Shared owners face possible fire safety remediation bills

Following a London council’s announcement of unsafe cladding on hundreds of low-rise residential homes, some residents have revealed that they have been asked to pay thousands of pounds for safety fixes. 

At the beginning of March 2024, Barnet Council revealed its plans to replace the cladding on some 580 low-rise timber-framed houses across the London borough as part of a £3.6 million scheme. 

As previously reported by the FPA, the scheme would cover 153 council-owned homes, while the remaining properties owned by freeholders and leaseholders would be offered a “package of works to replace the cladding, as well as a loan and repayment plan to freeholders to manage the cost”.

However, in an article by The Standard, residents revealed they had been asked by the council to pay between £14,000 and £23,000 for recladding work on their homes. It is understood that 426 freeholders and seven leaseholders are responsible for the ex-council properties and are also not eligible for government funding under current building safety regulations.

Residents shared their concerns over being told to pay for the fire safety fixes with reporters at The Standard. One resident, Caro Polhill, told the media outlet: “We fall under that 11m threshold, so we're in a position of no support.

Our houses are all ex-council homes. [The council] sold them to us under right to buy in the 80s, and they were bought in good faith. We think they are liable, or at least partly liable for the costs.”

According to Inside Housing, some of the affected properties are under shared ownership with Notting Hill Genesis (NHG), however, remediation costs still fall under the responsibility of the leaseholder. A spokesperson for NHG said: “This home was bought as shared ownership in 1999. Unlike with an apartment where we retain responsibility for communal areas and external walls, the house was fully demised to the homeowner.

This allows greater freedom when it comes to how their property is maintained and repaired, but conversely means they are responsible for all necessary repair or remediation work.

The priority in this case is ensuring the ongoing safety of the homeowner and their house, and we are aware that Barnet Council have offered a package that will ensure the house meets national safety standards. We will continue to engage with Barnet and the resident to help move this forward.”

A Barnet Council spokesperson said the council had been in touch with NHG, with the housing association confirming that the lease “makes the shared owner the homeowner and they are responsible for all the repairs and maintenance in their home, including major structural works and major repairs”.

To be clear, we have not asked any resident to sign up to a repayment plan at the moment. We have contacted all homeowners to arrange a survey to assess what remediation works, if any, might be needed for their property,” the council spokesperson said.

We’ll have a better understanding of the cost of any work then. If homeowners choose to commission the council’s contractors to undertake the remediation works, then the council will offer a loan and repayment scheme.

We’re working to identify the most cost-effective solution for helping residents make their homes safer. Unfortunately, the council does not have a budget or resources to pay for work to private homes, and so we are liaising with government to see what support they can offer to homeowners facing bills for necessary fire safety works.”

A spokesperson for the Department for Levelling Up, Housing, and Communities added: “We are aware of the action being taken by Barnet Council and continue to engage with them to better understand what they are doing to respond to risks they have identified in one and two-storey terraced council – or former council – houses.

The Building Safety Regulator is keeping the situation under review, and we will continue to engage with them and the council to determine whether further action is necessary.”