The tragic events of the Grenfell fire will mean a new regime to monitor and protect the public in the future. The importance of this was rightly underlined this week by the new Housing Secretary Esther McVey at UK MIPIM. The Government has committed to act on all 53 of Dame Hackitt’s recommendations.
The problem is how the country manages safety and compliance in the interim. McVey was asked by one member of the audience what she made of rumours circulating that upwards of 50% of home sales in the Manchester area had fallen through or were being delayed due to fire safety concerns. More and more stories are emerging in the national press as homeowners share tales of zero valuations being applied to their homes. House sales are falling through or being significantly delayed.
The Hackitt Review
Hackitt’s review, in the wake of the Grenfell fire, concluded that the current system for ensuring fire safety in high rise buildings was not fit for purpose.
The reach and the impact of her report will result in fundamental changes. There will be a new regulatory framework for 10 storey buildings and higher. A new competent authority to manage approvals for health and safety. These reforms are important.
The issue is the time it’s taking. Until the regulatory regime is renewed, the UK property market is in a state of regulatory flux. Its ramifications are now being felt far and wide by both home owners and developers.
Government input needed urgently
The increased uncertainty in part comes from Advice Note 15 issued by the Ministry of Housing, Communities and Local Government ‘MHCLG’ in 2018. This banned the use of combustible materials in external walls of all residential buildings with a total height of 18m or more which are registered with building control after December 2018. Buildings before this date need to provide testing via a physical fire test or a desktop assessment.
As a consequence, in an effort to achieve compliance, property developers, owners and builders are all seeking to receive retrospective approvals at the same time. The system has become overloaded with very long delays.
Mortgage valuers are also struggling to understand the technical issues. Many are refusing to mortgage homes even with supporting technical information being made available. The RICS is calling for an updated advice note which provides a clearer assessment.
Whilst the new Minister, Esther McVey was earnest in her ambition for the current Government to meet the housing challenges the country faces, she was only able to parry the perfectly reasonable question of what does the country do whilst we wait for Hackitt. The eye is of course elsewhere with Brexit and so the pace of resolution is sluggish.
It’s difficult to expect mortgage surveyors to become overnight experts in technical reports associated with fire safety. It’s now over ten months since the Advice Note was circulated and there is increasing evidence that the sector needs clearer guidance.
Hopefully, one of the first things the new Minister will do is to bring some focus to this important area. Otherwise, there is a very real risk of further stagnation and confusion.
