We covered in March the announcement of an additional £1bn of government funding to address the issue of unsafe cladding on high rise buildings. Building owners are now being invited to register their interest for the fund, but must act quickly to meet the 31 July deadline for doing so.
The announcement of additional funding will have been a welcome development for the many owners and leaseholders of buildings which were not covered by the initial funding provided for the replacement of ACM (aluminium composite material) cladding – the type used at Grenfell Tower. In the past three years it has been established that a much wider range of cladding materials present a similarly unacceptable fire risk, with approximately 1,375 buildings thought to be affected.
Owners of those buildings can now register interest for this new fund, by providing basic information on the nature of the building and the existing cladding, to help determine initial eligibility. A full application process is expected to be made available by the end of July, along with detailed guidance.
In the meantime, the funding prospectus which has been published raises several points for building owners to note:
- funding will be allocated on a ‘first come first serve’ basis, which highlights the need for building owners to act quickly in registering initial interest, particularly if it transpires there is not enough funding to cover all eligible buildings
- building owners are encouraged to investigate all other options for funding the replacement cladding, before taking advantage of the fund. It is not yet clear if this will translate into funding being granted on a means tested basis, particularly if (as above) there is not enough funding to cover all eligible buildings
- in order to access the funding, building owners will be expected to be in a position to start work on site during the 2020 / 2021 financial year. It remains to be seen if this will be achievable given the large number of eligible buildings and the inevitable delays resulting from COVID-19
- the funding is intended to cover the capital costs associated with the replacement of the unsafe cladding. It will not cover the cost of interim safety measures introduced to mitigate fire risk.
In light of the above, building owners are advised not to delay in registering initial interest. A link to the prospectus and the registration form can be found here.
Birketts have advised building owners and affected leaseholders in relation to various issues surrounding unsafe cladding on high-rise buildings, and have experience in managing applications for funding in this area.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at June 2020.