Newcastle-based house building giant Bellway said on Thursday it has agreed a voluntary pledge with the UK’s Department for Levelling Up, Housing and Communities (DLUHC) “in relation to historical fire safety issues on buildings where Bellway has played a role in their development.”
Bellway said its board has considered the information currently available to it “and has determined that the best estimate of the cost of the pledge will be around £300 million in addition to the £186.8 million already set aside since 2017.”
The additional cost is expected to be recognised as an adjusting item for the year ending July 31, 2022.
Bellway CEO Jason Honeyman said: “The issue of life-critical fire safety defects in apartment schemes is a sector-wide challenge and Bellway has engaged extensively and constructively with DLUHC over recent months, both directly and through the Home Builders Federation (HBF).
“We have always taken the issue of building safety very seriously and agree with the Government’s principle that residents should not have to fund life-critical fire safety remedial works.
“Our engagement to date and commitment to continue our responsible approach has resulted in Bellway today making a pledge that schemes constructed by us or on our behalf in the last 30 years will be remediated.
“This is a positive outcome for affected residents, made in the best long-term interests of the group and will help to secure our ongoing reputation as a leading responsible homebuilder.“