Social landlords need more cash to implement new building safety regime, Senedd committee finds

An impact assessment of the bill, which is expected to come into force in April 2027, estimated that the new rules will cost the sector £132m, with the vast majority likely to be revenue costs.

The committee’s report on the legislation, which will be followed by a plenary debate today (9 December), recognised that many of the organisations that will take on additional responsibilities “are already under financial pressures and may struggle to meet additional resource requirements”.

One of its recommendations was as follows: “The Welsh government should undertake further work to ensure the additional resource requirements that will result from the bill are fully understood.”

“The Welsh government should ensure that local authority landlords and housing associations receive such additional funding as is required to be able to discharge duties effectively,” the report added.

On lower-rise and lower-risk buildings, the committee said: “The Welsh government should provide clear justification for the inclusion of Category 3 buildings within the new building safety regime in terms of impact on the safety risk profile of Category 3 buildings.

“Due to insufficient evidence that the proposed approach to Category 3 buildings and HMOs [houses in multiple occupation] is proportionate, the Welsh government should consider adopting a stratified risk-based approach so that higher-risk Category 3 buildings and HMOs are brought into the new regime ahead of lower-risk Category 3 buildings and lower-risk HMOs.”

Members of the Senedd on the committee concluded that the government had not “made a clear case” that the inclusion of Category 3 buildings within the new regime was “necessary”.

“It has not demonstrated that the additional costs and resource implications arising from greater regulation, and the potential risk to housing supply, would be proportionate to any safety benefits to be achieved via the application of the new regime to such buildings,” the report said.

Under the legislation, Category 3 buildings are those under 11 metres in height with fewer than five storeys, while Category 2 covers buildings between 11 metres and 18 metres in height, and Category 1 buildings are at least 18 metres or have at least seven storeys.

Other recommendations to the Welsh government included swift publication of a building safety workforce plan and greater clarity around the meaning of a “competent person” to carry out a fire risk assessment.

Ahead of the report, CHC had called for a “clear, strategic workforce plan from the Welsh government to train, certify and grow the necessary workforce”. 

“Clarity on ‘competent and sufficient’ must be provided so we avoid implementation delays,” the trade body added. 

It also pointed out that the “uncertainty” around the practice detail of the bill “prevents landlords from effectively preparing for implementation”.

“Landlords need a sufficient lead-in time to prepare so we are calling for a phased implementation approach,” CHC said.

In response to the committee’s stage one report, Elly Lock, CHC’s head of policy and research, said: “Tenant safety is absolutely vital and we fully support the principles of the bill, focussing on embedding safety, accountability and a stronger resident voice into communities.

“The Senedd Committee’s report makes clear, however, that the bill must be more proportionate, practical and properly funded. In particular, we welcome a focus on ensuring requirements for lower-rise and lower-risk buildings – ‘Category 3’ – are proportionate to the level of risk they present.

“We now look forward to working with the Welsh government and members of the Senedd as the bill progresses.”

A spokesperson for the Welsh government said: “We welcome the committee’s report and will carefully consider all of the recommendations made and respond in due course.

“The Building Safety (Wales) Bill is the cornerstone of our wider programme of reforms to fundamentally improve safety in multi-occupied residential buildings. This legislation is central to the Welsh government’s response to the Grenfell Tower tragedy and our unwavering commitment to ensure that such a devastating tragedy can never happen again.”

The Chartered Institute of Housing Cymru warned in September that the new building safety regime could see local authorities “marking their own homework” as they take on additional regulatory roles.

In the new year, the committee will consider amendments to the bill, with consultations on stages one and two expected to take place throughout January and February.