The Building Safety Act 2022 and landlord responsibilities

There has been a big change in the UK property sector with the introduction of the new Building Safety Act 2022 (BSA). The BSA is a piece of legislation that has been created and implemented to improve how residential buildings are constructed and maintained to ensure the safety of residents living in them.  

As a landlord and property owner, the new Building Safety Act acts as a legal framework that helps to create safety and reassigns financial obligations. So, whether you’re dealing with the historical defects of a property or managing a modern high-rise, you need to be fully aware of your responsibilities as a landlord under the Building Safety Act 2022. 

Which buildings are affected under the Building Safety Act 2022?

The Building Safety Act 2022 doesn’t necessarily apply to all buildings, and the level of responsibility will very much depend on the height and the occupancy of the property. 

• Relevant buildings: these are residential buildings in England that are a minimum of 11 metres high or that have at least 5 storeys. 
• Higher-risk buildings (HRBs): buildings that are at least 10 metres high or have 7 storeys are classified as higher-risk buildings and directly fall under the new Building Safety Act.

If your building falls under either description, the statutory leaseholder protections will apply, meaning that passing on safety costs through service charges has been eliminated. 

So, who is responsible for payment?

A new feature in the BSA is the ‘waterfall’ system, which delegates responsibility for payment depending on specific circumstances. This hierarchy of financial responsibility ensures that the cost of fixing historical safety defects is implemented fairly, with leaseholders being the last resort. 

Tier 1: The developer

If you had any company associated with you when developing the building, both parties will be liable for 100% of the costs to fix the building. This applies regardless of whether or not your tenants are considered ‘qualifying’. 

Tier 2: Landlord’s net worth

If, for any reason, the developer no longer exists or cannot be reached, the law states that your financial status as a landlord will be looked at to determine whether or not you are prohibited from passing on any costs for relevant defects to any tenants. If your group’s net worth exceeds £2 million per relevant building, you cannot pass on any costs. 

Tier 3: Leaseholder protections

If the first two tiers don’t cover the costs of fixing the building, ‘qualifying leaseholders’ are protected extensively. A ‘qualifying leaseholder’ is someone who lives in the property as their main home or who owns no more than 3 UK properties. 

• Cladding costs: Qualifying leaseholders don’t have to pay any money, which means that, as a landlord, you will need to find alternative funding. 
• Non-cladding defects: Costs for this are usually capped at £10,000 and need to be spread over 10 years

In order to prove where you sit on this tiered system, you will need to issue a Landlord Certificate: 

• When demanding a service charge for remediation.
• Within four weeks of a leaseholder selling their property.
• When a “relevant defect” is identified.

The certificate requires detailed evidence of your corporate structure and net worth. If you fail to provide this within the specified timeframe, you may be liable for all costs by default. 

The role of the “accountable person”

The new Building Act 2022 introduced the concept of the ‘accountable person’ (AP) and the ‘principal accountable person’ (PAP), who are the individuals or entities that own the building or have a legal obligation to repair its common parts. 

Key duties of the AP or PAP include:

• Assessing risks: the AP or PAP must identify risks, for example, fire and structural safety risks, on an ongoing basis. 
• The golden thread: keeping an up-to-date record of how the building was originally built and how it is being maintained. 
• Safety case reports: specifically with higher-risk buildings, the PAP needs to produce a safety case report in order to be able to demonstrate that they are managing risks efficiently. 
• Resident engagement: as a landlord, you need to come up with a strategy for being able to engage with residents around building safety. This way, you will ensure that any concerns are addressed and heard.

Historical defects and the 30-year 

Before the Building Safety Act 2022, landlords and developers benefited from limited periods, making it difficult for residents to sue for poor construction after a few years. Residents can now take legal action for any defective work dating back 30 years, which means that landlords who are also developers can face claims for buildings they haven’t owned for decades. 

Building safety in 2026

Moving into 2026, the industry is seeing a shift towards structured safety, with mid-rise buildings now also facing similar scrutiny from insurers and lenders. This means that: 

• Tighter insurance requirements: insurers are now demanding documentation proving the safety of buildings, even for buildings that are not technically considered ‘higher risk’. 
• The building safety levy: a new levy is expected to launch on developers for new residential projects in October 2026. This is to help fund the remediation of buildings where the owner of the building can’t be located.  

While administrative demands may feel more intense, the goal for the UK property market is to create a space where residents feel safe and where landlords have clear expectations for managing properties. So, record-keeping and transparency are both crucial in this endeavour. 

As a landlord, you may also be looking for landlord insurance to protect your investment. CIA Landlords has the knowledge and expertise needed to help find a quote suited to your needs. For more information on landlord insurance and managing your rental property efficiently, feel free to visit our advice centre. Otherwise, make sure to get in touch with our friendly team of specialists at CIA Landlord Insurance on 01788 818 670.