link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • Get In Touch
  • Work with us
  • Portal Login
Is the new cladding fund just a leaseholder lottery?

Written by: Maryanne Bowring 15/02/2021
  631       0
Responsive image

Is the new cladding fund just a leaseholder lottery?

Last week, Housing Secretary Robert Jenrick MP announced an extra £3.5 billion to fund replacement cladding on high-rise buildings above 18 metres. Good news? Not entirely. Yes, this is a substantial amount of money and thousands of leaseholders will be hugely relieved to know that they no longer have the spectre of huge bills and unsellable homes hanging over them. But the announcement still leaves a lot of questions unanswered.

First, cladding campaigners and property industry commentators are unanimous in their verdict that the new fund, while very welcome, is not enough. Estimates nearer to £15 billion are thought to be realistic. And there was no mention of funding to tackle other fire safety issues, such as internal compartmentation, fire doors or combustible balconies. These will all be costly to fix. As the IRPM has pointed out, replacing the cladding without dealing with these other problems makes little sense. Second, buildings above 18 metres are not the only ones affected by fire safety problems. The Government says it will now provide long-term, low interest loans for leaseholders in blocks between 4-6 storeys, with no one paying more than £50 a month.

But why should they have to pay at all just because they live in a low-rise block that may only be a few feet below 18 metres? That’s £600 every year – possibly for longer than the mortgage term, depending on the size of the remediation bill. Try selling a flat with an ongoing debt attached to it. How can that possibly be fair? And what about the leaseholders who live on estates with one or two blocks that need remediation while theirs doesn’t. For some that means paying as per the lease schedule which might cover a group of blocks, when their block does not even have cladding. No doubt for all blocks of flats insurance will be affected as risks are perceived, again costing leaseholders additional money to insure their home even without the need for remediation.

Finally, developers will be expected to contribute to the cost of funding. But why single them out to fund repairs? Others in the construction chain are equally culpable for the issues that have come to light in the last three years and it seems wrong to insist developers shoulder the burden alone. So far as we have heard, these materials have still not been withdrawn from sale. You can still buy ACM cladding. Yes building regulations have been updated to make it clearer what the standards are, but as long as 'bad stuff' is for sale, someone will fit it. When asbestos was banned it was withdrawn from sale - why are we not seeing that here? Robert Jenrick claimed that the new measures will “remove unsafe cladding, provide certainty for leaseholders and make developers pay for mistakes of the past.” We welcome the additional funding but are disappointed that the government has still not got this right.



Property Management Block Management Building Safety
POPULAR POSTS

Severe weather ahead - is there an emergency plan for your block?

Ground Rent: Fines for Landlords Who Charge Ground Rent

Know your onions - and your tomatoes!

High Court: Right to Rent does breach human rights

Stay put - when is it safe to leave?

RECENT POSTS

Service Charges and the PPM (Planned Preventative Maintenance) Diary Are Inextricably Linked - Here's Why

Service Charges Per Square Foot: Does It Really Make Sense?

Service Charges Are Not For Profit: What ManCo Directors Need to Know

Service Charges and Paying by Instalments: Should a ManCo Allow Monthly Payments?

Service Charge Arrears: : Forfeiture or County Court Judgement? What's the bet route for a Residents' ManCo?


Blogs on similar property topics

ASSET MANAGEMENT
Emergency evacuation - we can help
A recent BBC story highlighted the challenges disabled residents face in evacuating their homes in case of a fire. One council tenant, lacking clear communication about evacuation plans, took the initiative to organize assistance from her neighbors to help her if evacuation becomes necessary.

Read More

ASSET MANAGEMENT
UK grants for energy efficiency upgrades explained
The UK government is helping homeowners achieve the 100 percent carbon neutral objective through different measures like the Energy Company Obligation 'ECO' scheme. Households can seek grants to support home upgrades through the ECO4 scheme to enhance energy efficiency. The energy efficiency scheme works on the principle that the energy suppliers should install measures to minimize energy bills. Large energy distribution companies can fund eli...

Read More

ASSET MANAGEMENT
Labour's Angela Rayner prioritises council housing to address housing crisis
Angela Rayner, the newly appointed Shadow Levelling Up, Housing, and Communities Secretary, has affirmed that she is committed to placing council housing at the forefront of her reform agenda. This move is a part of the UK governments broader strategy to ease the demand in the private rental sector.

Read More

Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist


Insights, articles & blogs
INDEX

PROPERTY
BLOGS

LANDLORD
BLOGS

PROPERTY
ARTICLES

E-BOOKS

inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

Our Offices

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
  • Operations
    Centre
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • HQ & Customer
    Reception
  • Ringley House
  • 47 Rochester Road
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
link to ifsm website link to tpos website link to rics website link to ukgbc website link to governmanet security industry authority website link to alep website
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings

Emergency Lines

0207 428 2056

0207 267 2900

solutions@ringley.co.uk

Report an incident

read more link

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales.

Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438

Terms of use | Privacy Policy | Modern slavery act | Health and Safety Policy | Anti Bribery and Corruption | COVID-19 risk assessment

Ringley Staff Dashboard