The cladding crisis is so widespread that property data company PriceHubble claims it is contributing to the underperformance of flats in the UK property market compared to other property types.

And those affected properties are experiencing significant declines in transaction volumes, with some areas seeing reductions of up to 85% in sales volumes for affected properties.

The company’s analysis shows that, in London, for example, 4.3% of households live in buildings with cladding concerns, with 27% of mid-to-high-rise dwellings impacted.

Cladding issues

In Barking and Dagenham, the numbers are even higher, with 37% of mid-to-high-rise buildings having cladding issues. Transaction volumes in the borough for the most serious cases (red-category properties) have dropped by 82% since the Grenfell Tower fire, and prices have fallen by 24%.

Also, transaction volumes dropped by 85% jn Croydon for red-category properties, and the average sales price declined by 33%.

While some progress has been made through funding initiatives and remediation efforts, the challenges remain significant.”

In Manchester, 46% of mid-to-high-rise properties are impacted by cladding issues and Salford’s transactions for red-category properties have dropped by 67%, and prices have fallen by 30%.

It’s young renters or owners who are disproportionately affected, as 40% of 16-24-year-olds live in flats, young renters or owners are more likely to live in properties with unresolved safety concerns.

Julia Middleston, Real Estat Economist at PriceHubble says that: “While some progress has been made through funding initiatives and remediation efforts, the challenges remain significant.

“Addressing safety concerns and rebuilding confidence in the housing market will likely require transparent, reliable data to guide decision-making and support effective solutions.”