header-logo header-logo

Cladding fund leaves lawyers unimpressed

13 February 2021
Issue: 7921 / Categories: Legal News , Health & safety , Criminal
printer mail-detail
Lawyers have criticised the Housing Secretary’s £3.5bn plan to tackle unsafe cladding and extra tax to fund help for unsafe tower blocks

At least 72 people died in the Grenfell Tower fire in June 2017. About 274,000 flats are believed to have unsafe cladding, affecting about 650,000 people, according to the Association of Residential Managing Agents. As well as the anxiety of living in unsafe homes, they are unable to sell their flats.

Robert Jenrick’s action plan, announced in the Commons this week, gives grants for cladding remediation to leaseholders in residential buildings above six storeys, while those in four to six-storey building can take out a long-term, low-interest loan. From 2022, a tax will be levied on residential property development to raise £2bn in a decade.

However, the plan was immediately disparaged, with critics pointing out it denied justice to residents taking out loans, who would be left paying them off for decades for safety breaches caused by property developers, and also ignored non-cladding issues.  

Tom Pemberton, construction partner at Goodman Derrick, said: ‘It will not provide any cover at all for lower-rise buildings, and it seems that it will not cover the cost of other essential work to make buildings of any height safe.

‘For example, a fire risk is often presented by faulty smoke ventilation systems and combustible insulation inside the external wall (not the external cladding). These elements need to be signed off by accredited fire safety professionals before properties become mortgageable and marketable.

‘Developers, in the meantime, will no doubt question why they are being singled out to pay the costs of the new scheme by paying a levy on their future high-rise schemes, in addition to a tax on them which the government hopes to yield £2 billion over a decade.’

Andrew Parker, construction partner at Forsters, said the announcement amounted to ‘only a token gesture towards the cladding problems. 

‘There is no timescale for many of the measures and in some cases only consultation is promised. There are no retrospective measures in place for those that have been affected in the last couple of years. 

‘The measures repeatedly refer to cladding only and we are left unsure of what happens in buildings with no ACM [aluminium composite material] cladding but still highly unsafe external wall systems. The money that has been pledged has not been put into any sort of context―how many buildings is it assumed that the money will fix? 

‘Professional indemnity insurance is mentioned in passing but many insurers currently refuse to cover fire related cladding works―how will the all important design and construction of the remedial works receive sufficient insurance cover?’

Issue: 7921 / Categories: Legal News , Health & safety , Criminal
printer mail-details

MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
Transferring anti-money laundering (AML) and counter-terrorism financing supervision to the Financial Conduct Authority (FCA) could create extra paperwork and increase costs for clients, lawyers have warned 
In this week's NLJ, Bhavini Patel of Howard Kennedy LLP reports on Almacantar v De Valk [2025], a landmark Upper Tribunal ruling extending protection for leaseholders under the Building Safety Act 2022
Writing in NLJ this week, Hanna Basha and Jamie Hurworth of Payne Hicks Beach dissect TV chef John Torode’s startling decision to identify himself in a racism investigation he denied. In an age of ‘cancel culture’, they argue, self-disclosure can both protect and imperil reputations
As he steps down as Chancellor of the High Court, Sir Julian Flaux reflects on over 40 years in law, citing independence, impartiality and integrity as guiding principles. In a special interview with Grania Langdon-Down for NLJ, Sir Julian highlights morale, mentorship and openness as key to a thriving judiciary
Dinsdale v Fowell is a High Court case entangling bigamy, intestacy and modern family structures, examined in this week's NLJ by Shivi Rajput of Stowe Family Law
back-to-top-scroll