Building Safety (Wales) Act 2026

Prospective

(introduced by section 109)

SCHEDULE 2 E+W SPECIAL MEASURES ORDERS

PART 1 E+W PROCEDURE BEFORE APPLYING FOR SPECIAL MEASURES ORDER

Introductory E+W

1 (1) The building safety authority for a category 1 building may not apply to a residential property tribunal for a special measures order in relation to the building unless—

(a) it has complied with the requirements of this Part, and

(b) the fire safety authority for the building agrees to the making of the application.

(2) The fire safety authority for a category 1 building may not apply to a residential property tribunal for a special measures order in relation to the building unless—

(a) it has complied with the requirements of this Part, and

(b) the building safety authority for the building agrees to the making of the application.

Commencement Information

I1 Sch. 2 para. 1 not in force at Royal Assent, see s. 138(2)

Notice that authority proposes to apply for special measures order E+W

2 (1) A building safety authority or fire safety authority that proposes to apply for a special measures order in relation to a category 1 building must give notice of the proposal to every other person who is an interested person in relation to the building.

(2) The notice of the proposal must—

(a) state that the authority proposes to apply for a special measures order in relation to the building;

(b) give the address of the building;

(c) give the authority’s reasons for proposing to make the application;

(d) set out the terms of the order that the authority proposes to invite the residential property tribunal to make, including the name and address of the proposed special measures manager;

(e) specify a period in which interested persons may make representations in response to the notice;

(f) state that any representations must be made in writing and sent to a postal or email address specified in the notice.

Commencement Information

I2 Sch. 2 para. 2 not in force at Royal Assent, see s. 138(2)

Notice of authority’s decision whether to apply for order E+W

3 (1) This paragraph applies where a building safety authority or fire safety authority has given a notice under paragraph 2 of a proposal to apply for a special measures order in relation to a category 1 building.

(2) After the end of the period mentioned in paragraph 2(2)(e) the authority must—

(a) decide whether to make the application, and

(b) give notice of its decision to every other person who is an interested person in relation to the building.

(3) That notice of the decision must—

(a) state whether or not the authority intends to make the application;

(b) give its reasons for reaching that decision;

(c) if the authority intends to make the application, set out the terms of the order that the authority intends to invite the residential property tribunal to make, including the name and address of the proposed special measures manager.

Commencement Information

I3 Sch. 2 para. 3 not in force at Royal Assent, see s. 138(2)

Requirement to include financial management proposal with notice of proposal or decision E+W

4 (1) This paragraph applies where a building safety authority or fire safety authority gives to an interested person—

(a) a notice under paragraph 2, or

(b) a notice under paragraph 3 stating that the authority intends to apply for a special measures order.

(2) If the terms set out in the notice in accordance with paragraph 2(2)(d) or 3(3)(c) include a term requiring a relevant accountable person to make payments to the special measures manager, the authority must include a financial management proposal with the notice.

(3) A financial management proposal is a document setting out—

(a) an estimate of the costs that the authority expects a special measures manager for the category 1 building to incur in connection with the exercise of the manager’s functions in relation to the building (including a reasonable amount for contingencies),

(b) the measures to which the estimated costs relate, and

(c) if there is more than one relevant accountable person—

(i) the authority’s proposed apportionment of the estimated costs between the relevant accountable persons, and

(ii) the reasons for that proposal (including any calculation giving rise to it).

(4) In this paragraph “relevant accountable person” means an accountable person to whose building safety functions the proposed special measures order would apply.

Commencement Information

I4 Sch. 2 para. 4 not in force at Royal Assent, see s. 138(2)

Further provision about giving notices under this Part E+W

5 (1) Paragraphs 2 to 4 do not require a building safety authority or fire safety authority to give a notice or financial management proposal to an interested person if the authority—

(a) is not aware of the person, and

(b) has taken all reasonable steps to identify the persons who are interested persons in relation to the category 1 building to which the notice or proposal relates.

(2) The Welsh Ministers may by regulations make provision about notices under this Part, including in particular provision about—

(a) the form of a notice;

(b) how a notice must be given.

Commencement Information

I5 Sch. 2 para. 5 not in force at Royal Assent, see s. 138(2)

PART 2 E+W FURTHER PROVISION ABOUT EFFECT AND IMPLEMENTATION OF SPECIAL MEASURES ORDER

Functions to be carried out by special measures manager E+W

6 (1) This paragraph applies while a special measures order is in force in relation to the building safety functions of an accountable person for a category 1 building.

(2) Those functions, except any functions relating to the making of an application or appeal to a residential property tribunal, are to be treated as functions of the special measures manager appointed by the order (and may not be exercised by the accountable person).

(3) Any building safety functions of the accountable person relating to the making of an application or appeal to a residential property tribunal are to be treated as functions of the accountable person and the special measures manager (and may be exercised by either of them).

Commencement Information

I6 Sch. 2 para. 6 not in force at Royal Assent, see s. 138(2)

Effect of special measures order on compliance notices E+W

7 Where a special measures order is made in relation to the building safety functions of an accountable person for a category 1 building, any compliance notice given to that accountable person ceases to have effect (but this does not affect any liability incurred as a result of a failure to comply with the notice that took place before the order was made).

Commencement Information

I7 Sch. 2 para. 7 not in force at Royal Assent, see s. 138(2)

Effect of special measures order on relevant contracts E+W

8 (1) This paragraph applies where—

(a) a special measures order provides that the building safety functions of an accountable person for a category 1 building are to be carried out by a special measures manager, and

(b) the manager gives to the parties to a relevant contract a notice stating that this paragraph is to apply to the contract.

(2) While the order is in force the relevant contract has effect as if relevant rights and liabilities of the accountable person arising under the contract were rights and liabilities of the manager.

(3) A “relevant contract” means a contract (including a lease) in respect of which the following conditions are met—

(a) the contract is effective on the day the special measures order is made,

(b) the accountable person is a party to the contract,

(c) one or more rights or liabilities of the accountable person under the contract are relevant rights or liabilities, and

(d) the special measures order provides that—

(i) the contract is a relevant contract, or

(ii) contracts of a description that includes it are relevant contracts.

(4) A right or liability of the accountable person is a “relevant right or liability” if it relates to a building safety function of the accountable person in relation to the category 1 building.

(5) The notice under sub-paragraph (1)(b) must state which rights or liabilities of the accountable person under the relevant contract are relevant rights or liabilities.

Commencement Information

I8 Sch. 2 para. 8 not in force at Royal Assent, see s. 138(2)

Effect of special measures order on legal proceedings E+W

9 (1) This paragraph applies where—

(a) a special measures order provides that the building safety functions of an accountable person for a category 1 building are to be carried out by a special measures manager, and

(b) the manager gives to any person whom the manager considers would have an interest in a relevant cause of action a notice stating that this paragraph is to apply to the cause of action.

(2) While the order is in force the manager may bring, continue or defend the relevant cause of action.

(3) A cause of action is a “relevant cause of action” if—

(a) it accrued to or against the accountable person before the day the special measures order was made,

(b) it relates to a building safety function of the accountable person in relation to the building, and

(c) the special measures order provides that—

(i) the cause of action is a relevant cause of action, or

(ii) causes of action of a description that includes it are relevant causes of action.

Commencement Information

I9 Sch. 2 para. 9 not in force at Royal Assent, see s. 138(2)

Reimbursement of damages paid by special measures manager E+W

10 (1) This paragraph applies where—

(a) a special measures manager is, by virtue of paragraph 8 or 9, subject to a liability to pay damages in respect of anything that was done (or not done) by or on behalf of an accountable person before the date of the manager’s appointment, and

(b) the manager pays the damages.

(2) The accountable person is liable to reimburse to the manager an amount equal to the amount of damages paid by the manager.

Commencement Information

I10 Sch. 2 para. 10 not in force at Royal Assent, see s. 138(2)

Payments received by special measures manager to be held on trust E+W

11 (1) This paragraph applies where a special measures order relating to a category 1 building requires one or more relevant accountable persons to make payments to a special measures manager.

(2) The special measures manager must hold the payments (together with any income accruing on them) either—

(a) as a single trust fund, or

(b) in two or more separate trust funds.

(3) The manager must hold any trust fund—

(a) on trust to meet costs that the manager incurs in connection with the exercise of the manager’s functions in relation to the building, and

(b) subject to that, on trust for the relevant accountable person or persons for the time being.

(4) The relevant accountable person or persons for the time being are to be treated as entitled by virtue of sub-paragraph (3)(b)—

(a) if there is one relevant accountable person, to the residue of the fund or funds;

(b) otherwise, to the shares in that residue that the relevant accountable persons agree in writing or (in default of agreement) that a residential property tribunal directs.

(5) An application to a residential property tribunal for a direction under sub-paragraph (4)(b) may be made by—

(a) the building safety authority or fire safety authority on whose application the special measure order was made,

(b) a relevant accountable person for the building, or

(c) the special measures manager.

(6) In this paragraph “relevant accountable person” means an accountable person to whose building safety functions the special measures order applies.

Commencement Information

I11 Sch. 2 para. 11 not in force at Royal Assent, see s. 138(2)

Power of tribunal to give further directions E+W

12 (1) This paragraph applies while a special measures order is in force in relation to a category 1 building.

(2) On an application by a person mentioned in sub-paragraph (3), a residential property tribunal may give directions to the special measures manager for the building or any other person with respect to—

(a) any matter relating to the exercise of the manager’s functions, and

(b) any incidental or ancillary matter.

(3) The persons are—

(a) the building safety authority for the building;

(b) the fire safety authority for the building;

(c) an accountable person for the building;

(d) the special measures manager.

Commencement Information

I12 Sch. 2 para. 12 not in force at Royal Assent, see s. 138(2)

Change in accountable person E+W

13 (1) This paragraph applies where—

(a) a special measures order is in force in relation to a category 1 building, and

(b) an accountable person to whose building safety functions the order applies ceases to be responsible for all or any part of the building.

(2) In this paragraph—

(a) “the outgoing accountable person” means the accountable person mentioned in sub-paragraph (1)(b);

(b) “the relevant time” means the time when the outgoing accountable person ceases to be responsible for all or any part of the category 1 building.

(3) From the relevant time, the special measures order ceases to apply to the outgoing accountable person in relation to the building or, as the case may be, the part of it for which the person has ceased to be responsible.

(4) Sub-paragraph (5) applies if, immediately after the relevant time, any other person (a “successor”)—

(a) is an accountable person for the building, and

(b) is responsible for a part of the building (“the relevant part”) for which the outgoing accountable person ceased to be responsible at the relevant time.

(5) In relation to the relevant part, the special measures order applies to the successor from the relevant time as it applied to the outgoing accountable person immediately before that time.

(6) This paragraph does not affect any liability under the order to which the outgoing accountable person became subject before the relevant time.

(7) Where an enactment requires interests, charges or other obligations affecting land to be registered, sub-paragraph (5) has effect whether or not the special measures order is registered.

(8) Nothing in this paragraph affects the powers of a residential property tribunal to vary or revoke a special measures order under paragraph 16.

Commencement Information

I13 Sch. 2 para. 13 not in force at Royal Assent, see s. 138(2)

PART 3 E+W REVIEW, VARIATION AND REVOCATION OF SPECIAL MEASURES ORDER

Duration of special measures order E+W

14 A special measures order continues in force until it is revoked under paragraph 16.

Commencement Information

I14 Sch. 2 para. 14 not in force at Royal Assent, see s. 138(2)

Authority to keep certain matters under review E+W

15 (1) This paragraph applies while a special measures order is in force in relation to a category 1 building.

(2) The building safety authority or fire safety authority on whose application the order was made must from time to time (and at least once in every 12 months) review the following matters—

(a) the measures taken by the special measures manager in exercising the manager’s functions;

(b) the costs incurred by the manager in connection with taking those measures;

(c) any payments made by accountable persons for the building to the manager in respect of any of those costs;

(d) any amounts received by the manager by way of commonhold building safety income in relation to the building.

(3) If, on such a review, the authority considers that any term of the special measures order should be varied, it must apply for a variation of the order under paragraph 16 (but this requirement is subject to the provisions of that paragraph).

Commencement Information

I15 Sch. 2 para. 15 not in force at Royal Assent, see s. 138(2)

Variation or revocation of special measures order E+W

16 (1) A residential property tribunal may vary or revoke a special measures order relating to a category 1 building on an application by—

(a) the building safety authority for the building,

(b) the fire safety authority for the building,

(c) an accountable person to whose building safety functions the order applies, or

(d) the special measures manager appointed by the order.

(2) A building safety authority may not apply to vary or revoke an order unless—

(a) in the case of an application to vary an order, it has complied with the requirements of paragraph 17, and

(b) in any case, the fire safety authority for the building agrees to the making of the application.

(3) A fire safety authority may not apply to vary or revoke an order unless—

(a) in the case of an application to vary an order, it has complied with the requirements of paragraph 17, and

(b) in any case, the building safety authority for the building agrees to the making of the application.

(4) An application to vary an order by changing the identity of the special measures manager may not be made by an accountable person or the special measures manager unless it is an agreed application (see sub-paragraphs (7) and (8)).

(5) In considering whether to vary or revoke a special measures order, a residential property tribunal must have regard to—

(a) the likelihood of the variation or revocation of the order resulting in a recurrence of the circumstances that led to the order being made, and

(b) whether it is just and convenient in all the circumstances to vary or revoke the order.

(6) Sub-paragraph (5) does not apply if the application to vary or revoke the order is an agreed application.

(7) An application to vary or revoke a special measures order relating to a building is an agreed application for the purposes of this paragraph if it is made with the agreement of—

(a) the building safety authority for the building,

(b) the fire safety authority for the building,

(c) each accountable person to whose building safety functions the order applies (including, in the case of an application to vary an order, any accountable person to whose functions the order does not already apply but would apply if the variation were made), and

(d) the special measures manager appointed by the order (including, in the case of an application to vary an order by changing the identity of the manager, the person who would be appointed if the variation were made).

(8) Sub-paragraph (7)(d) does not require the agreement of the special measures manager if the manager is an individual who lacks capacity to agree to the application.

Commencement Information

I16 Sch. 2 para. 16 not in force at Royal Assent, see s. 138(2)

Procedure before authority applies to vary special measures order E+W

17 (1) A building safety authority or fire safety authority that proposes to apply to a residential property tribunal to vary a special measures order must give notice of the proposal to every other person who is an interested person in relation to the building.

(2) The notice of the proposal must—

(a) state that the authority proposes to apply to vary the special measures order specified in the notice;

(b) give the authority’s reasons for proposing to make the application;

(c) set out the terms of the order that the authority proposes to invite the residential property tribunal to make;

(d) specify a period in which interested persons may make representations in response to the notice;

(e) state that any representations must be made in writing and sent to a postal or email address specified in the notice.

(3) After the end of the period mentioned in sub-paragraph (2)(d) the authority must—

(a) decide whether to make the application, and

(b) give notice of its decision to every other person who is an interested person in relation to the building.

(4) The notice of the decision must—

(a) state whether or not the authority intends to make the application;

(b) give its reasons for reaching that decision;

(c) if the authority intends to make the application, set out the terms of the order that the authority intends to invite the residential property tribunal to make.

(5) Sub-paragraphs (1) and (3)(b) do not require an authority to give a notice to an interested person if the authority—

(a) is not aware of the person, and

(b) has taken all reasonable steps to identify the persons who are interested persons in relation to the building.

(6) The Welsh Ministers may by regulations make provision about notices under this paragraph, including in particular provision about—

(a) the form of a notice;

(b) how a notice must be given.

Commencement Information

I17 Sch. 2 para. 17 not in force at Royal Assent, see s. 138(2)

Directions where special measures order is varied or revoked E+W

18 (1) Where a residential property tribunal varies or revokes a special measures order, it may give directions to any person with respect to—

(a) any matter relating to the variation or revocation, and

(b) any incidental or ancillary matter.

(2) Where a residential property tribunal revokes a special measures order, it must direct the outgoing special measures manager to—

(a) prepare a reconciliation account, and

(b) give a copy of the account to—

(i) the building safety authority or fire safety authority on whose application the special measures order was made, and

(ii) each relevant accountable person.

(3) Where the tribunal revokes the order, it may give a direction under sub-paragraph (1)(a) (at the time when it revokes the order or after that time) for the making of a payment—

(a) by a relevant accountable person to the outgoing special measures manager, or

(b) by the outgoing special measures manager to a relevant accountable person.

(4) In sub-paragraphs (2) and (3)—

• “outgoing special measures manager” (“rheolwr mesurau arbennig ymadawol”) means the person who was the special measures manager immediately before the special measures order was revoked;

• “reconciliation account” (“cyfrif cysoni”) means a document—

  (a)

  setting out, in relation to the period during which the special measures order was in force, a comparison between—

  (i)

  the receipts and costs of the manager in connection with the exercise of the manager’s functions, and

  (ii)

  the credits to, and debits from, all relevant accounts, and

  (b)

  containing a statement explaining any differences;

• “relevant account” (“cyfrif perthnasol”) means an account in which any of the following are (or have been) held—

  (a)

  payments made by a relevant accountable person to the manager;

  (b)

  amounts received by the manager by way of commonhold building safety income;

• “relevant accountable person” (“person atebol perthnasol”) means an accountable person to whose building safety functions the special measures order applied immediately before it was revoked.

Commencement Information

I18 Sch. 2 para. 18 not in force at Royal Assent, see s. 138(2)

PART 4 E+W SUPPLEMENTARY

Notifications relating to special measures order E+W

19 (1) This paragraph applies where—

(a) a special measures order is made in relation to a category 1 building;

(b) a special measures order relating to a category 1 building is varied or revoked.

(2) The building safety authority or fire safety authority on whose application the special measures order was made must take all reasonable steps to give every other person who is an interested person in relation to the building notice that the order has been made, varied or revoked.

Commencement Information

I19 Sch. 2 para. 19 not in force at Royal Assent, see s. 138(2)

Power of tribunal to amend order under section 24 of the Landlord and Tenant Act 1987 E+W

20 (1) Sub-paragraph (2) applies where—

(a) a residential property tribunal makes or varies a special measures order in relation to a category 1 building, and

(b) an order under section 24 of the Landlord and Tenant Act 1987 (c. 31) appointing a manager in relation to that building (a “section 24 order”) is in force.

(2) The tribunal may (at the time when it makes or varies the special measures order or after that time) amend the section 24 order to ensure that the functions to be carried out by virtue of that order do not include any function that the special measures order provides is to be carried out by the special measures manager.

(3) See also—

(a) section 24(2C) of the Landlord and Tenant Act 1987 (c. 31), which prevents a section 24 order from providing for a manager to carry out a function if a special measures order provides that the function is to be carried out by a special measures manager;

(b) section 24ZA of that Act, which enables a special measures manager to apply for a section 24 order.

Commencement Information

I20 Sch. 2 para. 20 not in force at Royal Assent, see s. 138(2)

Meaning of “interested person” E+W

21 (1) In this Schedule “interested person”, in relation to a category 1 building, means—

(a) an accountable person for the building;

(b) an adult resident of the building;

(c) an owner of a residential unit in the building;

(d) an owner of the freehold estate in the building or in any part of it;

(e) any managing agent for the building, or for any part of it that does not contain premises occupied for the purposes of a business or undertaking (whether for profit or not);

(f) any recognised tenants’ association (within the meaning given by section 29 of the Landlord and Tenant Act 1985 (c. 70)) for the building or any part of it;

(g) any person who is a responsible person for the purposes of the Fire Safety Order in relation to any premises that form part of the building;

(h) any manager appointed under section 24 of the Landlord and Tenant Act 1987 (c. 31) in relation to the building or any part of it;

(i) the building safety authority for the building;

(j) any county council or county borough council in Wales, other than the building safety authority for the building, in whose area any part of the building is situated;

(k) the fire safety authority for the building;

(l) where any accountable person for the building is a registered social landlord, the Welsh Ministers;

(m) where any accountable person for the building is a registered provider of social housing (within the meaning given by section 80(2) of the Housing and Regeneration Act 2008 (c. 17)), the Regulator of Social Housing.

(2) For the purposes of sub-paragraph (1)(e) a person (“A”) is a managing agent for a category 1 building, or a part of a category 1 building, if—

(a) A has been appointed to discharge the obligations of a person (“B”) relating to the management by B of the building or part, and

(b) B has a legal estate in the building or part which is—

(i) the freehold estate, or

(ii) a lease granted for a fixed term of more than 21 years from the date of the grant, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture.

(3) The Welsh Ministers may by regulations amend this paragraph to change the meaning of “interested person”.

Commencement Information

I21 Sch. 2 para. 21 not in force at Royal Assent, see s. 138(2)