UK Government Announces an Extra £3.5 Billion fund to Tackle the Cladding Crisis for High-rise Buildings
The housing secretary, Robert Jenrick, has announced a new£3.5 Billion fund towards fixing dangerous cladding on high-rise buildings in England.
This announcement comes after it was argued that the £1 Billion Building Safety Fund revealed last March, was not enough for the removal of dangerous cladding of all forms from high-rise buildings.
In his announcement, Robert Jenrick stated that he was“today making an exceptional intervention on behalf of the Government” bymaking this “further funding available to pay for the removal and replacementof unsafe cladding for all leaseholders in high-rise residential buildings of18 meters and above, or 6 storeys, in England.”
He continued to say that “building owners and developersshould step up to meet the cost of this work, where they haven’t or where theyno longer exist, the government has stepped in providing £1.6 Billion toremediate unsafe cladding. However, it’s clear that without further governmentintervention many building owners will simply seek to pass their potentiallyvery significant costs onto leaseholders… that would risk putting those whohave worked hard -who have bought their own home - and through no fault oftheir own have found themselves caught in an absolutely invidious situation.”
Whatabout Buildings under 6-storeys?
It has beenannounced that leaseholders in lower rise buildings that face cladding removalwill also be protected from the costs of this through the introduction of a“long-term, low interest, government-backed financing arrangement.”
Since the risks are considered lower, remediation is less likely to be needed on lower and medium rise blocks. However, where it is needed, the Government will develop a long-term scheme of financial support for cladding remediation (for buildings between 4 and 6 storeys).
Jenrick added that “no leaseholder will ever have to paymore than £50 a month towards the removal of unsafe cladding, many far less”
What does these mean for Developers?
Jenrick also announced the introduction of a “developer levy that will be implemented through the forthcoming Building Safety Bill” which the government will consult on in due course.
“The proposed levy will be targeted and only apply whendevelopers seek permission to develop certain high-rise buildings in England,helping to ensure that the industry take a collective responsibility forhistoric building safety defects.”
“In introducing the levy, we will continue to ensure thehomes our country needs get built and that our small and medium size buildersare protected.”
It was also revealed that a “new tax will be introduced forthe UK residential property sector in 2022.”
“This will raise at least £2 billion over a decade to helppay for cladding remediation costs – the tax will ensure the largest propertydevelopers make a large contribution to the remediation program in relation tothe money they make from residential property.”
Final words
Jenrick summarised by arguing that we should “put the riskof fire, and in particular the risk of fatal fire, into context.”
He stated that “fire related fatalities in dwellings in England have fallen by 29% over the last decade” and that “last year the number of people who died in fires in blocks of flats over 11m was 10.”
He continued to say that “of course, any death is one too many and the tragedy of Grenfell tower lingers with us and demands action. That’s why it's right that we address safety issues, where they exist and are a threat to life. But do so in a proportionate way and guided at all times by expert advice. That is the approach we are taking through the Building Safety Bill, the new Building Safety Regulator, the Fire Safety Bill, and the new National Regulator of Construction Products that I announced in January”