Decoding the Building Safety Act 2022 and What it Means for Those Involved in UK Based Branded Residences and Hotel Projects
By Charlotte Tullis Senior Associate, Bryan Cave Leighton Paisner LLP | December 2023
This article was co-authored by Jeremy Bark, Associate Director, Bryan Cave Leighton Paisner
Historically, the United Kingdom has lagged behind the likes of Dubai, South Florida, New York, Hong Kong and Singapore in the branded residences space, as Brits have tended to prefer traditional house living.
However, this is gradually changing, particularly in London which, as a global city, has to cater for international tastes.
Opting to live in a branded residence brings with it many lifestyle benefits – the space is new, is fitted out to a high specification, and has the added benefit of access to services and amenities (highly desirable in today's fast-paced society where people have little time to dedicate to upkeep of their homes). Discerning buyers want the luxury hotel brand experience brought into their home, with quality hotel services, access to the restaurants, the spa, and even to room services.
Investors and developers have jumped on this trend; Savills research indicates that 20 branded residences schemes will be either completed or in the pipeline to open by 2030 in London. The OWO Residences by Raffles and The Peninsula Residences London are the most recent luxury branded residences to be brought onto the market, with residences ranging in price from around £5 million for a two bedroom apartment to an eye watering £100 million for the penthouse in The OWO.
There is clearly an opportunity for inbound investors to capitalise on this emerging market. However, those that choose to invest in the UK must be fully aware of the statutory and legal framework that residential high-rise schemes must abide by, and, at its most reductive, items which may impact their returns. Enter stage left, the BSA.
The BSA: What Is it and Why Is it Needed?