Housebuilders forced to spend millions more to fix cladding as they sign up to new Government guidelines
Two housebuilders yesterday set aside more money to fix dangerous cladding by signing up to government guidelines.
Taylor Wimpey expects to spend another £80million on work to replace cladding. This means that in total it expects to spend £265million.
And Crest Nicholson said it was putting aside up to £120million, in addition to £48million it had already declared.
Cladding scandal: The use of unsafe, flammable materials on the outside of buildings became a major scandal after 72 people died in the Grenfell tower fire in 2017
It also warned there could be more charges in future.
The use of unsafe, flammable materials on the outside of buildings became a major scandal after 72 people died in the Grenfell tower fire in 2017.
Many of Britain’s biggest builders have backed a new Government pact.
Taylor Wimpey, Crest Nicholson, Persimmon and Berkeley Group have signed the Building Safety Pledge, which commits developers to guidelines for work on buildings between 11 metres and 18 metres high.
Others are expected to make announcements soon. Signing the pledge means they have agreed to finance the removal of dangerous cladding themselves on buildings they constructed in the last 30 years without using a government fund.
Seven firms have put almost £1billion aside to tackle the task. Yesterday was the final day builders could sign up to the pledge.
It follows reports that ministers will drop demands for them to contribute towards a £4billion remediation fund.
There will be more negotiations on funding later this year.
Homeowners living in flats with the same cladding found it difficult to sell their properties.
In January the Government ruled leaseholders in high-rise blocks should not have to pay costs towards replacements.
Crest Nicholson said: ‘Given the group’s well-capitalised financial position and strong current trading performance, the board does not consider this to present a risk to current or future operations.’
Persimmon said it was ‘pleased’ to sign. Last year it made almost £1billion profit.