While London's construction sector faces challenges with Building Safety Regulator delays...

...this creates unprecedented opportunities for developers, investors, and professionals who understand how to navigate the new landscape.

This article explores the industry's current challenges and how these can be turned into opportunities for both business and talent in the market.

The current landscape: Challenges creating opportunities

London's construction industry is experiencing a pivotal moment. New home starts have plunged 38% in Q1 2025 as the Building Safety Act continues to impact the sector, whilst the latest figures reveal that over two-thirds of Gateway 2 applications transferred to the BSR last autumn remain unapproved, according to the Construction Enquirer. These statistics might seem daunting, but as someone who has spent years connecting talent with opportunity in London's residential construction market, I see this as a defining moment for strategic players.

The Building Safety Regulator (BSR) has been struggling with delays of 25 to 40 weeks for Gateway 2 decisions, compared to the statutory target of 8-12 weeks. Around 75% of applications for higher-risk schemes are still being turned back by the regulator at Gateway 2, creating what appears to be a bottleneck but actually represents a significant market opportunity (Construction Enquirer.).

Why this spells opportunity for developers and investors

Talent scarcity creates a competitive advantage

Having worked with numerous developers across London, I've observed that the most successful ones are those who can attract and retain top talent, while others retreat. The current environment is creating a unique talent acquisition opportunity, where private housing starts have dropped to just 5.5% of the government's 88,000 annual target, freeing up skilled professionals from stalled projects.

This talent scarcity means that developers who can identify, hire, and retain the right people will inevitably outperform competitors. Banks are pulling back from the high-rise residential market due to delays, but this creates opportunities for developers to secure top-tier project managers, quantity surveyors, and building safety specialists who would typically be unavailable in a buoyant market.

The talent pool is deepening

One of the fundamental principles I've learned in recruitment is that opportunity increases when competition decreases. Many developers are postponing or cancelling projects due to regulatory uncertainty, which means exceptional talent is becoming available—professionals who would normally be locked into long-term contracts or command premium salaries.

For developers with strong financial backing and strategic vision, this represents a golden opportunity to build world-class teams. The professionals who can navigate the BSR process are now approachable, and securing them now means having the expertise in-house when the market rebounds.

Regional House Builders are also benefiting from talent that was previously unattainable from the London market, as BSR/project delays are causing people to lose confidence in prospects from their current employers.

High-demand specialisations

From my experience placing candidates across London's construction sector, certain specialisations are becoming increasingly valuable:

Building safety specialists: Professionals with expertise in BSR applications and building safety compliance are in exceptionally high demand. The complex application process requires specialists who understand both technical requirements and regulatory procedures.

Project managers with regulatory experience: Development programmes are being lengthened by 12 to 18 months due to regulatory requirements, creating demand for project managers who can navigate extended timelines and complex approval processes.

Quantity surveyors with building safety knowledge: The additional costs and time associated with the new regime require quantity surveyors who understand how to price and manage building safety compliance.

Temporary and contract specialists: Many firms are turning to temporary workers to access specialised building safety expertise without long-term commitments. This approach allows companies to bring in regulatory specialists for specific projects while maintaining flexibility as the new compliance landscape continues to evolve.

Salary expectations and market demand

Current market conditions are driving salary premiums for in-demand roles. Insight from our most recent Salary Guide & Trends Report 2025 suggests technical and redesign specialities continue to command premium salaries, with some exceptional candidates securing increases of up to £15,000 due to critical skills shortages in these niche areas.

As we look ahead, I anticipate a significant market shift within the next 12-24 months as projects begin advancing through gateway approvals, potentially creating an increase in competition.

To position yourself effectively, focus on building the specific qualifications and experience that employers in your target sector value most - whether that's technical certifications, project management credentials, or hands-on experience with similar initiatives. Don't wait for the market shift to happen; use this transition period to strengthen your profile through additional training, networking, or taking on relevant projects in your current role.

Also, consider timing your job search strategically - getting in early, as projects gain approval, could give you an advantage over waiting until the market becomes saturated with applicants. The key is being proactive rather than reactive to these anticipated changes.

Practical advice for market participants

For developers and investors

1. Invest in regulatory expertise early: Build relationships with consultants who have proven BSR track records

2. Plan for extended timelines: Build 18-month regulatory contingencies into project schedules

3. Focus on quality applications: Poor quality applications are contributing to overall processing delays

For construction companies

1. Develop internal building safety capabilities: Reduce dependence on external consultants

2. Maintain workforce during downturn: Companies that retain talent through this period will have competitive advantages when the market recovers

3. Invest in technology and training: Technology is changing the face of the construction world

For job seekers

1. Target building safety qualifications: NEBOSH Construction, IOSH qualifications, and building safety certifications are highly valued

2. Leverage specialist construction recruitment agencies: Working with recruitment firms that specialise in construction recruitment can give you a significant edge in your job search. As a construction recruitment consultant, I have relationships with top employers in the sector and understand exactly what companies are looking for in candidates. Plus, you’ll be able to gain valuable insights about market trends, salary expectations, and present yourself in the best possible light to potential employers who are actively hiring.

3. Network within the industry: Building relationships through industry events and LinkedIn is crucial in this relationship-driven sector

Looking forward: Why timing matters

London's construction market isn't broken- it's recalibrating. The current regulatory challenges are temporary, but the housing shortage driving government policy is permanent. The government wants to turbo-charge housebuilding to deliver 1.5 million homes in five years, which means the regulatory bottlenecks will eventually be resolved.

The question isn't whether London's construction market will recover - it's whether you'll be positioned to capitalise when it does.

Verity Hampson-Smith is a Principal Recruitment Consultant at deverellsmith, specialising in placing permanent staff within Residential Construction in central London. With a background in the events and hospitality industry, naturally, she has a people-centric approach to everything she does. She prides herself on being an honest recruiter and from this has built a strong network with a variety of clients and candidates, allowing her to support businesses to secure the top talent in the industry. Or get in touch via the form below, and they will be in touch.

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