Redrow PLC (LSE:RDW), Persimmon PLC (LSE:PSN) and Bellway PLC (LSE:BWY) were among housebuilders that agreed to repair unsafe cladding on Monday, following a government ultimatum to developers.
Housebuilders were told to sign the cladding ‘remediation contract’ by today, March 13 by levelling up secretary Michael Gove, or risk having permission for new developments blocked.
Firms will be required to replace unsafe cladding under the contract after it was found to play a key part in the 2017 Grenfell fire, which took the lives of 72 people.
Following a lengthy inquiry into the disaster, the government banned the use of polyethene-filled aluminium panels on buildings in December last year, with Monday’s remediation contract deadline the latest step in efforts to prevent other similar events.
Firms confirmed to have signed:
- Redrow
- Persimmon
- Bellway
- Crest Nicholson PLC (LSE:CRST)
- Vistry Group PLC (LSE:VTY)
- Barratt Developments PLC (LSE:BDEV)
- Taylor Wimpey PLC (LSE:TW.)
Berkeley Group Holdings PLC (LSE:BKG) and MJ Gleeson (LSE:GLE) are yet to confirm whether they have signed the contract, with neither immediately responding to Proactive when approached.
Housebuilders agree to ultimately foot the cost of retrofitting unsafe buildings by signing the contract, a factor Persimmon reassured it had prepared for by setting aside £245mln.
It added this was its “best estimate” of the cost of remediating buildings, adding “leaseholders should not have to pay” for refits.
Persimmon and Bellway are expected to pay roughly £860mln between them meanwhile, with the latter commenting it “remains fully committed to acting responsibly with regards to building safety”.