What's Happening?
The Brighton and Hove City Council has approved a budget increase for the Sackville Road Trading Estate project, a 306-home affordable housing development. The project, in partnership with housing association
Hyde Group, aims to provide 183 council-rented homes and 123 residences for shared ownership. Despite receiving planning approval, the project faces significant cost increases due to delays in securing Building Safety Regulator (BSR) gateway two approval. The statutory approval period is 16 weeks, but current submissions are taking between 40 and 50 weeks, potentially extending up to 80 weeks. Each week of delay adds significantly to the build cost, with the council now allocating an additional £2.6 million for the social rented homes, bringing the total budget to £32.8 million.
Why It's Important?
The delays in BSR approval highlight challenges in the construction industry, particularly in affordable housing projects. These delays can lead to increased costs, impacting the financial feasibility of such developments. The Brighton housing scheme is crucial for addressing local housing needs, and any setbacks could affect the availability of affordable housing in the area. The government's introduction of a fast-track system to address approval delays is a critical step in mitigating these issues. The situation underscores the importance of efficient regulatory processes in supporting housing development and addressing the housing crisis.
What's Next?
Brighton and Hove City Council aims to appoint a contractor by the end of the year, with construction expected to start early next year and complete by 2029. The BSR has committed to clearing its backlog of legacy gateway two applications by January, which could alleviate some of the approval delays. The council and Hyde Group will continue to monitor the situation closely, adjusting plans as necessary to minimize further delays and cost increases. The success of this project could serve as a model for future affordable housing developments facing similar regulatory challenges.
