Theresa May has announced that the Government will meet all the costs of removing and replacing dangerous cladding in buildings owned by local authorities and housing associations. The bill is expected to be around £400m.
This is welcome news indeed. Although many housing associations had already pledged not to pass on the cost of cladding replacement to their residents, the financial impact may otherwise have impacted their ability to repair and maintain properties and/or to deliver new homes.
Details are expected later this week. Ideally, the funding will extend to properties owned by housing associations on a leasehold basis, given the uncertainties around valuations (including staircasing and rights to buy) where private freeholders have not yet committed to carry out works. This seems unlikely, however, as the Government's position is still that private owners should pay for the repairs - without passing on the cost to leaseholders.
The government will fully fund the removal and replacement of dangerous cladding for councils and housing associations, the prime minister has announced