Rocketing fire safety costs are forcing leaseholders to accept up to £200,000 price discounts from cash buyers as the cladding scandal threatens the wider housing market.
House prices have so far been largely insulated from the fire safety crisis that has trapped hundreds of thousands of flat owners because they are unable to sell on the open market. But as ballooning insurance premiums and waking watches escalate even before remediation works begin, leaseholders are being pushed to breaking point.
Stephen McPartland, the Conservative MP for Stevenage who has pressed the Government to free leaseholders from remediation costs, said: “This is a £20bn issue, and that is going to play through the system somewhere – that £20bn could come off house prices.”
£20 billion is real money and £200k is an issue for most households. A crippling one for many. But as a macroeconomic number?
UK property is worth some £6 trillion (number from memory but that’s of the right order). We’re talking of 0.3% o0ff the top of property values.
Sure, it’s a problem in detail but it’s not a macroeconomic problem.