UK Government Intervention Eases Cladding Crisis, Offering Leaseholders Hope for Selling or Re-Mortgaging

UK government intervention that means leaseholders “trapped” in flats due to the cladding crisis could soon be able to sell or re-mortgage their properties. The comments from the leading estate manager come in the wake of advice from an independent expert group that has found that homes in blocks of flats up to 18 meters don’t need an extra safety form.

The concerns over the safety of cladding were raised after the 2017 fire at Grenfell Tower in which 72 people died. However, a government-commissioned review by experts found “no evidence of systemic risk of fire in blocks of flats,” citing evidence suggesting only 9 percent of blazes were in blocks of flats of four stories or more. This has led to Housing Secretary Robert Jenrick announcing five recommendations to stop lenders' “disproportionate reaction” to the cladding crisis.

Revised Guidelines on EWS1 Forms Aim to Unlock Housing Market for Buildings Under 18 Meters

A key recommendation is that a EWS1 form, which assesses the safety of external cladding, should not be required on buildings below 18 meters. Andrew Win Stanley, the principal's property operations manager, welcomed the news and said: “This paves the way for EWS1 forms to no longer be required for buildings below 18 meters and will help further unlock the housing market.

Restoring Market Confidence for Leaseholders: Lenders Commit to Easing Restrictions on Lower-Rise Buildings

This intervention will hopefully reduce the needless and costly remediation in lower-rise buildings and restore market confidence, allowing flat owners to buy, sell, or re-mortgage their homes. It’s excellent news that a group of major high-street lenders has already committed to reviewing their practices following the new advice. The fact that significant lenders such as HSBC UK, Barclays, Lloyds, and others have said they are supportive of this position will be an excellent relief for leaseholders who have felt trapped in their homes.”

Government Scraps EWS1 Forms for Low-Risk Buildings, Easing Burden on Leaseholders

Others have welcomed the government’s guidance. Mary-Anne Bowring, group managing director at Ringley, said: “After years of fumbling its response to the tragic fire at Grenfell, confusing vulnerable leaseholders with overly-complicated legislation, the Government has finally made the right decision to scrap EWS1 forms for ‘at risk’ buildings below 18 meters. However, thousands of leaseholders and other mortgage prisoners have paid the costs to secure a EWS1 certification.

Urgent Action Needed: Who Will Bear the Cost of Remediating Unsafe High-Rise Buildings?

The question now is who will compensate them, and of course, what is to be done about those living in buildings 18 meters or higher. There isn’t enough testing capacity in this country to check the safety of building materials, and the government seems reluctant to use the necessary cash to fix dangerous towers. We need to see urgent, decisive action from the government. Flat owners cannot be left to shoulder the financial burden of remediation works.

Addressing the Gaps: Future Steps for Remediation and Leaseholder Protection

While the government's intervention is a welcome step, many leaseholders are still left in limbo when it comes to buildings above 18 meters. The lack of clarity around who will bear the cost of cladding remediation in high-rise buildings continues to be a pressing issue. Without further government action and funding, the financial burden of fixing unsafe towers will fall on leaseholders, exacerbating the ongoing crisis. More decisive measures are needed to ensure that those in higher-risk buildings are not left vulnerable.