Barratt Developments Share News (BDEV)

(Adds details on regulations, background)

Feb 10 (Reuters) - British homebuilder Persimmon
said on Wednesday it earmarked 75 million pounds ($103.61
million) for removing or replacing cladding material in some of
its buildings for fire safety concerns.

The move comes ahead of an update by housing minister Robert
Jenrick in parliament slated for later today, with the Guardian
reporting https://www.theguardian.com/society/2021/feb/09/ministers-to-increase-financial-support-for-cladding-removal
that ministers are set to announce billions of pounds in extra
support to address the cladding crisis.

A string of regulations were implemented over the last two
years after a blaze engulfed Grenfell Tower, a 24-story London
social housing block in 2017, the deadliest domestic fire in
Britain since World War Two.

Persimmon, which accounts for less than one percent of all
high-rise developments in UK, added that it identified 26
buildings where cladding may need to be removed, as per new
government guidance.

Last week, Britain's largest homebuilder Barrat Developments
also said it would keep aside 15.6 million pounds for
similar cladding related issues.

In late 2019, an independent review had identified that
Persimmon needed to improve the quality and build of its homes
and comply with guidelines, rather than just focus on
inspections immediately before and after the sale of a home.

The company also said that in the past it built multi-storey
buildings which met all the fire safety rules and regulations in
place at the time, but used cladding materials which may now be
considered unsafe and require removal.

"The concern around now banned cladding is affecting many
thousands of homeowners who live in high-rise buildings right
across the country," Roger Devlin, chairman of Persimmon said.

($1 = 0.7239 pounds)
(Reporting by Indranil Sarkar in Bengaluru; Editing by Rashmi
Aich, Bernard Orr)