Housing developers have been told they have until the end of March for the industry to come up with a plan to pay for cladding remediation.
Despite an inquiry by a cross party group of MPs into the ongoing battle over how the estimated £4billion cost should be split, Mr Gove appears unwilling to back down, insisting that construction companies should shoulder the entire cost via a levy.
The original deadline of early March, set by Mr Gove back in January, has now been extended until 31 March but he has made it clear that by this date he expects a firm plan to be tabled.
Under the Department for Levelling Up, Housing and Communities’ (LUHC) proposals, any developer who fails to sign up to the legally binding agreement – which commits them to pay for cladding remediation work on buildings between 11-18 metres – will be barred from participating in the market.
Making his position to the sector clear, Mr Gove has now written to the Home Builders’ Federation’s Executive Chairman, Stewart Baseley, stating: “I am disappointed to see you have not proposed a funding solution to cover the full outstanding cost to remediate unsafe cladding on buildings 11-18m.
“I will therefore ask you to continue to work intensively with my officials in the coming weeks to agree a fully funded plan to fix unsafe buildings by the end of March. As part of this process, I expect developers to make public commitments.
“If an agreement is not reached by the end of March, I have been clear that government will impose a solution in law and have taken powers to impose this solution through the Building Safety Bill.”
The Secretary of State for Levelling Up, Housing and Communities added that the sector’s “current proposal falls short of full and unconditional self-remediation that I and leaseholders will expect us to agree”.
Adam Davis, a Director with Palmers Solicitors and Head of Construction Law, said: “The issue regarding who should be liable for remediation costs has created a great deal of uncertainty for the sector and whilst it is understandable that safety issues are paramount, many smaller construction firms are understandably worried about the outcome and how it will affect the future of their businesses.
“We are here to provide support and advice to any developer or contractor who is concerned about the proposed changes.”
For more information, please get in touch with us.