancers are now required to give additional confirmations relating to the property’s acceptability as security under the UK Finance Mortgage Lenders Handbook. Upon reflection of things however, the changes implemented under the Scheme are still relatively new and therefore, more changes are expected to expected to be published as the Act builds more traction in practice. 

Looking Ahead: What to Expect from the Implementation of the Building Safety Act 2022 

In conclusion, the implementation of the Building Safety Act 2022 represents a significant step towards ensuring the safety of high-rise buildings and the people who live in them. The Act is designed to introduce a more rigorous and comprehensive regulatory framework for the construction and management of buildings, with a particular focus on those over 11 meters in height or 5 storeys. 

As we move forward, we can expect to see significant changes in the way that high-rise buildings are designed, constructed, and managed, with a greater emphasis on safety and accountability at every stage of the process. The Building Safety Regulator, which will be responsible for overseeing the implementation of the Act, will have extensive powers to enforce compliance and ensure that building owners and managers are held to account. 

Ultimately, the success of the Building Safety Act 2022 will depend on the willingness of stakeholders across the industry to embrace its principles and work together to ensure that high-rise buildings are safe, sustainable, and fit for purpose. With the right combination of regulatory oversight, industry collaboration, and public engagement, we can build a brighter, safer future for everyone who lives and works in our cities. 

It is however worth bearing in mind that we have attempted to produce a general synopsis of our interpretation of the Act as it currently standards. A lot can change over the coming months and years as more and more case studies, court cases etc come into the picture which may either substantiate what we have set out here or equally, challenge our interpretation. This article is in no way aimed to replace specific legal advice to meet your personal circumstances and you must therefore consult an expert in the field.