The bill for housebuilders to remove dangerous cladding crept towards £2billion as more major players signed up to government guidelines.
Housebuilders Bellway, Vistry and Countryside Partnerships said they had agreed to the Building Safety Pledge, which commits developers to pay to fix fire safety issues on buildings between around 35 and 60 feet in height.
The latest additions took the repair cost for major London-listed housebuilders to around £1.86billion, according to analysis by AJ Bell.
A high price: The use of unsafe, flammable materials on the outside of buildings became a major scandal after 72 people died in the Grenfell Tower fire in 2017
The use of unsafe, flammable materials on the outside of buildings became a major scandal after 72 people died in the Grenfell Tower fire in 2017.
Bellway expected signing the pledge would add £300m, taking its total costs to around £486m. Vistry expected an increase of £35m to £50m, taking its total to a maximum of about £75m.
Bellway shares fell 1.9 per cent, or 49p, to 2505p and Vistry was down 5.3 per cent, or 51p, at 912.5p.
Countryside said it had set aside £41m to fix dangerous cladding and expected any repairs to cost £24m.
However, its shares tanked more than 14 per cent as it warned that full-year profits were expected to fall to £150m from £167m in 2021 after a review of the business uncovered ‘several issues’ weighing on its performance.
Countryside admitted its expansion plans had been ‘too ambitious’ and that it had failed to benefit from its acquisition of Midlands-based rival Westleigh in 2018.
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