Redrow hikes cladding retrofit provision by a third to £36m

Aaron Morby 3 years ago
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House builder Redrow is setting aside an extra £10m to meet Government demands for developers to fund the replacement of unsafe cladding on buildings of 11m and above.

The move takes Redrow’s total provision to tackle building safety concerns on buildings of over four floors to £36m.

Redrow said that it is in talks with Government to ensure house builders contribution to fixing the building fire safey crisis was fair and proportionate.

Levelling Up and Housing Secretary Michael Gove last month called on developers to stump up cash to fix the cladding crisis on intermediate height buildings of around four to seven storeys.

He has given firms until early March to agree fully-funded plans of action warning he will take punitive action against those that failing to do so.

In a statement this morning, as Redrow posted record half year results, Matthew Pratt, Group Chief Executive said: “We share the Government’s desire to resolve this issue and are committed to being part of the solution.

“As we are predominantly a builder of family detached houses, we have historically only developed a relatively small number of high-rise apartment schemes.

We do believe the whole industry should play its part in tackling the cladding issue but in a fair and proportionate way. Alongside the Home Builders Federation, we will continue to try and work with Government to find answers to these issues, whilst trying to help meet this country’s chronic housing shortage.”

In the first six months, Redrow delivered record revenue of £1.05bn generating a 23% rise in pre-tax profit to £203m.

As a result operating margin returned to normalised level of 19.5%, one year ahead of previous forecasts.

 

 

 

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