A new Building Safety Levy starting Autumn 2026 will impact all new residential buildings requiring building control approvals, raising £3.4bn for safety remediation. Developers must comply with local authority rules, with rates varying regionally and discounts available for brownfield sites.

In Autumn 2026, a new Building Safety Levy set to be imposed on new residential buildings requiring specific building control approvals will come into effect, as detailed by the government in a recently published response to consultations. The Building Safety Act 2022 provides the legal framework for this levy, which aims to enhance safety measures in the construction sector. The levy will affect all new residential dwellings, which include mixed-use buildings and purpose-built student accommodation in England.

While there has been some opposition to the inclusion of build-to-rent schemes and retirement housing, the government has confirmed they will also be subject to the levy. The funds collected from this arrangement are projected to contribute approximately £3.4 billion towards building safety remediation initiatives. Local authorities will be responsible for collecting the levy, which will be calculated on a per square foot basis, akin to the existing Community Infrastructure Levy. Central government will determine the specific rates, which will differ by local authority according to regional house prices and will be reviewed every three years.

A discounted rate of 50% will be available for developments on brownfield sites, defined in accordance with the National Planning Policy Framework. To qualify for this reduced rate, a minimum of 75% of the development must utilise previously developed land. Developers will be required to provide crucial information to local authorities at the time of applying for building control approval. This includes details on planning permissions, the number of dwellings, and the overall gross internal area of the development. Submission of these details is essential, as failure to do so may result in rejection of the application, delaying the issuance of completion certificates until the levy is fully paid. The government plans to lay the new regulatory framework before Parliament later this year, allowing developers an 18-month lead-in period to accommodate these additional costs into their budgets.

This preparatory timeline also aims to give local authorities the necessary time to adjust to the operational changes brought by the new levy. While developers will have some flexibility regarding payment timelines, the levy must be settled before applications for completion certificates can be submitted. Thus, timely notifications to local authorities regarding any changes to the development are critical. Any alterations that affect the total number of units or the eligibility for exemptions must be reported, or this could result in further delays in project completion. The implications of this levy on developers are significant. They must begin to incorporate the projected costs into their development plans immediately.

The complexities of the levy’s implementation, particularly in relation to large master plans and phased development projects, will require careful consideration. Additionally, efficient management of timelines for submissions and notifications regarding any project modifications will be essential to avoid potential delays in receiving completion certificates. As the details of the operational framework continue to evolve, industry stakeholders will be keenly observing how these changes will unfold and impact the construction landscape in England.