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NHBC to pay for Grenfell-style cladding removal

The National House Building Council has agreed to foot a multi-million-pound bill to re-clad a London development following a long-running dispute with the project’s developer and residents.

NHBC confirmed that, having conducted an investigation into the Grenfell-style ACM cladding on the 11-block New Capital Quay development in Greenwich, it had now agreed to pay for all remedial works.

The cost of re-cladding the New Capital Quay scheme is estimated at between £25m and £40m.

An NHBC spokeswoman said: “As the warranty insurance provider at New Capital Quay, NHBC has investigated a claim under our policy and we can confirm that we have accepted this claim.

“This has been a highly complex process and residents have understandably been concerned.

“We have made every effort to ensure they have been kept informed throughout the process and residents can now be assured that they will not have to bear the costs of the work.”

Following tests at the 1,000-home development post-Grenfell, the Galliard Homes development was found to have combustible ACM cladding that needed to be removed.

Despite agreeing that the cladding needed to be removed and replaced, Galliard Homes, on behalf of the residents, said the NHBC should be liable to pay for this work as the insurer.

The NHBC had signed off the development through its building control arm and provided leaseholders with 10-year warranties on their properties.

New Capital Quay residents had feared they would have to cover the re-cladding costs, after a number of property tribunals on other developments ruled that residents were liable.

The estimated £25m-£40m bill would have been equivalent to around £40,000 per household.

NHBC said it would now work closely with Galliard Homes on future steps and would keep residents informed of decisions.

The NHBC’s decision marks the first time it has agreed to take this step on a building for which it has provided warranties.

NHBC warranties currently cover 80 per cent of all new builds in the UK.

The government’s building safety programme has found 297 private high-rise blocks to have ACM combustible cladding.

However, only 21 have begun to remove cladding, while just four have had their cladding completely removed.

Readers' comments (1)

  • it's a shame others don't follow

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