People living in unsafe and unsellable homes due to cladding related issues could be protected with the introduction of new legislation.
Leaseholders across the city region have been faced with the prospect of paying life changing sums of money to ensure their buildings meet fire safety standards.
In some cases, this meant leaseholders faced paying upwards of £100,000 to remove unsafe cladding.
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In more common cases, the prospect of paying five figure sums - often greater than the original investment in an apartment - has been burdened by 'innocent' leaseholders.
However, following news in January that financial support will be extended to leaseholders in buildings below 18 metres, the Government has unveiled its plans to introduce tough new legislation that will mean leaseholders don’t have to pay a penny towards cladding remediation costs.
Brought forward by the department of Levelling Up, Housing and Communities, it says that developers and manufacturers will be made to pick up the costs and could face being blocked from the housing market if they do not agree to pay.
The legislation, put forward as amendments to the Building Safety Bill, will aim to limit the costs of other fire safety measures such as waking watch patrols - something which led to some leaseholders across the country being made bankrupt and homeless.
The ongoing situation, stemming from the Grenfell tragedy in 2017, has rendered many leaseholders’ homes unsellable due to the overhanging costs and soaring insurance and service charge premiums - seeing their life savings and investments completely decimated by the expectation to pay for cladding remediation and other fire safety measures.
Last month the ECHO revealed how flats overlooking the River Mersey were valued as little as 1p and leaseholders faced seeing their livelihoods and dreams crushed by the ‘nightmare’ situation.
Reacting to the Government announcement, End Our Cladding Scandal Now, a national campaign group, said the latest development is the most positive step forward to date.
It said: “Finally, nearly five long years after the Grenfell tragedy, the penny seems to have dropped with the Government that leaseholders are the innocent party and that the polluters who caused this crisis must be the ones to pay to fix it.”
Julie Fraser, founder of Liverpool Cladiators which forms part of End Our Cladding Scandal Now, also said the announcement was positive and a step in the right direction.
Ms Fraser told the ECHO: “On the whole this is good. There have been some really good steps forward.
“The industry will fight back on this and the Government is aware of that.
“One really good point about the announcement is that the Government will give the courts powers to stop the creation of shell companies and that's how they intend to move forward.
“There will also be action taken to look back and trace the directors from the shell companies that were created.
“That's a really good move forward because there are so many buildings where there is no developer to chase, or they don't think there is.
“On the whole, it's a really good move forward. But as we've said before the devil is in the detail. There's still some things that they need to clarify.”
Ms Fraser added that there are now potential amendments which could see the removal of the ‘building safety charge’, something which meant the freeholder could charge leaseholders and demand payment within 28 days.
She say this would be further “good news” if introduced.
Riverside Labour MP, Kim Johnson, has been campaigning on behalf of leaseholders in Liverpool City Centre and recently raised the issue in Parliament.
Reacting to the Government’s announcement, she said: “The most positive move forward by this Government yet, but still some questions to be answered.
“Bottom line - this Government promised leaseholders would not have to pay and we still need that commitment in law.”
Central ward Labour Cllr Nick Small, who has also been campaigning to support leaseholders, said on Twitter that the developments are positive but need to go further.
He said: “[The] announcement on more support for leaseholders is positive and a testament to the long campaign by leasehold groups like Liverpool Cladiators, but it doesn't go far enough.
“Developers who own buildings and other building owners that can afford to do so will be legally obliged to pay non-cladding costs, but, where they can't, leaseholders costs will be capped at £10k (or £15k in London).
“It's wrong that leaseholders should face these costs.
“I'll keep campaigning on this until leaseholders get the justice they deserve.”
However Ms Fraser still believes there are some gaps in the legislation that could result in the unfair treatment of leaseholders.
She highlights that the Government’s measures will not cover leaseholders who own more than two properties and they will be faced with paying for their remediation costs.
Ms Fraser said: "If you own more than two apartments, you're still going to be eligible for the costs. So it's still unclear and they didn't give us any answers how they're going to make that work.
"These type of people aren't millionaires by any stretch, but will be in the same position as a pension company that owns 1000 apartments.
“That isn't fair.”
Ms Fraser also points out that the new legislation does not address the sharp increase in insurance premiums and service charges.
In The Decks residential complex in Runcorn where she is a leaseholder, she says insurance costs have risen from £33,000 to £514,000 over the course of three years.
Quarterly service charges have also trebled to £750.
Ms Fraser added: “The legislation is not going to be taking insurance into account. The Government have written to the FCA and CMA and that’s [all that's been done so far].
“It would seem that the money people have already paid out, there's very little chance of them getting it back.”
If passed by Parliament, the announced amendments to the Building Safety Bill will be brought into law.
Secretary of State for Levelling Up Michael Gove said: “It is time to bring this scandal to an end, protect leaseholders and see the industry work together to deliver a solution.
“These measures will stop building owners passing all costs on to leaseholders and make sure any repairs are proportionate and necessary for their safety.
“All industry must play a part, instead of continuing to profit whilst hardworking families struggle.
“We cannot allow those who do not take building safety seriously to build homes in the future, and for those not willing to play their part they must face consequences.
“We will take action to keep homes safe and to protect existing leaseholders from paying the price for bad development.”
