The Building Safety Levy: What you need to know before 1st October 2026

The Building Safety Levy (the ‘BSL’) was established under the Building Safety Act 2022. It is intended to fund remedial works for historic building safety defects in primarily residential buildings, with a target of raising £3.4 billion in revenue. It will come into force later this year and apply to building control applications made on or after 1st October 2026.

This article provides an overview of some of the features and application of the BSL regime.

Commencement date

The BSL comes into force on 1st October 2026. Applications made before this date will be excluded from the scope of the levy, even if they are later varied or if a commencement notice is issued after that date.

The BSL Regulations specify that the levy does not apply to variation applications or commencement notices made after 1st October 2026 if they relate to an original application submitted before this date.

Scope of the charge

The levy will apply to specified building control applications and notices for the provision of new residential floorspace including dwellings and purpose-built student accommodation (‘PBSA’), in England.

It will apply to all buildings, including mixed-use buildings, that create or increase residential floorspace, which comprise a part of a major residential development. For BSL purposes, a major residential development is defined as a project which creates at least 10 dwellings or 30 bedspaces of PBSA. These figures are ‘net’ and so where there are existing dwellings or bedspaces, the scope of the levy’s applicability is determined on the basis of whether there is a net increase of dwellings/bedspaces exceeding the respective 10/30 threshold.

Whether or not works form part of a major residential development will depend on what planning permission is obtained. The levy cannot be avoided by salami-slicing a large scheme into multiple small building control applications. If your overall planning permission is for 10+ net new dwellings (or 30+ net new PBSA bedspaces) then the levy applies, irrespective of your phasing in planning terms.

Liable party

Liability for the levy will rest with the 'client' identified in the relevant building control application, initial notice or other prescribed notice or certificate.

Calculation of levy

The levy will be charged per square metre of new residential floorspace (gross internal area), as set out in the RICS Code of measuring Practice 6^th Edition. Rates for the BSL will be set for each local authority area with a reduced 50% rate applying to developments on previously developed land.

Information requirements

Basic levy information, such as the number of dwellings or bedspaces and planning permission details, must accompany the initial building control application or notice. Further information, including residential floorspace and eligibility for exemptions or reduced rates must be submitted once works have commenced. Failure to provide the required levy information is a ground for rejecting applications, notices and certain certificates under various Regulations, including, for example, the Building Regulations, the Registered Building Control Approvers Regulations and the Higher-Risk Buildings Regulations.

Payment and enforcement

The levy can be paid following receipt by the client of the levy liability notice and the client will then have some flexibility over when they pay the levy charge. The levy should be paid before the client applies for the first completion or final certificate for the works under the application or notice. The collecting authority will issue the client a notification confirming the levy has been paid within two weeks of receipt of the payment.

Where the levy has not been paid, the building control authority must withhold the completion certificate or reject a final certificate.

Collection and review

Local authorities will be the collecting authorities. They may carry out spot checks of levy information, retain an amount towards administrative costs and must account to the central government every quarter. The Secretary of State must keep the levy under review, with the policy intention that this will occur on a three-year cycle once the levy is operational.

Exemptions

Developments of fewer than 10 dwellings or fewer than 30 bedspaces for PBSA are not chargeable. Moreover, certain categories of buildings are excluded from the levy. These include social and supported housing, hospitals, care homes, hospices, hotels, hostels, school accommodation, temporary accommodation for homeless people and domestic abuse refuges.

Non-profit registered providers of social housing and their wholly owned subsidiaries will also be exempt from the levy. Developments carried out by these will not be subject to the BSL.

We can help 

The BSL will affect developers of residential properties in England who are seeking building control approval after 1st October 2026, and such developers ought to be making financial provision for the levy’s introduction now.

If you have any concerns over the application of the BSL or the wider building safety regime, contact our expert construction law team.