Persimmon PLC (LSE:PSN) said it agreed flat owners should not have to pay to remove cladding from their properties.
Shares across the housebuilding sector have been hit by the UK government announcement at the start of 2022 that developers should have to pay for the costs of remedial work
“We share the Secretary of State's aspiration that leaseholders should not have to pay to remove cladding,” the FTSE250 group said today.
“Indeed, we made a commitment a year ago that leaseholders in buildings constructed by Persimmon, including all those above 11 metres, should not have to cover the cost of cladding removal,” it added.
“We have constructed only a very small proportion of buildings affected by this issue,” it added.
Persimmon shares were down again today even though it reported forward sales at the end of December of £1.62bn or 20% higher than the same time in 2019.
Revenues in the year 2021 were £3.61bn (£3.33bn) with new housing completions 7% ahead of 2020 at 14,551 and prices rising by 3% to £259,200 on average. Cash holdings at the year-end totalled £1.25bn.
Persimmon said the longer-term fundamentals of the housing market remain positive with resilient consumer confidence and demand continuing to outstrip supply across the UK and good levels of mortgage availability.
Vertical integration is mitigating some of the supply disruption risks it added, while price rises will cover any potential cost inflation.