Recent government data reveals that over 5,000 residential buildings in England exceeding 11 metres in height continue to be affected by unsafe cladding, with remediation costs projected to run into billions of pounds. Despite government commitments to resolve these safety concerns by 2029, progress remains slow, posing ongoing challenges for landlords, letting agents, and property managers responsible for these properties.
Scale and Cost of Cladding Remediation
According to the latest figures, between 5,900 and 7,400 residential buildings over 11 metres tall still have or previously had unsafe cladding, representing approximately 8 to 14% of the relevant housing stock in England. As of May 2026, 4,411 buildings are actively monitored under remediation programmes, with just over half (53%) having commenced or completed remedial work, and only 38% fully completed.
The financial implications are significant, with estimated costs for cladding remediation ranging from £11.8 billion to £22.7 billion. The government has allocated £9.2 billion towards funding these efforts, including a £5.2 billion contribution from the Exchequer, around £700 million expected from developer refunds, and £3.4 billion anticipated from the Building Safety Levy. However, this funding still falls short of the total estimated costs, indicating potential financial pressures for stakeholders involved.
Energy Efficiency Requirements for Commercial Buildings
In addition to cladding concerns, new regulations will require commercial buildings over 1,000 square metres to meet Energy Performance Certificate (EPC) rating B by 2031, where cost-effective. This applies to private rented non-domestic properties in England and Wales, reflecting a broader government push to improve energy efficiency standards across the property sector.
Landlords of affected commercial properties should be aware of these upcoming requirements, as failure to comply may result in enforcement action or restrictions on letting. The intersection of safety remediation and energy efficiency standards underscores the increasing regulatory complexity facing property owners and managers.
Challenges in Remediation Progress
Research from the Property Institute highlights a concerning two-tier divide in remediation progress. In 2022, 53 housebuilders signed government-led pledges to take responsibility for rectifying life-critical defects in 2,604 buildings they developed. However, four years later, many of these schemes remain in early assessment or scoping phases, with limited advancement towards completion.
Data collated from 511 buildings requiring cladding remediation shows that only 24% are actively undergoing delivery, with 13.5% fully completed and 11% currently on site. Nearly half (48%) remain stalled in preliminary stages, indicating persistent delays that prolong safety risks and uncertainty for residents and landlords alike.
Implications for Residents and Property Sector
The ongoing delays in remediation have significant consequences for those living in affected buildings, many of whom face difficulties selling or refinancing their homes due to safety concerns. The prolonged uncertainty since the Grenfell Tower tragedy continues to impact market confidence and property values in these developments.
Industry experts stress the importance of accelerating remediation efforts and introducing legally binding deadlines for developers to prevent further delays. The government’s forthcoming Remediation Bill aims to establish clearer responsibilities and enforceable timelines, which could provide greater reassurance to residents and landlords that necessary safety measures will be completed promptly.
What this means for landlords
Landlords with properties affected by unsafe cladding should be aware that remediation may still be ongoing for several years, potentially affecting the safety, marketability, and compliance status of their buildings. It is important to maintain close communication with managing agents, developers, and relevant authorities to stay informed about progress and any required actions.
Additionally, landlords of commercial buildings should prepare for the EPC B requirement by 2031, assessing the feasibility and cost-effectiveness of energy efficiency improvements. Proactive planning can help avoid last-minute compliance issues and potential enforcement penalties.
What TLA members should consider
- Review the current cladding status of any residential buildings over 11 metres in your portfolio and verify whether remediation programmes are in place or planned.
- Engage with managing agents and residents to communicate transparently about remediation timelines and safety measures.
- Monitor government updates on funding schemes and legislation, including the forthcoming Remediation Bill, to understand evolving responsibilities and potential financial support.
- For commercial properties over 1,000 square metres, begin assessing energy performance and explore cost-effective measures to meet EPC B standards ahead of the 2031 deadline.
- Consider seeking professional advice on compliance and risk management related to cladding and energy efficiency requirements.
- Utilise TLA resources and training to stay informed about landlord compliance obligations and best practices in managing affected properties.
TLA Training Academy
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Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
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