Building Safety Levy

The Building Safety Levy is a government charge on new residential developments. It is calculated based on the floor area (square metres) of residential buildings.

The income raised will be used to help fix building safety defects across England, in response to the Grenfell Tower fire in 2017.

The developer (client) is responsible for paying the levy.

A completion certificate will not be issued until the levy has been paid in full.

When the levy applies

The levy will come into effect on 1 October 2026 and will apply if you are applying for building control approval for:

• One or more new or converted homes (including any self-contained accommodation/annex)
• One or more Purpose-Built Student Accommodation (PBSA) bedspaces

Not all new developments have to pay the levy. You must consider whether your development meets the levy charging conditions and complete the relevant section within the application form. The application form will be available soon.

Charging conditions

There are charges for the levy when the development is a major residential development, defined as:

• 10 or more homes
• 30 or more new bedspaces

The works have to create new residential floorspace.

Conversions or changes of use from non-residential to major residential developments are also subject to the levy

Exemptions

The levy does not apply to:

• Registered non-profit social housing providers 
• Social housing
• Supported housing
• School accommodation
• Accommodation for domestic abuse victims
• Hospitals
• Children’s homes and residential family centres
• Hotels and hostels
• Monasteries, nunneries and similar establishments
• Care homes and hospices
• Secure residential accommodation (e.g. prisons)
• Almshouses
• Temporary accommodation for homeless people
• Armed forces accommodation
• Ministry of Defence or Crown properties

How to calculate and pay the levy

Once the levy starts on 1 October, this is the process to pay the levy:

Stage 1: Submit your application

Include Building Safety Levy information within your building control application.

• Applications without this information will be rejected
• Applications submitted before 1 October 2026 are not liable

Stage 2: Submit a commencement notice

Before starting work, you must submit a commencement notice within 2 working days, with supporting levy information.

Stage 3: Our assessment

We will look over the information you provide and we will issue either:

• A levy liability notice or
• A notice of no charge

This will be issued within:

• Five weeks (standard) or
• Eight weeks (if a spot check is required)

Stage 4: Pay the levy

We will provide the ways to pay the levy. The levy must be paid in full.

Stage 5: Completion certificate

A completion certificate will only be issued by us, once the levy has been fully paid.

How much the levy costs

The levy is charged per square metre (sqm) of floorspace.

• Previously developed land (brownfield) - £19.41 (per sqm)
• Non-previously developed land - £38.81 (per sqm)

Floorspace

Floorspace is measured using Gross Internal Area (GIA).

• Included: Communal areas used mainly by residents
• Excluded: Areas used mainly by the general public

Previously developed land (brownfield)

Chargeable developments which are constructed on previously developed land, sometimes known as brownfield land and meet at least 75% of the regulations definition of “previously developed site”, may be charged using a 50% discounted levy rate.

Future reviews on charges

From year two onwards, levy rates and exclusions will be reviewed every three years by the Secretary of State.

Background

The Building Safety Levy was introduced by the government following the Grenfell Tower fire in 2017, which exposed serious building safety issues across the country.

A number of government reviews identified widespread problems in the design, construction and regulation of high-rise residential buildings. As a result, significant work is required to fix unsafe buildings, particularly those with fire safety defects.

The government has decided that the cost of fixing these issues does not fall on leaseholders. Instead, the costs will be met by:

• Contributions from developers through legal agreements
• The Residential Property Developer Tax
• The Building Safety Levy

The Building Safety Levy is intended to ensure that the development industry makes a fair and proportionate contribution towards the cost of making buildings safe.

The levy is designed to:

• Support the funding of building safety remediation across England
• Make sure that those involved in residential development contribute to fixing historic safety defects
• Reduce the financial burden on leaseholders and residents
• Help create a safer and more accountable construction industry

How it fits into the wider building safety system

The levy forms part of a wider program of building safety reforms, including:

• The Building Safety Act 2022
• A new regulatory regime for higher-risk buildings
• Stronger responsibilities for developers, building owners and dutyholders
• Increased oversight from the Building Safety Regulator

Together, these changes aim to improve building safety standards and restore public confidence in the construction and housing sectors.