• The Impact of Gateway 2– An Insight
• SEC Compliance AM
• Project Case Study: Riverside Youth Club
• Tender Price Index Update
• Project Case Study: Aspire Dental Academy & Wellness Centre
• MA’s Continued Commitment to Apprenticeships
• MA Away Day 2025
• Housing Community Summit 2025

The Impact of Gateway 2– An Insight

The impact of Gateway 2 on the industry cannot be understated, but just to be clear from the outset – we are choosing not to focus on the time taken to get approvals (on average 9 months!), the number of applications rejected (69%), the lack of consultation during approval periods or the huge impact these delays are having on housing starts in London…

We continue to progress with hope and optimism that these issues will be rectified in due course! Easy for the author to say but of course, these factors are pertinent for our clients when making decisions on projects in weighing up the risks and the impacts on viability, cashflow and finance. No wonder we have seen the lowest number of housing starts in London since the crash of 2009!

Instead, we are putting on our rose-tinted glasses and imagining a world where the Gateway system had been implemented as it was envisaged…

What implications does the new system have for the industry?

The new system has introduced a stop-go approval before projects can progress to the construction stage; to secure approval, the building needs to be designed generally to a Stage 4 or, in some aspects, Stage 5 level of design.

Previously, the latter design stages typically overlapped with the early construction stages. Whilst piling and frame works progressed on site, construction detailing for packages, which come later in the construction period, were being finished off. This is now not possible and in essence the most obvious impact is longer programme durations – not only is there an approval period to be accounted for in programme terms but that concurrency between design and construction periods has now had to greatly reduce.

As a result, project cashflow and viability have been impacted in terms of programme durations but also the expense of design fees earlier in the project before start on site. It also extends the time periods between gaining Planning approval and starting on site; for many of our clients who drawdown funding when construction commences, this has a further significant impact on cashflow and therefore viability.

Contractors and developers are also having to adjust to the approach; they require input from their supply chain to prepare Gateway 2 submissions but are unlikely to procure works from them until submissions have been made and approval has been granted. Greater trust and stronger relationships with their supply chain members are required to help them manage this difficulty. The conflict between Building Control and Planning requirements is also presenting a “chicken and egg” type challenge as design progression may necessitate further Planning approvals and condition discharge before Gateway 2 submissions can be made – further extending programmes and potentially incorporating Planning delay into the programme to exacerbate the situation.

What does the new system mean for the procurement of HRBs?

The other area impacted by the new system is procurement. As we know, over the years, Single Stage Design and Build had become the most popular form of procurement. This is because clients had been able to pass a high degree of risk through the contract to their constructor partners. Best practice is that the client develops the design to at least a Stage 3+ level but we are all aware that this is not always the case and clients have still looked to procure with just a Planning level of design.

With Gateway 2 in play, the level of risk associated with this procurement strategy increases significantly and the feedback from the contractor market is that they are not willing to accept this level of risk. This aligns with the intentions of the legislation, an objective of which was for clients to take on more understanding and responsibility for the design and construction of their own buildings.

The increased risk level derives from the risk of rejection of details by the BSR at Gateway 2, the impact this may have on programme, the much-publicised delays for approval and the risk of product supply and detailing where products that may have been specified in the Gateway 2 submission become discontinued and may require a variation with the BSR and further delay.

So, with Single Stage Design and Build no longer an option for HRB procurement, what are the other approaches available to clients? The solution the market is veering towards is Two Stage Design and Build which tries to capture the fixed price and derisking elements of Design and Build for clients but does not tie the contractor to a price until Gateway 2 approval is secured.

Two Stage is hugely popular in many sectors of the construction industry but has not always been a big part of residential development due to the comparatively simple nature of the construction and the difficulty it potentially presents to procurement rules for publicly funded clients as the second stage can tend towards a negotiated position. It needs to be carefully managed to ensure successful outcomes.

How is the industry coping with the changes?

The implementation of the new system has been a bigger hindrance to the industry than the new system itself. The delays to approval are not only having a big impact on starts but also on the confidence levels in the industry. The result is that many clients are looking to sites where building heights are lower or even applying for Planning amendments to decrease the height of buildings below the HRB threshold. The lack of guidance in respect of submissions and the absence of consultation during the approval period have made the situation worse.

The Government recognise the difficulties the implementation has caused and there have been announcements in recent weeks about changes at the Regulator and new ideas to improve the system with details of a new fast track route to follow. Industry guidance from the CLC has just been released, recent applications have seen better liaison with the BSR. Our collective experience of the system is also increasing so the situation is likely to improve.

However, what we will be left with is a position where clients and contractors need to adapt to new methods. Project viability will need to be recast to take account of longer programme periods. In time we will become used to this, but right now the transition is tough!

South East Consortium Compliance AM

On 17 September 2025 we were delighted to take part in SEC’s Compliance AM event. As sponsors, exhibitors and delegates, we joined over 100 of our peers at the British Library for a morning of presentations, panel sessions and networking focused on compliance and some significant changes ahead.

The opening panel session, including Pilon, L&Q and Devonshires, centred around the changing requirements for social landlords and electrical safety. This November, the UK Government is extending mandatory electrical safety testing requirements to social landlords requiring electrical installations to be tested at least every five years and for appliances to undergo regular PAT testing. All delegates agreed that this requirement will increase the health and safety of their properties and improve the quality of their customer’s lives, by improving their homes. The changes are, however, having an impact on the cost, time and resource of asset management teams as they roll out the new systems to successfully manage this process across their property portfolio.

A later session from Dr Altamirano of UCL & UKCMB focused on health and moisture in buildings; this was a timely reminder of the importance of understanding how moisture in buildings contributes to the necessary conditions for mould growth. This October, Awaab’s Law takes effect which, amongst other requirements, means that if a social landlord becomes aware of a potential damp and mould hazard in a social home, they must investigate within ten working days to ascertain if there is a hazard to the customer living there. Within the law, there are strict timescales for reporting and remedial works and if the property cannot be made safe promptly, the social landlord will need to offer to arrange alternative accommodation for their customer until the situation is rectified.

All the sessions demonstrated that to be successful at compliance, landlords need to put the safety of their residents first, they need to build a positive reputation and trust with their customers; the best way to do this is through effective, clear communication and by delivering a high level of service.

Delegates who we spoke to agreed that the best way to achieve this is for clients to have an integrated supply chain who understand the client’s objectives and who are experienced and knowledgeable about the customers and the properties that they are working in.

If you want to find out more about the work we are doing in compliance and building safety, please contact ma@martinarnold.co.uk or visit us at www.martinarnold.co.uk.

Project Case Study: Riverside Youth Club

Appointed by the London Borough of Lewisham and their internal clients, Martin Arnold supported the procurement and delivery of refurbishment and improvement works to a youth centre building in Deptford, London.

The building, closed since the Covid-19 outbreak, sits in the heart of a residential area and plays a key role in delivering youth services, including sports and other activities. The works included extensive internal and external improvements such as layout alterations, a full rewire and heating system upgrade, brand new changing room facilities, a roof terrace and a mixed-use games area. A new 3G football pitch, endorsed by Millwall Community Trust and part-funded by the Football Foundation, was also delivered as part of the scheme.

Acting as Employer’s Agent, our team produced the Employer’s Requirements, supported the procurement process and administered the JCT Design & Build contract. We also provided Clerk of Works and Cost Consultancy services throughout the project to ensure quality and value were achieved.

As part of the project’s wider community impact, Martin Arnold were proud to participate in the Riverside Youth Club fundraising tournament, held on the club’s new pitch and organised by Lewisham Council. Led by our Directors Tom Hopkins and Ben Davis, Team MA faced off against Re-Gen UK in a friendly match, securing the win in great spirit and in support of an amazing cause. The funds raised will contribute towards activities at the August celebration event, marking the club’s official reopening and creating more opportunities for local young people.

Read the complete case study on this project here:https://www.martinarnold.co.uk/project/riverside-youth-club/

Tender Price Index Update

As we progress into Autumn 2025 the market remains extremely mixed.

If we look to the BCIS Tender Price Index, we see that inflation has remained very consistent throughout the year at just over 2.5% per annum. This slow but steady increase in costs is largely seen by analysts as an example of “cost-push” inflation rather than “demand -pull” – i.e. costs are going up because material and labour costs are pushing them up rather than because the market is busy.

Economists are always concerned about low growth, high inflation positions because they can be difficult to stop. Typically, if you have inflation driven by high growth, policy makers can put the brakes on the economy or if you have low inflation then they can inject money into the system. In this instance – which is also a reflection of the wider economy – policy makers are restricted on what they can do because any measures put in place to increase growth will very likely lead to increased inflation.

The Labour Government is now 14 months into their role and many of their policy measures are now coming into play. They have repeatedly pushed their growth agenda, and this was apparent again in the Spending Review earlier in the year. So far, however, there seems to have been little of that input that has yet been delivered at project level. Further time is required to assess how these measures will impact the market.

The persistent inflation in the market plus the relatively low levels of market output continue to place financial pressure on all parts of the construction industry. The industry continues to recover from cost shocks from previous years. The combination of both is worrying for all!

Forecasts, however, from across the sector continue to remain optimistic for 2026 as the promised increase in public investment begins to filter through into the system and there is some anticipation that the housing market will gradually improve throughout the year which should also fuel better prospects for the industry.

A significant part of the underlying inflationary pressure stems from the labour market where there continues to be structural weaknesses due to the lack of supply of skilled workers and an ageing workforce. Many in the industry are fearful that if there is a positive supply side shock (i.e. dramatic increase in Government funding or a sudden improvement in residential sales market), then this could lead to a further inflation event simply because there is not enough labour supply to cope and adjust which will lead to increased wages and costs.

Project Case Study: Aspire Dental Academy & Wellness Centre

Appointed by DMG Workplace, Martin Arnold provided cost estimating and planning services in support of the client’s tender submission for a high-specification fit-out project in Mayfair. The scheme focused on transforming an existing commercial unit into a state-of-the-art dental academy and wellness centre.

The project involved a full soft strip of the existing premises, followed by a Category B fit-out. Designed by the employer’s design team, the scheme featured complex architectural detailing, bespoke high-end furniture, and a premium specification throughout to reflect both the prestige of the location and the specialist nature of the facility.

Martin Arnold’s role extended beyond traditional Cost Consultancy with our team members undertaking detailed design and tender documentation reviews to ensure full alignment with the employer’s tender requirements. Our input was instrumental in enhancing the competitiveness of the client’s bid, ensuring both compliance and value.

Our role extended beyond the traditional Cost Consultancy, with our team reviewing design and tender documentation for full compliance and leading the procurement for the specialist contractor packages. This ensured accurate costings, competitive value, and a strong, compliant bid.

For more details about how we supported this project, you can read the full case study here: https://www.martinarnold.co.uk/project/aspire-dental-academy-wellness-centre/

Martin Arnold’s Continued Commitment to Apprenticeships

We are pleased to have welcomed two new apprentices into our ranks, meaning we now have 19 apprentices and trainee surveyors within the practice.

At Martin Arnold we have a proven long-term commitment to training young people, helping to bring young talent into the sector and nurturing their growth as construction professionals. Throughout our 25-year history, we have continually employed apprentices, an achievement the practice is extremely proud of.

Making up 13% of our workforce, our apprentices work four days a week in their roles within the business and on the fifth day, they attend university or college to carry out their academic studies. We currently have apprentices on three different pathways, working towards Building Surveying, Quantity Surveying and Architecture degrees.

Many of the apprenticeships will take five or more years to complete. Whilst this is a long-term commitment from us as a practice, it is also a serious commitment from the apprentices themselves and there are always challenges along the way. We work hard to support our apprentices in their academic studies and help them manage their academic and professional workloads.

This summer several of our apprentices graduated, including Will Stone; we asked him his views on apprenticeships now that he has completed the academic pathway for Building Surveying.

Why did you apply for this apprenticeship?

I was initially unsure which area of the construction industry I wanted to pursue but after completing work experience at MA, I realised that Building Surveying offers a career with variety, challenge and opportunities to keep learning. I was drawn to the apprenticeship route because it allows me to gain practical, hands-on experience while developing my knowledge and understanding — a way of learning that suits me best.

Why did you want an apprenticeship at Martin Arnold?

MA demonstrated a strong focus on training and supporting people to grow their skills organically. I was impressed by the welcoming, collaborative culture, where colleagues are keen to share knowledge and offer guidance. I knew this was an environment where I would be given every opportunity to develop as a Building Surveyor and progress in my career.

Would you recommend the apprenticeship route?

I would absolutely recommend the apprenticeship route. It allows you to see how the material you are taught in university is implemented in real-world situations, which not only deepens your understanding but also helps you retain information far more effectively.

What benefits do you see from being an apprentice?

It develops your technical skills while also building your confidence in applying them to real projects. It gives you the chance to form valuable relationships with colleagues, clients and industry contacts early in your career and, of course, it offers the added benefit of avoiding student debt and allowing you to earn as you learn!

What are your future goals?

My future goals are to complete the APC process and become a fully qualified Chartered Building Surveyor. After this, I hope to work on complex building projects, particularly those that incorporate innovative and sustainable construction methods.

Thanks to Will for his insights, and we look forward to supporting him with his next challenge: the RICS’ APC assessment. For now, he assures us that he has enjoyed his first summer without study!

If you would like to find out more about our apprenticeships and training opportunities, please check out our website here where you can get in touch and download our training brochure.

Annual MA Away Day at The Oval

The Martin Arnold team came together for our annual Away Day, this year hosted at the Oval Cricket Ground. The day offered the perfect opportunity to step away from the office, reflect on our achievements, and plan for the year ahead, while enjoying time together as a team.

The day kicked off with a business update from our Managing Director Roger Arnold and Director Chris Martin, highlighting key achievements, ongoing projects and strategic priorities for the year ahead. Following this, an engaging internal session was held by the leadership team covering a wide range of important topics, including staff survey insights, mental health and wellbeing initiatives, ISO and accreditation progress, training updates, sustainability task force updates, website updates and our ongoing social value work.

We were delighted to welcome ESG Consultant Stuart Butler-Gallie and Director of Education & Sport David James from Charlton Athletic Community Trust (CACT), who led a session on our partnership work, social value initiatives and collaboration with the Royal Borough of Greenwich (RBG).

The day finished on a high with the Quantum Challenge team build activity, bringing everyone together in a fun and interactive way. To round things off, we headed to the Riverside Pub to relax, reflect and celebrate a successful day together.

The Away Day was not only a chance to share knowledge and updates but also to strengthen connections across the teams and celebrate the people who make Martin Arnold the practice it is.

A big thank you to everyone who contributed to the day and made it such a success. We look forward to continuing to work together to achieve even more in the year ahead.

Housing Community Summit 2025

Our team were pleased to be able to attend the CIH and NHF’s Housing Summit again, held in Liverpool on 8 and 9 September 2025. In the wake of Angela Rayner’s shock resignation and with the Autumn Statement looming in November, we were eagerly anticipating the opportunity to delve into some of the issues dominating our industry and work through some potential solutions with a spectrum of experts from our sector.

After a lively opening session chaired by Radio 4’s Kirsty Wark and featuring former MP Rory Stewart, the tone had been set for a summit; clearly, there were no plans to shy away from tackling the big issues head on. Several key themes developed over the two days that are going to be crucial to the success of the sector in terms of contributing to new homes delivery and trying to help get as close to the 1.5m homes target as possible.

Firstly, the 10-year Affordable Homes Programme (AHP), rent settlement and rent convergence, along with access to the Building Safety Fund, was rightfully acknowledged by most delegates as the sector now getting what it has asked for; these developments also mean a fair framework to deliver new homes has been set. The discussions concluded, however, that the announcements from the Spending Review alone will not be enough to deliver the sector’s share of the 1.5m homes and that cooperation and collaboration is going to be required to deliver “creative solutions”.

Secondly, it became apparent that the cost of borrowing for the registered providers (RPs) is going to be key to successful delivery. RPs need to collaborate with private finance and institutional investors from an early stage in the development process to ensure that the development opportunity is stress tested and developed in such a way that it delivers for all invested parties and potential partners.

Thirdly, the consensus amongst the delegates was that the current market conditions mean that the bulk of the delivery of new homes is going to be outside of London and the South East. The cost of legacy issues affecting existing stock, the ongoing struggles with the performance of the Building Safety Regulator and the cost of construction in London means that viability will continue to be more challenging in these areas. It is likely that RPs operating in geographies outside of London and the southeast who have fewer legacy issues with their homes are going to be more likely to be able to “hit the ground running” in March 2026; as such, we predict more allocations occurring outside of London.

In summary, the 10-year AHP has set the Government’s tone for the next ten years, however, potential political uncertainty and disruption at the next general election must not be overlooked. The sector needs to develop the right conditions to appeal to partners and private finance by demonstrating that it is a stable, long-term and regulated area of investment able to deliver over the long term at low risk.

If you would like to explore more about the work we are currently involved in with joint ventures, partnerships and in site viability, please contact ma@martinarnold.co.uk and take a look at our website https://www.martinarnold.co.uk/projects/.