Despite the recently announced Building Safety Regulator (BSR) reforms, concerns remain that SME developers will still face crippling delays and rising costs due to excessive bureaucracy.
According to the latest analysis from Rangewell, while these BSR reforms represent progress, the current regulatory environment continues to threaten the viability of smaller residential development projects.
BSR reforms: a step forward, but not enough
The reform package to strengthen the BSR includes a Fast Track Process, senior leadership changes, and the recruitment of 100 additional staff to accelerate approvals. The reforms also pave the way for a single construction regulator, following recommendations from the Grenfell Tower Inquiry.
Rangewell has praised these steps as a positive move to tackle approval bottlenecks. However, the company warns that SME developers—who often lack the financial resilience of larger builders—are still grappling with unpredictable Gateway 2 approval times, spiralling costs, and delayed project funding.
Gateway 2 delays and rising costs
Rangewell’s latest data reveals that Gateway 2 approvals, which require full building control sign-off before construction begins, are taking 24 weeks or more, double the statutory 12-week target. Some developers have been left waiting over 30 weeks for a response.
Between October 2023 and September 2024, the BSR received 1,018 Gateway 2 applications, but only 14.3% (146) were approved. Meanwhile, 83.2% remain undecided, creating a backlog that is severely slowing housing delivery.
These delays have severe financial consequences. The government’s Impact Assessment estimates that each week of delay adds £10,000 per project. A 24-week delay could therefore add £240,000 in costs, far exceeding the original regulatory cost projection of £16,000 per project.
Rangewell’s call for deeper structural reform
To combat these challenges, Rangewell is urging the government to:
- Introduce legally binding Gateway timelines to prevent indefinite delays.
- Enforce compensation for delays over four weeks, holding regulators accountable.
- Create an SME-specific Fast Track to protect smaller developers.
- Apply risk-weighted triage to prioritise low-risk projects.
- Mandate pre-application advice for early clarity.
- Simplify Gateway submissions by cutting duplicated documentation.
- Publish monthly BSR performance data to aid planning and reduce uncertainty.
Industry voices: efficiency through digital solutions
Alasdair McPherson, Head of Commercial Property Finance at Rangewell, emphasises that “faster decision-making is a lifeline for SME developers”, warning that red tape is threatening project viability even when funding is readily available.
Rob Norton, UK Director at PlanRadar, adds that digital tools are key to navigating Gateway 2. He notes that approval times have tripled, causing widespread delays and financial strain. Norton highlights the need for streamlined documentation and improved communication, warning that without practical reform, both housing delivery and safety standards could be compromised.
The message from Rangewell is clear: while the BSR reforms are a positive first step, systemic change is essential to protect SMEs and unlock the homes Britain urgently needs.
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