From 1 October 2026, the new Building Safety Levy will come into effect in England, introducing an additional cost for certain residential developments. The levy will principally affect major residential developments of 10 or more new dwellings, or developments providing 30 or more purpose-built student accommodation bedspaces.
The levy has been introduced to raise funds to help meet the costs of addressing building safety defects in residential buildings across England.
The amount payable will be calculated against the chargeable residential floorspace, with rates varying between local authority areas. Exemptions apply to certain developments, including qualifying social and supported housing.
Building control applications submitted before 1 October 2026 will not be subject to the levy. Applications submitted on or after this date may be liable where the relevant criteria are met.
Developers with residential schemes currently progressing towards the Building Regulations stage should therefore review their programmes and consider the potential implications of the levy now.
