Unsafe Grenfell Tower-style cladding on private residential blocks will be replaced by the government at a cost of around £200 million, the Ministry for Housing has announced, following growing public anger over “reckless” building owners’ continued refusal to do so.

An estimated 20,000 people are thought to still live in homes wrapped in combustible cladding like that which caught fire in 2017 at Grenfell, killing 72 people. But many freeholders and developers have for two years refused to spend the money to make the 170 privately owned buildings safe.

“It is of paramount importance that everybody is able to feel and be safe in their homes,” Theresa May said in a statement. “A number of private building owners are doing the right thing ... but unfortunately too many are continuing to pass on the costs of removal and replacement to leaseholders.”

James Brokenshire, the communities secretary, criticised the “delay tactics” of some building owners. “If these reckless building owners won’t act, the government will,” he said in a statement.

Mr Brokenshire accused some owners of trying to “pass on the costs” to residents by “threatening them with bills running to thousands of pounds”.

Grenfell tower fire Show all 42 1 /42 Grenfell tower fire Grenfell tower fire Local residents watch as Grenfell Tower is engulfed by fire Getty Images Grenfell tower fire London Fire Brigade said there has been a number of fatalities from the blaze Rex Features Grenfell tower fire The fire was first reported in the early hours of Wednesday and continued into the morning Rex Features Grenfell tower fire A local resident sees the fire over the rooftops @Ebajgora Grenfell tower fire A firefighter reacts at the scene of the blaze Getty Images Grenfell tower fire Residents watch as the blaze continues Getty Images Grenfell tower fire More than 200 firefighters have been fighting the blaze PA Grenfell tower fire London Mayor Sadiq Khan has declared the fire a major incident Getty Images Grenfell tower fire Police and fire services attempted to evacuate the concrete block of flats Getty Images Grenfell tower fire A woman runs to assist paramedics working at the fire at the Grenfell Tower Getty Images Grenfell tower fire Smoke rises from the building after a huge fire engulfed the 24 story Grenfell Tower in Latimer Road, West London in the early hours of Wednesday morning Getty Images Grenfell tower fire Fire fighters tackle the 24-storey building in West London Getty Images Grenfell tower fire Ambulances are stationed nearby Getty Images Grenfell tower fire Paramedics arrive with oxygen Getty Images Grenfell tower fire Emergency services believe it will take some time to establish the cause of the fire Grenfell tower fire Tens of people have been taken to five different hospitals across London Getty Images Grenfell tower fire A man comforts a boy after the tower block was severely damaged Reuters Grenfell tower fire Firefighters stand amid debris in a childrens playground nearby Reuters Grenfell tower fire Firefighters are stationed at the building Getty Images Grenfell tower fire Smoke engulfs Grenfell tower Rex Features Grenfell tower fire Lots of people donating water, food and clothing to St Clement's church for the residents of Grenfell Tower in Latimer Road Samuel Osborne Grenfell tower fire A man speaks to a fire fighter after a huge fire engulfed the 24 story Grenfell Tower in Latimer Road, West London Getty Images Grenfell tower fire According to the London Fire Brigade (LFB), 40 fire engines and 200 firefighters are working to put out the blaze. Residents in the tower were evacuated and a number of people were treated for a range of injuries EPA Grenfell tower fire A resident of Grenfell Tower is trapped as smoke billows from the window after a fire engulfed the building Getty Images Grenfell tower fire Members of the emergency services work at the scene of a huge blaze which engulfed Grenfell Tower, a residential tower block in Latimer Road Getty Images Grenfell tower fire According to the London Fire Brigade (LFB), 40 fire engines and 200 firefighters are working to put out the blaze EPA Grenfell tower fire Fire fighters tackle the building after a huge fire engulfed the 24 story Grenfell Tower in Latimer Road, West London Getty Images Grenfell tower fire The burnt facade of Grenfell Tower, the night after the fire in Latimer Road, West London REUTERS/Neil Hall Grenfell tower fire Local residents gather at a community centre near Grenfell Tower in Latimer Road REUTERS/Toby Melville Grenfell tower fire A resident in a nearby building watches smoke rise from Grenfell Tower in Latimer Road, West London AP Grenfell tower fire Police and rescue services operate near the fire at Grenfell Tower, a 24-storey apartment block in Latimer Road EPA Grenfell tower fire A man stands amid debris on the A40 after a serious fire in a tower block at Latimer Road in West London REUTERS/Toby Melville Grenfell tower fire A view of the empty A40 highway after it was closed in both directions, due to the proximity of the fire at Grenfell Tower block in Latimer Road EPA Grenfell tower fire Smoke rises from the building after a huge fire engulfed the 24 storey residential Grenfell Tower block in Latimer Road, West London Getty Images Grenfell tower fire Bodies are removed from the scene after a fire engulfed the 24-storey Grenfell Tower in west London Rick Findler/PA Wire Grenfell tower fire Bodies are removed from the scene after a fire engulfed the 24-storey Grenfell Tower in west London Rick Findler/PA Wire Grenfell tower fire Provisions on tables at the Westway Sports Centre close to the scene after a fire engulfed the 24-storey Grenfell Tower in west London Jack Hardy/PA Grenfell tower fire Beds are laid out in the Westway Sports Centre close to the scene after a fire engulfed the 24-storey Grenfell Tower in west London Jack Hardy/PA Wire Grenfell tower fire A pile of donated clothes, sleeping bags and water lie next to a police cordon near the burning the 24 storey residential Grenfell Tower block in Latimer Road, West London Getty Images Grenfell tower fire Signs asking for donations are seen outside the Notting Hill methodist Chruch Getty Images Grenfell tower fire Smoke rises from the building after a huge fire engulfed the 24 storey residential Grenfell Tower block in Latimer Road, West London Getty Images Grenfell tower fire A man is rescued by fire fighters after a huge fire engulfed the 24 storey residential Grenfell Tower block in Latimer Road, West London Getty

Grenfell United, a group of survivors and the bereaved, welcomed the announcement, saying it offered hope to people in dangerous blocks that the “nightmare” they have been living for nearly two years is almost over.

“This result is a testament to residents themselves, in social and private blocks, who refused to be ignored. The truth is we should never have had to fight for it,” a spokesperson said.

Residents living in the private residential blocks across England known to be clad in the aluminium composite material (ACM) are suffering from stress, anxiety and insomnia, the UK Cladding Action Group (UKCAG) found.

Ongoing financial pressure and safety fears caused by living in unsafe buildings is putting strain on their relationships with family and friends, residents said, with more than a quarter saying they cannot start a family.

Among the testimonies collected by UKCAG, one anonymous leaseholder said: “I feel constantly stressed, anxious, depressed, lost, abandoned and devastated by something that cannot be my responsibility.”

Another added: “We want to move so we can start a family but are unable to as the flat is not sellable, and we can’t raise a family in such a flammable building.”

Most of the affected buildings are in London and Greater Manchester and many of them belong to first-time buyers. Some leaseholders have been forced to mount their own 24-hour patrols to make sure fires don’t break out.