NHBC to pay to replace ‘Grenfell-style’ cladding

Image: Galliard Homes

Warranty and insurance provider NHBC is to pay for the cost, expected to run into millions of pounds, of replacing dangerous cladding on the New Capital Quay housing development in London’s Greenwich.

The decision comes after a dispute over who should pay for the work, with fire wardens on watch 24 hours a day while residents wait for the remediation to be completed.

Developer Galliard Homes argued that the cladding was certified on the 11-block development as compliant with building regulations at the time it was built.

Galliard also said it had paid £1m for a ten-year insurance policy on the development.

NHBC confirmed in April this year that it had received a claim in respect of the cladding but was determining its validity and establishing building regulations were complied with.

Meanwhile, residents started taking legal advice on a potential class action case against Galliard and NHBC in the event that they were denied cover to replace the cladding.

Now NHBC has accepted the claim and has signalled that it is prepared to pay the cost of replacing the cladding.

The remedial works will extend to all 11 blocks and NHBC said it was currently calculating the costs involved.

Matthew Pennycook, MP for Greenwich and Woolwich, welcomed the development. He said: "Fantastic news for all residents of New Capital Quay in West Greenwich. Having concluded their investigation, the NHBC have today accepted the claim and will now cover the costs of removing and replacing all the dangerous cladding and insulation across the site."

In a statement, NHBC said: "As the warranty insurance provider at New Capital Quay, NHBC has investigated a claim under our policy and we can confirm that we have accepted this claim.

"This has been a highly complex process and residents have understandably been concerned. We have made every effort to ensure they have been kept informed throughout the process and residents can now be assured that they will not have to bear the costs of the work.

"We are working closely with the managing agents PMML (Property Management Matters Ltd.) and Galliard Homes and we will all keep residents updated with progress."