Barratt Developments is to pay the cost of recladding of the Citiscape development in Croydon, despite a recent ruling that the residents would have to foot the bill.
The cladding on Citiscape failed fire safety tests in the wake of the Grenfell Tower disaster and it had been determined that leaseholders would have to pay the estimated £2m cost of its replacement.
Despite the fact that Barratt Developments, which was the original developer, neither owns the building not has responsibility for the cladding, it has now agreed to pay instead.
Leaseholders were told at a residents’ association meeting last night of Barratt Developments’ decision.
Sajid Javid, secretary of state for housing, welcomed the move.
On Twitter, he said: "Delighted Barratt Developments have told residents of the #Citiscape flats they will cover fire safety and cladding costs.
"This is the right thing to do and I want to see others follow their lead to protect leaseholders from unfair costs."
In a statement, Barratt Developments said: "Following the recent ruling that the costs for necessary recladding at Citiscape will fall on the individual apartment owners, many of whom were originally Barratt customers when it was built in 2002, we have decided that we will pay for the work.”
"Citiscape was built in line with all building regulations in place at the time of construction.
"While we don’t own the building or have any liability for the cladding, we are committed to putting our customers first. The important thing now is ensuring that owners and residents have peace of mind."