Countryside Properties sets aside £25 million to cover potential remedial work

Countryside Properties today revealed it has set aside £25 million to cover the potential need for remedial works at 20 of its developments built before 2017.

The move comes as the industry attempts to break a log-jam that has left people stuck in flats deemed unsafe or unsellable. Taylor Wimpey has already set aside £125 million to address potential cladding and fire safety issues which could fall foul of guidelines introduced after the Grenfell tragedy.

Countryside, whose operations cover urban regeneration and South East-focused housebuilding, is working with the owners of 20 schemes built between 2008 and 2017 where remedial work may be needed before fire safety certificates are issued.

The company described quantifying the costs involved as “inherently complex”.

The £25 million provision meant Countryside’s half-year operating profits fell by 40% to £24.7 million, despite revenues being 37% higher at £661 million in the wake of a 14% rise in home completions to 2,591.

Countryside ended the period with an order book worth £1.2 billion, with robust property demand pushing the current reservation rate to the upper end of its target range.

Delays in the planning system as a result of pandemic hampered start dates on some projects in the half year, while the company also highlighted significant inflationary pressures in categories including timber and steel.