UK homebuilding stocks hit as government seeks £4billion for siding removal

Homebuilding stocks in the UK fell on Monday after the government ordered them to pay £4billion in cladding removal costs following the Grenfell apartment tower fire in 2017 which killed 72 people.

Developers, apartment owners and ministers have been squabbling over who should foot the bill after investigations revealed 477 high-rise residential and public buildings were found covered in flammable coatings.

The government had already committed £5billion for repairs to date in addition to a £2billion levy on homebuilders for costs over the next decade.

Monday’s announcement will cover the removal of cladding on buildings between 11 and 18 meters high. Tenants had faced massive bills, making their properties unsaleable.

Shares in Barratt Developments, red row, Taylor Wimpey and Khaki were all lower in early Monday trading.

“It is neither fair nor decent that innocent tenants, many of whom have worked hard and sacrificed to get a foot on the housing ladder, are receiving bills they cannot afford to deal with problems they ‘they didn’t cause,’ Housing Minister Michael said. Go on.

Under leasehold property laws in England and Wales, the costs are often borne by individual apartment owners, leaving lots of insurance, service and exorbitant fees for patrols. fire 24 hours a day.

After the Grenfell fire, government ministers said building owners had to pay for required fire safety measures, including the replacement of hazardous coatings. The government said it would cover the reasonable cost of the removal and replacement of hazardous coatings by councils and housing associations.

However, according to a leaked Treasury letter, the funding approval only applies to refinishing, meaning tenants face bills for faulty fire compartmentation, fire doors and other non-coating defects.

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