13th Mar 2023 11:00
(Alliance News) - Housebuilders Redrow PLC and Bellway PLC on Monday both announced that they have signed the UK government's building fire safety self remediation terms.
The self-remediation contract requires developers to fix unsafe buildings from the past 30 years. The new requirement follows the Grenfell Tower fire in 2017, which was made deadly by flammable building cladding.
The self remediation contract widens builders' responsibilities regarding potential remediation work which may need to be undertaken. Redrow said that, although this would mean an increase to its building safety provision, it does expect this increase to be "substantial".
"Regardless of the self remediation contract formalities, we are proceeding with the remediation of the buildings concerned," Redrow added.
Bellway said that the self remediation contract provides "clarity," particularly with regards to the standards required for internal and external works on legacy buildings.
Bellway added that it has taken the decision in the best interests of both shareholders and residents of affected schemes, while also noting the consequences of not doing so under the government's proposed Responsible Actors Scheme.
"The RAS is expected to become law in the near future, and it will give the government the power to prevent developers who have not signed the SRT from commencing developments for which they have planning permission, and from receiving building control approval for construction that is underway," it said.
Bellway said it has determined that the terms of the self remediation contract will not result in any movement in the group's legacy building safety improvements provision.
Bellway previously had said it has set aside GBP513.7 million to remediate legacy apartment blocks in England, Scotland and Wales.
Shares in Redrow were down 2.0% at 461.20 pence on Monday morning in London. Shares in Bellway were down 2.6% at 2,044.00p.
By Heather Rydings, Alliance News senior economics reporter
Comments and questions to [email protected]
Copyright 2022 Alliance News Ltd. All Rights Reserved.