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Following the introduction of the new Building Safety Act 2022, we’ve been contacted by a number of solicitors asking whether the new legislation will have any impact on the availability, or price, of our Building Regulations policies.

The simple answer is that nothing has changed from our perspective and our policies remain available and unaltered. Not only that, our premiums are unaltered too.

The introduction of the Building Safety Act comes, surprisingly enough, during a period of significant focus by the Government on building safety in the UK. The Act’s primary aim is to ensure the safe design and construction of new buildings. In addition, it will mean that existing, high-rise buildings over 18 metres will have to be registered with the Building Safety Regulator. This is to ensure that appropriate safety checks can be made and any remediation works undertaken. As the vast 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.

Increased local authority powers

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, increasing the risk to buyers and lenders alike.

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 Cottinghams 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. Our claims experience also demonstrates that local authorities do not restrict their action to works under 12 months old, as we often have to engage with them to avoid any escalation of formal enforcement proceedings against works that are much older.

Therefore, from an insurance perspective, nothing has changed regarding how we handle enquiries for this cover. While the strengthening of their enforcement powers may have initially been perceived by some as increasing the risk to buyers and lenders, it seems unlikely that councils 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’re dealing with your next transaction where the seller is unable to provide the necessary Building Regulations consents for past works, call our specialist team of underwriters on 01603 617617, email enquiries@cli.co.uk or sign into Elite.