Delays in Gateway 2 Approval Affect Housing Landlords' New Build Targets

Overview of the Current Situation

The housing sector is facing significant challenges due to delays in the Gateway 2 approval process implemented by the Building Safety Regulator (BSR). With over 20,000 applications awaiting clearance, the impact on new build targets for housing landlords is becoming increasingly evident.

Backlog and Delays

As of July, there were approximately 30,000 bids for new homes that have been delayed by the BSR. The regulator has recently launched a new batching process to expedite the assessment of these applications, but it remains to be seen how effective this will be in clearing the backlog. The BSR aims to resolve the majority of these delays by December, but the current situation is dire, with only a record high of 200 Gateway 2 decisions made in August.

The implications of these delays are particularly pronounced in London, where over half of the 91 historic applications awaiting a Gateway 2 decision are located. The impact of the Building Safety Act has already led to a staggering 38% decline in new home starts in the capital, according to the NHBC.

Impact on New Home Starts

The repercussions of these delays are not limited to London. Across the UK, new home builds have suffered. In Q1 2025, developers registered 29,356 new homes, a 36% increase compared to the previous year, but this growth is overshadowed by the reduction in London. The G15 group has reported a 66% reduction in new affordable homes built over the last two years, highlighting the broader implications for housing availability.

Construction Timelines Extended

The introduction of the Building Safety Act in 2022 has established a framework for gateway checks on high-rise residential buildings over 18 metres. This includes mandatory approvals at three stages: planning, prior to construction, and prior to occupation. However, delays at Gateway 2 and Gateway 3 are now extending construction timelines by 12 to 18 months. The current waiting period for Gateway 2 decisions ranges from 25 to 40 weeks, with additional delays for Gateway 3 approvals stretching from two to four months.

Future Outlook

The UK government has set an ambitious target to deliver 1.5 million homes over five years. However, with the ongoing delays at the BSR, achieving this goal appears increasingly challenging. Housing landlords are now left grappling with the uncertainty of project timelines and the potential for further delays, which could exacerbate the already critical housing shortage.

In conclusion, the backlog at the BSR is not just a bureaucratic issue; it carries significant implications for housing landlords and the wider housing market. As the government and regulatory bodies work to address these delays, the focus will need to be on ensuring that the housing sector can meet the growing demand for new homes.