Drawn up by the Department for Levelling Up, Housing and Communities, the new agreements — which were received by developers today (30^th January) — aim to protect leaseholders living across the country that would otherwise face costly repairs for safety defects, including non-cladding related issues.

Under the contact, developers will commit an estimated £2bn or more for repairs to buildings they developed or refurbished over the past 30 years.

It also requires developers to reimburse taxpayers where public money has been used to fix unsafe buildings.

Coupled with the Building Safety Levy, the new measures mean the industry is paying an estimated £5bn to make their buildings safe.

Companies who fail to sign and comply with the new legal contracts will face ‘significant consequences’, according to a statement.

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The move precedes legislation expected to be brought about in the spring, which will give the secretary of state for levelling up Michael Gove the power to prevent developers from operating freely in the housing market should they fail to sign and comply with the agreement.

Gove said: “Today marks another significant step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and facing unfair and crippling costs.

“Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair.

“In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much-needed certainty to all concerned.

“There will be nowhere to hide for those who fail to step up to their responsibilities — I will not hesitate to act and they will face significant consequences.”