UK household insurers are facing an inquiry into the soaring costs of buildings cover in the wake of the Grenfell Tower disaster.
Michael Gove, the Housing Secretary, has written to financial regulator the FCA and competition watchdog the CMA asking for suggestions about how to tackle the problem.
Flat owners in high rise blocks have become effectively trapped by the costs both of insurance and potential liability for the removal of the cladding that caused the Grenfell fire, with the properties becoming unsellable.
Gove accused the insurance industry of "failing" some leaseholders following the tragedy, highlighting that premiums had doubled year-on-year in some cases.
"I require urgent advice on the scale and potential causes of the problem and what can be done to rectify these issues," Gove wrote in the letter to the regulators.
More than 70 people died in the fire in the high-rise block in London in 2017, sparking a widespread inquiry into the cladding in place on the outside of the building and its use in other tower blocks.
At the start of 2022, the government said it wanted developers to pay for the £4bn costs of removing this cladding rather than flat owners.
The FCA said in a statement it was asking insurers and insurance brokers to consider what actions they can take to help leaseholders.
Gove has asked for initial feedback within three months and a final report within six months, Reuters reported.
Shares in housebuilders have slumped this year due to the potential cost of remedial work on apartment blocks.
Barratt Developments has shed 20% of its value since the start of the year, with Berkeley Homes down 17%.