Homeowners ‘face ruin’ over Grenfell-style cladding costs

HOMEOWNERS say they face financial ruin after Parliament voted to reject measures to shield them from the costs of removing Grenfell-style cladding.

After last-ditch efforts to amend the Fire Safety Bill were defeated on Wednesday, leaseholders also warned of mental health problems due to bills they now face to make their homes safe.

The Government is making £5billion of funding available to remove cladding from thousands of blocks of flats, with the Treasury last night announcing it would consult on a new residential property developer tax.

Ministers hope the time-limited levy, which it proposes should apply to developers’ profits over £25million from UK developments, will raise at least £2billion to reduce the costs faced by leaseholders.

However, under a new loan scheme, those living in affected buildings between 11 metres and 18 metres high will be asked to contribute up to £50 a month for works.

Critics say the Bill leaves people liable for costs of up to £50,000, with many also unable to sell their homes because lenders will not offer mortgages until the cladding is removed.

Last night Stephen Squires, a leaseholder who lives in a tower block in Manchester that was found to bear dangerous cladding, told reporters the stress was “constantly preying on your mind”. “There is definitely a mental health issue for leaseholders,” he added.

“Bills are increasing and people are starting to [get] really concerned about how they will make ends meet, and if they will ultimately lose their homes, let alone any savings they have.”

A 33-year-old woman from London,

‘Bills are increasing and people are starting to get really concerned about how they will make ends meet’

who asked to remain anonymous, said that she had “weeping sores” as a result of the toll on her mental health.

She said she and her husband, a keyworker, are unable to sell their flat, after the building was found to have wooden cladding and missing cavity barriers.

In a statement, the group Grenfell United said: “We’re deeply disappointed that ministers have broken their promises to leaseholders who have done absolutely nothing wrong. The Government’s position on this is indefensible.”