The Building Safety Levy will come into force in England on 1 October 2026. It will apply to certain building control applications for work that results in new dwellings and/or new bedspaces in purpose-built student accommodation and change of use to residential purposes.
The Building Safety Levy is a new charge linked to certain residential development in England.
Its purpose is to raise funds to support building safety expenditure, including the remediation of building safety defects.
The levy will be charged through the building control process, collected by local authorities and passed to central government.
The levy will be charged per square metre of qualifying residential floor space based on Gross Internal Area (GIA)
The levy applies from 1 October 2026.
Building control applications and notices submitted on or after this date will fall within the levy regime, depending on the type of development and any relevant exemptions.
Developers should review timing carefully, particularly where schemes are moving through feasibility, planning, design or building control strategy.
The levy is not limited to higher-risk buildings.
It applies to certain new residential development and purpose-built student accommodation in England, subject to exemptions. (see more detailed description above).
This means it should be considered across the wider residential development pipeline, not only on schemes that fall within the higher-risk building regime.
The legislation and Government guidance refer to exemptions for certain types of development, including affordable housing, supported housing, developments of fewer than 10 dwellings and housing built by non-profit providers of social housing.
Developers should check potential exemptions on a scheme-by-scheme basis.
Levy rates are expected to vary by local authority area.
This means project location may affect the levy calculation. The treatment of previously developed land may also be relevant.
Early review can help developers understand potential exposure before key commercial decisions are made.
Developers should start by reviewing:
The Building Safety Levy (England) Regulations 2025 and current government guidance on the topic
Which schemes in the pipeline may be affected
Whether any exemptions could apply
The likely timing of building control applications or notices
The local authority area for each relevant scheme
Potential cost, viability and programme impacts
How the levy should be reflected in early project planning and risk reviews
The Regulations were made in November 2025, ahead of the 1st October 2026 implementation date, and they are an important point of reference for developers, project teams and advisers preparing for the change.
The Building Safety Levy is a practical project viability issue.
For residential development in England, it should be considered early enough to support informed decisions on cost, viability, programme and delivery strategy.
This briefing is intended as a general summary only and does not constitute legal advice. Developers should review the latest legislation and government guidance, and take project-specific advice where needed.
