How does the Building Safety Act affect property buyers?

If you are thinking about buying a flat or apartment, you may have come across the Building Safety Act during your research. You may also have heard terms such as cladding, remediation, EWS1 and leaseholder protections.

It can all sound quite complicated. So, what does the Building Safety Act 2022 actually mean for someone looking to buy a property? The simple answer is that it has made building safety an important part of the property-buying process, particularly for buyers of flats in larger residential buildings.

What is the Building Saftey Act?

The Building Safety Act 2022 is a UK law designed to make buildings safer and give residents greater protection from building safety risks. In simple terms, the Building Safety Act sets clearer responsibilities for developers, building owners and other parties involved in the design, construction and management of buildings, with a particular focus on fire safety and structural safety.

It also introduced stricter rules and accountability throughout the building safety process, especially for higher-risk buildings, helping to ensure that safety issues are identified, managed and addressed properly. For homeowners, leaseholders and property professionals, understanding the Building Safety Act 2022, building safety regulations and related responsibilities is important for maintaining safe buildings and meeting legal requirements.

So, does the Building Safety Act stop you buying a property?

No. A property being affected by the Building Safety Act does not automatically mean it cannot be bought or sold. The issue is more about understanding what is happening with the building.

For example, if a building has identified building safety defects, a buyer will naturally want to know what those defects are, whether they need to be fixed and, importantly, who is going to pay for the work. This is where the Building Safety Act can have a real impact on a property purchase.

What about the cost of repairs?

For many buyers, this is the biggest concern.

The Building Safety Act introduced leaseholder protections in England which can limit the costs that qualifying leaseholders have to pay towards certain historic building safety defects. This can include protections relating to cladding and limits on certain other remediation costs.

For someone buying a property, this can provide reassurance. However, it is still important to understand whether the particular property qualifies for those protections and whether there are any ongoing or planned remediation works. In other words, knowing that a building has a problem is not necessarily the same as knowing that you will be responsible for paying for it.

Could it affect getting a mortgage?

It can. If a building has unresolved building safety issues, a mortgage lender may want additional information before agreeing to lend.

This is one reason terms such as EWS1 have become familiar to property buyers. An EWS1 assessment can be relevant to some apartment buildings where there are concerns about external wall systems, although it is not a legal requirement for every flat sale. For buyers, the important thing is to understand the position early. Discovering a building safety issue just before exchange of contracts can lead to delays, additional costs or uncertainty.

What does this mean for property values?

This is where things become more nuanced. Building safety concerns can affect how attractive a property is to buyers and lenders. A building with unresolved issues may be more difficult to sell or mortgage than one where the problems have been properly assessed and a clear remediation plan is in place.

That does not mean every property affected by the Building Safety Act will lose value.

The circumstances of each building are different. A property with an identified issue, a clear remediation programme and appropriate protections for leaseholders is very different from one where the extent of the problem and responsibility for the costs remain uncertain.

Is this something buyers should be worried about?

It is certainly something buyers should understand, but it should not necessarily put them off buying a flat. The Building Safety Act is ultimately about creating greater clarity around responsibility for building safety and protecting residents from certain historic costs.

For a property buyer, the question one should ask themself is: “What does the Building Safety Act mean for this particular property and for me as the buyer?”

That is where good property due diligence becomes important. Understanding the condition of the building, any identified defects, planned remediation and potential financial liabilities can give buyers a much clearer picture before they commit to a purchase.

A changing part of the property market.

The Building Safety Act has changed the conversation around buying flats and apartments. Building safety is no longer simply a technical issue for building owners and construction professionals.

It can influence property transactions, mortgages, service charges and buyer confidence.

For buyers, the best approach is to understand the situation rather than make assumptions. A building safety issue does not necessarily make a property a bad investment, just as the absence of an obvious issue does not mean there are no questions worth asking.

At Trueman Bailey, we help property buyers understand the wider issues affecting a building, providing insight that can support informed property decisions.

If you are considering buying a property and want to understand how building safety could affect your purchase, contact our team to find out how we can help.

This article provides general information and does not constitute legal, financial or technical advice.