The Building Safety Act 2022 – What it could mean for your property portfolio
The Building Safety Act 2022 (“the BSA 2022”) was introduced following the Grenfell Tower tragedy and is intended to improve safety, accountability and oversight in residential buildings. Although often associated with cladding and high rise towers, its practical consequences are much broader.
For landlords, building safety is now a legal, financial and reputational risk. It can affect day to day management, the recovery of costs, the handling of leaseholder disputes and the commercial value of an investment.
Recoverability of costs
The BSA 2022 introduced protections for qualifying leaseholders against certain historic building safety costs. Landlords should not assume that remediation costs can automatically be recovered through the service charge simply because the lease contains a charging mechanism.
Before issuing demands or budgeting for major works, landlords should consider whether statutory protections apply and whether the relevant costs are recoverable and there is a certification regime in place to determine this which was brought in by the BSA 2022.
Liability may extend further than expected
The BSA 2022 introduced new remedies, including remediation orders, remediation contribution orders and building liability orders. These mechanisms can require parties connected with a building, including developers, landlords and associated companies, to contribute towards remediation costs where appropriate.
This means historic defects should not be viewed as someone else’s problem without careful analysis. Equally, landlords may need to consider whether another party should properly bear or contribute to the cost of works.
It can affect sales, refinancing and portfolio value
BSA 2022 issues are now common in leasehold transactions. Buyers, lenders and conveyancers may require information about whether the building is in scope, whether leaseholder protections apply, whether remediation works are required and whether the relevant documentation is available.
Where the position is unclear, transactions can be delayed, buyer confidence can reduce and additional legal costs can arise. For portfolio landlords, this can affect liquidity, refinancing strategy and asset value.
Higher-risk buildings carry enhanced obligations
Residential buildings over 18 metres in height or with at least seven storeys may fall within the higher risk building regime. Those buildings are subject to enhanced regulatory oversight and additional compliance requirements.
Landlords with an interest in such buildings should understand who is responsible for compliance, what information is required and how those obligations may affect management arrangements, expenditure and risk allocation.
Documentation is now critical
Good records are essential. Landlords should know what building safety documents exist, what defects have been identified, what remediation works have been carried out and what certificates, notices or correspondence are available.
Poor record keeping can make it harder to satisfy lenders, progress a sale, respond to leaseholder enquiries, justify service charge demands or assess whether specialist advice is needed.
Risk of disputes
The BSA 2022 creates significant obligations and potential liabilities for landlords. Early specialist advice can help identify risks, clarify responsibilities and explore available remedies before issues escalate. By taking a proactive approach, landlords can better protect their interests, manage costs, maintain compliance and avoid unnecessary disputes.
Angela is a partner in the Property Disputes team in our London office.
She is a Solicitor-Advocate with extensive experience in all aspects of commercial and contentious property matters.
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