72Further provision about implied terms and liability for costs(1)

The Landlord and Tenant Act 1985 (c. 70) is amended as follows.

(2)

In section 20(1)(b) (limitation of service charges: consultation requirements), after “section 20D” insert “or section 20DA”.

(3)

In section 20ZA (consultation requirements: supplementary), in subsection (5A)—

(a)

in the opening words, after “section 20D” insert “(limitation of service charges relating to remediation works: England) or section 20DA (limitation of variable service charges relating to building safety works: Wales)”;

(b)

in paragraph (a), after “section 20D(2)” insert “or section 20DA(2)”.

(4)

After section 20D (limitation of service charges: remediation works), insert—

20DAWales: limitation of variable service charges relating to building safety works(1)

This section applies in relation to a lease to which section 30IB (regulated buildings in Wales: liability for building safety costs) applies.

(2)

The relevant person must—

(a)

take reasonable steps to ascertain whether any grant is payable in respect of building safety works and, if so, to obtain the grant;

(b)

take reasonable steps to ascertain whether monies may be obtained from a third party in connection with the undertaking of building safety works and, if so, to obtain monies from the third party;

(c)

take prescribed steps relating to any other prescribed kind of funding.

(3)

In subsection (2)(b) the reference to obtaining monies from a third party includes obtaining monies—

(a)

under a policy of insurance;

(b)

under a guarantee or indemnity;

(c)

pursuant to a claim made against—

(i)

a developer,

(ii)

a person involved in the design of the building or of works to the building, or

(iii)

a person involved in the carrying out of works in relation to the building.

(4)

Where any funding of a kind mentioned in subsection (2) is obtained, the amount of the funding is to be deducted from the building safety costs (and the amount of any variable service charge is to be reduced accordingly).

(5)

In the case of a failure to comply with subsection (2), a tenant may make an application to the appropriate tribunal for an order that all or any of the building safety costs are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by—

(a)

the tenant, or

(b)

anyone else specified in the application.

(6)

The tribunal may make such order on the application as it considers just and equitable in the circumstances.

(7)

Nothing in this section requires the relevant person to do anything mentioned in subsection (2) before carrying out the building safety works.

(8)

The Welsh Ministers may issue guidance about the taking of steps under subsection (2), and may revise or withdraw any issued guidance.

(9)

Where on an application under this section it is alleged that a person failed to comply with subsection (2)—

(a)

proof of a failure to comply with any applicable guidance may be relied on as tending to establish that there was such a failure, and

(b)

proof of compliance with any applicable guidance may be relied on as tending to establish that there was no such failure.

(10)

In this section—

“building safety costs” means costs incurred or to be incurred in carrying out building safety works;

“building safety works” has the meaning given by section 20DB;

“developer”, in relation to a building, means a person who undertakes or commissions the construction or conversion of the building with a view to granting or disposing of interests in the building (or parts of it);

“prescribed” means prescribed by regulations made by the Welsh Ministers;

“regulated building” has the meaning given by sections 2 and 7 of the Building Safety (Wales) Act 2026;

“relevant person” means—

(a)

the landlord, if the landlord is an accountable person for the building;

(b)

otherwise, any superior landlord who is an accountable person for the building;

“third party” means a person other than a tenant.

(11)

In subsection (10), “accountable person” has the meaning given by section 8 of the Building Safety (Wales) Act 2026.

(12)

Regulations under subsection (2)(c) are to be made by Welsh statutory instrument and are subject to the Senedd annulment procedure.

20DBMeaning of “building safety works”(1)

This section applies for the purposes of section 20DA.

(2)

“Building safety works” means—

(a)

in relation to a regulated building, works as referred to in section 33(3) of the Building Safety (Wales) Act 2026;

(b)

in relation to a category 1 or a category 2 building, works as referred to in section 35(2) of that Act.

(3)

The Welsh Ministers may by regulations prescribe for the purposes of subsection (2) works that are not to be regarded as “building safety works” despite those works falling within subsection (2).

(4)

In this section—

“category 1 building” and “category 2 building” have the meanings given by sections 6 and 7 of the Building Safety (Wales) Act 2026;

“regulated building” has the meaning given by sections 2 and 7 of that Act.

(5)

Regulations under subsection (3) are to be made by Welsh statutory instrument and are subject to the Senedd annulment procedure.

(5)

After section 30IC (as inserted by section 71) insert—

30IDWales: implied terms and liability for costs where order appointing manager for building is in force(1)

This section applies to a lease of premises which consist of or include—

(a)

a flat in a regulated building, if an order under section 24 of the Landlord and Tenant Act 1987 (c. 31) is in force which appoints a manager to carry out any of the building safety duties of an accountable person for the building;

(b)

a dwelling in a category 1 building, if a special measures order under section 109 of the Building Safety (Wales) Act 2026 is in force in relation to the building.

(2)

Section 30IA applies to the lease with the following modifications—

(a)

except in subsection (2)(a), references to an accountable person are to be read as including the manager appointed by the order;

(b)

references to the building safety duties of an accountable person are to be read as including any duties of the manager under the order.

(3)

In the lease there are implied (in addition to the covenants in section 30IA(2) and (3))—

(a)

a covenant by each relevant person (within the meaning of section 30IA) to comply with the order so far as it relates to that person;

(b)

a covenant by the tenant to comply with the order so far as it relates to the tenant.

(4)

If the lease is a relevant lease for the purposes of section 30IB, the reference to a relevant person in subsection (3)(a) of that section is to be read as including the manager appointed by the order.

30IERestrictions on contracting out(1)

A covenant or agreement, whether contained in a lease to which section 30IA (Wales: implied building safety terms) applies or in an agreement collateral to such a lease, is void in so far as it purports—

(a)

to exclude or limit the obligations of a relevant person (within the meaning of section 30IA) or a tenant under section 30IA or 30ID(3), or

(b)

to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant enforcing or relying upon the obligations of a relevant person.

(2)

A covenant or agreement, whether contained in a lease to which section 30IB (Wales: liability for building safety costs) applies or in an agreement collateral to such a lease, is void insofar as it purports to modify the effect of section 30IB(3).

30IFJurisdiction of county court

The county court has jurisdiction to deal with any claim or other proceedings arising under or in connection with sections 30IA to 30IE (Wales: implied terms and liability for costs) notwithstanding that by reason of the amount of the claim or otherwise the case would not, apart from this section, be within the jurisdiction of the county court.

30IGSpecific performance of implied terms

In proceedings relating to a breach of a covenant in section 30IA(2) or (3) or section 30ID(3) (Wales: implied building safety terms), the court may order specific performance of the covenant—

(a)

notwithstanding any equitable rule restricting the scope of the remedy, whether on the basis of a lack of mutuality or otherwise, and

(b)

except in the case of a breach of the covenant in section 30IA(3)(a), whether or not the breach relates to a part of the regulated building let to the tenant.

30IHWales: interpretation of building safety provisions

In sections 30IA to 30IG—

“accountable person” has the meaning given by section 8 of the Building Safety (Wales) Act 2026;

“building safety authority” has the meaning given by section 122 of that Act;

“building safety duties”, in relation to an accountable person, means any duties of the accountable person under the Building Safety (Wales) Act 2026 or regulations made under it;

“category 1 building”, “category 2 building” and “category 3 building” have the meanings given by sections 6 and 7 of that Act;

“lease” does not include a mortgage term;

“regulated building has the meaning given by sections 2 and 7 of the Building Safety (Wales) Act 2026.

(6)

In section 30 (interpretation), in the definition of “services”, at the end insert “and, in relation to a dwelling in a regulated building (as defined by section 30IH), building safety measures within the meaning of section 30IC”.

(7)

In section 32(1) (provisions not applying to business tenancies), at the end of the list of provisions insert—

sections 30IA to 30IH (regulated buildings in Wales: implied terms and liability for costs).