Solving cladding issues in Wales

Since the Grenfell Tower disaster in 2017 made headlines, severe fire safety risks caused by unsafe cladding in residential buildings have become a growing concern across the UK.

In response to these concerns in Wales, the Welsh Government introduced the Leaseholder Support Scheme delivered through the Development Bank of Wales.

This financial package was set up in 2022 to provide assistance for leaseholders who may be facing financial hardship due to having to pay for remediation works to their buildings, particularly for faulty cladding and fire safety issues.

Running until June 2025, the Leaseholder Support Scheme provides free, impartial advice and guidance from independent financial advisors who help leaseholders to better understand their options. Individuals’ financial details will not be shared with the Leaseholder Support Scheme, but the advisor will confirm the best route to take depending on individual circumstances. It may be the case that selling the property to a Registered Social Landlord is the most viable solution.

To be eligible for the scheme, leaseholders must own a property in a building over 11 metres high which has fire safety issues. Those fire safety issues must be causing increased service charges and difficulties obtaining accurate property valuations. Applications to the scheme must be able to demonstrate significant financial hardship according to specific income criteria, set by the Social Metrics Commission and the Office for National Statistics.

It may be that a property buy-out is the appropriate course of action for the leaseholder, as a means of resolving the financial issues caused by faulty cladding. If this is the case, an independent valuation would be organised to assess the fire safety concerns and allow the leaseholder to sell the property at market value to a Registered Social Landlord. The scheme also offers assistance throughout this sale process, including options to rent the property back.

If you are not in financial hardship, the scheme may still be able to help you. While you would not receive free advice from an independent financial advisor, your case handler may be able to offer other support. They will discuss this with you, and tailor recommendations to your circumstances.

Find out more about the scheme here. If you would like to discuss this with a legal expert, our Conveyancing team can help. Contact Emma Gilroy for advice and guidance, by calling 03333 208644 or emailing hello@jcpsolicitors.co.uk