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 fund the remediation of building safety defects across England.

The developer (client) is responsible for paying the levy

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

The levy will come into effect on 1 October 2026.

Background

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

Subsequent reviews, including the Hackitt Review of Building Regulations and Fire Safety, identified widespread problems in the design, construction and regulation of high-rise residential buildings. As a result, significant work is required to remediate unsafe buildings, particularly those with fire safety defects.

The government has committed to ensuring that the cost of fixing these issues does not fall on leaseholders. Instead, a range of measures have been introduced to fund remediation, including:

• 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
• ensure 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.

When the levy applies

If you are applying for building control approval for:

• one or more new dwellings, or
• one or more Purpose-Built Student Accommodation (PBSA) bedspaces

You must consider whether your development meets the levy charging conditions and complete the relevant section within the application form.

Charging conditions

The levy applies where:

• the development is a major residential development, defined as:

o 10 or more new dwellings; or

o 30 or more new bedspaces

• the works create new residential floorspace
• is not a registered non-profit provider of social housing
• 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:

• 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

Process for calculating and paying 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: Council assessment

The council 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

The levy must be paid in full.

Stage 5: Completion certificate

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

Charging rates

How the levy is calculated

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

Floorspace is measured using Gross Internal Area (GIA), in line with the RICS Code of Measuring Practice.

Previously Developed Land (PDL)

A 50% discount applies if:

• at least 75% of the site is previously developed land

PDL is land that has contained a building at any time since July 1948 (excluding agricultural buildings)

What is included in floorspace?

Included: Communal areas used mainly by residents

Excluded: Areas used mainly by the general public

Future reviews

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

Contact details

Building control team (Building Safety Levy)

BuildingSafetyLevy@basingstoke.gov.uk