House builders set out plan to fix cladding crisis

Aaron Morby 2 years ago

House builders have committed to fund remediation works on all their buildings over 11m where there are fire safety concerns as part of the sector’s response to the Government’s call for action to resolve the cladding crisis.

House builders urge rethink on looming Residential Property Development Tax
House builders urge rethink on looming Residential Property Development Tax

In response to Levelling-up Secretary Michael Gove’s ultimatum for the industry to come up with proposals or face punitive measures, the industry has set out its intent to remediate building projects over 11m.

But house builders are also calling for an immediate review of the looming Residential Property Development Tax, which will slap a 4% charge on annual profits from April this year to inject cash into the Government’s Building Safety Fund.

Members of the Home Builders Federation also want to limit remediation works strictly to building fire safety, so new building owners are not tempted to include other works in property upgrades.

In a letter to the Secretary of State, the Home Builders Federation has set out its three-point plan to tackle the cladding crisis.

This included a compromise offer that HBF members would withdraw from using cash from the Building Safety Fund to self finance fixing blocks over 18m in height.

Home Builders Federation three-point plan

  • Resolving fire safety concerns on all our buildings over 11m
  • Remediating buildings dating back to 1st January 2000
  • Withdrawing from the Building Safety Fund – applicable to buildings over 18m

The HBF estimates the Residential Property Development Tax would raise £3bn in total from the residential development sector, £1bn more than the Treasury estimate of £2bn.

“In addition, we would point out that our members have committed or already spent around £1bn remediating buildings they have been involved in developing,” writes HBF executive chairman Stewart Baseley.

“The RPDT was specifically set up to partly fund the BSF so given that members are now considering taking on the BSF liability then the purpose of the RPDT needs to be evaluated.”

Baseley, adds: “We must ensure that programmes of works are tightly focused on building fire safety and not being used to provide extraneous upgrades for building owners.

“Our experience of working with ambiguous or misplaced guidance in relation to the mortgageability and insurability of homes has shown that a solution will be dependent on all actors, including Government, working towards the same aims.

“Only with ongoing support from Government and a clear commitment to work with the industry in its broadest sense, including surveyors, building owners, lenders, insurers and product manufacturers over the coming weeks can we turn our proposal into a fully practical solution for leaseholders.”

A Department of Levelling-up spokesperson said: “We welcome this progress in our negotiations with the industry, but developers have not yet gone far enough.

“They must work with us intensively in the coming weeks to agree a fully funded plan to fix unsafe buildings.

“We have been clear that if they do not, we will impose a solution.”


Latest news

Plan lodged for tallest skyscraper outside London

Developer Salboy submits plan for 76-storey Manchester resi tower
23 mins ago

Curo starts £170m race for new homes framework

Bath housing association plans to build up to 300 homes a year
22 mins ago

Gove approves major Cambridge North mixed-use scheme

Government backs controversial scheme of 424 flats and 600,000 sq ft of tech and lab space
2 mins ago

Pontins holiday park to house Sizewell C builders

Suffolk holiday park to house 500 nuclear construction workers
14 mins ago

Adrian Bloor targets 1,000 homes-a-year

Expansion plans after major investment into challenger house building business HarperCrewe
2 mins ago

Housing firm fined £528,000 after cable strike

Maintenance workers given no information on underground services
45 mins ago

Berkeley subbies face six weeks without payments

Introduction of new finance software means payment hiatus for suppliers
1 day ago

Pagabo reveals 56 winners of latest £1.6bn retrofit deal

Decarbonisation Solutions Framework launched: Full list of winners
1 day ago

Go-ahead for £100m Liverpool Love Lane flats

500-flat scheme will be built across four blocks in Vauxhall area of city
1 day ago

Unions win HS2 site access battle at Old Oak Common job

Skanska, Costain, Strabag JV now the last denying unions access to HS2 sites
23 hours ago

Contractors jack 1,100t viaduct into place in 13-hour operation

158m-long composite deck structure jacked into place 10-hours ahead of schedule
1 day ago

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
2 days ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
2 days ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
2 days ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
2 days ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
2 days ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
2 days ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
2 days ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
3 days ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
3 days ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
3 days ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
3 days ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
3 days ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
3 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
6 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
6 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
6 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
6 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
6 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
6 days ago

Contractor services