MARCH 2025
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BUILDING SAFETY
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The Building Safety​ Levy
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Building Safety Levy pushed back to 2026
The Building Safety Levy
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​As part of the Government's Remediation Acceleration Plan, the Building Safety Levy is due to come into force in Autumn this year, with the aim being to raise £3.4 billion from developers over the next 10 years to pay for the remediation of building safety defects
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Essentially developers will have to pay the levy on all new residential buildings (regardless of height) in England which require building control approval (subject to certain exemptions)
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It has been reported by the Construction Enquirer that more than 100 house builders have signed a letter calling upon the Government to reconsider their plans for the new Building Safety Levy, on the basis that it will adversely affect the Government's plans to increase house building and also calling upon the Government to do more to get product manufacturers to make financial contributions towards remediation work
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Building Safety Levy now pushed back to 2026
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As part of its Response to the Technical Consultation on the Building Safety Levy, the Government has stated that it is pushing back the Building Safety Levy to Autumn 2026
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They have also set out details of the Levy which will apply (these will be different depending upon the area where the new development is taking place)
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There will also be a 50% Levy discount for schemes built on brownfield land
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Here is an extract from the Government's Response:-
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"As part of the Remediation Acceleration Plan published in December 2024, the government announced its intention to launch the levy in Autumn 2025. We have now determined that the levy will come into effect in Autumn 2026, with the levy regulations to be laid in Parliament later this year. This will give all local government, the Building Safety Regulator, Registered Building Control approvers around 18 months to prepare for the levy; and housing developers who will pay the levy around 18 months to factor levy cost into their financial planning. The levy rates are included as an annex to this document."
A full copy of the Response (including the annex setting out the levy rates) can be found via this link:-
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