From 1 October 2026, a new Building Safety Levy will apply to most new residential developments in England, potentially adding significant costs to projects. In our latest client alert, we examine the implications for developers and the critical window of opportunity that remains to avoid these charges.

The Building Safety Levy was introduced under the Building Safety Act 2022 to fund the remediation of defective cladding and other building safety defects across the country. The policy objective is clear: the cost of making buildings safe should not fall on residents. Instead, the development industry will contribute through this new levy mechanism.

The levy will apply to major residential developments, defined as those resulting in at least 10 dwellings or 30 bedspaces in purpose-built student accommodation. Mixed-use schemes may also be caught. Developers should be aware that the Regulations include robust anti-avoidance provisions, meaning that splitting applications to fall below the threshold will not circumvent liability.

Levy rates vary by local authority area, with higher rates applying in areas with higher average house prices and on greenfield sites. 

Crucially, building control applications submitted before 1 October 2026 will not be subject to the levy. This includes applications for approval with full plans, initial notices, and applications for higher-risk buildings. Variation applications relating to original applications made before this date will also remain exempt.

Developers should therefore urgently review current projects to assess whether building control applications can be submitted ahead of the deadline. This may require accelerating works on the ground and carefully considering any knock-on effects, such as gateway requirements for higher-risk buildings.

For a detailed breakdown of the levy calculations, exemptions, and practical implications, please read our full client alert.