Government unveils reforms of construction product regime to crack down on ‘unregulated’ market

In a ministerial statement yesterday, housing secretary Steve Reed said: “Today, we have laid a white paper that outlines an ambitious programme of system-wide reform.

“We will address regulatory gaps and long-standing issues in the construction products sector, where too little has changed since Grenfell.”

One of the “system-wide” issues the white paper identifies is limited regulatory coverage, as currently only products covered by designated standards or technical assessments are regulated.

The central estimate is that around 37% of the UK market is regulated under the Construction Products Regulations, according to the white paper, meaning unsafe products can easily enter the market.

To address this, the government is proposing that all products must either be regulated by designated standards or by a new general safety requirement (GSR).

This “proportionate, risk-based” GSR will address the gaps in regulatory coverage that could allow unsafe products to be placed on the market, the government said. It has launched a separate consultation on this measure, with plans to bring forward legislation later this year.

Stronger sanctions for manufacturers that engage in misleading practices or neglect their responsibilities over product safety are also proposed. 

The white paper highlights how the independent Morrell-Day review in 2023 was unable to identify any prosecutions under construction products regulations since they were enacted. 

Since the review, only one prosecution has been taken forward under the regulations, by the national regulator for construction products, which was set up in 2021.

Enforcement authorities will be equipped with the investigation and intervention powers to effectively manage non-compliance, underpinned by robust criminal offences for both companies and individuals that do not comply.

The government will review and improve legal routes for redress for those affected by faulty products, and streamline the process to hold manufacturers accountable for historic cases where defective cladding products made buildings unfit for habitation.

There are also plans for all construction products to feature clear, accessible labelling and product information outlining critical safety information.

For third-party certification schemes, manufacturers will be required to make it known when they have undertaken tests and share any information that may affect the validity of a certificate with the issuer.

For all products, the national regulator for construction products will be equipped with powers to mandate disclosure of any relevant test information to assure compliance with the law.

This comes after the Inquiry report exposed dishonest and misleading marketing and poor-quality product information, the paper said.

The Inquiry and subsequent independent reviews also shone a light on ​​“weak institutional oversight” and transparency of testing and certification, and “significant issues” in relation to private testing bodies.

The new regime will rely on a strong testing and certification sector that “can be trusted”, and the government said it would require all UK Conformity Assessment Bodies to be licensed by the national regulator for construction products.

In addition to private testing, the government also revealed plans to develop new public sector testing to provide “much-needed capacity” and enable both enforcement and research testing.

The white paper is a response to the green paper consultation published last February, which officials said had “corroborated the need for system-wide construction product reform identified by the Grenfell Tower Inquiry”.

Announcing the reforms in a foreword to the policy document, building safety minister Samantha Dixon said the Inquiry had exposed a regime that “failed its most basic purpose: keeping people safe in their homes”. 

She added: “Government and the sector have recognised that the system must evolve dramatically. We must move from a framework originally designed to reduce technical trade barriers to one that places safety, accountability, public confidence, and growth and innovation at its core.”

The government’s interim chief construction advisor, Thouria Istephan, said: “We must never forget the loss of 72 innocent lives and the impact the tragedy continues to have on the Grenfell community.

“The announcements today show the important ongoing work to reform and improve the complex regulatory system. 

“We must strive to continue to make lasting and progressive change that improves the safety and quality of both new and existing buildings and, crucially, place people who live and work in buildings at the centre of our thinking.”