Housing secretary repeats pledge to stop developers trading as deadline passes

Michael Gove has threatened to put the 11 housebuilders who missed yesterday’s deadline for signing a building safety contract “out of the housebuilding business entirely” unless they sign up.

The housing secretary read out a list  in the House of Commons this afternoon of 11 developers (see below) who were asked to sign the contract, which gives legal force to a pledge to remediate their own blocks over 11m going back 30 years, but have not yet done so.

Gove previously gave a group of housebuilders a six-week deadline to sign the contract or face a ban on developing even for schemes with planning permission. He revealed a list of 39 housebuilders who have signed the pledge.

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Michael Gove has put 11 firms on notice to sign up or face restrictions on business

But Gove told MPs this afternoon: “While the overwhelming majority of major developers have signed, some regrettably have not and this house has made it clear what this means and so have I.

“Those companies will be out of the housebuilding business in England entirely unless they change their course,” he said.

Developers who were asked to sign contract but have yet to do so

1. Abbey Developments

2. Avant

3. Ballymore

4. Dandara

5. Emerson Group (Jones Homes)

6. Galliard Homes

7. Inland Homes

8. Lendlease

9. London Square

10. Rydon Homes

11. Telford Homes

Source: DLUHC

He said that those who were invited to sign but have not done so will not be eligible to join the responsible actors scheme, which the government is setting up under new powers under the Building Safety Act.

Gove said: “They will not be able to commence new developments in England or receive building control approval for work that is already underway.”

The housing secretary said, however, that his officials remain in discussion with several of the 11 “who are making progress towards signing”.

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He also repeated his threat to write to housebuilders’ investors and to local authorities and building inspectors “to explain that these developers’ projects may not be started or signed off”. He also pledged to notify public bodies to re-open tenders and to potential homebuyers in order “to set out the risks involved in purchasing homes from companies that have chosen to ignore the prohibitions”.

Gove said the 39 housebuilders who have signed will remediate 1,100 buildings and spend more than £2bn, which is “money saved for the taxpayer”. He added: “I remain grateful to those developers who have been so keen to live up to their obligations.”

He also said the government will do more to pursue construction product manufacturers “who also bear a heavy responsibility” for unsafe buildings, adding he will say more on the subject in the coming weeks.

Developers who have signed the contract:

1. Allison Homes Group 

2. Barratt Developments 

3. Bellway 

4. Berkeley Group 

5. Bewley Group 

6. Bloor Investments 

7. British Land 

8. Cala Group 

9. Canary Wharf Group

10. C.G. Fry and Son 

11. Churchill Retirement 

12. Crest Nicholson 

13. Croudace Homes 

14. Fairview Holdings

15. Frasers Property 

16. MJ Gleeson 

17. Grosvenor Group

18. Hill Holdings

19. Hopkins Home Group 

20. Jelson Holdings 

21. Keepmoat 

22. Land Securities Group 

23. Lifestory Holdings 

24. McCarthy & Stone

25. Miller Homes 

26. Morgan Sindall 

27. Morris Homes 

28. Persimmon 

29. Redrow 

30. Rowland Group 

31. Sorbon Group

32. St Modwen Group 

33. Story Homes 

34. Strata Homes 

35. Taylor Wimpey

36. Tilia Homes 

37. Vistry Group 

38. Weston Group 

39. William Davis Homes

Source: DLUHC

 

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