Getting Through Gateway 2

_{By Christopher Worrall is a housing columnist for LFF. He is on the Executive Committee of the Labour Housing Group, Co-Host of the Priced Out Podcast, and Chair of the Local Government and Housing Member Policy Group of the Fabian Society.} 

A recent Freedom of Information (FOI) request has laid bare a significant bottleneck in the UK’s building safety approval process, particularly concerning high-risk buildings. Between October 2023 and September 2024, the Building Safety Regulator (BSR) approved a meagre 14% of the 1,018 Gateway 2 applications submitted. With only 25 outright rejections and the fate of the remaining 847 applications still uncertain, the scale of the backlog is becoming alarmingly clear.

Gateway 2, a crucial stage in the approval process for high-risk buildings, requires developers to demonstrate compliance with stringent safety regulations before moving forward with construction. While these requirements are critical for public safety, the low approval rate highlights the growing difficulties developers face in navigating an increasingly complex and bureaucratic system. The slow pace of approvals has significant implications not just for the construction industry but also for the wider economy, particularly the land and housing markets.

Gateway 2 Delays: A Developer’s Nightmare

The delays caused by Gateway 2 are exacerbating an already strained housing sector. Developers are facing increasing difficulties in getting projects off the ground due to the regulator’s stringent requirements. The Chair of the Fire Industry Council has pointed out that the regulator’s refusal to engage in pre-application technical discussions is contributing to the problem. Many developers, left without clear guidance, have resorted to “having a go” at submitting applications, leading to a high number of incomplete or non-compliant submissions. This lack of engagement at the outset is clogging the system and contributing to the growing backlog of unapproved projects.

For developers, time is money. Each delay in receiving Gateway 2 approval has a direct impact on project timelines, increasing costs and creating uncertainty for investors. As a result, many projects are stalling or being scrapped altogether, particularly those involving high-risk buildings over 18 meters in height. The construction industry is already struggling to meet the government’s ambitious housing targets, and the additional regulatory hurdles are pushing these goals further out of reach.

Impact on the Land Market and Housing Supply

The regulatory delays in Gateway 2 are not only affecting developers but also having a ripple effect across the land market. Developers are becoming increasingly hesitant to invest in new projects, particularly those involving high-rise or complex buildings. This uncertainty is leading to stagnation in construction activity, which in turn is exacerbating the country’s housing shortage. Urban areas like London, where high-risk buildings are more prevalent, are particularly vulnerable to this slowdown, as developers avoid projects that are likely to face prolonged regulatory scrutiny.

Moreover, the increased regulatory scrutiny is driving up costs for developers, who are now required to allocate additional resources to meet safety standards. This is having a direct impact on the overall profitability of projects. Gateway 2 is expected to add at least nine months to development timelines, with developers forced to navigate an interpretive dance around vague and often conflicting requirements. Investors and funders, wary of these delays, are increasingly unwilling to commit to projects unless Gateway 2 approval has already been secured, creating a catch-22 situation for developers.

A Shift Toward Lower-Risk Projects

As a result of these challenges, developers are beginning to shift their focus towards less regulated, lower-density projects that are less likely to be subjected to the same level of scrutiny. In the hopes of securing faster approvals, many are opting for projects under eight storeys, thus avoiding the most stringent regulations. This trend is having a significant impact on the housing market, as the reduction in high-rise projects is limiting the amount of housing that can be delivered, particularly in urban areas where high-density developments are crucial to meeting demand.

This shift in focus may offer a short-term solution for developers, but it raises serious questions about the future of urban development in the UK. With the country in the grip of a housing crisis, the need for high-density housing has never been greater. If developers continue to shy away from high-rise projects due to regulatory uncertainty, the housing shortage will only worsen, and the government’s ambitious target of building 1.5 million homes by the end of this parliament will become increasingly unattainable.

Fire Safety and Planning Delays

Adding to the complexity of the approval process is the role of fire safety in land use planning. Local planning authorities (LPAs) are now required to seek advice from the Health and Safety Executive (HSE) for any relevant buildings, and developers must submit a fire statement as part of their planning applications. The HSE then assesses each application for compliance with fire safety regulations.

However, this process is causing further delays, with reports indicating that 60% of in-scope projects have been held up at Gateway Stage 1. Developers are finding themselves stuck in a seemingly endless loop of revisions and resubmissions, expending time, energy, and money just to stay in one place. This is particularly frustrating for developers of high-risk buildings, who are already facing significant delays at Gateway 2.

The Need for Regulatory Reform

The current regulatory framework, while well-intentioned, is proving to be a major obstacle to the UK’s construction industry. The Building Safety Regulator, despite its goal of ensuring safety, is struggling to keep up with the demands of the industry, and its slow response times are having a profound impact on housing supply. While the regulator aims to respond to Gateway 2 applications within 12 weeks, it can request additional time, further delaying projects and adding to developers’ frustrations.

The construction industry is calling for a more streamlined approval process that balances the need for safety with the urgency of the housing crisis. Early engagement with developers, clear communication about regulatory requirements, and a more efficient system for processing applications are essential if the UK is to meet its housing targets. Without reform, the backlog of unapproved projects will continue to grow, and the country’s housing crisis will worsen.

Conclusion: Breaking the Bottleneck

The delays in the UK’s building safety approval process are threatening to derail the country’s housing development plans. Gateway 2, while critical for ensuring the safety of high-risk buildings, is proving to be a major stumbling block for developers, with only 14% of applications approved over the past year. The construction industry is facing rising costs, increasing uncertainty, and a growing backlog of unapproved projects, all of which are contributing to a slowdown in housing supply.

If the UK is serious about addressing its housing crisis, it must reform its regulatory framework to ensure that developers can navigate the approval process without unnecessary delays. A more streamlined, efficient system is needed, one that maintains high safety standards while allowing the construction industry to do what it does best: build. Without reform, the government’s goal of building 1.5 million homes by the end of this parliament will remain out of reach, and the housing crisis will continue to deepen.

Source: Left Foot Forward