From 1 October 2026, most new residential developments in England with 10 or more homes, or 30 or more student bedspaces, pay a levy based on their floor area and the local authority's rate. It is due by the earlier of the building control completion notice or first occupation, and authorities can refuse a completion certificate until it is paid.
What it is
The Building Safety Levy raises money to fund the remediation of unsafe cladding and other building safety defects. It applies in England to building control applications submitted on or after 1 October 2026.
Which developments pay
The levy applies to major residential developments, broadly those creating 10 or more dwellings or 30 or more bedspaces of purpose-built student accommodation. It covers new buildings, extensions and changes of use that create residential floorspace, and it is not limited to high-rise or higher-risk buildings.
How it is calculated
The charge is based on the gross internal area of the chargeable residential floorspace multiplied by the levy rate for the local authority area. Rates vary around the country, and development on previously developed (brownfield) land receives a 50% discount.
Exemptions
Exemptions include developments below the major development threshold, social and supported housing floorspace, and developments by non-profit registered providers of social housing. Other building types, such as schools, hospitals and hotels, are outside the levy.
When it is paid
The levy is due in full on or before the earlier of the building regulations completion notice and first occupation. Authorities can withhold a completion certificate until it has been paid, so it needs to be built into your programme and cash flow from the start.
Where we fit in
The levy is a cost and viability issue rather than a fire safety design question, so take specialist advice on the figures. We can help make sure the fire safety side of your project, including the fire strategy, is ready for building control.
This answer is general guidance on the law in England and is not a substitute for advice on your specific premises.