London Daily

Focus on the big picture.
Saturday, Feb 22, 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
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×