JSMedia – The Department for Levelling up, Housing and Communities has written to mortgage lenders to ease the rules around sub-letting. This is particularly important for the Affordable Homes programme, where sub-letting is only permitted in exceptional circumstances, such as when the property has been smashed or has been damaged. The aim is to avoid the commercial use of public funds for commercial purposes. The government wants to change this rule, and would welcome any changes that could help make cladding regulations easier to understand.
The new cladding regulations may affect 4.6 million properties. Of these, 870,000 are in towers over 18 metres, while the remaining 3.7 million are in tower blocks below this height. These changes are likely to affect up to three million people. The Government has issued the new advice after a fire at the Grenfell Tower in London, which was the biggest tragedy in recent years. The new rules mean that lenders will no longer be able to offer mortgages against these properties unless they are proven safe.
The fire at Grenfell Tower in London has increased the concern about combustible cladding. This led to the introduction of the External Wall System 1 (EWS1) form. This form verifies that a building meets Building Regulations. Most lenders value buildings at PS0 and will not offer new mortgages if the cladding is unsafe. It is estimated that up to three million people could be affected.
Mortgage Lenders to Review Cladding Rules After Declaring Homes Safe
The announcement by the government has two effects. First, it will not affect the saleability of the property if it has a combustible cladding, while secondly, it will make it more difficult to get a home mortgage. As a result, the government is now considering whether or not to review the Consolidated Advice Note for flammable cladding.
A public register of flammable cladding is one way to stop this situation from escalating. The government also wants to make a searchable register of flammable cladding. The searchable register is a major help for prospective homebuyers, but it will also be a big issue for leaseholders selling their homes. Many buyers rely on a vendor’s disclosure of any such issues in the sale documents.
The new scheme is designed to make cladding easier to sell, but it could trap millions of homeowners in homes that can’t be sold. The Government has reportedly decided to reduce the height limit to 11 metres, but it has not committed to fund remediation for low-rise blocks. The government has also commissioned expert advice on the issue, and stated that most medium and low-rise buildings should not require any significant remediation.
The scheme will force the industry to disclose how energy-efficient their buildings are, and will force companies that use ineffective cladding to fix the problem. The new regulations will also make it more expensive to remortgage and sell houses. However, it is not without consequences, and mortgages will remain more attractive for the borrowers if cladding is safe. If a lender doesn’t comply with the new regulations, it will be subject to fines.
The Government has said it is determined to make cladding more secure by making wealthy developers pay for the costs of removing unsafe cladding from homes. It has also decided to make leaseholders in buildings of up to 18 metres in height pay for repairs. The new rules will also prevent a significant amount of money from being lost. This is good news for many leaseholders. The change will allow them to continue living in their refurbished homes.
The government has issued a new set of cladding rules after the Grenfell fire. The new rule states that developers must assess the risks involved before installing any cladding on a home. This is good news for homeowners, but it is not good news for leaseholders. Thankfully, the government’s new policy is in the right direction. The mortgage industry has long been slow to respond to the Grenfell fire, so it’s time for them to work together to make the necessary changes.