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Homeowners now have 15 years to sue for poor construction work

The time residents can take to seek compensation for substandard construction work on their homes is to be extended from six to 15 years, the government has announced.

The new measure was revealed as the Building Safety Bill, which contains a series of reforms to the way in which building safety is regulated, was published today (5 July).

Housing secretary Robert Jenrick said the Bill would give residents more power to hold builders and developers to account for poor quality constructions, as well as toughening sanctions.

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The changes to the time limit for homeowners to seek compensation for poor work will apply retrospectively, meaning that residents of a building completed in 2010 will still be able to bring proceedings against the developer until 2025.

The Bill also paves the way to establishing the Building Safety Regulator, which will oversee the new regulatory regime for ensuring that any building safety risks in new and existing high-rise residential buildings of 18m or above are managed and resolved.

A series of gateway points at design, construction and completion phase to ensure that safety is considered at each stage will also be implemented under the Bill.

The Bill, which builds on Dame Judith Hackitt’s review of Building Regulations and Fire Safety, will also include powers to strengthen the regulatory framework for construction products, underpinned by a market surveillance and enforcement regime led nationally by the Office for Product Safety and Standards (OPSS).

The national regulator will be able to remove products from the market that present safety risks and prosecute or use civil penalties against any business that breaks the rules and compromises public safety.

Meanwhile, it will provide a legal requirement for building owners to explore alternative ways to meet remediation costs before passing these onto leaseholders, along with evidence that this has been done.

Developers will also be required to join and remain members of the New Homes Ombudsman scheme, which will require them to provide redress to a homebuyer, including through the awarding of compensation.

Dame Judith Hackitt said: “I am delighted that we have reached this important milestone for the Building Safety Bill. It is vital that we focus on getting the system right for the future and set new standards for building safety.

“Residents and other stakeholders need to have their confidence in high rise buildings restored and those who undertake such projects must be held to account for delivering safe buildings.”

Housing secretary Robert Jenrick said: “The new building safety regime will be a proportionate one, ensuring those buildings requiring remediation are brought to an acceptable standard of safety swiftly, and reassuring the vast majority of residents and leaseholders in those buildings that their homes are safe.”