The Secretary of State for Levelling Up, Housing and Communities, Michael Gove has written to the FCA in response to their report into leaseholders insurance. He asked them to work quickly on an insurance pool scheme and has committed to banning managing agents and others from taking commissions on buildings insurance.

Shabana Mahmood, MP for Birmingham Ladywood commented on the news:

“It is welcome that the Government has committed to banning managing agents, landlords and freeholders from taking commissions on the buildings insurance of multi-occupancy buildings.

“This will go a long way to helping to bring down the extortionate cost of insurance that innocent leaseholders have been left with in the wake of the cladding and fire safety scandal.

“But leaseholders are still paying far too much for essential insurance and the industry must accelerate its plans to introduce a pool scheme.

“We have already wasted too much time – if this measure had been implemented when I called for it years ago, leaseholders could have been saved hundreds of thousands of pounds.”

ENDS

Notes to Editors:

https://www.gov.uk/government/publications/response-to-the-financial-conduct-authoritys-fca-report-on-the-buildings-insurance-market-for-multiple-occupancy-residential-buildings