Listed house builder sets aside £75m to handle fallout from cladding crisis
Persimmon has today confirmed a major financial commitment to address cladding safety issues in its legacy development portfolio.
The York-headquartered company says even though it has not been a major developer of high-rise buildings, it has in the past constructed some multi-storey properties.
It notes that while these met fire safety regulations in place at the time, they did use cladding materials which may now be considered unsafe and require removal.
Its update adds: “Persimmon has made a provision of £75m 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 has identified nine high-rise buildings over 18 metres built by the Group where, in-line with Government guidance, cladding may need to be removed.
“Persimmon does not own any of these buildings and the legal responsibility and duty to ensure the building is safe rests with the current owners.
“Persimmon will provide technical support to ensure the building is made safe. However, if a building owner fails to step up and accept their responsibilities, Persimmon stands ready to provide the support necessary to make sure the work is done.
“The Group has identified 17 buildings below 18 metres that may be fitted with cladding requiring detailed investigation.
“Where Persimmon owns the building it will, of course, lead this work. Where the Group no longer owns the building, it will support the owners and other parties in their efforts to ensure the buildings are safe for residents.”
More funding towards the cost of removing unsafe cladding on buildings is expected to be announced by the UK Government today.
Thousands of flat owners are currently struggling with huge bills for fire-safety improvements after the 2017 Grenfell disaster, when flames spread up a tower block via combustible cladding.
The Government unveiled a £1.6bn building safety fund in 2020 to help. But pressure is growing on ministers to increase the support for residents stuck in these buildings.
The scale of new assistance has not been confirmed, but measures being considered include a £5bn grant in addition to the existing £1.6bn fund that leaseholders can apply to.
Roger Devlin, chairman of Persimmon, said: “The concern around now banned cladding is affecting many thousands of homeowners who live in high-rise buildings right across the country.
“At Persimmon we believe we have a clear duty to act to address this issue.
“So today we are setting aside £75m towards any necessary cladding remediation and safety work in 26 developments we built.
“Where we still own the building we will act. Where we no longer own them we will work with the owners to make sure they meet their legal responsibilities and duty.
“This is a decision which we believe is not only right for residents but also the right thing for us to do as one of the leading housebuilders in the UK.”
