Building Safety Act has led to an industry recruitment crisis

The introduction of the Building Safety Act 2022 was meant to improve safety standards in high-rise residential buildings. However, in practice, it has had far-reaching consequences beyond compliance, particularly in the construction and development sector.

The most contentious element is the requirement for second staircases. It has created widespread disruption and resulted in halted projects and redundancies. It has also caused uncertainty in the recruitment market. 

Originally, the requirement for a second staircase only applied to buildings over 30m, but the government has now lowered the threshold to 18m. This decision is understandably rooted in safety concerns, but it has left developers scrambling to reassess their plans. 

Projects that were well underway must now be redesigned, requiring additional space that many developments simply do not have. The cost implications alone have made some schemes unviable, leading to their cancellation or at best, significant delays.

Companies who are hiring are becoming more selective, because they are wary of making costly recruitment mistakes in such an unpredictable environment

Those of us in construction recruitment have certainly seen the impact. Many developers are pausing hiring plans as they await further regulatory clarity. Project managers are now finding themselves sidelined.

At Madison Berkeley, we have seen a sharp increase in candidates entering the job market due to stalled developments. At the same time, companies who are hiring are becoming more selective, because they are wary of making costly recruitment mistakes in such an unpredictable environment.

>> Also read: Market forecast: Why viability is tight for construction projects in the UK

>> Also read: Berkeley warns building safety regulation putting significant pressure on housebuilding

To illustrate the scale of the problem, a major London-based residential developer was forced to halt three high-rise projects mid-development when the staircase rule changed. These projects, which had already been approved under the previous regulations, had to return to the planning stage. This delayed construction by over a year and resulted in the immediate redundancies of project managers.

This scenario is playing out across the industry. Quantity surveyors, site managers and architects are all facing an uncertain future as projects remain in limbo. This is now causing the real estate market to stagnate, resulting in a recruitment market pause and a shift to being more employer-led again, with slow growth, fewer opportunities or progression.

Developers are looking for professionals who understand the new rules and can navigate complex planning processes

On a positive note, while some areas of recruitment are slowing, others are experiencing an increase in demand. The regulatory changes have led to a growing need for specialists in fire safety planning and compliance. Developers are looking for professionals who understand the new rules and can navigate complex planning processes.

One of our clients, a national surveying firm, has had to shift its recruitment strategy to focus on hiring building surveyors with expertise in fire advisory. However, these professionals are in short supply. As a result, salaries for fire safety specialists are fluctuating, with negotiations becoming increasingly complex as employers compete for a limited pool of talent.

It should be said that this scarcity is not just affecting developers, it is also impacting local authorities and housing associations that must comply with the new regulations. The demand for fire engineers, compliance officers and technical consultants is increasing, yet the industry does not have enough qualified professionals to meet this need.

This will be a long-term challenge, as training and upskilling take time, and experienced candidates cannot be created overnight. To address the skills shortage, companies must invest in training and development. Employers will need to support their existing workforce in gaining fire advisory qualifications and regulatory expertise.

At Madison Berkeley, we are advising our candidates to consider additional training in these areas to improve their employability in the current market. However, training alone is not enough. The government must provide clearer guidance and support to help the industry adapt. The shifting regulatory goalposts have made planning difficult and developers need confidence in the long-term regulatory framework before they can move forward with hiring decisions.

Beyond recruitment, there is a broader concern that the delays caused by the BSA 2022 will exacerbate the housing crisis. Many of the affected developments include much-needed residential units, including affordable housing. If developers decide that high-rise projects are no longer financially viable under the new regulations, we could see a slowdown in the delivery of homes at a time when demand is already outstripping supply.

Some developers may pivot towards building lower-rise schemes to avoid the second staircase requirement altogether. While this could provide a short-term solution, it is not always feasible in dense urban areas where land is limited. The knock-on effect will be felt across the supply chain, impacting contractors, suppliers and all those reliant on the steady flow of new developments.

Companies will need to rethink their hiring strategies, invest in upskilling and plan for long-term regulatory compliance

There is no doubt that safety should be a priority. The Grenfell tragedy exposed serious flaws in building regulations and reforms were certainly necessary. However, changes must be implemented in a way that allows the industry to adapt without bringing construction to a standstill. Policymakers must work closely with developers, planners and recruiters to ensure that regulations improve safety without creating unnecessary barriers to progress. A phased implementation of the staircase rule, or financial support to help developers meet the new requirements, could provide some relief.

For now, the industry must navigate this uncertain period as best it can. Companies will need to rethink their hiring strategies, invest in upskilling and plan for long-term regulatory compliance.

We continue to have conversations with our clients and candidates to ensure that the talent pool evolves in line with the changing demands of the industry. The coming years will be challenging, but with the right approach, the industry can adapt.

What is clear is that the recruitment industry and available resources will not look the same as it did before the BSA 2022. The focus has shifted, and those who embrace the changes head-on will be the ones best positioned for the future.

Christine Scott is director of development and construction at Madison Berkeley