{"id":88139,"date":"2022-03-16T10:46:18","date_gmt":"2022-03-16T10:46:18","guid":{"rendered":"https:\/\/www.commercialriskonline.com\/?p=88139"},"modified":"2022-03-16T14:39:15","modified_gmt":"2022-03-16T14:39:15","slug":"further-exposure-inevitable-for-the-residential-development-industry","status":"publish","type":"post","link":"https:\/\/www.commercialriskonline.com\/further-exposure-inevitable-for-the-residential-development-industry\/","title":{"rendered":"Further exposure inevitable for the residential development industry?"},"content":{"rendered":"
Following extensive investigations into building safety following the Grenfell tragedy, the UK government plans for the Building Safety Bill (BSB) to take effect this year. Some of the most significant changes to the risk profile for those involved in residential development are the proposed amendments to the obligations set out in the Defective Premises Act 1972 (DPA).<\/p>\n
The current DPA duty <\/strong><\/p>\n The proposed extension of the DPA duties<\/strong><\/p>\n Extension of the works covered under the DPA<\/strong><\/p>\n Extension to DPA limitation periods<\/strong><\/p>\n The BSB will extend the limitation period for key claims under the DPA:<\/p>\n The s1 DPA retrospective claims will not expire until at least one year after the new limitation period comes into force, in order to protect potential claimants who are close to the end of the 30-year retrospective limitation period at the time the BSB comes into effect.<\/p>\n Where a S1 DPA claim is made retrospectively, there are two provisos. The first requires a court to dismiss a newly resurrected retrospective claim if it breaches a defendant’s rights under the Human Rights Act 1998. Secondly, a claim that has previously been settled or finally determined cannot be revived simply because of the extended limitation period.<\/p>\n What will be the effect of the changes to the DPA?<\/strong><\/p>\n Most buildings affected will have been assessed in the aftermath of the Grenfell tragedy, which is now more than four and half years ago, meaning that some claims will already have been resolved. It is however likely there will be an increased number of claims under the DPA soon after the BSB takes effect, to take advantage of the one-year buffer protecting claimants who are close to the end of the 30-year limitation period.<\/p>\n The 24-year retrospective extension to the limitation period for S1 DPA claims is daunting for potential defendants and their insurers, and an increase in the number of claims must be expected. The ambit of the DPA right remains restrictive however, as it will still only relate to defects that prevent a dwelling being fit for habitation at the time of completion; this may be hard to evidence 25-30 years later.<\/p>\n Contributed by Jonathan Brown, partner, and Cathy Moore, professional support lawyer, Clyde & Co<\/em><\/p>\n\n
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