Laws & Regulations
When does the Building Safety Levy start?
The Building Safety Levy is scheduled to start on 1 October 2026 in England. It is charged on building control applications for new residential developments and is collected by local authorities under regulations made under the Building Safety Act 2022.
The levy rate varies by local authority and is calibrated against local house prices, with a discount of 50% for development on previously-developed (brownfield) land. Smaller developments of fewer than 10 units are exempt, as are affordable housing, supported housing, NHS hospitals, care homes and refuges. The Department for Levelling Up, Housing and Communities estimates the levy will raise approximately £3 billion over 10 years, hypothecated to remediate unsafe cladding on buildings 11 metres and taller. See the GOV.UK Building Safety Levy guidance.
What this means in practice
A 40-unit residential scheme in Manchester applying for building control on 5 October 2026 will pay the levy at the Manchester rate — illustrative figures suggest roughly £2,500 to £4,000 per unit, halved on brownfield. On a 40-unit greenfield scheme that is around £100,000 to £160,000 added to the build cost. A 9-unit scheme applying the same week pays nothing, because it falls below the exemption threshold. Developers must factor the levy into appraisal models and price-paid sensitivity from October 2026 onward.
Related questions
Who pays the Building Safety Levy — the developer or the buyer?
The legal liability sits with whoever submits the building control application — typically the developer or principal contractor. In practice, on viable schemes the cost is absorbed in the development appraisal and ultimately reflected in plot pricing, although competitive markets and Section 106 agreements limit how much can be passed to buyers. Affordable housing units within a scheme are exempt from the levy, so mixed-tenure schemes only pay on the market-sale element.
Does the levy apply to conversions and refurbishments?
Yes, where a building control application is required for a change of use creating new dwellings — for example, an office-to-residential conversion under permitted development rights that triggers building control. Pure refurbishment of existing dwellings (no new units) is outside the scope. The GOV.UK guidance sets out the chargeable application types in detail.
Related reading
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