What is the building safety levy?
The building safety levy is a tax on new major residential developments, coming into effect from 1st October 2026. The levy was introduced by The Building Safety Levy (England) Regulations 2025.
According to the Government, its purpose is to shift the financial burden for fixing life‑critical safety defects away from leaseholders and taxpayers on to developers of new residential buildings. The income raised from the levy will be used for the remediation of building safety defects across England, ensuring the safety of residents.
Application
The levy is aimed at major residential developments* and will be charged on applications and notices seeking building control approval for works providing dwellings or purpose-built student accommodation (PBSA).
*Major residential developments are those involving at least:
- 10 dwellings; or
- 30 bedspaces, in the case of PBSA.
The levy will also be charged on applications relating to extensions, change-of-use, or conversions that form part of a major residential development and result in net increases in residential floorspace exceeding the above thresholds.
The levy will be charged on applications for building control approval made under existing legislation, including:
- The Building Regulations 2010;
- The Building (Higher-Risk Buildings Procedures) (England) Regulations 2023; and
- The Building (Registered Building Control Approvers etc.) (England) Regulations 2024.
Exemptions
The levy does not apply to the buildings listed in Schedule 1 and Schedule 2, which include:
- social and supported housing;
- school accommodation;
- temporary accommodation for homeless people;
- domestic abuse refuges;
- prisons; and
- care homes.
How is it calculated?
The amount of levy payable will be calculated based on the residential floorspace (consisting of accommodation and communal floorspace), multiplied by a specific area rate per metre squared. The area rates are listed in Schedule 3.
Payment of levy
The client will be required to provide building safety information as part of the building control process, to enable the building control authority to determine the levy liability amount and issue a levy liability notice.
Upon receiving a levy liability notice, the client must pay the levy after work has commenced and before building occupation or submission of the notice or application required at completion stage under existing legislation (whichever comes first).
If a client does not pay the levy, building control authorities can withhold a completion certificate until the full amount of levy is paid.
A summary of the Regulations, including duties for provision of information and payment of the levy can be found in The Building Safety Levy (England) Regulations 2025 entry on LUS.
