Quick Answers
Who should be paying for cladding remediation?
Developers who built or refurbished the building with relevant defects face primary liability under the Building Safety Act 2022. Where the developer cannot be pursued, the freeholder or landlord faces secondary liability. Qualifying leaseholders are protected from having these costs passed through the service charge. Government funding is available for some buildings where neither developer nor landlord can fund remediation.
What is the Cladding Safety Scheme?
A government-funded programme administered by Homes England covering cladding remediation for eligible residential buildings between 11 and 18 metres where there is no developer or landlord with sufficient means to fund works. Applications are made by the responsible person. Buildings above 18 metres are covered by separate developer pledge arrangements.
Can leaseholders challenge service charge demands for cladding costs?
Yes. Qualifying leaseholders can apply to the First-tier Tribunal to determine whether costs for relevant building safety remediation can lawfully be passed to them. Do not pay service charge demands for these costs without first taking advice. Paying without challenge may be treated as acceptance.
The core protection: the Building Safety Act 2022 introduced leaseholder protection provisions that prevent qualifying leaseholders from being charged through the service charge for relevant building safety defects, including cladding remediation. The liability falls on the developer (up to 30 years from construction) and then on the landlord (subject to caps based on net worth). Where the costs cannot be recovered from either, government funding schemes are available for eligible buildings.
Why leaseholders are still being charged: freeholders and managing agents who are unaware of, or who choose to ignore, the leaseholder protection provisions continue to issue service charge demands including cladding remediation costs. Some do so because the qualifying leaseholder criteria are genuinely complex and some leaseholders do not satisfy them. Others do so because leaseholders have not challenged. The Tribunal is the correct forum for challenging unlawful demands and leaseholders should use it.
Key Takeaways
The 30-year developer liability window is the starting point
The Building Safety Act 2022 created a new cause of action allowing building owners and leaseholders to bring claims against developers who built or refurbished residential buildings in the past 30 years with relevant defects. This window is retrospective: it applies to buildings completed before the Act came into force, not just those built after it. A building completed in 2000 is still within the 30-year window until 2030. Finding and pursuing the developer — including through the group structure if the original company has been dissolved — is the first step before any other funding route is considered.
The Building Safety Pledge committed major developers but is not universal
In April 2022, the government secured commitments from around 50 major residential developers to fund cladding remediation on buildings they built or refurbished. The Developer Remediation Contract formalised these commitments. Developers who signed are contractually obliged to fund remediation of their buildings, including ACM and non-ACM cladding. But hundreds of smaller developers, developers who have since become insolvent, and buildings constructed by non-pledge developers are not covered by these commitments and require different funding routes.
The Cladding Safety Scheme fills the gap for 11-18m buildings
The Cladding Safety Scheme provides government funding for cladding remediation on buildings between 11 and 18 metres where neither developer nor landlord can fund works. It is the primary route for this height category and has been significantly scaled up since launch. Applications go through Homes England and require evidence that the building is eligible, that no responsible developer can be pursued, and that the cladding systems present a fire risk. Processing times vary and demand is high.
Buildings above 18 metres have their own funding tracks
Buildings above 18 metres with ACM cladding (the type used at Grenfell) were covered by an earlier government scheme — the ACM Cladding Remediation Fund — with a deadline for works that has mostly passed. Remaining above-18-metre buildings with non-ACM cladding issues are primarily addressed through the Developer Remediation Contract route (for pledge developers) or through Building Safety Act developer liability claims. The Cladding Safety Scheme does not cover buildings above 18 metres.
Leaseholder protections have conditions — not all leaseholders qualify
The leaseholder protection provisions of the Building Safety Act apply to qualifying leaseholders only. A leaseholder who owned the flat as an investment property and also owned more than three residential properties in the UK at the qualifying date may not satisfy the criteria. The protections also require the building to be above 11 metres or five storeys. Leaseholders in lower buildings have weaker statutory protections under the Act, though other routes (developer liability claims, HHSRS enforcement) may still be available.
The responsible party must be pressed to act — it does not happen automatically
The Building Safety Act created rights. It did not create an automatic system where remediation happens without engagement. Leaseholders and RTM companies who are aware that their building needs cladding remediation must actively identify the responsible party, understand which funding route applies, and press for action. Waiting passively while the building deteriorates, while a waking watch drains money from leaseholders, or while mortgage and sale problems accumulate is not a strategy. The routes exist. Using them requires organisation and persistence.
The Liability Hierarchy: Who Pays in What Order
The Building Safety Act 2022 established a clear order of liability for building safety remediation costs, including cladding. Understanding this hierarchy is essential before any funding route is explored, because the correct route depends entirely on where the building sits in relation to each tier.
Developers: 30-year liability window
Developers who built or refurbished residential buildings with relevant defects face primary liability under the new cause of action created by the Act. This applies to buildings completed or significantly refurbished within 30 years before the Act came into force, making it retrospective to 1992 and beyond. The developer's parent company and group entities may also be liable where the original developer has been dissolved or restructured. This is the route that should always be investigated first.
Freeholders and landlords: means-tested caps
Where the developer cannot be pursued (insolvent, untraceable, or outside the 30-year window), the liability falls to the freeholder or landlord. The amount that can be passed through the service charge is capped based on the landlord's net worth. Landlords with a net worth under £2 million cannot be required to contribute anything beyond a minimum. Landlords with higher net worth face higher (but still capped) contributions. This is not a blanket protection for all leaseholders — it depends on the landlord's means and the building's cost of remediation.
Qualifying leaseholders: protected from relevant costs
Qualifying leaseholders cannot be charged through the service charge for relevant building safety remediation costs (including cladding). The protection is absolute where both the qualifying criteria and the building criteria are met. Where neither developer nor landlord can fund remediation within their respective caps, government funding schemes fill the gap for eligible buildings. Qualifying leaseholders should not be paying for cladding remediation regardless of which other route is used.
Who Is a Qualifying Leaseholder?
The leaseholder protection provisions apply to qualifying leaseholders who satisfy both a personal test and a building test.
The personal test — you qualify if you:
Owned the leasehold interest in the flat on 14 February 2022 (the date the Building Safety Bill was introduced) or bought it from someone who did, and the purchase was at arm's length
Either lived in the flat as your only or principal home on 14 February 2022, or owned no more than three residential properties in the United Kingdom in total (including the flat) on that date
You do not qualify if you owned the flat as an investment and also owned more than three residential properties in the UK on the qualifying date — even if you have since sold some of them
You do not qualify if you were the developer of the building, a subsidiary or associated company of the developer, or a landlord with a significant interest in the building at the qualifying date
The building test: the protections apply to flats in buildings that are above 11 metres or five storeys in height. Leaseholders in lower buildings do not benefit from the same statutory protections under the Act, though they may have other remedies.
The qualifying date of 14 February 2022 is fixed. Leaseholders who bought their flats after that date can still qualify if they bought from a qualifying leaseholder in a transaction at arm's length. The protection passes with the property on resale, but the original qualifying leaseholder's status at the qualifying date is what is tested. This means that some flats in affected buildings were not qualifying leaseholder flats on the relevant date — particularly where they were owned by property investors with large portfolios or by the developer themselves.
Developer Liability: The Building Safety Pledge and Beyond
The strongest and most direct route to cladding remediation funding for most buildings is through the developer who built or refurbished the block.
The Developer Remediation Contract
In April 2022, the Secretary of State secured commitments from approximately 50 major residential developers to fund remediation of all buildings they developed or refurbished above 11 metres with life-critical fire safety defects. This commitment was formalised in a Developer Remediation Contract published by the government in 2023. Developers who signed are contractually obliged to remediate buildings they built or refurbished, including engaging with building owners and leaseholders, regardless of what the buildings cost to fix.
Where a building was developed by a pledge signatory, the building owner or RTM company should write to the developer formally notifying them of the remediation need and requesting engagement with the Developer Remediation Contract process. The government's Building Safety Programme team can assist where developers are not responding to remediation requests.
Non-pledge developers and the Building Safety Act cause of action
For buildings constructed or refurbished by developers who did not sign the pledge — including the many smaller developers, regional developers, and developers whose buildings were completed before the pledge era — the route is through the Building Safety Act's new cause of action.
This allows building owners and leaseholders to bring claims against developers, contractors, and other parties in the supply chain who are responsible for relevant defects, subject to the 30-year limitation period. The claim must establish that the defendant contributed to the creation of a building safety risk and that remediation costs flow from that risk. These are complex legal claims and specialist legal advice is required.
The government publishes the list of pledge signatories on GOV.UK. If you are unsure whether the developer of your building signed the pledge, search by developer name at gov.uk and check the Developer Remediation Contract list. Where the original developer has been acquired, merged, or rebranded, the liability may have transferred with the corporate entity.
The Cladding Safety Scheme
The Cladding Safety Scheme (CSS) is the government's primary funding route for cladding remediation on residential buildings between 11 and 18 metres where there is no developer or landlord with sufficient means to fund works. It is administered by Homes England and provides grant funding to cover the cost of removing and replacing unsafe cladding systems.
| CSS element | Detail |
|---|---|
| Eligible buildings | Residential buildings between 11 and 18 metres (approximately four to six storeys) with unsafe cladding systems. The building must be in England. Buildings below 11 metres and buildings above 18 metres are not eligible for the CSS (different routes apply). |
| Eligible costs | The CSS funds the direct cost of removing and replacing the unsafe cladding system. It does not cover the cost of other building safety works identified during the remediation process (such as fire door remediation, cavity barriers, or structural work) unless these are directly consequential to the cladding removal. It also does not cover interim measures such as waking watch costs — though the Building Safety Fund (for higher-risk buildings) has some provision for interim measures. |
| Who applies | The responsible person or building owner makes the application. In an RTM-managed block, the RTM company is the applicant. Where there is no active RTM or enfranchised company, the freeholder typically applies. Leaseholders themselves cannot apply directly to the CSS but can encourage and support the application process and can raise concerns with Homes England if the responsible person is not progressing an application. |
| Evidence required | Evidence of cladding composition and fire risk (typically from an EWS1 assessment or a fire engineer's report), evidence of building height, confirmation that no developer or landlord liability route is available, and details of the proposed remediation scheme and contractor. Homes England has a pre-application process for buildings still assessing their position. |
| Processing times | Processing times have varied significantly since the scheme launched. Demand exceeds Homes England's initial capacity in some periods. Applications can take months to assess. Starting the process early — including pre-registration and building assessment — reduces the delay when funding is formally available for the building. |
Challenging a Service Charge Demand for Cladding Costs
Where a landlord or managing agent includes cladding remediation costs in a service charge demand, qualifying leaseholders have a direct route to challenge it at the First-tier Tribunal.
The process:
- Do not pay the demand without taking advice. Paying a service charge demand that includes costs for which you may have statutory protection may be treated as acceptance of the liability. Write to the landlord or managing agent promptly noting that you intend to challenge the demand and requesting details of how the costs have been apportioned and why the leaseholder protection provisions are considered not to apply.
- Apply to the First-tier Tribunal. The Tribunal has jurisdiction to determine whether service charges are payable and, in the context of the Building Safety Act, whether the leaseholder protection provisions apply to a specific demand. The application fee is modest and specialist leasehold legal advice (from a solicitor familiar with the Act's leaseholder protection provisions) will significantly improve the outcome.
- Where the leaseholder protections are confirmed, the demand is void. A Tribunal determination that the costs cannot lawfully be passed to a qualifying leaseholder is binding on the landlord. They cannot reissue the demand in a different form to recover the same costs through a different service charge head.
The leaseholder protection provisions apply to relevant building safety defects as defined in the Act — primarily cladding and fire safety remediation works. They do not automatically apply to all building safety costs. An EWS1 assessment cost, a waking watch cost, or a fire door inspection programme cost may not be a "relevant building safety defect" cost under the Act's definitions, even though it arises from the same cladding problem. Take specific legal advice on which costs are and are not covered before challenging individual service charge items.
What to Do If the Responsible Party Is Not Acting
The most common problem is not that there is no funding route but that the party who should be using that route is not doing so. A developer who has signed the pledge but is not engaging. A freeholder who is accepting service charge income without progressing remediation. An RTM company that has not registered with the Cladding Safety Scheme.
Steps to escalate where the responsible party is not acting:
- Write formally to the responsible party setting out the position. Identify the relevant defect, the applicable liability tier, the funding route that should be used, and the timescale within which you expect a response. Keep copies.
- Contact the government's Building Safety Programme team. The programme operates an escalation route for buildings where developers who signed the pledge are not fulfilling their commitments. This team can apply pressure to non-compliant pledge signatories and has enforcement options including publication of developer non-compliance.
- Register with Homes England for the Cladding Safety Scheme pre-application process. Even where the developer route is being pursued in parallel, starting the CSS pre-application process ensures the building is in the queue if the developer route does not resolve matters. The two routes are not mutually exclusive.
- Consider a First-tier Tribunal application to challenge any service charge demands for interim costs. Where waking watch, enhanced fire safety measures, or other interim costs are being charged through the service charge while remediation stalls, a Tribunal application to determine whether these costs can lawfully be passed to qualifying leaseholders may be appropriate.
- Take specialist legal advice on whether the building safety cause of action should be pursued. For buildings where the developer is within the 30-year window and has assets, a Building Safety Act claim may be the most direct route. Specialist building safety solicitors can advise on the merits and manage the claim.
For the EWS1 position on cladding and mortgage lending, see EWS1 in 2026: Where Does the Cladding Certificate Stand Now? For the Building Safety Act obligations for 11-18m blocks, see The Building Safety Act and 11-18m Blocks: What RTM Directors Must Do Now.
Frequently Asked Questions
Developers who built or refurbished the building with relevant defects in the past 30 years face primary liability. Where the developer cannot be pursued, the freeholder or landlord faces secondary liability subject to means-tested caps. Qualifying leaseholders are protected from having these costs passed through the service charge. Government funding (the Cladding Safety Scheme) is available for eligible buildings between 11 and 18 metres where neither developer nor landlord can fund remediation.
A government-funded programme administered by Homes England providing grant funding for cladding remediation on residential buildings between 11 and 18 metres where no developer or landlord with sufficient means can fund the works. Applications are made by the responsible person or building owner. The scheme does not cover buildings below 11 metres or above 18 metres, and covers direct cladding removal and replacement costs rather than all building safety works.
A leaseholder who owned the flat on 14 February 2022 (or bought from a qualifying leaseholder at arm's length since) and either lived in it as their main home or owned no more than three residential UK properties in total on that date. The building must be above 11 metres or five storeys. Leaseholders who were property investors with more than three properties, or who were connected to the developer, do not qualify.
The liability falls to the freeholder or landlord under the Act's secondary liability provisions, subject to means-tested caps. Where neither developer nor landlord has sufficient means, the Cladding Safety Scheme provides government funding for eligible 11-18 metre buildings. For buildings above 18 metres, the Developer Remediation Contract route (for pledge signatories) or a Building Safety Act cause of action against the developer group are the primary routes. Specialist legal advice and engagement with Homes England is essential.
Yes. Qualifying leaseholders can apply to the First-tier Tribunal to determine whether relevant building safety remediation costs can lawfully be passed to them. Do not pay such demands without first taking advice — payment may be treated as acceptance of liability. Write to the landlord or managing agent noting the intention to challenge and setting out the basis for the challenge before any payment is made.
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