Cladding crisis: Norwegian wealth fund urged to pressure firms and builders

The image is from PA Media.

The image caption is.

The Cladding is being removed from a tower block.

Campaigners have urged the state investment fund in Norway to pressure firms to fix fire safety issues.

The survivors and leaseholders of the fire called on the bank to pull money from companies if they don't.

Lucy Brown-Cortes of the End Our Cladding Scandal campaign said that pressure from shareholders was "overdue".

Many people have huge bills to fix unsafe homes because of the crisis.

In the wake of the fatal fire at the Grenfell Tower, fire safety defects were found in hundreds of blocks of flats.

It can cost millions of pounds to remove cladding. Flat owners in England and Wales often pay the cost under the leasehold system.

Many leaseholders have seen sharply increasing service charges, and some have had to pay forwaking watch.

The Sunday Times reported that a letter was sent to the boss of NBIM demanding action on Friday.

The National Leasehold Campaign, the UK Cladding Action Group, and Sir Peter Bottomley are some of the people who signed it.

"This crisis has meant that at least 3,000,000 leaseholders are trapped in flammable flats they cannot sell, they are financing interim fire safety costs that they cannot afford to pay, and facing repossession/forfeiture over life-changing bills to make homes safe," the letter says.

The chief executive of NBIM should use his position as a major shareholder to push 11 firms to fix safety issues and give compensation to victims of the fire.

The letter says that NBIM should "divest its holdings in these firms if they fail to do so".

The fund is an investor in three companies that produced materials for the tower.

The NBIM has stakes in different housebuilders, as pointed out by the campaign.

Gove backed the call to action.

The developers and companies that caused the problems must pay to fix them. We want these companies to do the right thing.

It was confirmed on Monday that firms would be given until March to agree how to help leaseholders trapped in "unsellable homes".

The government was coming for you, Mr Gove said.

The caption is media.

Michael Gove warned firms that cut corners that they would be coming for them.

The Housing Secretary said earlier this week that the government was scrapping the proposal for loans and long-term debt for medium rise leaseholders.

Some building companies have shown leadership and covered costs, but others have not, according to Mr Gove.

Ms Brown-Cortes said that the NBIM needed to live up to their environmental, social and governance credentials and leverage their position as a major shareholder in some property developers.

The biggest wealth fund in the world promotes itself as a responsible investor. It has previously removed tobacco companies from its portfolio.

NBIM did not respond to the request for comment.

Housing.
There was a fire at the tower.