Developers will be asked to pay a new 4% tax to help repair dangerous cladding on new-build homes, the Chancellor has announced.
The Residential Property Developers Tax will be levied on multi-billion-pound firms, with profits over £25million taxed at a rate of 4% to help raise £5billion to remove unsafe cladding from the highest risk buildings, Rishi Sunak said.
After 2017's Grenfell disaster, many tower blocks were found to be unsafe.
The scandal left hundreds of thousands of leaseholders across the country facing huge bills to remove dangerous cladding from their homes – and unable to sell or remortgage.
In February, Housing Secretary Robert announced the government would pay £3.5billion to guarantee no private leaseholders pay for cladding removal or remediation in buildings over 18 metres, or six storeys, high in England.
But flat owners in blocks of four to six storeys - or 11 to 18 metres - will still have to take out a loan to remove cladding, which will be repayable at up to £50 a month for "many years".
Many say these could amount to more than their home is worth.
Mr Sunak said: “We're confirming £5billion to remove unsafe cladding from the highest-risk buildings, partly funded by the Residential Property Developer Tax.”
The Government last night said it wanted to 'turn Generation Rent into Generation Buy' by spending £24billion on housing over several years.
This includes up to 180,000 affordable homes.
Minister said this was the largest cash investment in a decade, with 65 per cent of the money being spent outside London.
