It gives qualifying leaseholders cost protections for fire safety defects. The developer or original builder pays first where identifiable and solvent, then a freeholder linked to the developer; only then do capped leaseholder contributions apply to non-cladding relevant defects. For cladding remediation, qualifying leaseholders pay nothing in any relevant building of at least 11 metres or five storeys.
Leaseholder protections explained
The Building Safety Act 2022 introduced comprehensive protections for leaseholders in buildings with fire safety defects. These protections determine who pays for remediation and cap the amounts that qualifying leaseholders can be charged. Understanding your status under the Act is essential if you own a flat in a building affected by cladding or fire safety issues.
Qualifying vs non-qualifying leaseholders
The Act distinguishes between qualifying and non-qualifying leaseholders. A qualifying leaseholder is one who owned the lease on 14 February 2022 and either occupied the flat as their main home or owned no more than three UK residential properties. Qualifying leaseholders benefit from cost protections; non-qualifying leaseholders (those with larger property portfolios) do not.
Cost caps and protections
For qualifying leaseholders, the Act establishes a hierarchy of liability. First, the developer or original builder must pay if they can be identified and are solvent. Second, the freeholder must pay if they are linked to the developer. Only where neither of these can be made to pay do leaseholder contributions come into play, and even then they are subject to caps: normally £15,000 in Greater London and £10,000 elsewhere in England for non-cladding relevant defects, with higher caps only for flats valued above £1 million and no contribution at all for low-value leases. For cladding remediation specifically, qualifying leaseholders pay nothing, in any relevant building of at least 11 metres or five storeys, not only those over 18 metres.
Impact on the market
The protections have significantly improved the position for leaseholders in affected buildings. EWS1 certificates provide the standardised assessment that lenders require, and the combination of government funding schemes and leaseholder protections has restored confidence in many buildings that were previously unmortgageable. However, buildings with unresolved issues may still face lending and insurance difficulties until a clear remediation pathway is established.
Frequently asked questions
What is a qualifying leaseholder?
A leaseholder who owned the lease on 14 February 2022 and either occupies it as their main home or owned no more than three UK residential properties. They benefit from cost protections for remediation.
What costs are leaseholders protected from?
Remediation of cladding and fire safety defects, associated professional fees, and temporary safety measures. Non-qualifying leaseholders do not benefit from these protections.
Are there caps on leaseholder charges?
Yes. For non-cladding relevant defects the standard cap is £15,000 in Greater London and £10,000 elsewhere in England, with higher caps only for flats valued above £1 million and nothing payable on low-value leases. For cladding remediation, qualifying leaseholders pay nothing in any relevant building (at least 11 metres or five storeys).
How does this affect selling a flat?
The protections and EWS1 process have improved lending confidence. Buildings with clear remediation pathways are more readily mortgageable, though unresolved issues may still cause difficulties.
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Contact UsSavas Bulduk
BSc (Hons) MRICS, Director & Chartered Building Surveyor.
Writes on Building surveying, Fire safety and facade, External wall systems, Technical due diligence, Contract administration. See the full team profile.