Construction Output Plummets: What Builders Should Know About Market Trends

How Staged Gateway 2 Approvals Can Boost Housing Construction

Update Understanding the Call for Staged Gateway 2 Approvals In a significant move aimed at expediting construction and improving safety in the building sector, the House of Lords has recommended a restructured approach to Gateway 2 approvals. The proposed change is driven by concerns over severe delays that have not only hampered the progress of over 150 high-rise projects but have also put at risk the Labour party's ambitious pledge to deliver 1.5 million new homes. This complex landscape unfolds as the Building Safety Regulator (BSR), established under the Building Safety Act 2022, struggles under the weight of its own regulatory framework. Why Staging Approvals Benefits High-Rise Projects The inquiry committee recently established by the Lords noted the urgent necessity for a more pragmatic and staged approach to construction approvals. Currently, the process is bottlenecked as developers await BSR approval, leading to what Dame Judith Hackitt termed a potential need for 'Gateway 1.5 or 2.5 processes.' The complexity of the current system means that while critical structural and fire safety features must be addressed early, non-critical works—like internal upgrades—can continue simultaneously. This parallel processing could be a game-changer, allowing projects to move forward without unnecessary delays. How Current Delays Affect Housing Supply According to recent findings from the Construction Plant-hire Association (CPA), delays at Gateway 2 could threaten the viability of Labour's housing quota, which comes at a time when housing shortages are peaking, particularly in London where over 60% of high-rise projects are concentrated. With over 150 high-rise buildings currently stalled, many construction firms are facing a financial pinch, exacerbated by idle machinery and strained supply chains. The CPA highlights that delays of over 40 weeks are not uncommon, significantly longer than the anticipated clearance timelines. This stagnation not only endangers immediate housing goals but also impacts the ability to retain skilled labor and plan for future projects. The Call for Local Authorities to Regain Oversight An essential aspect of the Lords' recommendations is advocating for low-risk safety approvals in high-rise refurbishment projects to be delegated back to local authorities. The report argues that it is unreasonable for highly qualified engineers to spend time approving minor renovations while pressing safety issues languish in backlog. By reallocating these responsibilities, the BSR could free resources to address genuinely dangerous buildings and expedite critical remediation work. Overcoming Technical Bottlenecks in Approvals Baroness Taylor of Bolton, the committee chair, underscored that while the introduction of the BSR was transformative, the ensuing delays have exceeded expected statutory timelines. She called for the government to provide clear guidelines on what needs pre-construction approval and what might follow, which would aid in mitigating current frustrations plaguing residents and businesses alike. In tandem, addressing the ongoing skills shortages in registered building inspectors and fire engineers would alleviate some of the strain causing these delays. Anticipating Future Trends in Building Safety Regulation As the landscape of building safety continues to evolve, the proposed adjustments to Gateway 2 approvals may signify a broader trend toward more flexible and responsive regulatory practices. With safety remaining paramount, construction stakeholders are increasingly indicating the need for reforms that not only ensure safety compliance but also prioritize the speed of project delivery. Embracing a staged approval process could set a precedent for how the industry grapples with issues of safety, efficiency, and ultimately, housing delivery. Conclusion: Advocating for Change The urgent call for staged Gateway 2 approvals reflects a collective desire within the construction industry to balance safety with efficiency—an endeavor that will ultimately benefit contractors, builders, and the communities in need of housing. For those involved in these sectors, staying informed about these developments is crucial for advocating for improvements that can reshape practices and drive the industry forward.