What is the Building Safety Levy?

On 10 July 2025 the Government laid its draft Building Safety Levy regulations before Parliament setting out how the levy will operate. On 19 November 2025, the regulations were approved and made. The levy will come into operation on 1 October 2026.

• From 1 October 2026, the levy will apply to residential development in England, unless exempted. Please see the levy regulations and guidance here:
  • Legislation - The Building Safety Levy (England) Regulations 2025
  • GOV.UK - Building Safety Levy: Guidance
• The levy is to be charged on certain applications for works that result in new dwellings and/or new bedspaces in purpose-built student accommodation (PBSA) and change of use to residential purposes.
• Local authorities with building control responsibility will act as levy collecting authorities. Rates vary by local authority and whether the development is on previously developed land, please see the rates table GOV.UK - Building Safety Levy: Guidance - Section 2: Levy rates and calculations.
• Affordable housing supported housing and any housing built by non-profit registered providers (and their wholly-owned subsidiaries) is exempt from the charge.
• The levy charge is calculated by collecting authorities following provision of information and evidence at commencement notice stage. Payment must be made prior to the earlier of either the occupation or completion stage and must be made to the local authority acting as collecting authority (the local authority where the proposed buildings are located).
• If a residential developer wishes to dispute the levy charge, a refund amount or the decision not to issue a refund, they can request a review by the collecting authority within 28 days. If a developer remains in dispute they can appeal the matter to the First Tier Tribunal.
• Failure to pay the levy will mean the building control authority will withhold the completion certificate or reject the final certificate.