NuGen Properties

Lendlease, Galliard and Ballymore among 11 developers facing building ban

The Ministry of Housing confirmed today that 39 developers – including the 10 biggest house-builders in the UK – all signed the remediation contract before yesterday’s deadline, committing themselves to fix unsafe tall buildings that they developed or refurbished.

The signed agreements will raise at least £2bn for remediation costs, the ministry said.

Michael Gove, secretary of state for levelling up, housing & communities, said: “I have been clear all along – those that are responsible for this crisis must pay. So, I am grateful to those developers who have done the right thing today by signing this legally binding contract. We will be monitoring their progress on remediation very closely, to ensure this work is completed urgently and safely. For those developers that have taken responsibility, today offers the chance for a reset, so we can get on and build more of the safe, decent and affordable homes we so desperately need.

“To those developers that have failed to sign the contract without good reason, let me be very clear – we are coming after you. If you do not sign, you will not be able to operate freely in the housing market. Your investors will see that your business model is broken – only responsible developers are welcome here.

“But today should not be about developers, or about government. Today is about innocent leaseholders. I want to put on record my apology to all leaseholders for the years of misery and hardship you have endured. You should never have been ignored, asked to pay and let down.

“Today marks a turning point – and an important step towards resolving this crisis. There is so much more to do, but I will always act to protect leaseholders and end this injustice.”

The 11 that have not signed are:

  • Abbey Developments
  • Avant
  • Ballymore
  • Dandara
  • Emerson Group (Jones Homes)
  • Galliard Homes
  • Inland Homes
  • Lendlease
  • London Square
  • Rydon Homes
  • Telford Homes

The controversy comes at a tricky time for Inland Homes in particular, given that its entire board, bar the finance director, quit earlier this month week. [See our previous report here.]

The presence of Rydon on the list also resonates – Rydon was the contractor that put the lethal cladding on the Grenfell Tower, where 73 people were subsequently killed as a result of it catching fire six years ago, triggering the entire building safety programme.

 The 39 developers that have signed the contract are:

  • Allison Homes Group
  • Barratt Developments
  • Bellway
  • The Berkeley Group Holdings
  • Bewley Group
  • Bloor Investments
  • The British Land Company
  • Cala Group (Holdings)
  • Canary Wharf Group
  • CG Fry & Son
  • Churchill Retirement
  • Crest Nicholson Holdings
  • Croudace Homes Group
  • Fairview Holdings
  • Frasers Property (UK)
  • MJ Gleeson
  • Grosvenor Group
  • Hill Holdings
  • Hopkins Home Group
  • Jelson Holdings
  • Keepmoat
  • Land Securities Group
  • Lifestory Holdings (also covers Anthology Group)
  • McCarthy & Stone
  • Miller Homes
  • Morgan Sindall Group (parent company for Lovell and Muse)
  • Morris Homes Group
  • Persimmon
  • Redrow
  • Rowland Group
  • Sorbon Group (parent company for Shanly Homes)
  • St Modwen Group
  • Story Homes
  • Strata Homes Group
  • Taylor Wimpey
  • Tilia Homes
  • Vistry Group
  • Weston Group
  • William Davis Homes

A further four building firms – Davidsons, MacTaggart & Mickel, Robertson and Wain Homes – signed the contract but were subsequently found not to have developed buildings that are within its scope

Signatories are required to fix all life-critical fire-safety defects in all English buildings higher than 11 metres that they had a role in developing or refurbishing. It also requires them to reimburse the taxpayer where government funds have already paid for remediation, with that money being used to make other buildings safe faster.

For developers who have signed, their obligations start immediately. Leaseholders will benefit from a common framework of rights and responsibilities that will get their buildings fixed without them having to pay, and developers will be required to inform residents in affected buildings how they will be meeting these commitments.

The government said that it will publish further information next week on how developers will be prohibited from carrying out major development or from receiving building control approval unless they sign and adhere to the contract, using Building Safety Act 2022 powers.

Regulations will establish the Responsible Actors Scheme and set out the criteria for eligibility and the conditions of membership. Eligible developers who do not sign the contract will not be able to join the scheme and will be subject to the prohibitions.

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