Building safety: what happened in 2024 and what to expect in 2025

Progress and learnings in 2024

With so many developments, we can’t list everything, but four highlights were:

• The legal framework solidified - Most of the legislative changes were published in a jumbled flurry throughout 2023, followed by a complex transitional period extending to April 2024. From then, the new legal framework for the building safety regime was locked into place. Further changes are anticipated, but the new provisions around dutyholders and competence, and particular changes for higher-risk buildings (golden thread, mandatory occurrence reporting, gateways and much more) now apply. However, it will take time for the industry as a whole to fully get to grips with the changes and how they apply in practice, including for those parties usually more on the periphery, such as lenders.

• End of the Grenfell Inquiry - Following the Grenfell Inquiry's phase one report in October 2019, the long-awaited final report was published in September 2024. At around 1,700 pages, there was much to digest, but within those pages were 58 recommendations for further transformative changes across the industry at all levels. We expect to hear the government’s response to these in the new year.

• Disputes and decisions - There has been an increase in disputes relating to buildings and remediation works. Some of these are now making their way through the First-tier Tribunal and the Technology and Construction Court. We are starting to see decisions being published on a range of issues, including on who the Accountable Person is and what counts as a storey when determining whether a building is a higher-risk building or not (in fact, this last case also brought into question the status of government guidance on building safety matters).
  
  More remediation orders have been sought this year and, alongside this, recent changes under the Leasehold and Freehold Reform Act 2024 have clarified that remediation orders can apply to buildings over 11m and can include costs of taking steps towards remediation, obtaining expert reports, and alternative accommodation for residents.

• Awareness around occupied buildings - When talking about building safety, much of the focus has been on new buildings. But the new regime also affects existing and occupied higher-risk buildings, and there has been growing awareness of this throughout 2024. The impacts include understanding who the Accountable and Principal Accountable Persons are and their duties, what to include in the golden thread for occupied buildings, and what to do if the Building Safety Regulator tells you to apply for a building assessment certificate. The types of enquiries being raised around sales or refinancing of existing buildings are also developing as this awareness grows, in light of the extended risks and liabilities around building safety for residential buildings.

What can we expect in 2025?

So, what's next for the construction industry and building safety? In addition to the pointers above, some further tips on what to keep an eye out for include:

• The new Labour government's agenda - In August 2024, deputy prime minister Angela Rayner said “this government will expect more from regulators and partners to make sure action is being taken now to make homes safe, speed up remediation and ensure that buildings in the process of being remediated are managed safely for residents". And in the 2024 autumn budget, the government stated that "investment in remediation will rise to over £1bn in 2025-2026". With so many buildings still to be remediated, the pressure may now fall hard on developers to get these works over the line. In light of the “black hole” in public finances, we also await further news on whether a building safety levy will be introduced (consulted on by the previous government, to be paid by developers on new residential buildings in England).  

• More disputes - Expect more claims to be made, including under the previously little-used Defective Premises Act, as well as under the new remediation orders, remediation contribution orders, and building liability orders.

• Second staircases - while rules on second staircases in all new buildings over 18m are only due to come into force in September 2026, forward-thinking developers and their designers may start including these sooner rather than later, to take into account the future value of the asset being built.

• Wider changes - We have been focusing on the position in England in this article, but don't forget that the building safety regimes are different in Scotland and Wales. Scotland's regime has historically been further ahead than England's, but changes are still likely there following the Housing (Cladding Remediation) (Scotland) Act 2024 coming into force, and their recent consultation on a Scottish building safety levy. In Wales, a Building Safety (Wales) Bill "is scheduled for introduction in 2025".

Simon Lewis is a partner in the construction engineering team and Michelle Essen is legal director (construction) at Womble Bond Dickinson.