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Crest Nicholson pledges more than £80m to government cladding costs

Housebuilder Crest Nicholson has emerged as an business frontrunner amongst corporations publicly pledging a contribution in the direction of the federal government’s cladding-remediation prices.

The corporate’s board introduced that it had confirmed to the Division for Levelling Up, Housing and Communities (DLUHC) that it was “in one of the best pursuits of the Group” to financially assist these affected by cladding prices.

The board stated it was in the course of estimating the ultimate determine it could contribute, including: “As such, the board think about {that a} cost within the vary of £80m to £120m at present represents its finest estimate of this additional legal responsibility.” It described the difficulty as a “complicated and judgemental space”.

Since Michael Gove turned housing secretary in September, he has sought to rope in builders, housebuilders, contractors and cladding producers to pay £4bn towards the cost of remediating unsafe cladding on buildings of between 11 to 18 metres in top.

Crest Nicholson stated that from January this 12 months it had been engaged in “intensive dialogue” with the federal government through the Dwelling Builders Federation (HBF). A deadline of 5 April 2022 had been set for housebuilders to substantiate their pledges.

This week, in negotiations with the HBF, the federal government reportedly pulled back from its demand for housebuilders to contribute in the direction of a £4bn fund. The 2 events are reportedly near a deal that may not contain the fund.

Crest Nicholson’s pledge comes after the corporate made a £43.1m provision in its full-year results, reported in January, for the removing of cladding on buildings that it had constructed. In June final 12 months, its remediation provision had been set at nearly half that amount, at £23m.

The group additionally confirmed that it was well-placed financially and had a robust steadiness sheet to comply with by on its pledge with internet money of £252.8m. It stated that the money outflows wanted to remediate the affected buildings would happen over a number of years.

A DLUHC spokesperson stated the division stood agency in its place to succeed in an settlement with builders about their function in paying to repair unsafe cladding. Negotiations are ongoing.

They added: “Our place has not modified. We welcome the builders who’ve signed pledges thus far and we’ve the powers to impose an answer in legislation if these in scope don’t do the identical.”

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