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You are here: Home / Latest News / Government steps back from dumping all cladding costs on leaseholders

Government steps back from dumping all cladding costs on leaseholders

December 17, 2020 //  by Sebastian O'Kelly

A proposal by government to dump all the costs of remediating cladding on leaseholders in the form of long-term loans has softened.

Instead, housebuilders are going to be pressed to divvy up, in line with a counter proposal from LKP.

The government announced today:

“The government is clear the building industry must contribute towards the costs of making these homes safe once more, to set right decades of unsafe practices.

“Work continues at pace to develop further financial solutions to protect leaseholders with details to be announced in the new year.”

This came at the end of the government’s announcement that £30 million was going to be made available to help pay for waking watch bills at cladding sites.

New £30 million Waking Watch Relief Fund announced

New £30million Waking Watch Relief Fund for fire alarms to reduce costs for leaseholders forced to have a waking watch £1 billion Building Safety Fund deadlines extended to ensure more eligible buildings can remove unsafe cladding Around 95% of buildings with dangerous ‘Grenfell type’ ACM cladding to have completed remediation or have workers on site by the end of the year The government has today (17 December 2020) announced a £30 million fund to help end the scandal of excessive waking watch costs, as part of a further move to support thousands of residents in high-rise buildings.

This is a change of tack on proposals from Michael Wade, the insurance sector businessmen who has been brought in to advise government on funding cladding remediation.

Following leasehold law, Mr Wade believes that leaseholders must pay for the cladding remediation and has come up with a long-term loan scheme to bring this about. The idea included undetailed suggestions that housebuilders and freeholders might contribute.

Mr Wade outlined his plan to the All Party Parliamentary Group on leasehold and commonhold reform on December 10. This can be seen here:

Full APPG, December 10: Can be seen here

In response, LKP asked its trustee Dean Buckner, a former economist at the Bank of England, to come up with a counter proposal, which drew on levies from housebuilders, freeholders and included taxation from non-domicled residential property purchasers.

LKP calls for levy on developers and freeholders over cladding

The proposal that the cladding redemediation bill be dumped on leaseholders has caused a storm of outrage: not least because ministers – including prime ministers – have said that this should not happen.

Government has changed tack today in its announcement of £30 million for waking watch relief.

Yesterday Communities Secretary Robert Jenrick said that escalating waking watch bills were “becoming a rip-off”.

Waking watch was always intended as a temporary solution before permanent fire alarm systems were installed.

“The fund will open in January, but will also provide immediate, emergency support to Wicker Riverside Apartments in Sheffield to ensure that the 35 recently evacuated families should be able to return to their homes before Christmas.”

Sheffield flats evacuated over fire safety failure

Paul Wood, from Sheffield City Council, said: “We are appalled that despite advice this building has fire safety issues that puts at risk residents and we are working closely with SYFRS.”

In addition:

“A 6-month extension to the deadline for building owners to complete their applications to the £1 billion Building Safety Fund has also been announced – with a new deadline for submissions of 30 June 2021.”

Related posts:

Hilary Benn MP claddingHelp us get government to honour its pledge that leaseholders won’t be paying to remove cladding, says Hilary Benn Leaseholders in local authority and housing association blocks will have Grenfell cladding bill paid by government Clive Betts MPsMPs attack government for dumping historic building failures onto leaseholders Fury in Manchester as Lendlease wins £160m contract to refurb city hall, while dumping Grenfell cladding costs on leaseholders City Hall cladding90% of cladding victims think government has been ‘no help’, according to early results of LKP survey

Category: Cladding scandal, Latest News, NewsTag: Cladding scandal, Dean Buckner, Michael Wade, Wicker Riverside Apartments

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Previous Post: «Claude Wehrle, Claude Schmidt Gwenaëlle Derrendinger) Grenfell is becoming our worst corporate scandal, says Dominic Lawson in Sunday Times
Next Post: Here is how to avoid dumping the cladding scandal bill on leaseholders or taxpayers LKP cladding levy»

Reader Interactions

Comments

  1. Sam

    December 18, 2020 at 11:37 am

    Dean Buckner’s proposal should include a levy on construction companies- perhaps the very big ones – as well as developers.
    The same company names come up when issues are uncovered-

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