Scores of leaseholders could qualify for government funding to remove unsafe cladding after ministers expanded the Cladding Safety Scheme to include some lower-rise residential buildings with the most serious fire safety risks.

Instead of focusing mainly on building height, new applications to the scheme will now be prioritised according to risk to life. Buildings below 11 metres, where serious, life-critical cladding defects fall outside the scope of statutory protections - leaving leaseholders often facing large bills to fix safety issues they did not cause – can also be included.

Funding will prioritise high‑risk buildings with the most serious cladding fire safety defects before funding is directed to other buildings. Applications for funding are expected to open in August and the scheme will be administered by Homes England.

Uncertainty

Building Safety Minister Samantha Dixon acknowledges that leaseholders in buildings under 11 metres have faced prolonged uncertainty. “Residents shouldn’t be left worrying about living in homes with dangerous, flammable cladding, just because their building isn’t tall enough to qualify for funding. That’s why we’re taking action so that buildings posing the greatest risk to life are prioritised, as well as streamlining processes to minimise delays and make responsibilities clear.”

She adds that findings of its Remediation Programme Insurance Survey found some leaseholders continued to face particularly high insurance costs despite progress in remediating building safety defects.

Support

To further support leaseholders, the government has welcomed a new review by the Financial Conduct Authority into how insurance premiums for buildings with fire safety risks have changed since it brought in new rules in 2023.

The review will look at how insurers’ pricing approaches have changed over time, how firms are considering leaseholders’ interests when assessing whether their products deliver fair value, and how building remediation work is being taken into account in insurers’ risk assessments.

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