UK Homebuilders Race To Agree On Siding Package In 6 Weeks

Homebuilders and developers have six weeks to agree to a £2billion remedial package for unsafe buildings or face “significant consequences”, the UK government said on Monday.

Combined with an earlier building safety levy, it means developers will pay around £5billion as the UK government scrambles to boost building safety following the Grenfell fire in London in 2017.

Among London-listed homebuilders, Persimmon PLC was down 0.9% in morning trade. Barratt Developments PLC was down 1.2% and Berkeley Group Holdings PLC was down 0.9%.

“The government has set a six-week deadline for developers to sign the legal agreements and warns that companies that do not sign and fail to comply with the terms of the contract will face significant consequences. Legislation will be introduced in the spring giving the Secretary of State the powers to prevent developers from operating freely in the housing market if they do not sign and abide by the remediation contract,” said the UK Department for Leveling, Housing and Communities .

This Ministry is Headed by Michael Gove

Gove added: “Today marks another important step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and face unfair and crippling costs. Too many developers, as well as product manufacturers and property owners, have taken advantage of these insecure buildings and have a moral duty to do the right thing and pay for their repair.By signing this contract, the developers will take a big step towards restoring confidence in the sector and will provide much-needed certainty to all parties involved.

“There will be nowhere to hide for those who fail to take responsibility – I will not hesitate to act and they will face significant consequences.”

Gove said the “faulty and ambiguous” guidelines were partly responsible for the Grenfell Tower disaster, PA reports on Sunday.

Testimony gathered as part of the inquiry showed official guidance was widely seen as allowing highly flammable coatings on tall buildings, prompting The Sunday Times to ask Michael Gove if he agreed the rules were erroneous.

This article is originally published on zonebourse.com