Cladding crisis: what new proposals mean for housebuilders and leaseholders

The government is seeking an extra £4bn from house developers for the UK’s cladding crisis. We explain how the proposals affect housebuilders and leaseholders.

© Hollie Adams/Bloomberg via Getty Images
Leaseholders have been saddled with huge bills
(Image credit: © Hollie Adams/Bloomberg via Getty Images)

Owners of leasehold properties who have seen the cost of fireproofing their flats rise sharply in recent years have been given a ray of hope. Michael Gove, the UK housing minister, told the housebuilding industry that no leaseholder living in a property more than 11 metres tall should “ever face any costs” for fixing dangerous cladding as he announced that the government is seeking an extra £4bn from house developers to fix the UK’s cladding crisis.

So what is the cladding crisis and what do these new proposals mean?

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni