private residential buildings. Building Regulations and improving fire resiliency. ACM cladding represents an unparalleled fire risk. On 6 April, Neil O’Connor, director of the Ministry of Housing, Communities & Local Government’s (MHCLG) Building Safety Programme, issued a statement clarifying that, such is the importance of making buildings fire-safe, the government expected remediation work to continue within safety guidelines wherever possible during the Covid-19 lockdown. How will Budget 2020 impact the construction industry? The Times and Insider reported on the near £100m in cladding funding allocated to the Scottish government for addressing remediation of buildings with combustible cladding in the country, which ‘remains untouched’ and ‘has been frozen’ due to the COVID-19 pandemic having caused progress to ‘grind to a halt’. Cladding and claims against the government’s remediation fund Cladding and related fire safety issues remain an ongoing nightmare scenario for many leaseholders post-Grenfell. In the Budget on 11th March 2020, the Government announced a 1-billion-pound fund, available on a first come, first served basis. While debate rages over how much the government should pay towards remediation of fire safety defects, many residents of buildings with unsafe cladding continue to pay hundreds of pounds a month for waking fire watches and face bills of tens of thousands of pounds for remedial work to fix fire safety issues. The remediation of potentially dangerous cladding systems on residential buildings of 18m and above in the private and social housing sectors has been cited as “an absolute priority” for the UK government. For local authorities, this must be evidenced by a declaration from a section 151 officer at the registration phase, whereas registered providers will be required to provide a business case to evidence their financial position. With an extra £3.5 billion and applications extended to 30th June 2021 now is the time to apply for the Building Safety Fund cladding remediation grant. On 12 June, a report by the Housing, Communities & Local Government Committee warned that the £1bn safety fund will only cover a third of the 1,700 buildings requiring remediation. Funding will be provided to responsible entities who will be This was in addition to the £600m already allocated to remediate the highest-risk ACM cladding (of the type that was in place on Grenfell Tower) by June 2020. Ridge has been providing wide ranging support for leaseholders, managing agents and freeholders in connection with cladding remediation projects and the Building Safety Fund. The Government has announced its commitment to fully fund Aluminium Composite Material (ACM) cladding replacement and to protect private sector leaseholders in high-rise residential buildings (over 18 metres) from the costs of remediation. This is in addition to previously announced measures, including £1.6bn for cladding rectification, and the establishment of a £30m Waking Watch fund. Cladding remediation fund falls short of towering safety problem, Remediation of unsafe cladding to continue despite COVID-19, Digital twins: Improving safety with smart technology, Built to last? Tick to consent to receive our monthly newsletter. The government published the prospectus for the new £1bn Building Safety Fund in May, outlining the requirement for potential applicants to register buildings before applying for the fund to ensure they meet certain criteria. Ministry of Housing, Communities and Local We are currently supporting on the funding and delivery of projects with a value in excess of £100m. PBC Today Editorial Board: How has construction coped with Covid-19? May 2020 . Building Safety Fund . But the requirements for an application include the need for every leaseholder in the building to fill out a five-page ‘state aid’ form. Save my name, email, and website in this browser for the next time I comment. What funding has been announced and where is it coming from? Leaseholders of Skyline Central 1 in Manchester, for example, launched a judicial review in June against housing secretary Robert Jenrick, due to their illegibility to access the safety fund because work to their tower started prior to the government’s budget announcement on 11 March. On 9 May 2019 the Government committed £200m to a national Private Sector Cladding Remediation Fund to pay for the removal and replacement of unsafe aluminium composite material (ACM) cladding from privately-owned residential tower blocks over 18 metres. In the private sector, building owners or freeholders whose buildings have or may have unsafe non-ACM cladding systems as part of the external wall system and who would otherwise have to pass the cost of remediation on to leaseholders through their service charge provisions are eligible to register. To date, grant payments to the value of £95,861,773 have been made across 60 projects in the SSCRF and £2,171,018 have been paid across 15 projects in the PSCRF. © Copyright 2021 Leasehold Advisory Service, Registered in England No: 3296985. The government should protect leaseholders and the taxpayer, by providing upfront funding and pursuing those responsible.” Topics No. Proposals to fund cladding remediation on buildings below 18 metres through a loan scheme, requiring leaseholders to pay up to £50 a month, should also be abandoned. Funding will be provided to responsible entities who will be responsible for remediation, but the fund will be for the benefit of leaseholders who The fund may still not be enough – some estimates have suggested that just removing cladding could cost £15bn. The government has already provided a social sector cladding fund for the removal and replacement of unsafe ACM cladding on residential social housing buildings over 18m. Eligible building owners will be helped through: interest free loans over a 10-year period with repayments to commence upon completion of the work It said that the £1bn fund will only be enough to cover the cost of removing non-ACM cladding from a third of the 1,700 buildings requiring remediation and criticised “stringent rules”, including a short application window and restrictions against social housing providers. If you are a purchaser, this can help make sure your solicitor has covered all of these points and explained them clearly to you. Further, the Committee is calling for an enhanced Comprehensive Building Safety Fund paid for by Government and industry. The fund is open to residential and commercial developments in both the private and social sectors. In March 2020, the government announced a £1bn Building Safety Fund to support the remediation of unsafe non-Aluminium Composite Material (ACM) cladding. Non-residential buildings where there are no leaseholders, including hotels and hospitals. Aside from the serious safety risks posed by unsafe cladding, politicians, building owners and residents are desperate to resolve this matter urgently as many high-rise properties have been rendered unmortgageable and unsellable until they are certified fire-safe. Notwithstanding warnings about the inadequacy of the fund, the 6 April statement from MHCLG strongly suggests that £1.6bn will be the limit of the government’s funding support for cladding remediation. Non-ACM cladding systems covered by the fund are set out in Annex A to the prospectus. High-rise buildings: Are they as safe as houses? Contact LEASE to have your enquiry dealt with by one of our experienced advisers. Once registered, MHCLG will work with building owners to determine their eligibility by completing certain technical assessments. Social Sector ACM Cladding Remediation Fund: application guidance. UK government responds to cladding remediation report. ACM Cladding Remediation Fund Posted on July 5, 2018 The Government has published guidance on how local authorities and housing associations can apply for funding for the removal and replacement of unsafe ACM cladding on buildings 18m or over. Understand the key things you should know about your lease. The nature and typical rights and obligations that relate to the ownership of a leasehold... Consultation for qualifying works to a building and qualifying long-term agreements.

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