At the tail end of last year, rumours were gathering pace about Michael Gove announcing support for Leaseholders affected by dangerous cladding, in buildings between 11 & 18m. We covered this at the time here
Over the weekend this has moved from rumours to certainty, with Mr Gove setting out plans to provide a £4Bn fund.
Mr Gove has written to Residential Property Developers as an industry, warning them that they must pay to fix the cladding crisis and has set out the following requests in his letter:
- pay into a fund to cover the outstanding cost to remediate unsafe cladding on 11-18-m buildings, currently estimated to be £4bn;
- fund and undertake all necessary remediation of buildings over 11 metres that they have played a role in developing;
- provide details of all buildings over 11m that have historic safety defects and which they have played a part in constructing in the last 30 years.
His letter sets a deadline of early March 2022 for this to be agreed and for payment plans to be in-place. He has also renewed threats of restrictions on future procurement opportunities for Developers that refuse to co-operate.
It is anticipated that the above will only be applicable to companies with profits associated with house building exceeding £10m annually.
We are keeping a close eye on this as it progresses, and are well placed to progress applications quickly as soon as the details are released.