Throughout 2025, retrospective liability was a significant topic for the real estate sector in the UK. The Building Safety Act 2022 has been upheld by the courts as having a retrospective effect on building defects and proprietor/leaseholder protection. Landmark court rulings have confirmed the 2022 Act’s 30-year retrospective extension can apply to all parties in the construction supply chain. Also, claims can be made for defects that occurred in the past. However, are insurers and, more importantly, clients prepared for the potential exposure this has created?
The legal changes
Section 135 of the 2022 Act amended the Defective Premises Act 1972, extending the limitation period for claims. For claims made before 28 June 2022, the limitation period was extended from six years to 30 years retrospectively. This means claims under the old law can now be brought under the new law, providing the defect relates to works completed in the 30-year period before completion. For claims made on or after 28 June 2022, a new prospective limitation period of 15 years has been established. As a result, developers and landlords can be pursued for defects dating back to the early 1990s.The retrospective effect of the 2022 Act will impact landlords and developers, particularly in relation to remediation contribution orders under Part 5.
Major cases
Last year’s decisions in Triathlon Homes LLP v Stratford Village Development Partnership and others [2025] EWCA Civ 846; [2025] EGCS 118 and Adriatic Land 5 Ltd v Long Leaseholders at Hippersley Point [2025] EWCA Civ 856; [2025] EGLR 35 confirmed that the 2022 Act is intended to provide a remedy for historical safety defects and that those originally responsible for a building’s safety can be made to contribute.
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