Building Safety Levy confirmed for October 2026

The Building Safety Levy will come into force across England on 1 October 2026, introducing a new charge on certain residential developments.

Established under The Building Safety Levy (England) Regulations 2025, the levy forms part of the government’s wider building safety programme. Revenue collected through the levy will contribute towards the cost of addressing building safety defects across England.

The levy will be administered through the building control process, making early consideration of its financial, procedural and programme implications important for developers, clients and project teams.

Which developments will be affected?

The levy will apply to relevant building control applications, initial notices and higher-risk building applications submitted on or after 1 October 2026.

A development will generally fall within scope where the proposed work creates:

· at least 10 new dwellings; or

· at least 30 new bedspacesin purpose-built student accommodation.

Conversions and changes of use may also be chargeable where they create new residential accommodation meeting the relevant threshold. Mixed-use developments can fall within scope, although only qualifying residential floorspace and associated chargeable communal areas will be included in the calculation.

Applications and notices will need to contain the prescribed levy information. A full plans application that does not include the required information may be rejected, while an incomplete initial notice will also be rejected.

Applications submitted before 1 October 2026 will not normally attract the levy. However, where an application is rejected and a replacement application is submitted on or after that date, the replacement may become liable.

How will the levy be calculated?

The levy will be calculated according to the amount of chargeable residential floorspace, measured in square metres using gross internal area.

The government has set a separate rate for each local authority area. Rates have been weighted to reflect differences in residential property values, meaning that the amount payable will vary according to the location of the development.

The applicable rate is based on the local authority area in which the building is situated. This remains the case where building control services are being provided by a Registered Building Control Approver or, for higher-risk buildings, by the Building Safety Regulator.

Chargeable floorspace may include:

· new dwellings;

· new purpose-built student accommodation;

· new residential floorspace created through conversion or change of use; and

· relevant communal areas serving chargeable accommodation.

Where existing residential buildings are extended or reconfigured, the charge will generally be based on the net additional chargeable residential floorspace created by the work.

Discount for previously developed land

A 50% reduced rate will apply to qualifying developments on previously developed land, sometimes referred to as brownfield land.

For most developments, at least 75% of the land within the red-line planning permission boundary must meet the levy’s definition of previously developed land. Whether this test is met is generally assessed when planning permission is granted or, where earlier, when development begins.

Developers seeking the reduced rate will need suitable supporting evidence. Depending on the site, this could include planning records, site plans, historic records, aerial photographs or other information demonstrating previous lawful development.

Developments granted permission through permitted development rights will be charged at the previously developed land rate.

Which developments are exempt?

The regulations provide exemptions for a numberof development types, including:

· affordable and supported housing;

· housing developed by non-profit registered providers and their wholly owned subsidiaries;

· care homes and hospices;

· hospitals and certain NHS accommodation;

· hotels and hostels;

· school accommodation;

· almshouses; and

· certain temporary accommodation provided for homeless people.

An exemption may apply to all or part of a development. For example, a mixed-tenure scheme may contain both exempt affordable housing and market housing that remains chargeable.

Developers will need to submit appropriate information and evidence in support of any exemption being claimed.

Who will collect the levy?

The local authority in whose area the development is located will act as the levy collecting authority.

This arrangement applies regardless of the building control route selected. The local authority will therefore collect the levy where building control services are provided by:

· the local authority itself;

· a Registered Building Control Approver; or

· the Building Safety Regulator for higher-risk building work.

This reflects the increasingly interconnected regulatory responsibilities affecting residential development. Higher-risk buildings are already subject to formal hold points within the building control process, including Building Safety Regulator approval before construction and completion certification before occupation.

BCC Consultancy’s work with clients and multidisciplinary teams spans the building control lifecycle, including support with higher-risk buildings, Gateway submissions and the management of regulatory information.

When will the levy be calculated?

The final levy charge will be calculated after the client supplies the required information and evidence as part of the commencement process.

This information is expected to cover matters such as:

· the number and type of dwellings or student bedspaces;

· chargeable residential and communal floorspace;

· exempt accommodation;

· the relevant planning permission;

· whether the previously developed land test is met; and

· supporting evidence for the information provided.

The collecting authority will then issue either a levy liability notice or a notice confirming that no charge is payable.

Changes to a development may result in the levy being recalculated. This could include changes to floorspace, tenure, exemptions or the identity and status of the client.

When must payment be made?

The levy must be paid before the earlier of:

· occupation of the development; or

· completion of the building work.

The precise procedural point will depend on the chosen building control route.

Where the levy remains unpaid, the building control authority may withhold a completion certificate or reject a final certificate. An unpaid levy could therefore delay completion, handover, occupation or registration of a higher-risk building.

Project teams should treat the levy as more than a financial contribution. It will also be a building control compliance requirement with the potential to affect key programme milestones.

Reviews, appeals and refunds

Developers will be able to request a review where they disagree with:

· the amount of levy charged;

· the amount of a refund; or

· a decision not to issue a refund.

A review must normally be requested from the collecting authority within 28 days of the relevant decision.

Where the matter remains unresolved following the review, the developer may appeal to the First-tier Tribunal.

Refunds may become due where a revised calculation reduces the charge, where the charge falls to zero or where other circumstances specified in the regulations apply.

What should developers do now?

Residential schemes expected to enter building control on or after 1 October 2026 should be reviewed at an early stage.

Developers, clients and advisers should establish:

· whether the development meets the levy threshold;

· whether the application date will bring the project within scope;

· whether any accommodation or organisation-based exemption applies;

· the rate for the relevant local authority area;

· whether the previously developed land rate may be available;

· how chargeable floorspace will be measured;

· what evidence will be required;

· how the levy will be reflected in project appraisals and contracts; and

· when payment will need to be incorporated into the completion programme.

For phased developments, teams should also consider how separate building control applications and commencement notices may affect liability and payment timing.

Early assessment will allow the levy to be incorporated into development appraisals, funding arrangements, procurement decisions and project programmes. Leaving the matter until completion could expose a project to unexpected costs or delays at a critical stage.

How BCC Consultancy can help

The Building Safety Levy adds another procedural and financial requirement to an already evolving building control framework.

BCC Consultancy can support developers, clients and design teams in reviewing the building control strategy for residential developments, identifying key information requirements and considering how regulatory obligations interact with project gateways, commencement and completion.

For advice on the potential implications for a current or proposed development, contact the BCC Consultancy team.

Further information

· The Building Safety Levy (England) Regulations 2025

· Building Safety Levy guidance

· Levy rates and calculations

· Advice for developers of residential buildings

· Building Safety Levy process maps