24th September 2026 ❘

The Building Safety Levy: Answering eight key questions for developers before 1 October 2026

The Building Safety Levy: answering 8 key questions for developers before 1 October 2026

The Building Safety Levy comes into force on 1st October 2026 and will introduce an additional cost for many residential developments in England.

The levy forms part of the Government’s programme to raise approximately £3.4 billion over 10 years to fund the remediation of historic building safety issues and cladding remediation. Developers and landowners involved in residential development should consider the potential impact now, particularly when assessing development viability, preparing budgets and planning building control submissions.

  1. Which developments are affected?

The levy applies to certain building control applications and notices submitted on or after 1 October 2026. Broadly speaking, it can apply where development creates:

  • new dwellings;
  • new bedspaces in purpose-built student accommodation (PBSA); or
  • residential floorspace through a change of use.

The levy can be triggered by:

  • the construction of new residential buildings;
  • extensions which create new residential floorspace; and
  • the conversion of existing buildings to residential use.
  1. When does the levy apply?

A development will generally be liable for the levy where all of the following three conditions are met:

  1. The development forms part of a ‘major residential development’;
  2. The development creates new residential floorspace; and
  3. The developer is not an exempt body.

For these purposes, a major residential development is generally one that creates:

  • 10 or more dwellings; or
  • 30 or more bedspaces in purpose-built student accommodation.
  1. How much is payable?

The amount payable depends on:

  • the location of the development;
  • the amount of chargeable floorspace; and
  • whether the development qualifies for any reductions or exemptions.

Levy rates are set on a per-square-metre basis and vary across England.

  1. When must the levy be paid?

Payment is generally required before completion of the building works or before occupation of the building, whichever occurs first.

A levy liability notice will normally be issued, identifying the amount payable and the person responsible for payment.

  1. What if I have already submitted an application?

In general, building control applications or notices submitted before 1 October 2026 are not expected to fall within the new regime.

However, developers should take advice where applications are amended, replaced or resubmitted after that date, as transitional provisions may affect liability.

  1. Are any reductions available?

A reduced rate may apply to qualifying previously developed land (for example, brownfield land). Whether a development qualifies will depend on the detailed statutory criteria.

  1. Are there any exemptions?

A number of developments are exempt from the levy, including certain:

  • hospitals;
  • care homes and hospices;
  • hotels and hostels;
  • school accommodation; and
  • social housing providers (including non-profit registered providers of social housing).
  1. What should developers do now?

With implementation approaching, developers should:

  • review current and proposed residential schemes;
  • assess whether developments meet the charging criteria;
  • identify any available exemptions or reduced rates;
  • incorporate levy costs into viability assessments and development budgets; and
  • seek advice at an early stage where there is uncertainty over liability.

For further advice you’re welcome to contact our Commercial Property team – please just get in touch and they’ll be happy to help.