The Building Safety Act 2022 is reshaping the landscape of high-risk buildings, with far-reaching implications for the construction industry and property sector. As we head into 2025, the Act's impact is set to intensify, bringing a wave of new challenges and responsibilities for stakeholders across the board.
Mustafa Sidki, Partner and Specialist in Litigation and Dispute Resolution at leading South East law firm Thackray Williams LLP, examines the ongoing repercussions of the Building Safety Act 2022 for property managers and the construction industry.
In the wake of the Grenfell Tower tragedy, the Building Safety Act 2022 emerged as a pivotal response to enhance fire safety and protect residents of high-risk buildings (HRBs). Since its implementation on 1 April 2023, the Act has sent ripples through the industry, prompting a surge in legal consultations and a scramble to understand its complex provisions, which will intensify in 2025.
The rise in Remediation and Contribution Orders
Definition of these complex provisions has in part been provided by Tribunal rulings, which show how the judiciary is interpreting their application. This clarity is leading to a rise in leaseholder applications for Remediation Orders and Remediation Contribution Orders, which are set to become a trend in 2025. These legal mechanisms, overseen by the First-tier Tribunal, are becoming crucial tools for addressing historic building safety defects.
Remediation Orders compel responsible parties to undertake specified repairs to a building's external facade. Meanwhile, Remediation Contribution Orders address the thorny issue of funding these often-costly remedial works. The Tribunal's power to make these orders "just and equitable" has introduced a new dimension of complexity to property litigation.
It's important to note that the definition of a "relevant building" for these orders differs from that of " HRBs, contained in The Act - those over 18 meters tall or with at least seven storeys and two residential units. This definition has become a cornerstone for new safety measures and responsibilities that are reshaping the construction landscape.
However, for the purposes of Remediation Orders and Remediation Contribution Orders, a relevant building is a self-contained building or part of a building containing at least two dwellings which is at least 11 metres in height, or which has at least five storeys, excluding leaseholder-owned buildings.
Surge of demand for technical expertise
The Act's stringent requirements have sparked a boom in demand for technical expertise. Architects, surveyors, and fire safety consultants are finding their services increasingly sought after as stakeholders scramble to ensure compliance and mitigate potential liabilities.
Managing agents have a pivotal role to play in advising clients early on to instruct surveyors and fire safety consultants to report on the remedial action and measures required to satisfy the Act's provisions.
This surge extends to the legal sector, with property and construction lawyers seeing a significant uptick in consultations. From advising on obtaining Building Safety Certificates to navigating the intricacies of remediation grants, legal professionals are playing a crucial role in helping clients navigate this new regulatory landscape.
Conclusion
As we enter 2025, the full impact of the Building Safety Act is set to crystallise. The property and construction sectors face a future of increased scrutiny, heightened responsibilities, and potentially significant litigation. However, with these challenges come opportunities - for innovation in building safety, for the development of new expertise, and for the creation of safer, more transparent residential environments.
The Grenfell tragedy has cast a long shadow, but the response embodied in the Building Safety Act represents a significant step towards a safer future for high-rise residents. As the industry adapts to these new realities, the coming years will undoubtedly see further developments in how we approach building safety and property management in the UK.
Recap of the key provisions of The Act – and how they apply to managing agents
The Building Safety Act has been front of mind for the construction and property management sectors since it was first mooted after the Grenfell fire, but it’s worth ensuring you and your teams are on top of the key provisions and how they apply to you.
- Building -Safety Regulator (BSR)
This body is tasked with overseeing the safety and performance of buildings and enforcing compliance with safety standards in higher-risk buildings
- Building Safety Certificate
The Act mandates that all high-rise residential buildings must obtain a Building Safety Certificate issued by the BSR. This certificate confirms that the building meets the requisite safety standards and is subject to regular inspections
- Increased construction responsibility
The Act introduced the concept of an “Accountable Person” who bears the responsibility for ensuring the safety of HRBs.
The Act defines an Accountable Person for an HRB as:
- The owner of the freehold or leasehold interest in any part of the common parts of an HRB
- Any party obligated to repair and maintain any part of the common parts by virtue of a lease or statutory obligation
Crucially, this responsibility cannot be offloaded. Managing agents appointed under a contract to repair and maintain a building will not be an Accountable Person, and an Accountable Person will be subject to penalties for non-compliance even if their managing agent's underperformance caused the breach of BSR duties,
It is therefore very important for a managing agent’s lawyers to explain the rules and responsibilities of an Accountable Person, so they understand the vital role that they have. For example, if an agent is managing a rented property within an HRB, they will need to liaise with the Accountable Person to ensure the tenants are provided with the correct fire safety information, plus they will also have a role in supporting the Accountable Person in their duties.
Secondly, if an agent is involved in the sale of a leasehold property within a high-risk building, they will be required to share key property information with other stakeholders, such as details about the construction of the building and any remediation works that have been carried out.
Mustafa Sidki, Partner and Specialist in Litigation and Dispute Resolution, Thackray Williams LLP
