The principle trade body representing housebuilders is taking legal advice following a public threat by Michael Gove to stop them from trading if they don’t pay into a £4bn fund to help leaseholders hit by the fire safety crisis.

The Home Builders Federation made the admission in a statement in which it accused the government of not working “constructively” to find a solution to the crisis, and instead hurling “clearly not proportionate” threats against the industry.

…