Rangewell Welcomes BSR Reforms but Calls for Deeper Overhaul to Support SME Developers

Announced on 30 June 2025, the government’s reform package includes a new Fast Track Process, new leadership appointments, and the addition of more than 100 staff to support the delivery of 1.5 million safe, high-quality homes. The reforms also mark the first step toward a single construction regulator, as recommended by the Grenfell Tower Inquiry.

Warm welcome, but deeper concerns remain

We welcome the reforms and agree that they represent meaningful progress, particularly in boosting internal BSR capacity and addressing approval bottlenecks. However, significant challenges remain, especially for SME developers whose financial viability depends on predictable build timelines and cost certainty.

Our latest data analysis reveals that Gateway 2 approvals, the stage requiring full building control sign-off before construction begins, are frequently taking over 24 weeks, far beyond the statutory target of 12. In some cases, developers have waited over 30 weeks for a response.

Between 1 October 2023 and 16 September 2024, the BSR received 1,018 Gateway 2 applications, of which only 146 (14.3%) were approved. Meanwhile, 83.2% remain undecided, creating severe development backlogs.

The delays are not only slowing housing delivery, but also driving up costs. The government’s own Impact Assessment estimated each week of delay could cost £10,000 per project. That would mean a 24-week delay at Gateway 2 could add £240,000 to a development’s bottom line—far higher than the original predicted regulatory cost of £16,000 per project.

Rangewell urges further action

However, we are urging the government to go further, including streamlining Gateway processes, improving communication with applicants, and creating a dedicated SME pathway to ensure smaller developers are not excluded from the housing supply chain due to regulatory complexity or long wait times.

Alasdair McPherson, Commercial Property Expert at Rangewell, commented:

“We’re pleased to see that the government has recognised the severe challenges within the BSR approval system and is investing to resolve them. For SME developers in particular, faster decision-making is not a luxury, it’s a lifeline.

However, the scale of the problem demands more than just extra resources. It needs deeper structural reform to protect small and medium-sized developers from bearing disproportionate costs and delays.

The Fast Track Process and leadership changes are encouraging, but we need more targeted measures to ensure Gateway processes are efficient, fair, and aligned with the realities of SME-led delivery. Otherwise, we risk creating a market where only the largest institutional developers can afford to operate.”

Data Tables and Sources

• Reforms announcement: GOV.UK – Reforms to Building Safety Regulator

• Building Safety Regulator information via HSE: BSR overview
   
• Gateway Two approval statistics: HSE Gateway 2 performance
   
• Project delay cost estimate: Impact Assessment – Building Safety Bill
   
• Reports of 30+ week delays: Construction News – BSR delays