Jessica Tresham
Partner
Article
The Grenfell Inquiry Phase 2 Report (the Inquiry Report), published in September 2024, made 58 recommendations for further building safety reform with wide-ranging and significant implications for the construction industry.
We are now approaching the first anniversary of the Government's response, issued in February 2025, and the anticipated issue of its first annual report, to include both a verbal and written statement to Parliament.
Against the backdrop of the Grenfell tragedy, which continues to cast a long shadow over the industry, we take a look at progress so far and what further key developments are expected in 2026 and beyond.
Grenfell Inquiry Phase 2 Report published
The Grenfell phase 2 report: Implications for the construction industry?
The Government accepted the Inquiry's findings and committed to taking action to implement all of the recommendations made.
In October 2025, the Government published its second report on progress, reporting that three of the recommendations had been completed.
On 17 December 2025, it published its third progress report announcing that it has completed five further recommendations. Two of the most significant updates concern:
The recommendation for a single construction regulator was the first recommendation in the Grenfell Tower Inquiry Phase 2 Report, informed by evidence which showed that no regulatory body had a "big picture view" of the building system, meaning risks and issues were left unconnected and unaddressed.
Alongside the third progress report, on 17 December 2025 the Government published its Single Construction Regulator Prospectus - Consultation Document. This sets out proposals for an integrated regulatory system – a "single construction regulator" – which would hold functions relating to the regulation of buildings, products and professionals. As such, it would draw together some of the current functions of the Building Safety Regulator (BSR) and the National Regulator for Construction Products (NRCP), as well as taking on new functions not presently covered by any regulator, with two exceptions: the regulator will not deliver testing and certification of construction products directly, as this would create a conflict of interest within the regulator. An alternative approach will be set out in the Construction Products White Paper (see "What next?" below for further detail on this).
Whilst the third progress report and the Single Construction Regulator Prospectus do not introduce new criminal offences at this stage, the direction of travel indicates that meaningful sanctions – which could include criminal liability – remain firmly on the agenda.
The prospectus emphasises that industry actors must not be allowed to avoid accountability for their actions and that the new regulatory framework must enable enforcement that has genuine teeth. The prospectus proposes that the regulator will have a hierarchy of objectives with safety as its primary focus, and that those lacking necessary competence "should not benefit and face proportionate sanctions". The prospectus also consults on whether a consumer duty should be introduced to protect residents, and indicates that the regulator should set "clear non-negotiable standards" for industry behaviours and enforce consequences for those who "consistently or deliberately put people at risk".
As a stepping stone towards the single construction regulator, the Government has transferred the BSR from the Health and Safety Executive (HSE) to become a separate standalone entity, effective 27 January 2026. The BSR can now enter contracts, employ staff and be legally responsible in its own name, while remaining accountable to the Ministry of Housing, Communities and Local Government (MHCLG). The Government has confirmed the BSR will form the foundation of the single construction regulator.
The consultation closes on 20 March 2026 and a response is expected in summer 2026. The Government intends to legislate for the single construction regulator as part of a bill in the third parliamentary session, with operational implementation expected to start from 2028
As part of the overarching recommendation that fire engineers should become a regulated profession, the Inquiry had called for an authoritative statement of the knowledge and skills to be expected of a competent fire engineer. In April 2025, as part of the first step towards achieving this, the Fire Engineers Advisory Panel was established. On 17 December 2025, the panel published its "Authoritative Statement". This aims to present a coherent and positive vision for the future state of the regulated fire engineering profession and those who work in it, and sets out a statement of next steps for reform of the fire engineering profession. Among other things, this confirms that the Government will legislate to regulate the title and function of a "fire engineer" to strengthen public safety and professional accountability.
Alongside the third progress report, the BSR has completed its initial review of the definition of a higher-risk building (HRB) which was called for by the Grenfell Inquiry Phase 2 Report. This considered whether HRBs should be defined only by reference to the height of a building, or whether the use of the building and the nature and vulnerabilities of occupants of the building should also be taken into account. The BSR's initial review, supported by MHCLG, concluded that there is insufficient evidence to suggest that the definition of HRBs should be changed.
The BSR's review noted that the current height-based threshold remains appropriate based on updated fire statistics. MHCLG fire statistics show that between April 2010 and March 2025, the fatality rate was 10.8 per 1,000 fires for 10 storey+ flats, compared to 4.3 for 4-9 storey flats and 5.7 for 1-3 storey flats. The review also noted that the higher-risk building regime has had a significant impact on enforcement: as of August 2025, only 31% of Building Control Approval Applications and 22% of Building Assessment Certificate applications have been approved, reflecting the regime "doing what it was designed to do: stop unsafe or non-compliant buildings from being constructed or occupied."
The BSR noted that vulnerable persons are protected through other reforms, including updates to Approved Document B (requiring sprinklers in all new blocks of flats 11 metres or higher and in all new care homes), the requirement for second staircases in new residential buildings over 18 metres coming into effect in 2026, reforms to the Regulatory Reform (Fire Safety) Order 2005 made by the Fire Safety Act 2021, and the introduction of mandatory residential Personal Emergency Evacuation Plans (PEEPs) for vulnerable residents.
Nevertheless, the BSR will operate an ongoing review which will "ensure data and evidence on the risk to individuals is regularly assessed to determine whether the list of buildings subject to the enhanced regulatory oversight of the higher risk regime should be amended in any way."
With the vast majority of the recommendations still in progress, we continue to expect substantial regulatory changes over the next four years.
Key near-term milestones include:
We will report further on progress once the first annual report, expected later this month, is published.
Our leading Building Safety team advises on a myriad of issues relating to building safety, including regulatory investigations, enforcement and criminal sanctions. With expertise drawn from a specialist cross-discipline team, we provide practical, easy-to-understand advice, with clear recommendations.
If you have any questions about the issues raised in this article, please get in touch with Jessica Tresham or Natalie Barton-Howes.
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