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Housing industry must find a solution or face catastrophe

Owners of flats deemed “worthless” by surveyors following the Grenfell Fire could be thrown a lifeline. Telegraph Money has learned that the Royal Institution of Chartered Surveyors is working on a solution to the cladding crisis, This would save people wrongly caught up in tighter safety regulations that were introduced following the fire in 2017.

Banks have been applying the rules to buildings that have four storeys or fewer and demanding a valid External Wall Fire Review (EWS1) form to prove the structure is sound – even though these were meant only for much taller blocks.

One option on the table is to create a new EWS2 form for buildings less than 18m (59ft) tall. This would mean these properties could be sold without needing further assessment.

Without a solution, millions of flat owners are unable to sell their properties except to cash buyers. Experts and MPs are warning this will create a logjam capable of derailing the booming housing market and lead to a “catastrophe” for prices.

As The Telegraph’s Property editor Isabelle Fraser argues, the problem does not only affect the people who own these homes. Chains are breaking down as banks refuse to lend against flats and transactions in areas with lots of apartment blocks could hit a wall.

For residents of these blocks, it has been a nightmare. Some are starting families but finding themselves trapped in homes that are far too small. Others are so desperate to move, they have offered to pay out of their own pockets for fire engineers to inspect their buildings, but have been refused by their freeholder.

If you have been affected by the cladding crisis, you are not alone. Telegraph Money has created a guide on what to do, who to contact and what will happen next.

The first season of the Telegraph's stock picking game has finished. Luckily there is not long to wait until the next game, which is due to start in November. It will be open to Telegraph subscribers only. Subscribe now and pay just 1 a month for three months.

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You can always find more news and advice at Telegraph Money.

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