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The Housing Secretary Robert Jenrick has promised hundreds of thousands of leaseholders will be protected from the cost of replacing unsafe cladding on their homes.

Upon unveiling a five-point plan which he says will provide reassurance to homeowners and bring confidence to the housing market, Jenrick announced to the House of Commons that £3.5bn will be invested by the government to fully fund the cost of replacing unsafe cladding. The money will cover any leaseholders in residential buildings 18 metres (six storeys) and over in England. 

This will ensure the funding is targeted at the highest risk buildings in line with independent expert advice and evidence. The Home Office analysis of fire and rescue service statistics show that buildings between 18 and 30 metres are four times as likely to suffer a fire with fatalities or serious casualties that apartment buildings in general. 

Lower-rise buildings will also gain new protection from the costs of cladding removal with a new scheme offered to buildings between 11 and 18 metres. This will pay for cladding removal – where it is needed – through a long-term, low interest, government-backed financing arrangement.

The five-point plan includes:

  1. The Government will pay for the removal of unsafe cladding for leaseholders in all residential buildings 18 metres (six storeys) and over in England.
  2. A finance scheme to provide reassurance for leaseholders in buildings between 11 and 18 metres (four to six storeys), ensuring they never pay more than £50 a month for cladding removal.
  3. An industry levy and tax to ensure developers play their part.
  4. A new safety regime to ensure a tragedy like Grenfell never happens again.
  5. Providing confidence to this part of the housing market including lenders and surveyors.
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