17 December 2019

Private sector ACM Cladding Remediation Fund

Almost two years since the Grenfell Tower tragedy there are still around 165 privately owned, high-rise buildings over 18 metres high covered in dangerous aluminium composite material cladding ("ACM Cladding").

In order to try to speed up the removal and replacement of this ACM Cladding the government has made a £200 million fund available to the 'responsible entity' for each building, and the deadline to apply to the fund is 31 December 2019.

The 'responsible entity' will usually be the freehold owner of the building or the management company with responsibility for building repairs and, as a condition of funding, they will need to take 'reasonable steps' to recover the costs from those responsible for the presence of the ACM Cladding. 

Although the government has not explained what it means by this, it is envisaged that responsible entities will be expected to pursue those involved in the ACM cladding installation and to make warranty claims, where appropriate. 

The Ministry of Housing, Communities and Local Government (MHCLG) have advised that late applications will be considered only in exceptional circumstances and the application board will have discretion as to whether to grant an extension.

Sarah Heatley is an associate in our Property Litigation team.

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