New Cladding Bill: £500k Fines and What BTL Flat Owners Pay

Freeholders who sit on unsafe cladding could soon face fines of up to £500,000. The government introduced the Building Safety (Remediation of Unsafe Cladding etc) Bill to Parliament on 14 October 2026, putting a legal duty on those responsible for blocks of 11 metres and over in England to assess and fix them.

It matters because progress is still slow. At the end of August 2026, 2,153 of the 4,724 cladding-affected buildings the government monitors had not started work, according to the latest official figures.

If you own a buy-to-let flat in one of those blocks, the Bill does not change what you can be charged. That is still set by the Building Safety Act 2022, and under it owning a fourth property can be the difference between a capped bill and an uncapped one. Below we explain the rules, with a checker so you can work out your own exposure.

What the cladding Bill actually does

The Bill applies to residential buildings in England with more than one home that are at least 11 metres tall or have at least 5 storeys, and were completed before 28 June 2022. Buildings covered by the Developer Remediation Contract are excluded, because developers are already legally bound to fix those.

The “responsible entity” could be the freeholder, a head lessee, a right to manage company or a resident management company. According to the government’s guide to the Bill, the main measures are:

• A duty to assess. External walls must get a Fire Risk Appraisal of External Walls (FRAEW) using the PAS 9980 method, within 12 months of the law taking effect. Homes England will audit every FRAEW that recommends works, plus a sample of those that say no works are needed.
• A duty to remediate. Responsible entities must publish a Remediation Compliance Plan within 15 months of Royal Assent. Where works are recommended, they must give residents a plan with steps and timescales.
• Tough penalties. Deliberately failing to remediate becomes a criminal offence, with up to 2 years in prison, or a financial penalty of up to £500,000. The First-tier Tribunal can also fine landlords up to £500,000 for breaching a Remediation Order. Freeholders will not be allowed to pass penalty costs on to leaseholders.
• A backstop. Where the people responsible keep failing to act, councils or Homes England can apply for a Remediation Management Order, do the work themselves and recover the cost with interest. The government says this backstop alone should help around 3,000 residents.
• Ownerless blocks. Where a freehold has fallen into escheat or bona vacantia, leaseholders get clearer routes to the right to manage. Alternatively, the tribunal can appoint a manager.
• A medium-rise register. All occupied 11–18m residential blocks with 2 or more homes must be registered, with fines of up to £7,000. The register will be searchable by postcode.
• Claims against manufacturers. Developers and others who paid for remediation get an easier route to claim from cladding product makers. This change applies across the UK.

Most measures start 2 months after Royal Assent. The register needs secondary legislation, which the guide expects around 8–10 months after Royal Assent. The government’s press release says the Bill should speed up remediation for about 12,000 residents. Its target is that by the end of 2029 every 11m+ building with unsafe cladding will either be fixed or have a completion date.

How far remediation has got

The latest MHCLG monthly data release covers the end of August 2026. Of 4,724 monitored buildings, 1,849 (39%) have completed works, 722 (15%) have started and 2,153 (46%) have not started. Medium-rise blocks are further behind: only 46% of 11–18m buildings have started or finished, compared with 62% of those over 18m.

The Cladding Safety Scheme covers most medium-rise blocks, and it is where the backlog is worst: 72% of eligible buildings have not started. MHCLG also estimates there are 5,900 to 7,400 cladding-affected 11m+ buildings in England in total, so more will be added to the list. The next data release is due on 28 October 2026.

Qualifying vs non-qualifying leases: the 3-property rule

Under section 119 of the Building Safety Act 2022, a lease qualifies if it meets all of these tests:

• it is a long lease (over 21 years) of a single home in a “relevant building”: England, at least 11m or 5 storeys, with 2 or more homes
• you pay a service charge
• it was granted before 14 February 2022
• at the start of 14 February 2022, the flat was a tenant’s main home, or the tenant owned no more than two other UK homes.

In practice, a buy-to-let flat qualifies if you owned 3 or fewer UK residential properties in total, including that flat, on 14 February 2022. Four or more means it doesn’t qualify, unless it was your main home on that date. Buying more property after that date makes no difference. The protection belongs to the lease, so it passes to anyone who buys the flat.

For qualifying leases, Schedule 8 sets these limits on historical defect costs:

Anything you have paid towards these defects or interim measures, such as waking watch, since 28 June 2017 counts towards the cap. Qualifying leaseholders pay nothing at all if the landlord on 14 February 2022 was, or was linked to, the developer, or if the landlord group was worth more than £2 million per relevant building. Legal fees for working out who is liable can’t be passed on either.

Non-qualifying leaseholders get much less. The developer test still protects them. Government guidance also says non-qualifying leaseholders in 11m+ blocks are protected from cladding system costs through the funding schemes. But for non-cladding defects, what they pay is set by the lease, with no statutory cap.

Cost cap checker and worked examples

Enter your purchase details. The checker works out your lease value using the government’s official house price multipliers, then applies the Schedule 8 rules.

Example 1: three flats, Leeds. Sam bought a flat for £180,000 in 2016. With the 2016 multiplier of 1.10, its lease value is £198,000. On 14 February 2022 Sam owned 3 UK properties, so the lease qualifies. Sam’s share of non-cladding works such as missing fire breaks is £18,000, and Sam has already paid £1,500 towards a waking watch. The cap is £10,000, so the most Sam can still be charged is £8,500, at no more than £1,000 a year. The freeholder pays the other £9,500.

Example 2: same flat, four properties. If Sam had owned a fourth property on 14 February 2022, the lease would not qualify. The full £18,000 could then be recovered through the service charge, subject to the lease terms and the usual reasonableness rules. Funding schemes should still cover the cladding itself.

Example 3: London, bought 2019. A Croydon flat bought for £300,000 in 2019 has a lease value of £315,000 (multiplier 1.05). That is below the £325,000 London threshold, so a qualifying leaseholder pays £0 for any historical defect.

Example 4: Manchester, bought 2014. A £140,000 purchase in 2014 uprates to £179,200 (multiplier 1.28). That is just over £175,000, so the £10,000 cap applies rather than nil.

Mortgages, EWS1 forms and letting during works

Remortgaging or selling is often where landlords get stuck. Under a joint lender statement from March 2022, supported by Barclays, HSBC, Lloyds, Nationwide, NatWest and Santander, lenders will keep lending where an EWS1 form is rated A1, A2 or B1. Where the rating is A3 or B2, they will work to lend once there is a costed and funded remediation plan.

The statement doesn’t deal with buy-to-let mortgages specifically, so check with your lender or broker early. Under the Bill, every FRAEW must follow PAS 9980, recommended works need a residents’ plan with timescales, and medium-rise blocks will appear on a public register. All of that should give lenders firmer evidence to work with.

Your tenants count as residents too. When the freeholder shares a remediation plan, pass it on. Check that your tenancy agreement lets you give access for works, and keep tenants told about scaffolding, noise and fire safety changes such as waking watch or new alarms. If you have rent guarantee or landlord insurance, read the exclusions before works start.

What to do now: step by step

1. Count your properties as at 14 February 2022. Include every UK freehold or long leasehold home you owned, including this flat. Write down whether this flat was your main home on that date.
2. Return a leaseholder deed of certificate. If your lease qualifies, send one, with evidence, to your freeholder. You can do this at any time. When your landlord asks for one, you have at least 8 weeks to reply, and you can ask for 4 more. If you don’t provide one, you won’t get the protections for qualifying leases.
3. Ask for the landlord certificate. It should show whether the freeholder is linked to the developer or worth more than £2m per building. Don’t pay historical defect invoices until you have it.
4. Check which scheme your block is in: the developer contract, BSF, CSS or none. Ask the managing agent for the FRAEW and remediation timetable.
5. Total up what you’ve paid since 28 June 2017 towards defects and interim measures. It counts towards your cap.
6. Talk to your lender before your fixed rate ends if the block has no EWS1 form or has an A3 or B2 rating.
7. Follow the Bill. Second reading is on 27 October 2026, and details may change before Royal Assent.

• Number of UK properties owned on 14 Feb 2022 written down
• Proof of purchase price and date (Land Registry title or completion statement)
• Leaseholder deed of certificate signed, witnessed and sent
• Landlord certificate received and filed
• Total paid since 28 June 2017 for defects or waking watch
• FRAEW, EWS1 rating and remediation scheme confirmed with managing agent
• Tenants told about works, access and fire safety arrangements
• Lender or broker contacted about remortgage options

FAQs

Is the Remediation of Unsafe Cladding Bill law yet?

No. It had its first reading in the Commons on 14 October 2026 and its second reading is due on 27 October 2026. Most measures would start 2 months after Royal Assent. The leaseholder protections in the Building Safety Act 2022 already apply.

Do buy-to-let landlords have to pay for cladding remediation?

If your lease qualifies, you pay nothing for unsafe cladding. If it doesn’t, government guidance says you are still protected from cladding system costs in 11m+ blocks through the funding schemes. Your exposure is mainly to non-cladding defects, which are uncapped for non-qualifying leases.

What is the 3-property rule for qualifying leases?

A lease qualifies if, at the start of 14 February 2022, the flat was your main home or you owned no more than 3 UK residential properties in total, including that flat. Properties bought after that date don’t count.

How much can a qualifying leaseholder be charged for non-cladding defects?

Nothing if your lease value was under £175,000 (£325,000 in London). Otherwise it’s £10,000 (£15,000 in London), rising to £50,000 for leases worth over £1m and £100,000 over £2m. You pay no more than a tenth of your cap each year, and payments since 28 June 2017 count.

What happens if I don’t return the leaseholder deed of certificate?

Government guidance says that if you don’t complete it, you won’t benefit from the protections for qualifying leases. There’s no time limit on sending one voluntarily, and your landlord can’t charge you for completing it.

Can I get a mortgage on a flat in a building with unsafe cladding?

Often, yes. Major lenders have said they will lend where the EWS1 rating is A1, A2 or B1. Where it’s A3 or B2, they will look to lend once there is a costed and funded remediation plan. Buy-to-let criteria vary, so speak to a broker.