Selling a Flat in a Block with Cladding Issues

The cladding crisis that followed the Grenfell Tower fire has affected hundreds of thousands of leaseholders across England. If you own a flat in a building with cladding problems, you may already know how difficult it can be to sell, remortgage, or even feel safe in your own home. The good news is that the legal and financial framework has improved considerably since the crisis began. The bad news is that progress on the ground has been slower than anyone would like, and many leaseholders remain in a deeply frustrating position.

This guide sets out where things stand, what protections you have, and what practical steps you can take if you need to sell a flat in a building with cladding issues. If you are selling a leasehold flat, understanding your building's cladding position is now an essential part of preparing for a sale.

The cladding crisis: how we got here

On 14 June 2017, a fire at Grenfell Tower in west London killed 72 people. The Grenfell Tower Inquiry found that the fire spread with devastating speed because of the building's aluminium composite material (ACM) cladding, which had a combustible polyethylene core. The cladding acted as fuel, allowing the fire to engulf the entire building within minutes.

In the aftermath, the government ordered testing of other high-rise buildings across England. The results were alarming: hundreds of buildings were found to have similar or comparable cladding systems. But the problem extended far beyond ACM. Subsequent investigations revealed that many other types of external wall material could pose a fire risk, including high-pressure laminate (HPL) panels, timber cladding, and rendered insulation systems using combustible materials such as expanded polystyrene (EPS).

The mortgage lending market responded swiftly. Lenders began declining loans on flats in buildings where external wall safety could not be confirmed. Valuers refused to value properties without evidence that the building was safe. Thousands of leaseholders found themselves trapped: unable to sell, unable to remortgage, and in many cases facing enormous bills for remediation works they had no part in causing. The human cost has been immense, with widespread reports of mental health impacts, financial hardship, and a profound sense of injustice.

Types of unsafe cladding

Understanding what type of cladding is on your building matters because it determines the level of risk, the urgency of remediation, and the response from mortgage lenders. The main types identified as potentially unsafe are:

Aluminium composite material (ACM)

ACM panels with a polyethylene (PE) core are the highest-risk cladding type and the same material used on Grenfell Tower. The government mandated the removal of ACM cladding from all high-rise residential buildings above 18 metres. As of early 2026, the vast majority of ACM remediation on the tallest buildings has been completed or is in progress, but some buildings remain unfinished.

High-pressure laminate (HPL)

HPL panels are made from layers of resin-impregnated paper or fabric, compressed under high heat and pressure. While not as combustible as ACM with a PE core, certain HPL products have been found to pose an unacceptable fire risk, particularly when combined with combustible insulation behind the panels. HPL was widely used on buildings built or refurbished between 2000 and 2017.

Other combustible materials

The fire safety problem is not limited to the cladding panels themselves. The insulation behind the cladding, the cavity barriers between floors, and the overall design of the external wall system all contribute to fire risk. Materials of concern include:

• Expanded polystyrene (EPS) insulation, which is highly combustible
• Phenolic foam insulation, which can contribute to fire spread in certain configurations
• Timber cladding on buildings above 18 metres, where it is no longer permitted under current Building Regulations
• Missing or inadequate cavity barriers, which are designed to prevent fire spreading through the gap between the cladding and the building's structure

A building can have cladding that appears safe from the outside but conceals combustible insulation or missing fire barriers behind the panels. This is why a professional assessment — either through an EWS1 form or a PAS 9980 fire risk appraisal — is essential for confirming the building's safety.

The Building Safety Act 2022: leaseholder protections

The Building Safety Act 2022 is the single most important piece of legislation for leaseholders affected by the cladding crisis. It received Royal Assent in April 2022 and introduced a framework of protections designed to ensure that innocent leaseholders do not bear the cost of fixing building safety defects they did not cause.

Who qualifies for protection?

The Act protects qualifying leaseholders in relevant buildings (those over 11 metres in height or at least five storeys). To qualify, you must meet at least one of the following criteria as at 14 February 2022:

• The flat was your only or principal home
• You owned no more than three UK residential properties in total

If you bought the flat after 14 February 2022 from a qualifying leaseholder, the protections can transfer to you, provided the appropriate documentation was completed at the time of purchase.

Cost caps for leaseholders

For qualifying leaseholders, the Act sets the following framework for historical building safety costs:

The critical point for sellers is that qualifying leaseholders should pay nothing towards the cost of cladding remediation. This applies regardless of who is funding the work. For other building safety defects (such as fire doors or compartmentation issues), there are cost caps but not full protection.

Developer remediation

The government secured commitments from the UK's largest housebuilders through the Developer Remediation Contract, under which developers agreed to fund the remediation of buildings they built or refurbished within the past 30 years. Over 50 major developers signed the contract. Where a developer can be identified and held responsible, the remediation costs fall on them, not on leaseholders or taxpayers.

The Cladding Safety Scheme

For buildings where the developer cannot be identified, has ceased trading, or refuses to meet its obligations, the government's Cladding Safety Scheme (which succeeded the earlier Building Safety Fund) provides public funding for remediation. The scheme is administered by Homes England and is open to residential buildings over 11 metres with unsafe cladding. Building owners apply for funding, and approved buildings receive money directly to cover the cost of cladding removal and replacement.

As of early 2026, the Cladding Safety Scheme has approved funding for thousands of buildings, but many more remain in the application pipeline. The government has committed to completing remediation on all buildings over 18 metres by the end of 2029, though the pace of progress has drawn criticism from campaign groups and affected leaseholders.

What cladding issues mean for selling your flat

If your building has known cladding problems, the practical impact on your sale depends on several factors: the severity of the issue, whether remediation is funded and under way, and whether a valid EWS1 form is available.

Mortgage availability

This is the biggest barrier. Most mainstream mortgage lenders will not approve a loan on a flat in a building with a B2 EWS1 rating (meaning remediation is required) or where no EWS1 form is available and the building has cladding. Without mortgage finance, the overwhelming majority of potential buyers are excluded from purchasing your flat. This means:

• Your buyer pool shrinks to cash buyers and those with access to specialist lenders
• Cash buyers will typically negotiate a significant discount (commonly 20 to 40 per cent below market value) to reflect the risk and uncertainty
• Even if a buyer wants to proceed, their solicitor or surveyor may advise against it

EWS1 ratings and their impact

Your building's EWS1 rating is the key document that mortgage lenders and buyers will focus on. The ratings are:

If your building has a satisfactory rating (A1, A2, A3, or B1), your sale can proceed normally. The difficulties arise with a B2 rating or where no EWS1 form exists. For a detailed explanation of the EWS1 process, see our guide to the EWS1 form.

Buyer concerns beyond mortgages

Even if a buyer does not need a mortgage, cladding issues can deter them for other reasons. They may worry about ongoing disruption from remediation works, increased service charges for interim safety measures such as waking watches, the risk that other defects will be discovered during remediation, or the potential impact on future resale value. Being upfront about your building's position and the protections in place can help manage these concerns, but it would be unrealistic to pretend they do not exist.

The leaseholder deed of certificate

The leaseholder deed of certificate (sometimes called a leaseholder certificate) is a legal document that has become a standard part of conveyancing in affected buildings since the Building Safety Act 2022 came into force.

When you sell a flat in a building over 11 metres, the buyer's solicitor will require you to provide a leaseholder deed of certificate. This document records:

• When you acquired the lease
• Whether the flat was your only or principal home on 14 February 2022
• How many UK residential properties you owned on that date
• Whether you qualify for the cost protections under the Act

The purpose of the certificate is to establish whether the leaseholder cost protections transfer to the buyer. If you are a qualifying leaseholder and you sell to a buyer, the protections pass to the new owner. If you are not a qualifying leaseholder (for example, because you owned more than three UK properties on the qualifying date), the buyer may inherit a liability for non-cladding remediation costs, and this will affect their willingness to proceed and the price they offer.

Your solicitor will prepare the leaseholder deed of certificate as part of the conveyancing process. It is important to provide accurate information, as false statements could have legal consequences.

Remediation timelines: what to expect

One of the most frustrating aspects of the cladding crisis is the pace of remediation. While the legal framework is now in place, the physical work of removing and replacing unsafe cladding takes time. Here is a realistic picture of where things stand:

From start to finish, the entire process from initial assessment to a new satisfactory EWS1 form can take three to five years or longer. For buildings that are still awaiting assessment or have not yet applied for funding, the timeline stretches further. The government's target of completing all high-rise remediation by the end of 2029 provides a backstop, but many affected leaseholders will be waiting years before their building is fully resolved.

If your building is in the early stages of this process, you should factor the remediation timeline into your selling plans. It may be worth waiting for a key milestone — such as funding approval or the start of works — before marketing your flat, as this can improve buyer confidence and the price you achieve.

Selling before remediation is complete

Many leaseholders cannot wait years for remediation to finish. Whether you need to relocate for work, are going through a separation, or simply cannot afford to continue paying for a flat you feel trapped in, you may need to sell before the cladding issues are resolved. Here are your main options:

Option 1: sell to a cash buyer

Cash buyers do not need a mortgage and are therefore not affected by the EWS1 position. This is the most straightforward route to a sale, but it comes at a cost. Cash buyers in this market are typically investors or specialist purchasers who understand the risks and will negotiate hard on price. Discounts of 20 to 40 per cent below the pre-cladding market value are common. While this is painful, it may be the right decision if your circumstances require you to move.

Option 2: find a buyer with a specialist lender

A small number of specialist mortgage lenders will consider lending on flats in buildings with cladding issues, particularly where remediation funding has been confirmed and there is a clear timeline for completion. These lenders typically charge higher interest rates and may require a larger deposit, but they can unlock the sale for buyers who are willing to proceed. A mortgage broker with experience in fire safety cases is essential for identifying these lenders.

Option 3: wait for a key milestone

If you can afford to wait, reaching a significant milestone in the remediation process can substantially improve your position. For example:

• Funding approval from the Cladding Safety Scheme or confirmation that the developer is funding the work gives buyers confidence that remediation will happen
• Start of physical works demonstrates that the project is real and progress is being made
• Completion of remediation and a new satisfactory EWS1 form removes the barrier to mainstream mortgage lending entirely

Each milestone reduces the buyer's perceived risk and should improve the price you can achieve. If your buyer's mortgage is declined because of the cladding position, do not assume the sale is dead — explore whether a different lender or a change in buyer circumstances could rescue it.

Government schemes and support

The government has established several mechanisms to fund and accelerate cladding remediation. Understanding what is available can help you press your building owner to take action and give potential buyers confidence that the situation is being resolved.

• Cladding Safety Scheme. The main government funding programme for buildings over 11 metres with unsafe cladding. Building owners apply directly to Homes England.
• Developer Remediation Contract. Over 50 major developers have committed to funding remediation of buildings they built or refurbished within the past 30 years. If your building was constructed by a signatory developer, the cost of cladding remediation should fall on them.
• Remediation orders. The Building Safety Act gives the First-tier Tribunal (Property Chamber) the power to make remediation orders requiring building owners to carry out remediation works, even if they are reluctant to do so.
• Remediation contribution orders. The courts can require developers, building owners, or associated companies to contribute to remediation costs.
• Building Safety Regulator. The Regulator, which sits within the Health and Safety Executive, oversees building safety for higher-risk buildings (over 18 metres or seven storeys). It has enforcement powers where building owners are not meeting their obligations.

If your building owner has not applied for funding or is dragging their feet on remediation, you have options. Write to them formally, rally other leaseholders, and if necessary seek legal advice about applying for a remediation order through the tribunal.

Practical steps for sellers

Navigating the sale of a flat with cladding issues requires careful preparation. Here are the steps that will give you the best chance of a successful outcome:

1. Establish your building's exact position. Contact your managing agent or freeholder to find out what cladding is on the building, whether an EWS1 assessment has been carried out, what the rating is, and whether remediation is planned or in progress. Ask for everything in writing.
2. Obtain the EWS1 form and fire risk assessment. These are the key documents buyers and their lenders will need. If the building does not have an EWS1 form, push your building owner to commission one.
3. Understand your leaseholder protections. Confirm whether you qualify under the Building Safety Act 2022 and be prepared to provide the leaseholder deed of certificate during the conveyancing process.
4. Instruct a solicitor with experience in affected buildings. Not all conveyancers are familiar with the nuances of the Building Safety Act, the Cladding Safety Scheme, and the EWS1 process. Choose a solicitor who has handled sales in buildings with cladding issues before.
5. Be transparent with buyers from the outset. Disclose the cladding position in your property particulars and during viewings. Buyers who discover cladding issues after making an offer are far more likely to withdraw than those who knew from the start and have factored it into their decision.
6. Consider your timing carefully. If remediation funding has been approved or works are about to start, it may be worth waiting for that milestone before listing. If you cannot wait, price your flat to reflect the current reality and target cash buyers or those with specialist lenders.
7. Keep records of everything. Correspondence with the freeholder, managing agent, and Building Safety Fund; copies of the EWS1 form, fire risk assessment, and building safety reports; and records of any interim safety measures such as waking watches or alarm systems. A well-organised file of documents will speed up the conveyancing process.

Buildings between 11 and 18 metres

While the cladding crisis initially focused on high-rise buildings over 18 metres, thousands of leaseholders in medium-rise buildings (11 to 18 metres, typically four to six storeys) have also been affected. The position for these buildings has improved significantly:

• The Cladding Safety Scheme was expanded in 2023 to include buildings between 11 and 18 metres with unsafe cladding
• RICS guidance states that EWS1 forms should only be required for buildings in this height range where the valuer identifies specific concerns
• Many mainstream lenders have relaxed their requirements for mid-rise buildings, accepting the mortgage valuer's own assessment without requiring a separate EWS1

If you are selling a flat in a building between 11 and 18 metres, the lending landscape is more favourable than it was in 2020 or 2021. However, if your building has visible cladding or known fire safety concerns, you may still face challenges. Check with your solicitor and the buyer's mortgage broker to understand the current position for your specific building.

Emotional and financial support

It is important to acknowledge the toll that the cladding crisis has taken on affected leaseholders. Many people have experienced significant stress, anxiety, and financial hardship as a result of being unable to sell or move on with their lives. If you are struggling, the following resources may help:

• End Our Cladding Scandal — a national campaign group that advocates for leaseholders and provides information and community support
• UK Cladding Action Group — connects affected leaseholders and shares updates on government policy and remediation progress
• LEASE (Leasehold Advisory Service) — provides free legal advice to leaseholders on a range of issues including building safety
• Citizens Advice — can help with financial difficulties arising from the cladding crisis

You are not alone in this situation, and there are people and organisations working to resolve it. While the pace of change has been frustrating, the legal framework is now significantly stronger than it was, and leaseholders have more protections and options than at any point since the crisis began.

Cladding issues in Manchester and Salford

Greater Manchester is one of the areas hardest hit by the cladding crisis. As of late 2024, 157 high-rise buildings in the city region were still awaiting cladding remediation, affecting an estimated 26,000 households across Greater Manchester. At the current pace of remediation, completion is estimated to take 25 years — a timeline that underlines the scale of the challenge facing affected leaseholders.

Manchester has the UK's most active build-to-rent (BTR) market, meaning a large proportion of affected buildings are relatively new developments built during the city's rapid expansion over the past two decades. Many of these buildings were constructed with cladding systems that are now considered unsafe, and their owners face significant costs and disruption to resolve the problem.

Salford is particularly affected. An estimated 46 per cent of mid-to-high rise buildings in the borough have been flagged for cladding concerns. The impact on the local property market has been severe: transactions on red-category buildings (those requiring the most urgent remediation) have fallen by 67 per cent, and prices on affected flats are down by around 30 per cent compared with equivalent properties without cladding issues.

If you own a flat in a building with cladding problems in the Manchester area, see our full guide to selling a flat with cladding issues in Manchester for detailed local advice. You may also find our EWS1 form guidance for Manchester flat sellers helpful when navigating the assessment and lending process.

Sources

• Building Safety Act 2022 — legislation.gov.uk
• Grenfell Tower Inquiry — Phase 2 Report, grenfelltowerinquiry.org.uk
• Department for Levelling Up, Housing & Communities (DLUHC) — Cladding Safety Scheme guidance, gov.uk
• Homes England — Building Safety Fund and Cladding Safety Scheme application guidance, gov.uk
• RICS — EWS1 External Wall Fire Review form and guidance notes, rics.org
• UK Finance — Fire Safety in Purpose-Built Blocks of Flats, ukfinance.org.uk
• Building Safety Regulator — Registering and managing higher-risk buildings, hse.gov.uk
• PAS 9980:2022 — Fire risk appraisal of external wall construction and cladding of existing blocks of flats, BSI
• LEASE (Leasehold Advisory Service) — Building safety and cladding guidance for leaseholders, lease-advice.org
• End Our Cladding Scandal — Campaign resources and leaseholder information, endourcladdingscandal.org
• Ministry of Housing, Communities & Local Government — Advice Note 14: External Wall Systems, gov.uk
• Developer Remediation Contract — published text and signatory list, gov.uk

Frequently asked questions