Redrow signs UK cladding pledge, expects additional £164m provision

Housebuilder Redrow said on Wednesday that it has signed the UK government's pledge to make properties safe following the Grenfell Tower fire and that it expects to make an additional provision of £164m as a result.

The company said it will be remediating all the buildings in which it was involved, whether or not it built them, going back 30 years.

"This is a highly complex matter and the exact remediation work required and for the exact number of buildings will take time to determine," it said.

The housebuilder’s existing provision for fire safety in high rise buildings is £36m. Based on the latest information it has and the work done by its internal teams, it believes an additional provision of £164m is now required as a result of the pledge.

This will be treated as an exceptional item in the results for the 2022 financial year.

"We will work with leaseholders to remediate their buildings and, where possible, pursue recoveries from main contractors, warranty providers and other third parties," Redrow said. "As these recoveries are not certain, they have not been recognised in estimating the provision."

Remediation works are expected to take a number of years to complete.