Homebuilder Persimmon sets aside 75 million pounds to fix cladding issues

British homebuilder Persimmon (LON:PSN) said on Wednesday it earmarked 75 million pounds for removing or replacing cladding material in some of its buildings for fire safety concerns.

The move comes ahead of an update by housing minister Robert Jenrick in parliament slated for later today, with the Guardian reporting https://www.theguardian.com/society/2021/feb/09/ministers-to-increase-financial-support-for-cladding-removal that ministers are set to announce billions of pounds in extra support to address the cladding crisis.

A string of regulations were implemented over the last two years after a blaze engulfed Grenfell Tower, a 24-story London social housing block in 2017, the deadliest domestic fire in Britain since World War Two.

Persimmon, which accounts for less than one percent of all high-rise developments in UK, added that it identified 26 buildings where cladding may need to be removed, as per new government guidance.

Last week, Britain’s largest homebuilder Barrat Developments also said it would keep aside 15.6 million pounds for similar cladding related issues.

In late 2019, an independent review had identified that Persimmon needed to improve the quality and build of its homes and comply with guidelines, rather than just focus on inspections immediately before and after the sale of a home.

The company also said that in the past it built multi-storey buildings which met all the fire safety rules and regulations in place at the time, but used cladding materials which may now be considered unsafe and require removal.

“The concern around now banned cladding is affecting many thousands of homeowners who live in high-rise buildings right across the country,” Roger Devlin, chairman of Persimmon said.