Recent amendments to building safety legislation could threaten housing delivery, impact industry growth, and could even lead to the loss of SME housebuilders and developers, new research suggests.
The Building Safety Act has provided the UK government with powers to introduce new regulations including the enforcement of a Building Safety Levy, which will be used to fund remediation works on existing residential buildings. The levy will be collected from developers who will be required to pay relevant local planning authorities and could be charged on a per square metre basis.
The increased responsibility imposed on developers through new and amended legislation has already raised concerns. In fact, 62% of housebuilders feel that the Building Safety Levy will detract people from joining the industry, while almost two thirds (65%) believe that the levy will deter SME housebuilders and lead to the loss of more businesses.
Furthermore, while 59% of housebuilders say they encourage any reform that will ensure safety hazards in buildings are eliminated, many feel that the Responsible Actors Scheme limits the appeal of the UK market, with 57% in agreement that it forces developers to sign up, or risk being excluded from the housing market.
The research of 100 housebuilders by Polypipe Building Products, also identified that, alongside concerns over the growth and attraction of the industry, there is uncertainty around housing targets, with over half (56%) in agreement that the Building Safety Levy will create a barrier to future housing delivery.
In addition to the introduction of the levy, the Leasehold and Freehold Reform Bill, which was introduced to Parliament late last year, includes measures to make it easier to ensure that developers are made to pay for building safety defects in enfranchised buildings.
With aims to give homeowners ‘a fairer deal’, the Leasehold and Freehold Reform Bill could further enhance the pressure being felt among the housebuilder and developer communities.
Commenting on the findings, Hayley Hayes, Head of Specification at Polypipe Building Products said, “Building safety legislation, and the protection of homeowners and residents, is of the utmost importance, and while the industry backs reform to enhance this, many also share concerns around what the legislation means for the future of the industry. The UK housing sector is facing a number of challenges and, in order to navigate this difficult landscape, local governments and the wider supply chain need to support housebuilders and developers in working towards such ambitious targets.”
Overall, almost two thirds (65%) of housebuilders say that meeting the legislation will be extremely challenging and the research also found a widespread misunderstanding around some elements of the Building Safety Act, with over half labelling the gateways as ‘confusing’ and ‘unclear’.
“With a number of challenges facing the housing industry, it is no surprise that many firms are facing uncertainty,” Hayley continued. “However, there’s clearly also confusion around some of the legislation, too. With a rapidly evolving regulatory landscape, businesses require support, education and access to good quality product information and resources to help them remain abreast of the changes and ensure compliancy. Trade bodies, places of education, employers and manufacturers all need to do their bit to aid the transition. As we navigate the new – and recent changes to - legislation, the specification team at Polypipe Building Products continues to work closely with housebuilders, developers, specifiers and contractors on CPDs and the provision of quality data to ensure they can move forward with confidence.”
