The housebuilder said its fund will help support fire safety improvement works for leaseholders in Taylor Wimpey apartment buildings built since 2000.
The support includes properties that are below 18 metres, helping those that were left out in a government funding package announced recently.
Last month the Government said it would fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings 18 metres (six storeys) and above in England. For lower-rise buildings there will be a new loan scheme.
Taylor Wimpey said for buildings it still owns, it will both fund and oversee the improvement, regardless of eligibility for the government fund, including apartment buildings below 18 metres.
If Taylor Wimpey no longer owns the building and it is not eligible for the Government’s fund, “where a freeholder produces a fair and proportionate plan for fire safety improvement works” it will pay.
Today’s package is on top of a £40 million provision announced before.
Persimmon and Bellway have set aside £75 million and £46.8 million so far, while Barratt has paid out or set aside £40 million.
Canaccord Genuity analyst Aynsley Lammin said: “It would not be a surprise to see others fall more in line with this level of support as their position is identified and addressed.”
Taylor Wimpey’s update came as it said it plans to reinstate its dividend after pausing payments during the Covid crisis, committing to returning £151 million or 4.14p a share.
It posted pre-tax profit down 68% to £264.4 million for last year after the pandemic dented sales, as construction sites closed. Demand picked up strongly later in the year.
