MPs have voted against banning building owners from passing on remediation costs, which means leaseholders living in unsellable high-rise homes will continue to face fire safety bills of up to £100,000.
The House of Commons voted 340 to 225 on Tuesday against an amendment to the fire safety bill which would have protected leaseholders from costs incurred to make their homes safe.
It is estimated that the total bill for leaseholders could exceed £12bn.
MHCLG commissions BSI to draft new code of practice for assessing cladding
This decision was made despite a poll of MPs by YouGov that found three-quarters, including two-thirds of Tories, believed the government should pay the costs of all building safety work upfront, and then claim it back later from those responsible.
The Bank of England believes that banks can absorb the risk posed by blocks of flats that have fire safety concerns.
On 27 April, the Ministry of Housing, Communities & Local Government (MHCLG) commissioned the British Standards Institution (BSI) to draft a new code of practice for assessors when examining external walls and cladding.
This follows news from last month when RICS updated its guidance relating to cladding and revealed it was to work with the UK government and other stakeholders to ensure the guidance is implemented by 5 April 2021.
Lenders have begun to reveal whether they are intending to follow the updated RICS cladding guidance and how they plan to implement it.
