Prepared by Liz Rowen, Director of Leasehold Litigation and Transactions. Brady Solicitors advises freeholders, leaseholders, managing agents and residential property professionals on Building Safety Act obligations, planning and development matters, and residential property disputes.
On 9 July 2026, Building Safety Minister Samantha Dixon made a written statement to Parliament setting out a significant package of changes to the building safety and remediation system. The announcement affects leaseholders in lower-rise buildings, freeholders managing higher-risk buildings, managing agents responsible for remediation programmes, and the wider residential property sector. This article summarises the key changes and what they mean in practice.
Cladding Safety Scheme: From Height to Risk
Since the post-Grenfell funding programmes were established, priority for remediation has been determined primarily by building height. That approach is changing. New applications to the Cladding Safety Scheme will now be prioritised according to risk to life rather than by building height alone.
The government’s position is that height is an imperfect proxy for risk. A lower building with particularly hazardous cladding may pose a greater danger to residents than a taller building with a less serious defect. The new approach is intended to direct remediation resources where the need is greatest.
For freeholders and managing agents waiting for Cladding Safety Scheme funding, the practical effect is that the assessment of where their building sits in the queue will now depend on the nature and severity of the risk identified, not solely on the floor count.
New Funding for Buildings Under 11 Metres
One of the most significant elements of the announcement concerns buildings under 11 metres. This is a category that has historically fallen outside the statutory leaseholder protection framework under the Building Safety Act 2022.
Serious cladding problems are less common in lower-rise buildings. Where issues have arisen, they have typically been addressed through lower-cost mitigation measures. However, a limited number of lower-rise buildings have been identified where cladding remediation is necessary and leaseholders have faced prolonged uncertainty, sometimes alongside significant remediation costs.
The government is launching new, targeted funding for eligible multi-occupancy residential buildings under 11 metres in England. The funding will be delivered through an extension to the Cladding Safety Scheme, administered by Homes England, with priority going to buildings with the most serious life-critical cladding fire safety defects.
Applications are, according to published guidance, expected to open on 17 August 2026.
To be eligible, a building must have undergone a Fire Risk Appraisal of External Walls, carried out by a suitably qualified and competent professional in accordance with PAS 9980:2022, which identifies unsafe cladding presenting a serious life-critical fire safety risk.
For leaseholders in lower-rise buildings who have faced uncertainty about remediation costs, this is a material development. We suggest taking specialist legal advice on the scope of the leaseholder protection provisions and how they interact with this new funding route before the August application window opens.
Changes to Building Assessment Certificates
Under the Building Safety Act, principal accountable persons for occupied higher-risk buildings are required to obtain Building Assessment Certificates from the Building Safety Regulator (BSR). Since the regime came into operation, the process has attracted criticism for its rejection rate and the burden it places on accountable persons, particularly resident-led organisations such as resident management companies.
The BSR will introduce a revised approach that is more proportionate and risk-based, with greater support for principal accountable persons managing complex cases or operating as resident-led organisations. The core duties under the Building Safety Act do not change. Accountable persons must continue to manage their buildings effectively and take all reasonable steps to protect residents from fire spread and structural failure. What changes is the process and the level of guidance and support available.
The government has also published responses to two consultations: one on re-categorising work in existing higher-risk buildings, and one on targeted dispensations for telecommunications work in existing higher-risk buildings. A new consultation on the emergency repairs route has been launched. The aim across all three is to allow certain categories of work to proceed more efficiently while maintaining safety standards.
For managing agents and accountable persons dealing with higher-risk buildings, these changes should reduce procedural friction in some areas. The detail of the revised BAC process will be set out in updated BSR guidance.
The Single Construction Regulator
The announcement confirms that the government intends to establish a Single Construction Regulator (SCR), which will consolidate different parts of the building regulation system under one body. The Building Safety Regulator, which became a standalone non-departmental public body in January 2026, will serve as the foundation for the new regulator.
Primary legislation is required to create the SCR. The government has published its response to the consultation on the SCR prospectus, setting out its direction of travel and confirming an intention to bring forward a Bill, but no legislation has yet been introduced. For current practice, the BSR remains the relevant authority and nothing changes for accountable persons or the gateway regime until that legislation is in place.
FCA Review of Building Insurance Pricing
The government also published the findings of the Remediation Programme Insurance Survey on 9 July. The survey indicates that some leaseholders continue to face high insurance costs despite progress in remediating building safety defects. In response, the Financial Conduct Authority (FCA) has been asked to conduct a focused review of the multi-occupancy buildings insurance market.
The review will examine how insurers’ pricing approaches have changed since 2023, when the FCA introduced new conduct rules. It will assess whether firms are properly taking leaseholders’ interests into account when determining fair value, and how fire safety remediation work is being reflected in insurers’ risk assessments. The effectiveness of the Fire Safety Reinsurance Facility in increasing market capacity and reducing premiums will also be considered.
This is relevant for leaseholders and freeholders in buildings where remediation is complete or under way but insurance costs remain disproportionately high. The outcome of the FCA review may influence whether further regulatory intervention follows.
What Comes Next
Several elements of the package remain in development.
The National Remediation System, delivered by Homes England, will provide a single consolidated view of remediation activity across relevant buildings, improving information sharing between oversight bodies from autumn 2026.
The Remediation Bill, trailed in the Remediation Acceleration Plan and referenced again in today’s statement, will create legal duties on freeholders to remediate with fixed timescales and criminal penalties for non-compliance. No Bill has yet been introduced, but the government has indicated it expects to bring this forward within the current parliamentary session.
The emergency repairs consultation is now open and is relevant for buildings where urgent safety works are needed outside the standard higher-risk building gateway process.
What this Means for You
The announcement is broad and affects different groups in different ways.
Some leaseholders in eligible sub 11 metre buildings may now have access to a targeted funding route, subject to meeting the eligibility criteria. The August application window is short, 8 weeks, and a PAS 9980:2022-compliant appraisal is a prerequisite. Those whose buildings have already had this assessment should act promptly.
Freeholders and managing agents waiting on Cladding Safety Scheme funding should review how the shift to risk-based prioritisation affects their building’s position. The height of a building will no longer be the primary factor.
Principal accountable persons managing higher-risk buildings should monitor the BSR’s updated guidance on Building Assessment Certificates as it is published. The revised approach is intended to adopt a more proportionate, targeted approach and provide greater support, especially to resident-led principal accountable persons and provide clearer guidance, particularly for resident management companies.
The Single Construction Regulator will, in time, represent a fundamental change to how building regulation is structured in England. Primary legislation is required and will take time to pass, but planning for the regulatory transition is worth beginning now.
