Crest Nicholson pledges more than £80m to government cladding costs

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Housebuilder Crest Nicholson has emerged arsenic an manufacture frontrunner among firms publically pledging a publication towards the government’s cladding-remediation costs.

The company’s committee announced that it had confirmed to the Department for Levelling Up, Housing and Communities that it was “in the champion interests of the Group” to financially enactment those affected by cladding costs.

The committee said it was successful the mediate of estimating the last fig it would contribute, adding: “As such, the committee see that a complaint successful the scope of £80m to £120m presently represents its champion estimation of this further liability.” It described the contented arsenic a “complex and judgemental area”.

Since Michael Gove became lodging caput successful September, helium has sought to enactment successful developers, housebuilders, contractors and cladding manufacturers to wage £4bn towards the outgo of remediating unsafe cladding connected buildings of betwixt 11 to 18 metres successful height.

Crest Nicholson said that from January this twelvemonth it had been engaged successful “intensive dialogue” with the authorities via the Home Builders Federation (HBF). A deadline for 5 April 2022 had been acceptable for housebuilders to corroborate their pledges.

This week, successful negotiations with the HBF, the authorities reportedly pulled back from its request for housebuilders to lend towards a £4bn fund. The 2 parties are reportedly adjacent to a woody that would not impact the fund.

Crest Nicholson’s pledge comes aft the institution made a £43.1m proviso successful its full-year results, reported successful January, for the removal of cladding connected buildings that it had built. In June past year, its remediation proviso had been acceptable astatine astir fractional the amount, astatine £23m.

The radical besides confirmed that it was good placed financially and had a beardown equilibrium expanse to travel done connected its pledge with nett currency of £252.8m. It said that the currency outflows needed to remediate the affected buildings would instrumentality spot implicit respective years.