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Peer2Peer Finance News | August 18, 2019

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Lendy steps up safety controls following Grenfell Tower fire

Lendy steps up safety controls following Grenfell Tower fire
Anna Brunetti

Lendy has tightened building regulation controls on its investment offering following the Grenfell Tower fire.

The peer-to-peer property platform kicked off a review of its existing loan portfolio and stepped up valuation criteria for future development and bridging investments to ensure they comply with fire and cladding regulations.

The move comes in the wake of the north Kensington high-rise estate’s lethal fire on 17 June, where poor cladding and safety systems were blamed for contributing to the death of at least 80 residents.

“In light of the Grenfell Tower tragedy in London, we have been undertaking a review of our loan portfolio to ensure that properties are compliant with building regulations,” the platform said.

“We have instructed all our independent monitoring surveyors to review and report specifically upon cladding in respect of any high rise development projects within their next reports.

The firm will scrutinise cladding systems as part of all future development proposals, it said.

Read more: Lendy highlights risks of direct property investment

“For new deals we are asking the valuer to specifically comment, if we consider it appropriate depending on the nature of the property. If we are not satisfied that fire regulations have been met then we will not take these high-rise properties into security or fund the build.”

The Grenfell Tower accident magnified scrutiny over local government policies, prompting the resignation of Kensington and Chelsea council’s leader and deputy leader and uncovering nation-wide safety issues with publicly-owned buildings.

Over 150 tower blocks across 45 local authority areas and three NHS trusts have already failed flammability tests ordered by the government, with numbers expected to increase as controls roll out through the country.

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