Update on the residential

Following the Grenfell tragedy, it’s been a priority to ensure that this never happens again and to remove all potentially dangerous cladding from residential towers.

Initially the costs of such an endeavour were going to fall on the leaseholders of the flats affected. Not only were many leaseholders unable to afford such repairs but it had also made many of these properties unmortgageable and virtually unsellable, leaving a big gap in the property market.

Many people were encouraged to purchase the tower block flats which has led to a lot of anger, frustration and despair among many property owners.

The government has stepped in with changes which have recently been announced and we have summarised them below.

What happens now for leaseholders?

Firstly, for leaseholders in high-rise residential buildings 18 meters and over, the government will completely cover the costs of cladding removal.

For residents in ‘lower-rise’ buildings (4 – 6 storeys) the government has set up a finance scheme for many leaseholders ensuring that they never pay more then “£50 a month for cladding removal”

What has happened for developers?

To cover the cost of the overall bill, estimated at over £5billion, two taxes are being levied on property developers:

One tax will be targeting large UK property developers applying to build new high-rises
And another, due to be introduced from 2022, will affect all developers in the industry

So far, since the announcement, there was an immediate drop in many residential developers share prices but there does remain further information to be announced.

We’ll keep you updated on any substantial changes to the governments plan to deal with the cladding issue but get in touch with us if this is affecting you and you need advice

Here at Sarah Clark Property Consultants we are always here to help so send us an email on hello@sarahclarkproperties.com