Persimmon signs UK cladding pledge, reiterates cost estimate

5th Apr 2022 11:19

(Sharecast News) - Persimmon said it signed the UK government's pledge to make properties safe following the Grenfell Tower fire and stuck to its £75m estimate for the cost of carrying out the work.

The housebuilder said it had agreed to remove dangerous cladding and carry out other fire safety issues in line with the government's requests. Levelling up minister Michael Gove widened the list of buildings requiring work to cover fire safety problems at structures over 11 metres high.

Persimmon said the pledge was consistent with its existing approach and that only a small number of multi-floor buildings that it built were affected. The FTSE 100 group said its £75m provision to cover the costs should be enough.

The 2017 blaze at Grenfell Tower in west London killed 71 people when exterior cladding caught fire. Fears about further fires have left owners of properties with similar cladding fearing for their lives and unable to sell their homes.

Dean Finch, Persimmon's chief executive, said: "Over a year ago we said that leaseholders in multi-storey buildings Persimmon constructed should not have to pay for the remediation of cladding and fire related issues. We are pleased to reaffirm this commitment today and sign the government's developer pledge."

Earlier on Tuesday, Crest Nicholson said it would sign the government's pledge and that the extra cost of making properties safe would be up to £120m over several years.