EWS1 Relief for Flat Owners?

For those who are flat owners, the ‘External Wall Fire Review’ or EWS1 Form for short, will almost certainly have been a constant concern since they were introduced in December 2019.

The purpose and idea that brought about the EWS1 form was entirely appropriate and centred around ensuring there were no combustible materials used in the construction of residential blocks of apartments, and if there were, then what was going to be done in order to ensure the building was safe.

Put into practice however, the situation became a nightmare for many. Virtually overnight, mortgage companies and lenders refused to lend on apartments unless an EWS1 Form was available. Since the requirement of the EWS1 was introduced rapidly, it meant every residential block in the country needed to have one of these forms – the problem being that there was a very, very limited number of people who were qualified enough to actually issue it – fewer than 300 by some accounts – let alone have the requisite indemnity insurance to back it up.

Accordingly, the situation has been at a stalemate for the last year – a number of our clients have been affected by this, and have had no option but to routinely chase their management company or freeholder, more in hope than expectation, that the form was being undertaken. Whilst surveys can be undertaken and arranged at relatively short notice, obtaining the form itself is increasingly difficult.

The usual finger-pointing has gone on over the past several months – the Government accusing the Council of Mortgage Lenders (CML) of not ‘taking a view’; the CML accusing the Government of rushing through ill-conceived and poorly defined legislation.

On the 21 November 2020, an announcement was made on the gov.uk website stating ‘Owners of flats in buildings without cladding will no longer need an EWS1 form’ – which in turn brought about some excitement to the market in the hope of a breakthrough. However, whilst the news will be welcome, the reality is that it only affects those properties which have no cladding whatsoever, and as such, only a very small number of properties will actually benefit from this announcement. Moreover, just to confuse matters further, the building safe minister Lord Greenhalgh tweeted that “EWS1 forms are not and have never been required” for buildings without cladding.

What might be more welcome news, albeit not providing an immediate solution, is that the government is paying to train 2,000 more assessors within the next six months. Possibly the end is in sight for a resolution to the EWS1 issue, but given that the stamp duty holiday is coming to an end in March 2021, will it come soon enough?

Leaseholders should also budget for ongoing costs such as a sinking fund for major works.