Tysers, a leading independent Lloyd’s broker, warns that many property developers and property owners in Scotland may be impacted by new legislation on cladding remediation passed by the Scottish Government.
The Scottish Parliament approved the Housing (Cladding Remediation) (Scotland) Bill in May, which gives Scottish ministers power to directly commission remediation work in respect of dangerous cladding without the property owners’ permission.
Sam Towler, Client Director, North of England and Scotland at Tysers Retail said: “This Bill has the potential to impact many property owners and developers, with 105 buildings identified as needing remediation and new requirements set out for all property developers in Scotland. Professional Indemnity Insurance, a key protection for property developers, may also be impacted.”
Key points from the new legislation include
- Scottish ministers can directly commission remediation work on buildings with dangerous cladding.
- Property owners can receive just seven days’ notice on work to be arranged.
- The Scottish Government has identified 105 buildings in need of fire safety remediation.
- Property developers in Scotland must join a responsible developers’ scheme. Sanctions will be imposed if they fail to remediate buildings identified with defective fire safety features.
- Firms refusing to join the scheme will face additional sanctions, including being barred from carrying out development work in Scotland, starting building work or gaining building sign-off following project completion.
- The legislation allows Scottish ministers to set up a building safety levy, compelling developers to make a “fair contribution” to the Scottish Government’s cladding remediation programme.
Following the legislation property developers should consult with an insurance broker to ensure that their professional indemnity cover for cladding and fire safety risks affords adequate protection. More information is available here: https://www.tysers.com/scottish-cladding-remediation-bill-set-to-impact-property-developers/