True cost to fix fire safety scandal ‘will hit £50bn’

Massive logistical problems mean the true cost to fix Britain’s cladding crisis is likely to hit £50bn, new research has suggested.

Calculations by remediation specialist Colmore Tang Construction (CTC) suggest the national bill will be more than 10 times the allocated £5bn Government grant funding. This means trapped leaseholders could be left having to foot a £45bn bill themselves – or £54bn including tax.

CTC’s calculation is more than triple the £15bn figure widely cited by MPs. Steve Underwood of the firm said: “The bottom line is that the true cost of remedial works has been severely underestimated.”

Professional bids to the Building Safety Fund are often three to four times less than the actual cost of works because they do not account for logistical challenges, permits and the rising cost of materials, Mr Underwood said. “We’re sleepwalking into a scenario in which that only becomes apparent halfway through the remedial works.”

CTC found that the average cost of remedial works to make buildings compliant with external wall safety forms for developments above 18m (59ft) was £4.65m. For buildings between 11m ( 36ft) and 18m high, the average cost was £2m.

A government spokesman said: “Our £5bn funding will protect those in the highest risk buildings from unaffordable costs.” New guidance means nearly 500,000 leaseholders no longer require external wall safety forms to sell, he said.