Housebuilder Taylor Wimpey will pay out £125 million to replace cladding and improve fire safety on all blocks built in the last 20 years in the wake of the Grenfell Tower disaster.
The money is set to be placed in a fund in order to provide certainty for customers and leaseholders and to avoid them bearing the cost of investment to ensure their buildings are safe , the company said.
It comes just weeks after ministers set aside £3.5 billion in funding to help repair or replace cladding more than three years on from the tragic fire in west London, which left 72 dead.
More than a million leaseholders face bills of up to £115,000 to fix unsafe homes and Housing Secretary Robert Jenrick told the Commons last month that those in blocks over 18 metres (60ft) high would no longer have to pay to replace flammable cladding.
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Currently, homeowners in properties with flammable cladding are having to pay out of their own pocket to get non-compliant cladding removed and replaced following the Grenfell Tower Tragedy in 2017.
The exact total of financial support has not been confirmed, however
The Guardian suggests that measures under consideration include a £5bn grant for leaseholders and a £2bn levy on developers.
Jonathan Frankel, head of the property litigation department at Cavendish Legal Group, says leaseholders need to get legal advice from experts in the area if they fear they still may be forced to pay for repairs.
He said: “The cost of replacing cladding is going to run into the billions so it will be interesting to see how far the government is willing to go in terms of extra funding.