Tuesday 12 September 2023
On 4 July 2023, the Responsible Actors Scheme was launched, preventing developers from building any new developments without first contributing to rectifying unsafe buildings with cladding.
Following the Grenfell Tower tragedy, it became clear that a large number of residential buildings had serious fire safety defects. This had left leaseholders with un-mortgageable properties and huge bills to pay to rectify the cladding.
This new Scheme is supported by planning and building control and will impose commercial consequences on any developer who is eligible for the Scheme and is invited to join but who chooses not to join or later fails to comply with the Scheme's membership conditions.
The prohibitions will act as an incentive for developers to remediate and/or mitigate defects in unsafe buildings.
In addition, the prohibitions will apply to other entities within the company group, thereby preventing a developer from avoiding prohibitions by continuing to develop buildings through other entities within the group's control.
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