Elliott Investment Management and British housing entrepreneur Jeff Fairburn, partners in Avant Homes Group, are pursuing legal action against Lloyds Banking Group over who should bear the cost of cladding remediation on properties that fail to meet updated fire-safety regulations.
According to a report by The Times, Avant faces remediation costs of at least £107m ($146m) linked to potentially dangerous cladding on homes built prior to 2014, when the bank held ownership of the homebuilder. The lawsuit contends that Lloyds should shoulder part of the bill given its historical ownership of the developments.
Cladding liability remains a high-profile issue in the UK following the 2017 Grenfell Tower disaster, which exposed widespread regulatory failings and led to stricter building safety standards. The Labour government is now overhauling leasehold laws and introducing tougher fire-safety rules, aiming to shift financial responsibility from taxpayers to developers while protecting residents.
Lloyds has rejected Avant’s claim, stating it is “preparing to defend it robustly,” while Avant Homes and Elliott declined to comment.
