微密圈

It is well known that there are serious delays in processing gateway 2 (GW2) applications under the 微密圈 Safety Act. In fact, recent figures from the consultancy Cast demonstrate that only 10% of the 187 applications submitted since October 2023 have been approved.

Those delays have had a ripple effect across residential development and investment 鈥� developers have had to re-think their funding arrangements, with lenders taking a more cautious approach and contractors are increasingly nervous because of the spread of risk associated with delays and spiralling costs.

Worst of all, it is hitting the end user, which the 微密圈 Safety Regulator (BSR) was created to protect 鈥� causing huge uncertainty and delays for leaseholders and occupiers.

Those buying plot sales do not know if they will get their homes within three years. This is before the developer gets to gateway 3, which must be passed to allow a higher-risk building to be occupied. This cannot be what the regulator or legislators intended.

On 18 June, the House of Lords and regulators committee announced an inquiry into the BSR; a call for evidence, asking for responses to 14 key questions focused on the role of an approach by the regulator. On 30 June, the government announced a package of reforms with the focus around leadership and a new organisational structure. The industry has welcomed the opening of the inquiry but, at the same time, hopes that this does not further hinder an already struggling market.

The importance of 微密圈 Safety Act (BSA) reform is understood across the industry, but there is a need to review and refine. What can be done to achieve that? 

Interestingly, where applications have been submitted and the statutory requirements have been met, rejections often come without sufficient feedback or reasoning

Crucially, we need better guidance for GW2 applications and clarification on the information that is available, ensuring that it aligns with the statute and regulations. It is currently hard to determine what is needed for a compliant GW2 application.

Interestingly, where applications have been submitted and the statutory requirements have been met, rejections often come without sufficient feedback or reasoning. The most curious position is where clients make separate applications for individual blocks within a development and some applications are validated and others are not progressed 鈥� despite the same design and fire strategy across them. 

It appears that some applications are being reviewed at a more holistic level (which is welcomed), while others are being assessed in a more prescriptive manner with reference to regulations and statute

While the finger has been pointed at the poor quality of applications, clearly there is an inconsistent review and application process. It appears that some applications are being reviewed at a more holistic level (which is welcomed), while others are being assessed in a more prescriptive manner with reference to regulations and statute.

It is essential that the regulator provides more streamlined guidance for applicants that sits alongside a better and clearer review framework.

It is well known that the regulator is understaffed and, with the opening of the inquiry and the 鈥減artial retirement鈥� of the BSR head, this presents a good opportunity to put a more coherent structure in place, taking on board the frustrations and challenges developers are facing. Importantly, the upcoming recruitment drive must compete with the private sector on salaries and skills to provide better efficiencies in their approach.

This also speaks to the broad inconsistencies and lack of collaboration from the BSR. It is critical that developers and their consultants can engage directly with experts. But there is a potential additional cost to this, which developers may be willing to pay if it avoids the (costly) long delays they are currently experiencing.

There are clearly experts within the reviewers at the regulator ranging from fire consultants through to architects, but allocation seems to be a big issue; moving from one to another with no efficient streamlining (such as a dedicated BSR caseworker for each organisation, offering familiarity and a point of contact). Therefore, it is welcome that the government acknowledges the need for a new organisational structure and is increasing team capacity with the addition of over 100 new staff members.

Looking at this through a different lens, many lenders are nervous about the high-rise residential development market. The big question is when 鈥榳ill I get a return on investment?鈥�; a question impossible to answer. As a result, in an already struggling market, lenders are making their terms less preferential to borrowers who are already operating within it. Similarly, contractors are also being pushed, asked to lock in prices and commit to their involvement in projects for longer. This carries huge risk for them as the cost of materials, labour and finance continue to increase. These are unknown risks for all parties. And many are simply not prepared to take that risk.

 It cannot have been intended that works such as an internal reconfiguration to a residential flat and living area fall within the same scrutiny as the construction of a new higher-risk building

One solution to the volume of applications is the introduction of a tiered GW2 regime. A GW2 application is triggered where works are carried out in a HRB where building control sign off is needed.

It cannot have been intended that works such as an internal reconfiguration to a residential flat and living area 鈥� to, for example, remove a stud wall and create an open plan kitchen - fall within the same scrutiny as the construction of a new higher-risk building, or major remediation works of the entire fa莽ade and internal compartmentation works across the building.

While there are currently some very narrow exceptions, dividing by complexity and scale could offer comfort and greater clarity to applicants, while allowing expertise to grow within the BSR. Indeed, the new fast-track process prioritising the processing and review of existing application and remediation decisions could also be a positive step.

Essentially, HRBs are crucial in achieving the government鈥檚 housing targets, particularly in cities where demand is high and low density is not a viable option.

Recently, it felt the BSR鈥檚 regulatory framework had overtaken the challenges of obtaining planning permission. This is a grave concern, adding further layers that make it increasingly less viable to build new homes.

However, the launch of the inquiry to ask the end users to give their feedback alongside the recent government reforms gives applicants and the regulator the opportunity to start afresh and create a strong, efficient and streamlined gateway 2 system which will help facilitate the Government鈥檚 target to build 1.5 million safe homes and the target to remediate existing HRBs.

Bhavini Patel is a senior associate at Howard Kennedy