Govt leans on Urban Splash to pay for £46m cladding issues

Secretary of state Michael Gove is seeking a significant contribution from the Manchester-based developer towards the remediation of seven buildings in the city, according to media reports.

The Financial Times has reported today that Urban Splash is one of three developers the government plans to squeeze for £70m for work required to bring residential buildings in line with new safety standards.

Urban Splash is being asked for £46m to make seven Manchester buildings compliant with new building safety laws, according to the FT.

Urban Splash declined to comment when approached by Place North West.

One of the buildings in need of remediation is Chips in New Islington, which Urban Splash completed in 2009 and sold to E&J Estates in 2013.

Chips, which was deemed safe upon completion, was found to have “non-fire retardant” cladding in 2018 following inspections in the wake of the Grenfell disaster, which resulted in the deaths of 72 people.

The Department for Homes, Levelling Up, and Communities has applied to a property tribunal for an order to require Urban Splash and two other developers to stump up for building safety works, the FT said.

The legal action is an escalation of the government’s bid to clamp down on dangerous blocks, as set out in the Building Safety Act. The act was passed in 2022 and is aimed at forcing landlords and developers to pay for remediation rather than leaseholders.

A DLUHC spokesperson said: “Homes must be made safe without delay and those responsible for unsafe buildings should pay to fix them.

“Where developers and freeholders have profited from unsafe buildings, we will use powers in the landmark Building Safety Act to recover funds paid out by both taxpayers and leaseholders.

“We will continue to take action against those who do not take responsibility for building safety issues.”

Aside from Urban Splash, Yianis Group and Hollybrook are also being asked for contributions towards the remediation of buildings.

Yianis and Hollybrook were approached for comment.