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Developers next week will be asked by agents to pay up to £ 4bn to raise funds to remove dangerous barriers from thousands of homes, threatening to be legally forced to refuse.
Michael Gove, the home affairs minister, was told by the Treasury that there would be no additional government funding for low-cost home remodeling and that manufacturers would pay for it.
Gove, who will comment on the matter next week, is refusing to receive the money within his department’s budget.
“If companies do not provide a response, we will establish it legally,” said Gove’s colleague.
Concerns about home security began with the Grenfell Tower fire in 2017 in which 72 people were killed.
Initially, high-rise pillars equipped with Grenfell-like equipment were illuminated, but the magnitude of the problem was magnified in January 2020 when officials said more and more residential buildings at any height should be considered fireproof. risk.
This has drawn more than 800,000 homes in the UK, hitting homeowners who have to borrow money to pay for construction projects between 11m and 18.5m tall.
The government has set aside £ 5bn to help remove high-rise building blocks – £ 2bn which will be raised through a tax on manufacturers. Now it wants builders instead of leasing them to pay to get rid of low-rise buildings.
Cladding campaigners have been demanding that the government approve all the rules that houses at least 18.5m should be covered and that renters should not pay.
The BBC Newsnight, which first reported on the matter, said that Gove, the minister of development, will set the stage for the “knowledge” building when he addresses the Commons next week.
He further added that Simon Clarke, Treasury Secretary-General, had told Gove that no new Treasury funds would be available for the project, that the total coverage should not exceed $ 4bn and that the money should only cover blankets, not other. fire safety damage.
The developers refused to comply with the order, saying that most of the affected buildings were repaired in accordance with applicable laws.
“Manufacturers’ profits have been strong for a long time, so we are easy to follow. The government does not pursue clothing companies or contractors. Our companies do not feel responsible, but they are not the only ones responsible,” said Matthew Pratt, chief of Redrow.
Gove’s colleague said: “We do not consider this to be the final solution to the problem, but it is an important part. We will be guided by three principles – the debtor must pay, the lender must be protected and reasonably priced and must be repaid.”
The House of Representatives Committee has said that fixing the problem would cost around £ 15bn.
The FT reported in November that The Bank of England was affected by the crisis on economic stability and has been forcing lenders to look at how they view real estate that cannot be sold.
The Prudential Regulation Authority, the BoE, which oversees the banks, believes the government has not understood the magnitude of the crisis and expects its lending rates to be higher than those outlined here, people say.
Homeowners with unsafe barriers are currently facing heavy debts, either repairing faults or maintaining temporary fire protection measures such as 24-hour patrols.
Until the project is expensive or completed, the valuer will not consider the value of the property, preventing the lender from paying interest on the property.
The Leveling Up Department declined to comment.
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