Government expands cladding funding to lower rise buildings; What it means for leaseholders and landlords

Date : 10 July 2026
Construction phase - CHPK

by

David Kelly & Frazer Argyros-Farrell

The government has confirmed a significant expansion of the Cladding Safety Scheme, extending funding to residential buildings under 11 metres in height for the first time. Previously, support was reserved for buildings of 11 metres and above, leaving residents and leaseholders in lower-rise blocks to shoulder remediation costs themselves, despite having played no part in causing the defects.

This move addresses a long-standing gap in leaseholder protection. Serious cladding problems have historically been considered less common in shorter buildings, but where they do occur, residents in these blocks have had no route to government support and face bills that could otherwise fall entirely on them.

Why this matters

For many, this is more than a minor policy update and changes the financial reality of remediation. Buildings that previously fell outside every funding route now have an option to explore, and the shift away from a height-based system towards one prioritised by fire risk is a clear change in approach. As noted, height alone has never been a reliable proxy for risk, and this rebalancing should help direct support to where it is genuinely needed.

Alongside the funding extension, the Government has:

  • Welcomed a Financial Conduct Authority review into how insurance premiums for higher-risk buildings have moved since 2023, with a view to ensuring leaseholders are getting fair value.
  • Set out plans for a new Single Construction Regulator, bringing together separate strands of building safety regulation to reduce complexity and duplication.
  • Signalled a forthcoming Remediation Bill that will strengthen landlords’ legal duty to act.

What does this mean?

Campaigners have rightly cautioned that funding for the newly eligible buildings is limited, and that a scheme with narrow criteria risks creating fresh delays rather than removing them. Applications for the expanded support open on the 17 August 2026 and close 8 weeks later, and early indications are that assistance will be prioritised for buildings assessed as posing the greatest risk, so demand is likely to outstrip what’s immediately available.

For freeholders, managing agents and leaseholders alike, the priority now is to understand whether a building could qualify, and to get a Fire Risk Appraisal of External Walls (FRAEW) in place so an application can move quickly once the scheme opens. Waiting for full guidance before starting that groundwork potentially risks losing valuable time.

As positive as this news is, there is an very limited timeframe in which this fund will be open and applicants will need to move fast.

Our Building Consultancy and Fire Engineering team are already fielding questions from clients on eligibility and next steps. If you manage or own a building under 11 metres with cladding concerns, now is the time to start that conversation.

Click to contact the team here.

 

Construction phase - CHPK