Boris Johnson has warned banks they must not refuse mortgages on homes with cladding that are ‘perfectly safe’.
Thousands of homeowners face the cost of removing cladding from their buildings in the wake of the Grenfell tragedy, which killed 72 people in 2017.
Speaking at Prime Minister’s Questions today, Mr Johnson was asked to come forward with a plan to fix the cladding crisis that does not burden leaseholders with the costs of removing the material.
The Prime Minister told Labour MP Seema Malhorta that the onus should be on banks not to ‘unreasonably refuse mortgages on properties that are perfectly safe’.
Prime Minister Boris Johnson told Labour MP Seema Malhorta that banks should not refuse mortgages on homes with cladding that are ‘perfectly safe’ during Prime Ministers Questions today (pictured)
His comments come after it emerged that UK flat sales have halved due to fears over dangerous cladding similar to that which was on Grenfell Tower.
Speaking in the Commons, Mrs Malhorta said: ‘Almost four years on from the Grenfell tragedy, Government inaction on the cladding crisis means that hundreds of thousands of leaseholders including my constituents remain trapped in unsafe, unsellable blocks.
‘Ministers have warned at least 15 times that leaseholders will not have to pay unfair costs but as ever with this Government there has been a lot of promises not matched by delivery.
Hundreds of thousands of homeowners could face bills of £40,000 each on average to replace dangerous cladding, similar to that found on Grenfell Tower (file photo)
‘Will the Prime Minister finally act, end this injustice and come forward with a plan to fix the cladding crisis that does not burden leaseholders with the cost?’
The Prime Minister responded by saying the Secretary for Communities and Local Government Robert Jenrick would bring forward a plan ‘very shortly’.
He added: ‘But it is also important that mortgage companies do not unreasonably refuse mortgages on properties that are perfectly safe.’
Hundreds of thousands of homeowners could face bills of £40,000 each on average to replace dangerous cladding, it was revealed earlier this month.
Ministers have set aside £1.6 billion to fund repairs, but MPs estimate the work could cost £15 billion.
It cannot begin in earnest until comprehensive funding is released.
Big building firms could also face a multi-billion-pound levy to help families pay to repair homes with dangerous cladding.
It could a mean a levy on all high rise flats and possibly a separate charge on major developments to atone for building tens of thousands of flats and homes with unsafe cladding and insulation in recent decades.
Workers pictured removing cladding from the Whitebeam Court tower block in Salford, north west England, in June 2017 (file photo)
It is part of a package of measures being discussed by Chancellor Rishi Sunak and Housing Secretary Robert Jenrick to meet Britain’s post-Grenfell repair bill.
The levy could raise up to £200million a year – a total of £2billion over ten years.
It comes after it was announced a new regulator will be set up to ensure the safety of building materials after ‘deeply disturbing’ evidence of malpractice was heard at the Grenfell Inquiry.
The investigation into the fatal fire heard that some firms involved in the production of materials used on the tower’s flammable cladding deliberately manipulated fire tests and marketing materials.
Now, a regulator for construction products will be able to remove any products from the market that pose a safety risk and prosecute any companies that are found to be flouting rules.
If there are concerns about a product, the new body will be able to conduct its own tests against existing safety standards.
Ministers have also commissioned an independent review into weaknesses in previous testing regimes and will look at how abuse of these systems can be prevented.
The Minister for London said the move comes as a result of the ‘entirely justified anger’ over the fire and the ‘failings it exposed’.
Paul Scully said: ‘This must never happen again, which is why we are launching a new authority to test and regulate the safety of construction materials, informed by the expertise that already exists within the Office for Product Safety and Standards.’
Housing Secretary Robert Jenrick said: ‘The Grenfell Inquiry has heard deeply disturbing allegations of malpractice by some construction product manufacturers and their employees, and of the weaknesses of the present product testing regime.
‘We are establishing a national regulator to address these concerns and a review into testing to ensure our national approach is fit for purpose.
‘We will continue to listen to the evidence emerging in the Inquiry, and await the judge’s ultimate recommendation – but it is already clear that action is required now and that is what we are doing.’
Hearings of the Grenfell Inquiry are currently suspended amid lockdown restrictions across England.
Organisers have previously said they hope to start hearing evidence again remotely in February.