Happily, the answer is no, it won’t. Nothing has changed from our perspective and our policies remain available and unaltered, and the same is also true for our premiums.
The primary aim of The Building Safety Act is to ensure the safe design and construction of new buildings. It also requires existing, high-rise buildings over 18 metres to be registered with the Building Safety Regulator, to ensure that appropriate safety checks can be made and any remediation works undertaken. As the majority of our Building Regulations policies cover past alteration works to individual residential properties, many of the cases we provide cover for simply won’t be affected by this element of the new Act.
Existing local authority enforcement powers toughened up
The Government has also taken the opportunity to strengthen existing local authority powers to act against breaches of Building Regulations. Central to this is the extension, from 12 months to 10 years, of the period in which they can instigate enforcement action under section 36 of the Building Act, without having to apply to the courts for an injunction. At first glance, this may seem like a significant development that increases the risk to buyers and lenders alike – indeed, it has prompted a number of questions from solicitors.
However, while it’s true that local authorities now have more direct powers, they have always been able to approach the courts for significant breaches beyond the initial 12-month period, for example where there are health and safety concerns. This was demonstrated by the case of Cottingham v Attey Bower & Jones (2000), when the judge highlighted that a local authority can still apply for a Court injunction for unauthorised works completed over 12 months ago. Consequently, we have always provided cover for works over 12 months old within our Building Regulations policies. And our own experience of claims that arise also suggests that local authorities do not restrict their action to works under 12 months old, as we often see proceedings taken against works that are much older.
Our approach hasn’t changed
Therefore, from an insurance perspective, nothing has changed regarding how we handle enquiries for this cover. While the strengthening of councils’ enforcement powers may have initially been perceived by some as increasing the risk to buyers and lenders, it seems unlikely that they will suddenly take mass action on older unauthorised works. In any event, our practical approach to dealing with claims for these cases means we’re happy to continue to provide Building Regulations policies, covering innocent buyers and their lenders for past works, in the same way we always have.
So when you next need a Building Regulations policy, call our expert underwriters on 01603 761515, email enquiries@isisconveyancing.co.uk, or sign in to ICON to see our range of single and combined products.