Building safety: the Building Safety Levy

The Government has announced that the Building Safety Levy will come into force in Autumn 2026 (it had been anticipated that it would come into force in Autumn 2025).

The levy will be chargeable on all new dwellings and purpose-built student accommodation, which require a building control application. 

The Government has said the following will be exempt from the levy: affordable housing, non-social homes built by not-for profit registered providers, NHS hospitals, care homes, supported housing, children’s homes, domestic abuse shelters, accommodation for armed services personal, criminal justice accommodation and the development of fewer than 10 units. 

The amount of the levy will be dependent on the floorspace measured using the gross internal area (including communal areas) as set out in the RICS Code of Measuring Practice 6th Edition Rates. The rate per square metre will be set per local authority area and the Government has issued rates for each area which can be found here.

There will be a discount of 50% for developments built on previously developed land.

If the levy is not paid, the building control completion certificate will be withheld.  This is a particular issue for higher-risk buildings which cannot be occupied until they are registered. In order to register, a completion certificate is required.  

It is intended that the levy will be reviewed every 3 years.

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