Building Safety Levy – What Developers Need to Know
The Building Safety Levy is a new charge on residential development in England that is due to come into force in 1st October 2026. Introduced under the Building Safety Act 2022, the Levy forms part of the Government’s wider programme of building safety reform and is expected to raise approximately £3.4 billion to support building safety-related expenditure.
Following two industry consultations, implementation of the Levy was deferred by 12 months, with the new commencement date now set for 1st October 2026.
Who Will Pay the Levy?
The Levy applies to developers of new residential buildings and is linked directly to the building control process.
It will be administered by the relevant local authority, which will calculate the Levy liability and issue a Levy Liability Notice. If changes are made to the development during construction—for example, an increase in Affordable Housing provision—the authority can issue an Update Notice to amend the amount payable.
How Is the Levy Calculated?
Levy rates have been set individually for every local authority area in England and are based on local property values.
Each authority has two published rates:
- Brownfield development rate – charged per square metre of gross internal floor area (GIA)
- Greenfield development rate – charged at double the equivalent brownfield rate.
As the Levy is calculated using gross internal floor area, communal areas within apartment buildings are included, meaning charges also apply to space that is not saleable.
Exemptions
Certain developments are exempt from paying the Building Safety Levy, including:
- Affordable Housing.
- Care homes.
- Other specific development types identified within the regulations.
Developers should review the applicable exemptions carefully when planning a scheme.
Transitional Arrangements
There are important transitional provisions for projects already in the building control system.
- Initial Notices submitted before 1st October 2026 will not be liable for the Building Safety Levy, provided construction commences within an initial three-year transition period.
- If work has not commenced within that three-year period, or if the project requires re-registration of the Initial Notice, the development will become liable for the Levy.
Developers should therefore consider programme timings carefully to ensure they understand whether a project falls within the transitional arrangements.
When Is Payment Due?
The Building Safety Levy must be paid before the first Final Certificate can be issued for any dwelling on the development.
Failure to pay the Levy will prevent completion certification from being issued, potentially delaying occupation and handover of the development.
How Complete Building Control Ltd Can Help?
The introduction of the Building Safety Levy adds another important administrative requirement for residential developments. While the Levy is administered by local authorities, it is closely connected to the building control process.
Complete Building Control Ltd can help developers understand how the new requirements apply to their projects, identify whether transitional arrangements or exemptions may be available, and ensure applications progress smoothly through the building control process. Early engagement can help avoid unnecessary delays to certification and project completion.