The Building Safety Act 2022 is a legislative response to the Grenfell Tower tragedy in 2017, aimed at ensuring the safety of residential buildings.
Some of the key changes included in the Act include an obligation for those who built defective buildings to have a clear responsibility for paying to make them safe and protection for leaseholders from receiving large bills for historical safety defects.
The Act also introduced landlord certificates to help landlords understand whether they are liable for remedial works costs.
This blog will explain what a landlord certificate is, the eligibility criteria and why it is important to have them.
The information given here is intended for general information purposes only and should not be taken as legal advice.
For specific Building Safety Act 2022 guidance, please contact our property disputes solicitors on 0330 175 7613, or email Andrew Olins at andrew.olins@ibblaw.co.uk.
What is the Building Safety Act 2022?
The Building Safety Act 2022, which came into force in October 2023, is a recent legislation aimed at enhancing the safety and quality of residential buildings in the UK.
It was introduced by the government in response to the Grenfell Tower tragedy of 2017, with the aim of addressing systemic issues and ensuring that buildings, especially tall and high-risk structures, meet the highest safety standards.
This act represents a significant step forward in protecting the rights and safety of residents and homeowners throughout England and Wales. It provides extensive protections for leaseholders, preventing them from being charged large costs to fix past building safety issues.
The legislation holds accountable those who are responsible for building safety including building owners, developers, and managers and ensures they are liable for any emerging defects. In addition to updating existing regulations, it establishes a clear framework for the design, maintenance, and safety of residential buildings.
To oversee this new system effectively, three new bodies have been established: the Building Safety Regulator, the National Regulator of Construction Products, and the New Homes Ombudsman. These bodies will oversee the rollout of the new legislation and assist with prioritising home safety.
What is a landlord certificate under the Building Safety Act?
The Building Safety Act 2022, along with its accompanying regulations, introduced protections for leaseholders preventing the recovery of service charges for fixing defects in their buildings.
These defects broadly refer to issues involving the potential spread of fire or structural instability in buildings that are over 11 meters tall or have at least 5 storeys with a minimum of 2 residential units.
The landlord certificate establishes whether the landlord is associated with the person responsible for the defects of a building, or whether they meet a prescribed wealth test referred to as the contribution condition.
Landlords must provide certificates confirming whether, as of February 14, 2022, the landlord and anyone associated with them (the landlord group):
- Have a net worth exceeding £2 million, times the number of buildings they are a landlord of – this is known as the contribution condition.
- Were, or had an associated company that was, responsible for the relevant defects.
The landlord certificate is important because landlords that meet either of these criteria will be unable to claim service charges from leaseholders for fixing building defects.
Buyers can request copies of landlord certificates during property sales inquiries, and mortgage providers may require them too.
Since the introduction of the Building Safety Act, landlord certificates have become increasingly important in the sales process.
When does a landlord safety certificate need to be served?
A landlord must provide a landlord certificate to qualifying leaseholders when requesting service charges for fixing relevant defects.
They will also need to provide a landlord certificate within four weeks under the following circumstances:
- If the leaseholder notifies the landlord of their intention to sell.
- If the landlord becomes aware of a relevant defect.
- Or upon request from the leaseholder.
What information does a landlord certificate need to contain?
The landlord certificate should include information about the landlord, the lease, and any previous remedial work done on relevant defects.
The certificate must also state whether the landlord meets the contribution condition, is responsible for the defects, or both.
Current regulations require the landlord to provide a substantial amount of supporting information to confirm this, including comprehensive data on the corporate structure and net worth of the landlord group.
Can a landlord be compelled to provide a landlord certificate under the Building Safety Act?
The landlord certificate gives vital information on remediation costs to leaseholders with qualifying leases. This certificate is crucial for leaseholders intending to sell their property. However, currently, a landlord cannot be compelled to provide a landlord certificate under the Building Safety Act.
Many leaseholders may assume that if their landlord does not provide a certificate the court system would be able to order them to provide one. However, this is not the case. The courts do not have the authority to force landlords to issue certificates.
In many cases, if a landlord fails to provide the certificate within four weeks of a request, they're considered to have met the contribution condition, making them responsible for the defect. Consequently, they can't recover service charges related to the defect.
However, this doesn't help leaseholders who are looking to sell their property, as lenders may ask for a landlord certificate before lending. Therefore, a landlord's failure to provide a certificate could prevent leasehold property sales in affected buildings.
What happens if you don't/can't provide a landlord certificate?
According to the regulations, if a landlord doesn't provide a landlord certificate within four weeks of a leaseholder's request, they're automatically considered responsible for the relevant defect or to have met the contribution condition. Consequently, they lose the ability to recover service charges related to those defects.
Landlords should make sure to handle requests for landlord certificates promptly, always within the four-week timeframe. This ensures they aren't automatically held liable for costs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.