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Can the Government’s £4bn rescue plan save leaseholders from their cladding misery? (19 January 2022)

Date: 19/01/2022
Duncan Lewis, Legal News Solicitors, Can the Government’s £4bn rescue plan save leaseholders from their cladding misery?

The plight of leaseholders facing astronomical bills to replace dangerous cladding from their properties has been almost forgotten in recent months.

With the media focussing on mounting pressure on Boris over the Conservative garden party scandal, a government plan to tackle this nationwide cladding crisis has slipped below the radar; but could it be the news leaseholders have been waiting for?

The staggering £4 billion earmarked by Housing Secretary Michael Gove to tackle cladding issue could arguably be the greatest step towards resolving this housing crisis so far.

With local communities still reeling from the devastating effects of the Grenfell disaster that claimed the lives of 72 people four and a half years ago, cladding reforms are long overdue.

An estimated 600,000 people in the UK live in buildings constructed using unsafe and highly combustible cladding materials and the risk to tenants is huge, which could make this recent government announcement vital.

Concerns over building materials have mounted in recent years, following fire outbreaks which have heightened safety concerns. Government previously suggested that the burden for necessary remedial works to remove the cladding lie with the leaseholders of flats and apartments in these defective buildings. However, many thought this deeply unfair as the problems were not of their making.

Leaseholders with cladding on their properties face insurmountable problems, these include: not being able to rent out their properties or sublet; struggling to sell or market them; being unable to re-mortgage and refinance; and having difficulty insuring their homes. It also means that growing families are currently languishing in flats that are too small, unable to move. Leaseholders who have also been advised to repair and replace the cladding at their own expense are being put under enormous financial strain, which is causing anxiety and stress.

Leaseholders have previously had little support from government, with mostly ineffective proposals offered. One such plan was a scheme whereby the leaseholders could apply for loans to repair the cladding problems with government assistance. However, after extensive pressure placed on government by leaseholders, the burden of these structural defects seems to have now shifted thanks to the announcement on Monday, 10th January.

The costs for removing and replacing the defective cladding ranges could reach £485,000 per flat – a cost that many felt too much to shoulder. With this new government initiative however, the burden of costs is removed from unfortunate leaseholders and moved towards manufacturers and developers of the properties.

In an open letter to the development industry, Michael Gove has set a deadline of March to agree a fully funded plan of action to fix the cladding issues faced by leaseholders in buildings of 11-18 metres in height. Government has estimated this cost at £4 billion and has agreed to repair all buildings that it has funded in this category of housing, in a bid to encourage developers to do the same. Mr Gove has warned that if responsibility is not accepted by the development industry then government will be forced to step in and seek solutions in law to force its hand.

It is a harsh reality that leaseholders – many who are just taking their first steps on the property ladder and who have few financial resources - have been left footing the bill for far too long now. They have been made to suffer in their own homes as a result of poor development practices and failed by the authorities. As Gove has stated in his letter to the industry, “our home should be a source of security and pride. For too many of the people living in properties your industry has built in recent years, their home has become a source of misery. This must change.”


Duncan Lewis Solicitors has advised and assisted a number of clients affected by safety concerns in their property. If you are a leaseholder or tenant struggling with structural defects or property safety concerns which are beyond your control and responsibility, please get in touch with us for advice.


Author Daisy Tremlett is a caseworker in the housing department at Duncan Lewis Solicitors and has experience handling a wide range of social housing matters. She is supervised by housing director Manjinder Kaur Atwal.

Contact Daisy on 020 3114 1328 or at daisyt@duncanlewis.com

Contact Manjinder on 020 3114 1269 or at manjindera@duncanlewis.com




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