Ten top executives and shareholders at the largest housebuilders in Britain have personally earned more money since Grenfell tragedy than their companies have allocated to fix the cladding crisis, new figures show.
The bosses and owners have made a total of £708m in dividends, share sales and pay over three years, £65m more than their companies have allocated to fix unsafe properties that they have constructed.
Barratt, Persimmon, Taylor Wimpey, Berkeley, Bellway, Redrow and Vistry have put aside £643m for fire safety over the past three years, which is about 4% of their profits over that period.
The seven construction firms have posted £15.1bn in profits since 2017, when the Grenfell fire in west London fire killed 72 people and exposed a nationwide building safety scandal.
According to The Times, the findings will ‘add pressure on the government’ and the newly appointed housing secretary Michael Gove to increase industry levies and make companies ‘pay for repairs where homes breached safety rules at the time’.
Stephen McPartland, a Conservative MP, said: “It [the numbers] shows the big developers are not taking the issue seriously. It’s imperative that those responsible actually pay to resolve this. Leaseholders don’t have the funds and never will have the funds to make their buildings safe.”
Clive Betts, chairman of the housing, communities and local government select committee, said he was “shocked” at the figures.
“This makes the case absolutely for a significant tax and/or levy on companies who ought to be collectively made to pay for the failings of the industry over the years. If they have built flawed, dangerous buildings, they should simply put them right,” he commented.
The developer rich list:
Steve Morgan, one of the Conservatives’ biggest property donors, has earned a personal payout since 2017 of £236m.
Berkeley Group’s managing director, Rob Perrins, 56, has the highest current pay packet of any housebuilding executive. In the past year he received almost £8m. Since 2017, he has pocketed £61.1m.
Jeff Fairburn, involved in the takeover of the housebuilder Avant earlier this year, is the former chief executive who left Persimmon three years ago amid criticism relating to a £75 million bonus – a payout later found to be worth £84.7m. He still received about £3.m in dividends since 2017.
Barratt posted more than £3bn in profits since 2017. Over the same period, David Thomas, the chief executive of Barratt, has received £7m in pay, sold £10m of his Barratt shares and received dividends of £1.5m – a total of £18.5m.
Pete Redfern, head of Taylor Wimpey, has picked up £13.5m since 2017 in pay.
Greg Fitzgerald, chief executive of the firm behind Bovis and Linden Homes, has made £7.6m past three years.
Jason Honeyman, chief executive of Bellway, has made £3.51m in pay and £49,000 dividends from the FTSE 250 developer.
Very emotive.
What is the betting if Stephen McParkland (Conservative MP) and one of the builder bosses traded places, their individual opinions will reflect their corresponding positions.
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