Government Pursues £50m Cladding Order as Landlord Duties Tighten

The UK government is escalating its pursuit of property developers over fire safety failures, seeking a £50 million remediation contribution order from Urban Splash in a case that signals a hardening regulatory environment for building owners. The claim, heard at the Manchester Civil Justice Centre under the Building Safety Act 2022, targets cladding replacement on seven Manchester developments including the Emmeline, Christabel, Sylvia, Box Works, Chips, Moho and Burton Place. Urban Splash has told the tribunal it lacks the funds to meet the payment requirement, with the hearing ongoing as the government attempts to claw back remediation costs from developers.

High Court Broadens Landlord Repair Duties

A landmark High Court ruling has significantly expanded what landlords must do to keep commercial properties safe. In the case of Essendi v LPC, the Technology and Construction Court found that a landlord's covenant to keep a building in good and substantial repair extends to the removal and replacement of aluminium composite material (ACM) cladding on fire safety grounds — even where there is no physical disrepair.

The judgment also established that Fire Safety Order duties can be enforced contractually. The landlord was ordered to remove Category 3 ACM panels within six months and complete full recladding within 18 months, at an estimated cost of between £5 million and £7 million.

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Building Safety Regulator Reports Strong Approval Rates

The Building Safety Regulator (BSR) has released data showing high compliance levels for safety applications. As of late June 2026, the BSR had made 368 decisions on Gateway 2 applications, approving 77%. Approval for external remediation reached 85%, well above the regulator's 65% target. New build applications saw an 89% approval rate, while refurbishment projects accounted for 63% of the total caseload. For Gateway 3 applications, the BSR processed 277 requests with an 86% approval rate. The regulator currently operates with 152 internal staff supported by 493 external specialists.

Local Authorities Expand Licensing and Enforcement

Councils are strengthening their oversight through selective licensing schemes and enforcement action. Brighton & Hove City Council will expand its selective licensing scheme to the Regency and Central Hove wards from October 2026, following the 2024 launch in four other wards. The scheme is expected to cover over 7,200 properties.

However, local authorities have faced legal pushback. The Upper Tribunal recently ruled that Portsmouth City Council exceeded its authority by imposing certain HMO licence conditions — including requirements for inventories and specific tenancy clauses — without sufficient justification.

Criminal enforcement has also intensified. On June 24, 2026, developer Marcus Fielding was convicted for failing to prevent danger from an unsafe six-storey building in Kettering. Sentencing is scheduled for August 21, 2026. In a separate Lincoln case, a landlord was fined £4,000 plus costs and surcharges for seven offences under the HMO Regulations 2006 involving fire safety failings and electrical risks.

When enforcement targets safety documentation gaps, having your risk assessments in order is the best defence. A free Risk Assessment Toolkit offers 41 ready-to-use templates and checklists covering fire safety, manual handling, first aid, and lone working. Used by over 37,000 UK businesses to stay compliant, this toolkit helps you document and manage workplace risks effectively. Download the free Risk Assessment Toolkit

Legislative Changes Reshape the Landscape

The regulatory framework continues to evolve. The Renters' Rights Act, effective from May 1, 2026, gives councils enhanced enforcement powers. The Building Safety Levy has been amended to remove exemptions for medium-sized sites, with the aim of raising £3.4 billion for safety initiatives.

The government has confirmed a target for all private rented sector properties to reach an Energy Performance Certificate (EPC) rating of C by 2030. Support measures for landlords include the Warm Homes: Local Grant and a zero VAT rate on energy-saving measures, which remains in place until March 2027. Despite these supports, industry representatives have warned that retrofit costs could lead some landlords to exit the market.

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