The Building Safety Levy came into force from 1st October 2026 across England, bringing new financial responsibilities for property developers. Introduced on 1 October 2026, the levy affects certain residential developments, commercial-to-residential conversions (subject to criteria and exemptions) and purpose-built student accommodation (PBSA). For property developers, investors and commercial landlords, understanding these changes is essential.
At John Burke Associates, we recognise the importance of keeping clients informed about evolving property legislation and regulations. Here, we outline and explain the new requirements, exemptions and potential impact on development projects.
What Is the Building Safety Levy?
The Building Safety Levy is a government charge on qualifying new residential developments in England. Its purpose is to help fund the remediation of historic building safety defects. These include unsafe and dangerous cladding and other serious fire safety and life safety issues in existing residential buildings. In addition, RAAC (Reinforced Autoclaved Aerated Concrete) is another area targeted for remediation. Local Authorities collect the levy at the building control stage for relevant projects, with charges varying according to location and qualifying residential floor space. It is important to note that the levy is separate from existing planning contributions and building control fees.
Which Developments Are Affected by the Building Safety Levy?
The levy primarily applies to residential developments creating 10 or more new dwellings.
It also applies to qualifying purpose-built student accommodation containing 30 or more bedspaces (including new builds and conversions). The levy is a developer paid fee on relevant projects, calculated on a m2 basis, which varies across Local Authorities.
Developments potentially affected include:
- New private residential housing developments (housing and flats).
- Apartment blocks containing 10 or more new homes.
- Commercial buildings converted into residential accommodation
- Mixed-use developments containing qualifying residential units.
- Retirement housing
- Purpose-built student accommodation (PBSA) meeting the relevant threshold.
The levy generally does not apply to routine commercial refurbishment or development without new residential accommodation. However, developers must consider the wider project when determining whether the threshold applies.
Are There Any Building Safety Levy Exemptions?
Not every residential development is subject to the Building Safety Levy. Certain developments and accommodation types qualify for exemptions, including:
- Small developments with fewer than 10 units (or fewer than 30 PBSA bedspaces).
- NHS hospitals, care homes, children’s homes and domestic abuse shelters
- Schools’ residential accommodation.
- Supported housing.
- Affordable housing units (including social rent, shared ownership and First Homes).
- Hotels and hostels.
- Internal refurbishments that do not increase residential floor space.
- Building Control Applications submitted before 1st October 2026.
Developments creating fewer than 10 dwellings are generally exempt, subject to the wider development rules. However, mixed-tenure developments may still attract charges on qualifying market housing.
Can the Payment of Building Safety Levy Delay Project Completion?
Yes. Unpaid Building Safety Levy charges can prevent the issue of relevant building control completion certificates. This creates potential delays for developers, investors and property owners. Without settlement of the levy payments projects cannot be legally handed over for occupation.
The levy becomes payable when a levy liability notice is issued, with the deadline set at the earlier of the completion-notification date or first occupation. It must be settled prior to the first completion certificate being released for a dwelling in the scheme
Why Are Building Surveys and Development Assessments Important in relation to the Building Safety Levy?
Professional building surveying supports informed decisions throughout any project. Before purchasing or converting a commercial property into residential or part residential properties, investors should understand its condition, suitability and potential for redevelopment.
This includes identifying current and historical physical defects, assessing project risks and reviewing relevant legislative and regulatory considerations. Building Surveys, Defects Analysis, Reports and Technical Due Diligence covering development risks, liabilities and future potential CAPEX and OPEX expenditure also help developers understand the implications of proposed alterations. Contact John Burke Associates to discuss your Building Surveying requirements and how we can support your next property project.