Leveling Secretary Michael Gove will explicitly threaten retaliation, citing powers in the building security bill that would prevent non-cooperating developers from obtaining a design permit. It is understood that Galliard Homes will be one of the most important developers to be identified as a possible target for punitive measures, although other companies are expected to be named by Gove. Earlier this month, Gove, who has been tasked by No. 10 with tackling the investment scandal – involving thousands of tenants facing risky investment scams – signed a deal with 35 developers, who collectively agreed to contribute 2 billions £ for the repair of buildings had a role in the construction. However, some developers did not sign this supposedly voluntary agreement, and Gove will increase the pressure this week by reminding them that if they continue to refuse, they risk harsh sanctions under the legislation that will become law. The building safety bill was introduced to create a new building safety framework following the Grenfell Tower fire. But as he went through his final stages in the House of Lords, Gove introduced amendments that would allow him to stop companies that failed to sign his investment promise from selling homes. Under the bill, which returns to the Commons this week and is expected to become law very soon, these companies could be barred from obtaining a planning permit or preventing building control. Ministers believe that even the threat of these sanctions could be enough to deter investors. According to an internal document on the strategy seen by the Sunday Times, officials say it would be “irresponsible” not to warn potential consumers of potential dangers. Galliard is one of at least nine big developers who have not yet signed the Gove commitment. They are expected to be given only a few more weeks to comply. Galliard said at the weekend that it acted quickly on the investment, but that, before signing the commitment, it required “certainty” from the government and “a clear and concise plan for developers, government, the supply chain and insurers to work together. . to find a fair solution “. Under the Gove plan, in addition to 2 2 billion from developers to repair their own buildings, the industry will commit an additional 3 3 billion to remove unsecured investment through an extension of the building security fee, a charge for new residential buildings. In a separate development, it emerged that Gove is expected to include legislation in the Queen’s speech proposing to change the way developers are expected to fund affordable housing. Under the current system, local authorities can enforce section 106 agreements (referred to in section 106 of the 1990 Planning Act) to developers by telling them that, in order to obtain a permit, they must build a certain number of residences. at affordable prices. Gove wants to abandon these arrangements and instead force developers to contribute to an infrastructure fund that could be used by boards. In a recent White Paper, the Department for Leveling Up, Housing & Communities argued that a new approach was needed because the current system “allows some developers to disproportionately and unfairly benefit from the land they are developing”.
