London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Senior MP demands answers for leaseholders

Senior MP demands answers for leaseholders

MP Clive Betts has written to the government to ask why new guidance designed to help about 500,000 leaseholders sell or remortgage their flats is not being followed.

It was issued by the Royal Institution of Chartered Surveyors (RICS) in March.

It is supposed to help surveyors decide which tower blocks need extra fire safety checks.

But although mortgage providers were consulted on the guidance, Money Box has found some lenders are ignoring it.

The extra checks are called an Exterior Wall System form, or EWS1, and were introduced in the wake of the Grenfell Tower fire in which 72 people died.

That form is supposed to provide assurance for buyers, sellers and, crucially, mortgage providers about whether or not a flat is safe to buy, sell, or lend against, depending on whether it has flammable cladding, vertically stacked balconies or other issues.

But Money Box listener Jie Shen, who is trying to provide for his retirement, is selling a flat which has neither of those problems.

He says three separate mortgage providers have turned down his prospective buyer because Jie's building doesn't have an EWS1 form - even though the RICS guidance says it doesn't need one.

"I feel like I'm trapped into this situation. I can't move on with my life, I'm just locked into this and I don't know how to resolve this," he says.

"I think the mortgage lenders should follow the advice from RICS and shouldn't insist on an EWS1 form [for a building] that does not contain flammable cladding.

"I just don't understand why the mortgage provider insists on this - it's just bureaucracy."

'System is a complete failure'


Another complication for Jie, and many others like him, is that getting an EWS1 form is not in his power, even if he wanted to get one.

He is a leaseholder and the decision to pay for the survey needed to get the form lies entirely with the freeholder who owns his building.

In Jie's case, the management company of his building, representing the freeholder, has quoted the RICS guidance to show the building should not require an EWS1 form, leaving Jie utterly stuck.

But Jie's buyer has been turned down by three mortgage providers exactly because he doesn't have an EWS1 form. And so it goes round and round, with Jie left in limbo.

It's hearing about cases like Jie's that has made Mr Betts act.

Writing to the Secretary of State for Housing, Robert Jenrick, Mr Betts, while recognising that the EWS1 is "a process led by industry", has asked two key questions on behalf of the committee:

*  The ways in which the government is supporting the implementation of the new guidance from RICS

*  The actions that the government plans to take in the event that mortgage lenders continue to insist that EWS1 forms are obtained for buildings that do not meet RICS criteria.

He has requested answers by the end of May.

Mr Betts has also asked people who find themselves in the same position as Jie - when the RICS guidance shows their tower block doesn't need an EWS1, but when lenders are insisting on one - to email the committee at "hclgcom@parliament.uk".

Speaking to Money Box after hearing about Jie's case, Mr Betts said: "The system was set up with the lending industry and the surveying industry to work together to give reassurance to lenders. That's its whole purpose.

"So if it isn't giving reassurance to lenders to lend on buildings which the system says don't need a certificate... then the system is a complete failure and it needs taking up with both RICS and the lenders, so it doesn't leave people stranded in homes that they can't sell and can't remortgage."

UK Finance, which represents nearly 300 banks, building societies and mortgage providers, says it's supportive of the guidance but it's down to individual lenders whether or not they implement it, based on their own risk appetite.

It also told Money Box that while lenders instruct valuers to complete property valuations, it's the valuers who determine whether or not EWS1 forms are required.

The Department for Housing, Communities and Local Government told Money Box it wanted to encourage "a sensible, proportionate approach to risk and for lenders to accept alternative forms of assurance", adding that it was investing £5bn to help protect leaseholders from the cost of replacing unsafe cladding on their homes.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×