Is the Building Safety Act 2022 Falling Short? Exploring the Challenges with Landlord's Certificates

The Building Safety Act 2022 ("BSA") introduced significant changes to enhance building safety, particularly for leaseholders in the UK. However, a critical area concerning the provision of a landlord's remediation costs certificate has become a point of particular contention and complexity.

The Landlord's Certificate Dilemma

A landlord's certificate provides vital information about remediation costs to leaseholders of qualifying leases under the BSA, crucial for those looking to sell their properties. The case of Will v G&O Properties has highlighted a significant gap in the BSA: the lack of a mechanism for courts to compel landlords to provide these certificates.

In the absence of a landlord's certificate, leaseholders may find themselves in a precarious position. While the BSA deems a landlord to have met the contribution condition if they fail to provide the certificate within four weeks, thus barring them from recovering service charges for relevant defects, this does not help leaseholders intending to sell their properties. Lenders typically require a landlord's certificate for lending purposes, and without it, sales of leasehold interests can be severely hindered.

Despite amendments to the BSA, no statutory recourse has been established for leaseholders against non-compliant landlords. This legislative oversight has led to a situation where many conveyancers have become reluctant to act, awaiting further judicial guidance and legislative amendments to address these drafting shortcomings.

Conclusion

The issues surrounding the landlord's certificate under the BSA represent a significant challenge in the UK's leasehold property market. As the industry seeks clarity and resolution, understanding the current legal landscape and potential contractual workarounds is crucial for leaseholders, landlords and legal professionals alike.