Lenders stand firm despite govt's 'change of heart' on cladding

Last week the government announced a U-turn in its cladding guidance. It said leaseholders living in buildings under 18 metres tall would no longer need external wall application (EWS1) forms. Many leaseholders have found themselves “stuck” in properties deemed undesirable by lenders due to the risk of huge cladding removal bills - some estimated at as much as £70,000 - hanging over them.

Now, high street lenders HSBC, Barclays, and Lloyds Banking Group have committed to reviewing their practices following the government’s new advice to “further unlock the housing market”.

But why now? Will lenders really change their approach? And what are the issues which arise from a blanket-wide 'ban' on EWS1 forms for all buildings under 18m? This week, Ruby Hinchliffe, reporter at FTAdviser, is joined by Geoff Bramall, head of professional development at Legal & General Surveying Services, and Catherine Beaumont, a mortgage consultant at London Money.

They discuss the government's "change of heart" on EWS1 forms, the fact they have seen no lenders make immediate changes to their risk appetites on these buildings, and the impracticalities of ignoring the clear need for EWS1 forms on some buildings.

The FTAdviser Podcast is the weekly podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.

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