Bellway has signed the government’s building safety pledge, committing an extra £300m to fixing cladding issues in its developments.
The housing developer has already set aside £187m for the works.
Vistry has also signed the pledge, but said it does not expect its commitments to increase above the £35m-£50m already allocated.
Bellway chief executive Jason Honeyman said: “Our engagement to date and commitment to continue our responsible approach has resulted in Bellway today making a pledge that schemes constructed by us or on our behalf in the last 30 years will be remediated.”
The increase in costs for Bellway arise from the government’s insistance that builders address issues on apartments over 11m in height, instead of above 18m, and going back 30 years. Bellway said it was paying to fix the issue, “notwithstanding the often complex origin of problems, arising not only through the design and planning process, but also through shortcomings from suppliers, subcontractors, building control and warranty providers”.
Bellway has so far completed work on four developments, is under way on 13 developments and is in design stages on a further three developments. It added that the work was being undertaken at no cost to residents, regardless of whether the group retains ownership of the freehold of the building.
Despite the pledge costing Bellway an additional £300m, Honeyman said it was a “positive outcome” made in the “best long-term interests of the group”.
He added: “We have always taken the issue of building safety very seriously and agree with the government’s principle that residents should not have to fund life-critical fire safety remedial works.”
Housebuilders have so far committed a further £1.8bn after signing Michael Gove’s building safety pledge. Barratt Developments warned that its share alone will cost an extra £350m, after setting set aside £79m already. Redrow has said it will have to set aside £200m, five times as much as the £36m it has already committed.
Crest Nicholson, Persimmon, Berkeley and Taylor Wimpey confirmed on Tuesday that they had signed the pledge, while MJ Gleeson has also signed.
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