Housing secretary Michael Gove has revealed that landlords will not be included in the cladding remediation fund initiative for affected residential tower leaseholders announced this week.

A hint of this was given in the original announcement that the £4 billion ‘fund’ to remediate cladding on towers under 18.5m but over 11m tall would be for ‘leaseholders living in their own flat’.

michael gove

But his officials have now confirmed that Gove has decided that the funding will be targeted initially at owner-occupiers and that ‘negotiations…will explore whether this support should extend to other leaseholders such as landlords’.

In a statement released today, Gove says: “We have scrapped the proposal for loans so that leaseholders living in their own medium and high-rise buildings should not pay a penny to fix dangerous cladding.

“We will work with industry to ensure that the support is directed firstly at those leaseholders living in their own homes.

“Working with members of both Houses, we will look to bring a raft of leaseholder protections into law through our Building Safety bill.
“And we will restore much needed common sense on building safety assessments, ending the practice of too many buildings being declared unsafe.”

“More than 4 years after the Grenfell Tower tragedy, the system is broken.

“Leaseholders are trapped, unable to sell their homes and facing vast bills.

“But the developers and cladding companies who caused the problem are dodging accountability and have made vast profits during the pandemic whilst hard-working families have struggled.”

Landlord reaction

A spokesperson for the National Residential Landlords Association says: “We agree with the Government that leaseholders should not be expected to pay the costs of removing dangerous cladding.

“However, it is vital that its plans to address this treat all leaseholders, whether owner-occupiers or landlords, the same. It would be neither just nor fair if landlords were singled out in this way.”

3 COMMENTS

  1. Gov’t should wittering on about cladding.

    The problem is construction defects.
    That includes cladding.

    UNTIL ALL construction defects are remediated then the flats will remain unmortgageable.

    Fixing cladding WON’T make flats mortgageable.

    Why should there be a difference between leaseholders.

    A leaseholder is a leaseholder.

    It is IRRELEVANT how a leaseholder uses the flat.

    Govt should pay for all construction defects and then attempt to recover from those responsible.

    Insurance should pay for most of the costs.

    Liability insurance is used by most companies including those in the construction industry.

    It has been Govts of all colours that have presided over an illegal construction industry which has failed to comply with required construction standards.

  2. It is ridiculous if it is decided that landlord will not get financial help. We have mortgages and will not be able to afford to pay for the defects. It is not straight forward. How will it be decided what replacement cladding etc will be used? Especially if some will have to pay and others will get it paid for by the building companies. The whole thing needs continuity. It means that if landlords can’t afford to pay, this would still cause delays and prevent moving forward. It seemed for a short while that things had improved and that there was light at the end of this dark tunnel. But it feels like a u turn has taken place and landlords are being treated unfairly. I am feeling totally gutted.

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