Leasehold and Freehold Reform Act 2024

116 Remediation contribution orders

(1) Section 124 of the BSA 2022 (remediation contribution orders) is amended in accordance with subsections (2) to (6).

(2) In subsection (2), after “remedying” insert “, or otherwise in connection with,”.

(3) After subsection (2) insert—

“(2A) The following descriptions of costs, among others, fall within subsection (2)—

(a) costs incurred or to be incurred in taking relevant steps in relation to a relevant defect in the relevant building;

(b) costs incurred or to be incurred in obtaining an expert report relating to the relevant building;

(c) temporary accommodation costs incurred or to be incurred in connection with a decant from the relevant building (or from part of it) that took place or is to take place—

(i) to avoid an imminent threat to life or of personal injury arising from a relevant defect in the building,

(ii) (in the case of a decant from a dwelling) because works relating to the building created or are expected to create circumstances in which those occupying the dwelling cannot reasonably be expected to live, or

(iii) for any other reason connected with relevant defects in the building, or works relating to the building, that is prescribed by regulations made by the Secretary of State.

(2B) The Secretary of State may make regulations for the purposes of this section specifying descriptions of costs which are, or are not, to be regarded as falling within subsection (2).”

(4) In subsection (3), after “specified” insert “as a person required to make payments”.

(5) In subsection (4)—

(a) in paragraph (a), omit from “or payments” to the end;

(b) after paragraph (a) insert—

“(aa) if it does not require the making of payments of a specified amount, determine that a specified body corporate or partnership is liable for the reasonable costs of specified things done or to be done;”.

(6) In subsection (5)—

(a) after the definition of “developer” insert—

• ““expert report” has the meaning given by section 123(9);”;

(b) after the definition of “relevant defect” insert—

• ““relevant steps”: see section 120;”;

(c) after the definition of “specified” insert—

• ““temporary accommodation costs”, in relation to a decant from a relevant building, means—

  (a)

  the costs of the temporary accommodation, and

  (b)

  other costs resulting from the decant, including removal costs, storage costs and reasonable travel costs;

• “works” means works—

  (a)

  to remedy a relevant defect in a relevant building, or

  (b)

  in connection with the taking of relevant steps in relation to such a defect.”

(7) The amendments made by this section apply—

(a) in relation to proceedings for a remediation contribution order under section 124 of the BSA 2022 which are pending on the day on which those amendments come into force (as well as proceedings for such an order which are commenced on or after that day);

(b) in relation to costs incurred before as well as after those amendments come into force.