Thursday, 28 November 2024

Open Letter: Response to Alex Norris’s Letter on RAAC and Legislative Reform


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Dear Mr. Norris and other listed politicians.

I thank Mr Norris for his response regarding the pressing issue of Reinforced Autoclaved Aerated Concrete (RAAC) and the legislative changes I outlined. While I appreciate the acknowledgment of the concerns raised, I find the reply deeply unsatisfactory and inattentive to the severity of the crisis affecting thousands of homeowners across the UK, including my daughter in Aberdeen.

Mr Norris has indicated that “building safety is a devolved issue” and suggested this is a matter for the Scottish Government. However, this fundamentally misrepresents the scope of my proposals. Many of the legislative reforms I proposed, including amendments to the Financial Services and Markets Act 2000, the Finance Act 2003, and the introduction of laws akin to General Product Safety Regulations for housing, are UK-wide measures that fall squarely within Westminster's jurisdiction. For example:

  1. Amendments to the Financial Services and Markets Act 2000: I proposed allowing homeowners to reduce existing loans to capital payments without interest, specifically to provide relief to those whose properties have been rendered uninhabitable due to structural defects.
  2. Amendments to the Finance Act 2003: I requested a provision to renew the first-time buyer status for affected homeowners, ensuring they can access existing supportive schemes to secure new homes.
  3. Legislation akin to the European General Product Safety Regulations (GPSR): This would hold developers accountable for rectifying safety issues like RAAC and cladding in homes they built, regardless of resale status. This responsibility aligns with the principle that manufacturers must address safety defects in vehicles over their lifetime, a law derived from European frameworks.
  4. Amendment to the Insurance Act 2015: Provide affordable insurance options for homeowners in high-risk areas and encourage insurers to offer specialized, low-premium products for properties with RAAC damage Establish a government-backed insurance scheme for RAAC-affected homes, offering specialized coverage for the unique risks of RAAC.

The dismissal of these proposals as devolved issues suggests that Mr Norris did not review my letter with the care it warranted.

Furthermore, Mr Norris’s letter neglects to address the concerns raised by Scotland’s Housing Minister, Paul McLennan, who has written to my daughter, Hannah, stating:

"Previously the Chancellor had committed to ‘spend what is necessary’ to deal with the issue of RAAC. However, no funding has been forthcoming, including in the recent budget. In addition, as the UK Government has failed to inflation-proof their capital budget, this has resulted in nearly a 9% real-terms cut in our UK capital funding between 2023-24 and 2027-28. We will continue to call on this UK Government, and any future incoming UK Government, to commit to this funding as previously pledged."

This exchange reflects the broader political impasse, with both governments blaming each other, while families and individuals like my daughter bear the burden. Homeowners are not concerned with which government provides the necessary funding—they simply need a fund to exist to prevent financial ruin.

Mr Norris’s suggestion that homeowners should bear the cost of repairing their homes reflects a troubling lack of awareness regarding their financial realities. Aberdeen City Council has estimated that the cost of repairing RAAC-affected roofs could reach as much as £71,000, a figure that is entirely out of reach for most affected individuals. These homeowners predominantly belong to some of the UK’s most deprived communities, frequently appearing high on indices of deprivation. Many lack the financial means or creditworthiness to secure loans, leaving them trapped in an impossible situation with no realistic way to bear such staggering costs.

For example, my daughter, a full-time law student aged 20, cannot secure the financial resources to cover such repairs. The majority of RAAC-homeowners in Aberdeen affected by RAAC are aged between 65 and 90, and many are ineligible for mortgage advances. Suggesting they undertake repairs without a robust national support system ignores the immense scale of this crisis.

Moreover, the response overlooks the fact that the homes affected by RAAC were built by councils using public funds and sold under the UK Government's Right to Buy scheme. This scheme, touted as a pathway to homeownership and financial security, has failed these homeowners. The promise of equitable housing and secure homes has been replaced with financial hardship and the threat of bankruptcy and homelessness.

Perhaps you are unaware that in Clackmannanshire, 30 families affected by RAAC are now burdened with paying mortgages on uninhabitable buildings, alongside council rent and futile insurance policies that provide no coverage for RAAC-related issues. During a recent meeting with council officials and an elected member, a single mother broke down while sharing the overwhelming financial pressure she faces, particularly as she prepares to welcome her third child. A couple also became emotional, describing the profound negative impact the RAAC crisis has had on their lives. Shockingly, a local councillor expressed frustration that these families did not fully appreciate the "huge pressures" on councillors tasked with making decisions that have stripped them of their homes and futures.

This blatant lack of empathy and the bureaucratic indifference displayed by governments and councils are appalling. I urge you to familiarise yourself further with this issue to grasp the devastating toll it is taking on these families and others:

https://wilsonsthirdway.blogspot.com/2024/11/raac-affected-homeowners-outraged-by.html

Have you engaged with the Scottish Government regarding its responsibilities towards the homeowners affected by RAAC? Perhaps you could advocate for a portion of the £3.4bn Treasury budget, as outlined by Chancellor Rachel Reeves, to be allocated specifically for RAAC remediation and voluntary property purchases. Alternatively, you could consider designating these funds yourselves. Over 1,000 individuals are at risk of bankruptcy and homelessness, yet governments at both levels continue to fail to respond decisively. This is no longer just a building safety issue - it is a public health and housing emergency.

I would also like to remind you of the significant financial interventions the UK Government has made in the past. During the 2008 financial crisis, £137 billion was allocated in cash injections and loans to banks, alongside £1,029 billion in guarantees. Surely, it is reasonable to now expect the financial industry to play a role in resolving this crisis, particularly through legislative changes aimed at reducing the interest burden on affected homeowners. Furthermore, could a similar loan scheme or grants not be offered to struggling families who are on the brink of homelessness? Or is the Government’s primary objective to safeguard commerce at the expense of the people it is meant to serve?

Lastly, I must highlight your failure to address my proposals for enhanced home-buying surveys, which would include mandatory assessments of construction materials and their long-term safety implications. Implementing such measures could prevent future crises like RAAC and cladding from wreaking havoc on more families. A scheme of this nature is urgently needed across the UK, not just in Scotland. I am also preparing to meet with the Chief Executive and Leader of Basildon Council to negotiate a fair deal for homeowners being offered inadequate compensation for their RAAC-affected homes. This issue is not confined to Scotland, it is a nationwide crisis that demands a comprehensive and unified response.

I urge you to revisit my letter with the seriousness it deserves and to reconsider the legislative and financial support required to assist RAAC-affected homeowners. The Labour Party’s commitment to fairness and justice must extend to those caught up in this scandal. As the Parliamentary Under-Secretary of State for Local Growth and Building Safety, you are in a position to advocate for a national fund and legislative reforms to provide immediate and long-term relief to those affected.

I eagerly await your response to this letter.

Yours Sincerely

Wilson Chowdhry
Chairman, UK RAAC Campaign Group
wilson@aasecurity.co.uk

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