10th Feb 2021 08:57
(Alliance News) - Persimmon PLC on Wednesday said its 2020 results will include a GBP75 million provision to address cladding issues in 26 high-rise buildings.
The York, England-based housebuilder said it has identified nine high-rise buildings over 18 metres tall that may need cladding removed. It does not own these buildings but said it will provide technical support to ensure the buildings are made safe.
Persimmon also found 17 buildings that may need cladding removed and said it will lead the work on the buildings it owns, while offering assistance for those it does not own.
"As first and foremost a builder of traditional family homes, the group has not been a major developer of high-rise buildings. We believe we account for less than 1% of all high-rise developments. However, in the past we have built multi-storey buildings which met all the fire safety rules and regulations in place at the time, but which used cladding materials which may now be considered unsafe and require removal," the company explained.
"The group believes strongly that it has a responsibility to step forward and tackle this issue head-on. Persimmon has therefore made a provision of GBP75 million in its 2020 results to pay for our contribution to any necessary work on 26 buildings that may be affected by the cladding issue."
Persimmon said it was in the process of writing to building owners and management companies to inform them of the findings of its review and to agree next steps.
"If the owner does not step up then we will act to remove uncertainty and anxiety for residents and make the buildings safe," it added.
Flammable building cladding came into focus following the fire that engulfed Grenfell Tower, a residential tower block in London in June 2017. The fire killed 72 people.
The UK government is expected to announce billions of pounds in funding to help tackle the cladding crisis. UK Housing Secretary Robert Jenrick is due to address the Commons on Wednesday, and he is expected to set out a package of measures.
According to reports cited by PA, plans under consideration include a GBP5 billion grant on top of the GBP1.6 billion safety fund that leaseholders can currently apply to.
It is also reported that grants to remove cladding will only be available to those living in buildings higher than 18 metres, with those in smaller ones having to rely on loans for the cost of the work.
Shares in Persimmon were down 0.8% at 2,762.00 pence in London on Wednesday morning.
By Zoe Wickens; [email protected]
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