The Government should cover the costs of a “nightmarish” cladding situation in Greenwich and then claim it back from developers, a councillor has claimed.

Councillor Mehboob Khan called for the extra cash to pay for the removal of “potentially lethal cladding” at New Capital Quay (NCQ).

With more than 1,000 homes, NCQ is thought to be one of the UK’s largest developments that has been found to have flammable cladding.

Residents have been left in a “terrifying” limbo after a row between insurers and developers broke out over who was to foot the bill for the removal of the cladding.

It comes following a claim made by James Brokenshire, Secretary of State for Housing, saying that developers should pay to remove Grenfell-like cladding.

Matthew Pennycook, MP for Greenwich and Woolwich, pressed Mr Brokenshire over the situation at New Capital Quay in Parliament last week.

MORE: New Capital Quay cladding fails fire safety tests but still no resolution

Mr Pennycook said: “Like others I welcome the Secretary of State’s announcement that he will rule nothing out when it comes to forcing action on private freehold developments such as New Capital Quay in Greenwich.

“That does represent progress, but can I test whether the Secretary of State understands the urgent need to break the impasse on such developments?

“Leaseholders are not only living with the anxiety, about the long term costs of remediation, and the daily mounting costs of interim fire measures, and the fear that they live in homes still surrounded by lethal material.”

It has been reported that the cost of removing the potentially lethal cladding is estimated at about £40M.

Whilst the cladding remains in place at NCQ, fire wardens are in place 24/7 to patrol of the development.

Replying, James Brokenshire said: “I do understand the point that [Matthew Pennycook] makes about not just the uncertainty, but the costs on interim measures that may be put in place.

“And, I will say that we have seen one developer in Croydon that has done the right thing, Barratt Homes told residents of the Cityscape flats that they will cover fire safety and cladding costs and I think the message is that others should be doing the same.”

Barratt Homes has promised to cover the £2m cost of fire safety work on a high rise block in Croydon that failed cladding tests.

The Government also announced last week that it would be covering the costs to remove dangerous cladding from council and housing association buildings.

Cllr Khan, who represents Greenwich West, said more should be done to help residents who have been left in situations like that in New Capital Quay.

He said: “Warm words from the Government are disappointing, residents on New Capital Quay have had enough off platitudes from ministers and after waiting many months, are demanding concrete action.

“The £400m for removal of cladding on public housing does not help residents in New Capital Quay. Residents insist the government should cover the costs of removing the cladding and reclaim this back from the developers.

“People are living in a nightmarish scenario and the government has not shown any leadership in tackling their safety concerns.”

Insurers NHBC previously said that an independent expert was being consulted on the situation, whilst Galliard said that NHBC should honour their insurance obligations.

Residents appealed for help from the Council at a meeting earlier this year, asking for leadership to be shown.