The Gateway Gridlock: Unlocking Progress with the Right Finance Partner
The UK’s building regulatory landscape has undergone a significant transformation with the introduction of the Gateway process—a three-stage approval system specifically designed for higher-risk buildings. While this new regulatory framework represents a crucial advancement in enhancing building safety, it also introduces substantial complexities for developers.
At Maslow Capital, we are stepping towards these challenges with a highly experienced team that possesses a thorough understanding of the Gateway process and its implications. Our commitment is to partner with developers, supporting them through this complex regulatory framework by leveraging our funding, expertise, and access to leading professional advisers.
The Developer Challenge: The Gateway Two Bottleneck
Gateway Two, requiring detailed design approval before construction works begin, has emerged as a major obstacle. With approval rates currently as low as 14%, many projects are experiencing substantial delays, disrupting construction timelines, procurement schedules, and sales strategies. These delays are primarily driven by an overwhelmed Building Safety Regulator (BSR), incomplete submissions, and designs not fully aligned with new stringent safety standards.
The extended approval timelines and requirement to reach a detailed design stage ahead of securing traditional development finance imposes significant financial overheads, leading to increased holding costs, tied-up capital, and ultimately heightened development risk for developers. Traditional lenders, constrained by rigid timelines and fixed drawdown requirements, are often unable to offer the flexibility needed to support developers through this process.
Recognising these challenges, Maslow Capital offers tailored financial products with the required flexibility to support developers navigating Gateway approvals:
- Gateway Bridging Finance: Financing designed specifically to support developers with pre-construction design costs and professional fees incurred during the Gateway Two approval stage.
- Upfront Commitment of Development Funding: Full development funding secured ahead and in place ahead of Gateway approval, giving certainty and flexibility which accommodates extended Gateway timelines, ensuring alignment in the capital stack and reduced equity requirements.
- Development Exit Product: Enables developers to release equity from other projects earlier in their lifecycle, providing enhanced liquidity and financial agility to assist with cash flow management and portfolio optimisation.
We combine this extensive product set with, practical experience, deep regulatory knowledge and established partnerships with leading industry professionals. Our proactive approach has already enabled clients to successfully progress projects despite the Gateway delays.
Our promise is partnership—providing not only tailored finance but strategic guidance, enabling you to confidently manage your project timelines.
