Government funding now available for the replacement of unsafe cladding on private residential tall buildings

Following on from the funding made available to local authorities and housing associations, the Government has announced that it will fully fund the replacement of unsafe aluminium composite material (ACM) cladding on high-rise private residential properties where building owners have failed to do so.

The funding available is estimated at £200 million which is to be made available to remove and replace unsafe ACM cladding from approximately 170 private owned properties. 

Latest figures as at 30 April 2019 show that 338 high rise residential and publicly owned buildings are still to be remediated of which 164 are private sector residential buildings. Out of these private sector buildings 16 have commenced the works, 78 have a plan in place but have not started works, 38 have a stated intent to remediate and are developing plans which leaves 32 still with unclear plans. 

There also remains a further 7 private sector residential buildings where the cladding status is still to be confirmed. 

One of the reasons for the failure to commence the rectification works is the difficulty in funding the works either from the party responsible for the presence of the unsafe material or through attempts to pass on the costs to residents. The building owner/developer has made a commitment to fund the costs of remediation or has had a warranty claim accepted for 83 buildings but that leaves more than 50% with unclear funding arrangements.

Claiming funding for cladding on private residential tall buildings

Building owners will be able to register for the fund by early July and will have 3 months to access the new fund. Further detail is awaited on how to apply but it can be assumed that the process will be similar to that used in the public sector. 

A condition of the funding will require the building owner to take reasonable steps to recover the costs from those responsible for the presence of the unsafe ACM cladding.  

There is a clear expectation that building owners will attempt to pursue claims which is something that building owners need to be looking at now, if they are not already.

Next steps?

As experts in this area, we can advise on the legal rights to recover and, if necessary, provide advice notes to support an application. 

At Myerson, our Construction Team can offer advice on all aspects of contentious and non-contentious matters.

For more information on the range of legal services Myerson LLP can provide please call Myerson’s Construction Team on +44(0)161 941 4000 or email lawyers@myerson.co.uk.