Remediation Orders and Remediation Contribution Orders
The best legal advice from the leading experts in building safety and Tribunal matters.
The potential liability of landlords has increased significantly since the implementation of the Building Safety Act, with various ways in which Government have sought to ensure that leaseholders will not be responsible for bearing the costs associated with building remediation and to reduce risk where building safety issues are present.
Of immediate interest to many property owners and managers are the function of Remediation Orders (ROs) and Remediation Contribution Orders (RCOs). These orders can be brought against landlords, developers, and their associated companies with respect to defects in residential buildings that are no less than 11 metres tall and contain two or more dwellings, which may be a risk to the safety of the residents and people in and around the building.
Remediation Orders – Key Points
- Section 123 of the BSA affords the First-tier Tribunal (FTT) the power to make a Remediation Order (but only if it is just and equitable) to a ‘relevant landlord’ requiring them to rectify any relevant defects within a particular time frame.
- The term ‘relevant landlord’ is defined in the BSA as a landlord (or another party to a lease i.e., a named management company) who is required under the lease, or by virtue of an enactment, to repair or maintain anything in relation to a relevant defect. The FTT cannot issue an Order of its own volition and can only issue an order on the application of various persons such as the Building Safety Regulator.
Remediation Contribution Orders – Key Points
- Remediation Contribution Orders have been introduced under Section 124 of the BSA, which can be made in respect of a specified body corporate or partnership, but only if they were a landlord under a lease of the relevant part of the building, such a landlord at the qualifying time, a developer in relation to the relevant building, or a person associated with them.
- Most importantly for landlords, they are also entitled to make an application to the Tribunal for an RCO requiring the original developer, and persons associated with it, to make payments, if just and equitable, to the landlord (or such other specified person) for the purpose of meeting costs incurred or to be incurred in remedying relevant defects.
- Landlords should give consideration, if they receive a RO or RCO application, to making a RCO application against applicable third parties.
A notable case whereby an application for an RCO was brought to the FTT was Triathlon Homes LLP v Stratford Village Development Partnership & Others [2024] UKFTT 26 (PC). Here, the application for an RCO was made by Triathlon Homes LLP who is the long leaseholder of the social and affordable housing in the tower blocks. The first respondent was the developer and freeholder of the blocks, with the other respondents being their subsidiary company/the long leaseholder of the private rented apartments and the management company for the estate. In 2020, fire safety defects were discovered relating to the design and construction of non-ACM cladding systems and a programme of works was due to commence by February 2024. The FTT made the RCO against the developer and their subsidiary company, ordering them to repay circa £18 million to the management company towards the costs of the works. Importantly, the FTT rejected the submission that they had no jurisdiction to make an RCO in the event that the respondents successfully pursuing claims against third parties. Read our full case analysis here.
Understanding and awareness of Sections 123 and 124 of the BSA is crucial for landlords, developers, and their associated entities. It is important to be aware of your rights, responsibilities, and potential liabilities in light of this new legislation. Contact our Building Safety Team by completing the enquiry form opposite or emailing: BuildingSafety@jbleitch.co.uk
