The firm revealed much of this would be spent replacing substandard ACM cladding on a project in Scotland, which was built under prior building regulations.

The building complex is understood to be the Glasgow Harbour scheme built 12 years ago where around 300 homes are affected.

Pete Redfern, chief executive, said the firm had completed a review of cladding on its building and discussions with owners.

He said: “Whilst each example is slightly different, and this is an exceptionally complex issue, we have in a number of cases agreed to support customers both financially and practically with removal and replacement plans, even though the buildings concerned met the requirements of building regulations at the time construction was formally approved.

“We have taken this decision for buildings constructed recently because we believe that it is morally right, not because it is legally required.

“Our primary goal in doing this is seeking to ensure that any work is undertaken properly and promptly, but also to ensure that customers are not impacted by bills that are significantly greater than normal maintenance.”

Announcing half-year results., Redfern said pre-tax profits were up by 48% to £301m on stable revenue of £1.72bn.

He blamed poor weather at the start of the year for a 3% fall in completions to 6,367. Average selling prices on private completions increased by 2.8% to £295k (H1 2017: £287k).

Build cost per unit in the UK increased to £143.7k (H1 2017: £137.4k), with the greater level of strategically sourced sites requiring higher infrastructure costs, together with marginal build cost inflation, mix and specification improvements.