Regulatory gridlock ‘knocks confidence’ in construction

Aaron Morby 3 hours ago
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Construction professionals are warning that widespread delays caused by the Building Safety Regulator and planning red tape are throttling the industry’s ability to recover and deliver on Government targets.

According to the Royal Institution of Chartered Surveyors Q2 2025 Construction Monitor, 61% of respondents said planning and regulatory delays were the top issue holding back projects.

RICS members also blasted the Building Safety Regulator for inconsistent decision-making and a growing backlog of building control applications – particularly since the introduction of new responsibilities under the Building Safety Act.

The survey also flagged up growing concern about construction white collar skills shortages, paricularly building control surveyors and quantity surveyors.

Gary Strong, head of professional practice at RICS, said: “The BSR must work with industry to provide clearer guidance and consistent decision-making.

“There are not enough building control professionals in place, which is causing a growing backlog of applications.

“The BSR must be adequately resourced to meet the demands of the new regulatory environment, and a swift programme of upskilling professionals enacted.

“We welcome that the UK Government identifies this as a primary bottleneck for construction projects, and a new fast track process is being put in place.

He added that unless the BSR is properly resourced and professionals upskilled quickly, Government house building and infrastructure goals will be missed.

The report found total workloads remained flat in Q2, with the net balance slipping to -3%. Infrastructure bucked the trend with growth of +11%, led by energy (+34%) and water projects (+27%).

But many firms said they were unable to scale up activity because of delays in gaining planning permission and navigating the BSR’s complex approval system.

Chief economist Simon Rubinsohn warned: “The need to ensure the building safety regime works more smoothly is highlighted widely in the survey as a factor impacting development.”

He added that professional shortages are biting hard, especially among building control surveyors and quantity surveyors.

A fast-track process for safety approvals is being developed by Government, but the current regulatory gridlock is already causing costly delays across multiple sectors.

Comments from member survey


Simon Rawlinson, London, Arcadis UK:  “The UK market is four speed. Commercial and high risk resi are delayed by process and viability. Many public sector projects have been delayed by funding and decisions. Mega projects like data centres face uncertainty. Water and Energy networks are accelerating and face competition for resource.

Michael Huw Nicholas Davies, London, Beadmans: “Upgrading existing office stock to attain EPC B rating is being held up due to lack of approvers and Building Safety Act is still causing delays.

Martyn Harmer, London And The South East, Building Logic (UK): “Building Safety Regulator block on all works to HRB’s is having a significant effect on workload and in some cases will have a negative effect on building safety as works are being postponed due to delays and cost associated with the application process.

Rishi Patel, London, Chinese Estates: “The Building Safety Act has contributed to a reduced construction output. The BSR clearly needs more resource and there needs to be more clarity as it currently requires a more traditional method of construction which lends itself to either a two stage PCSA approach or negotiated route.”

 

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