What is the Building Safety Act?
The Building Safety Act 2022 is UK legislation designed to improve building standards, strengthen oversight, and prevent another crisis like Grenfell. It introduces new duties for building owners, contractors, and product suppliers.
How does the Act affect landlords and property investors?
Landlords must appoint an Accountable Person for higher-risk buildings, maintain safety records, and may need to fund safety improvements. Investors face increased remediation costs and potential delays in projects. The Building Safety Charge also changes how costs can be passed on to leaseholders.
What does the Act mean for contractors?
Contractors face stricter regulation at every stage of design and build. They must keep detailed safety records, work only with compliant products, and manage greater liability through extended claim periods. This adds to costs but also rewards firms with strong compliance systems.
Why is the Building Safety Act important now?
The Act is already reshaping the market. Developers have issued profit warnings, insurers are tightening conditions, and tenders are taking longer due to compliance checks. The changes are immediate, and the industry is adapting in real time.
At its core, the Act is about accountability. Responsibility for building safety can no longer be blurred between contractors, consultants and landlords. For higher-risk residential buildings, defined as those above 18 metres or seven storeys, there must now be a clearly identified Accountable Person. This individual or entity is legally responsible for ensuring the building is safe throughout its life, supported by a formal “safety case” report and proper record keeping. Residents must also be engaged and informed about safety measures, which adds a new level of transparency to property management.
The Act introduces gateway points into the design and construction process. These checkpoints at planning, during construction, and before occupation force developers to prove that safety has been considered from the outset. For contractors, this means more rigorous documentation and inspection requirements before a building can be signed off.
Supply chains are also under sharper scrutiny. Construction products are now subject to stricter regulation, particularly those deemed “safety-critical.” Manufacturers must be able to show reliable testing and performance data. Importers and distributors face liability if unsafe or falsely certified products reach the market. For suppliers, compliance and traceability are now commercial essentials, not optional extras.
Perhaps the most challenging change for developers and contractors is the extension of liability under the Defective Premises Act. Claims can now be brought up to 15 years after a project is completed, and refurbishment work is included. This has already led to a wave of claims relating to cladding and other fire safety defects, particularly in London and other major cities. Contractors and investors are being pulled into disputes over historic projects, creating new financial pressures. Insurers are tightening terms, and some developers have been forced to set aside hundreds of millions for remediation work.
In the short term, investors are feeling the effect through remediation costs and delays. High-profile examples include listed housebuilders announcing profit warnings due to the billions they are now committing to fix unsafe cladding. For contractors, tendering processes have become slower and more expensive as firms are required to prove competence, compliance, and record-keeping standards that meet the new regime. For smaller contractors, the cost of compliance is proving a barrier to entry on larger projects.
For landlords, the Building Safety Charge has been introduced to cover ongoing safety obligations, but before passing costs to leaseholders, owners must first explore recovery from developers or suppliers. This has shifted the financial burden upstream and changed the risk profile for property investors.
Taken together, the Act demands more than procedural change. Compliance will increasingly define competitive advantage. Firms that can demonstrate competence, maintain accurate data trails, and embrace higher standards will not only reduce liability but also strengthen their position in a more cautious and scrutinised marketplace.
The Building Safety Act is not a tick-box exercise. It is a structural reset for the industry. Adapt quickly and reap the rewards.
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