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Under the surface: A new UK building-safety initiative could leave residential investors and lenders exposed to remedial work risks
The latest stage of UK government action to address the safety of residential devel opments is the "Developers' Pledge".
The pledge is an initiative brought forward by the UK government's Department of Levelling-Up, Housing and Communities, which offers responsible developers a chance to come forward and commit to remedial works on any of their multi-storey residential buildings that include combustible cladding. But this is not just for property developers. In practice, the initiative has implications for current asset owners in the UK's living sectors, as well as for those carrying out pre-purchase due diligence.
As it stands, the pledge applies to any owner of a residential unit that is more than 11 metres tall. Many investors who own these types of buildings, however, may not be aware of the pledge's ramifications. Whether someone is an overseas investor, or if they would not typically consider themselves a developer because they did not construct