Multi-million pound investment to end unsafe cladding

Housing Secretary Robert Jenrick has revealed that the government will pay for the removal of unsafe cladding for all leaseholders in high-rise buildings.

In a bid to protect hundreds of thousands of leaseholders from the cost of replacing unsafe cladding on their homes, the government has unveiled a five-point plan which will provide reassurance to homeowners and bring confidence to the housing market. Under the scheme, no leaseholder will ever pay more than £50 a month towards the removal of unsafe cladding.

Backed by an investment of £3.5 billion, the government will fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings 18 metres (6 storeys) and over in England. This will ensure funding is targeted at the highest risk buildings in line with longstanding independent expert advice and evidence, with Home Office analysis of fire and rescue service statistics showing buildings between 18 and 30 metres are four times as likely to suffer a fire with fatalities or serious casualties than apartment buildings in general.

However, the government has also said that lower-rise buildings, with a lower risk to safety, will gain new protection from the costs of cladding removal with a generous new scheme offered to buildings between 11 and 18 metres.

The Housing Secretary also announced to the House of Commons plans to introduce a ‘Gateway 2’ developer levy, which will be targeted and apply when developers seek permission to develop certain high-rise buildings in England.

Additionally, a new tax will be introduced for the UK residential property development sector. This will raise at least £2 billion over a decade to help pay for cladding remediation costs.

Jenrick said: “This is a comprehensive plan to remove unsafe cladding, support leaseholders, restore confidence to this part of the housing market and ensure this situation never arises again. Our unprecedented intervention means the hundreds of thousands of leaseholders who live in higher-rise buildings will now pay nothing towards the cost of removing unsafe cladding. Remedying the failures of building safety cannot just be a responsibility for taxpayers. That is why we will also be introducing a levy and tax on developers to contribute to righting the wrongs of the past.

“These measures will provide certainty to residents and lenders, boosting the housing market, reinstating the value of properties and getting buying and selling homes back on track. We are working with lenders and surveyors to make this happen. Our landmark intervention will make homes safer and free those who did the right thing – saving for years to get on the property ladder – to enjoy the homes in which they have invested so much.”