Developer set to delay Building Safety Fund repayments in deal with government

These types of repayment plans would typically include interest, and any requests from developers are considered on a case-by-case basis.

Other developers have also been told they can apply to defer payments, according to Avant Homes Group accounts. 

Building safety costs at the house builder have soared in the past year. The group estimates £107m will be needed for fire safety remediation, up nearly £40m from 2023. This figure includes reimbursement due to the BSF, as well as the cost of fixing buildings requiring works and inflation. 

In the report, the group also warns of the fallout if the long-form loan agreement does not go ahead. It states that failing to achieve this would be a “material uncertainty” over it continuing as a going concern, because of the payment applications that would be levied on the group and costs expected under the DRC.

A spokesperson for Avant Homes said: “The group has worked constructively with MHCLG, lenders and independent experts to address building defects created by others under previous ownerships.

“We have sought to work with MHCLG, lenders and independent experts to ensure the remediation, which is a priority for management, is delivered responsibly, sustainably and in an accelerated timescale as possible.

“We are pleased to have agreed a new loan facility with existing lenders, with formalities expected to conclude shortly. 

“This will provide a secure trading platform, allowing for continued investment in land alongside the remediation of affected buildings, and reinforcing Avant’s ability to deliver much-needed affordable housing across the country and maintain its market share.”

An MHCLG spokesperson said: “Viva Midco, parent company of Avant Homes, [is] one of 54 developers [that] signed a developer remediation contract with government and we expect all signatories to comply with their contractual commitments.

“We are taking decisive, tough action and going further than ever before to speed up the unacceptably slow pace of remediation, drive accountability across the sector, and provide an end in sight for residents who have suffered for too long.”