Barratt puts cost of post-Grenfell upgrades at £600m

Aaron Morby 3 months ago
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Britain’s biggest house builder has put the total cost of post-Grenfell building safety retrofits at £600m.

Barratt joined its fellow publicly listed rivals in signing up to the Government’s pledge to pay for all fire safety remediation work needed on its buildings of over 11m.

Around £200m has already been spent on recladding projects, most notably on its large Citiscape scheme in Croydon.

Barratt chief executive David Thomas said a further £350-£400m would need to be spent meeting the cost of remediating developments and buildings under review.

On top of this Barratt also estimates that it would pay-out £400m over the next 10 years on the Government’s Residential Property Developer Tax to help fund remediation of buildings built or refurbished by other organisations.

This morning Bellway also quantified the cost of its building remediation measures.

It put the cost of the pledge at around £300m on top of the £187mm already set aside since 2017.  The additional cost is expected to be recognised as an adjusting item for the year ending 31 July 2022.

Bellway added that it would establish a dedicated building safety division, led by its own managing director, reporting directly into Head Office.

The division will be responsible for all issues relating to fire safety, including training and policy requirements for new schemes and remediation of legacy schemes, in the most cost-efficient way.

The latest announcements mean that the big six stock market listed house builders have now quantified the cost of repairing their own buildings, together requiring a total post-Grenfell spend of nearly £1.78bn.

Forecast cost of building safety works
Barratt £600m
Bellway £487m
Taylor Wimpey £245m
Redrow £200m
Crest Nicholson £168m
Persimmon £75m
Total £1.78bn

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