Landlords not included in cladding remuneration?

Landlords not included in cladding remuneration?

11:31 AM, 18th January 2022, About 4 months ago 11

Text Size

This came into my inbox: Housing secretary Michael Gove has revealed that landlords will not be included in the cladding remediation fund initiative for affected residential tower leaseholders announced this week.

A hint of this was given in the original announcement that the £4 billion ‘fund’ to remediate cladding on towers under 18.5m but over 11m tall would be for ‘leaseholders living in their own flat’.

But his officials have now confirmed that Gove has decided that the funding will be targeted initially at owner-occupiers and that ‘negotiations…will explore whether this support should extend to other leaseholders such as landlords’.

https://www.landlordzone.co.uk/news/breaking-landlords-will-not-get-cladding-remediation-cash-until-later-and-maybe-not-at-all/?utm_source=newsletter&utm_medium=email&utm_campaign=15_01_2022

Judith



Comments

by Shining Wit

12:19 PM, 18th January 2022, About 4 months ago

It is yet another attempt by the government to 'split' leaseholders - presumably to trigger the cohesion in the campaign to end the Cladding Scandal - or the Building Safety Crisis as it is now being called.
It will also save the 'guilty' developers/manufacturers who are now being targetted to 'pay their share': if you remove the (innocent) non-resident leaseholders' costs, the guilty parties will have to pay less....
Finally, it will help delay the whole process because works won't start until all funds are secured, leasehold landlords won't be able to pay 'their share' of the costs any more than any other leaseholder would (do you have £50k spare?). So the whole fiasco can then be blamed on fat-cat BTL landlords.

by David Price

12:28 PM, 18th January 2022, About 4 months ago

Yet another stealth tax on Housing Providers, to be expected from this government.

by NewYorkie

13:23 PM, 18th January 2022, About 4 months ago

Reply to the comment left by Shining Wit at 18/01/2022 - 12:19
We are all leaseholders and should not be held responsible for the sins of the developers. The fact that some have chosen to provide desperately needed housing to others should make no difference.

I can see the beneficiaries of this being the freeholders, who will issue huge service charge bills which sub-letting leaseholders can't pay, and then obtain their apartments through forfeit. The bills will be OTT as usual, with the 'true' cost of the works fully covered by the government scheme payout. Result? Apartments for zero and fully fire-remediated at taxpayer cost, able to be re-sold at vast profit.

The only way out will be for those affected to evict their tenants and 'move in'. They can then get the work done for free and re-let afterwards.

by Chris Novice Shark Bait

13:51 PM, 18th January 2022, About 4 months ago

Outright discrimination against landlords. Where have we heard that before? We lost the judicial revue on section 24 and are sitting ducks. I have a property that is so affected, and this may be the final strawer.

by Judith Wordsworth

14:22 PM, 18th January 2022, About 4 months ago

Reply to the comment left by David Price at 18/01/2022 - 12:28If Labour ever get in you can expect private Landlords to be crucified even if renting to those on benefits/LA housing lists etc etc

by David Price

14:34 PM, 18th January 2022, About 4 months ago

Reply to the comment left by Judith Wordsworth at 18/01/2022 - 14:22
Are we not already being crucified? It feels like that to me as I pay yet more council tax on property destroyed by tenants!

by Clint

19:15 PM, 18th January 2022, About 4 months ago

I am very confused. In the last year we have signed for cladding grants through the freeholder who submitted it to the appropriate body and as far as I am aware it is all going through.
Does this latest article mean that the grant has either not been approved or will now be changed.
If we end up having to pay, we will have to pay exorbitant amounts as the Freeholder priced the works where they maximised the costs and we initially challenged the costs before we were informed that we would be getting a grant for the works as we had experts work out the costs to be at least half of what was quoted by the Freeholder's contractors.
I would much appreciate any feedback from anyone who knows more about this.

by Dylan Morris

10:44 AM, 19th January 2022, About 4 months ago

How about a young couple who want to sell their flat with cladding issues and can’t. They need a larger space and want a garden for their growing family. So decide to rent a really nice house nearby which meets all their needs perfectly. Being unable to sell their flat and as they have mortgage, ground rent and service charges to pay they decide to rent it out. A good idea and all perfectly sensible and reasonable given their entrapped circumstances. However they are now classed as landlords and have to fund the cladding renewal costs themselves.
It is an absolute disgrace. On another point what happens to leaseholders whose apartments are under 11m (33 feet) ? Does this Gove creature suggest they throw themselves under the nearest bus ?

by Pete K

10:07 AM, 22nd January 2022, About 4 months ago

This is very unfair as already commented on. The government are in the process of coming up with some kind of arrangement for landlords, not holding my breath! I've also just received the "Section 20ZA" notice. Very confused, sleepless nights etc. I would like to know how we stand if we refuse to pay?

by moneymanager

11:29 AM, 22nd January 2022, About 4 months ago

I donl' understand this as we not only have the Building Safety Fund letters of award for multiple appartments but our RTM company has the money in the bank, over £4 million of it. The real issue for leasehold landlords as opposed to owner/occs is the capping of the overal award as it is subject to the, former, EU derived limit on state funding, we aren't affected and I suspect that few will be, the report appears to have either been based on oncorrec information or it appears to have been misinterpreted.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

Landlord Tax Planning Book Now