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9 September 2026
The Building Safety Levy comes into effect on 1 October 2026. It will introduce an additional cost for certain new residential developments in England.
Developers with schemes in the pipeline need to understand how the levy could affect their projects. It may add to development costs and could influence project programmes and building control submissions.
With the October deadline approaching, early planning will be important.
The Government introduced the Building Safety Levy to help fund the remediation of building safety defects.
The levy will apply to certain developments that create new residential floorspace. This includes new homes, purpose-built student accommodation and some developments that change the use of a building to residential.
Several exemptions and exclusions apply. These include certain forms of social and supported housing and specified types of accommodation.
There is no single national rate.
The amount will depend on the location of the development and the amount of chargeable residential floorspace.
Each local authority area has its own levy rate. The calculation uses the Gross Internal Area (GIA) of the chargeable development.
Developments on previously developed land can benefit from a discounted rate.
As a result, the cost can vary considerably between projects. Developers should therefore consider the levy early when preparing project budgets and development appraisals.
The new levy takes effect on 1 October 2026.
Relevant building control applications submitted before this date will generally fall outside the levy.
However, developers need to consider more than the submission date.
If an application submitted before 1 October fails to meet the required standards and is rejected, the developer may need to submit a new application.
If they resubmit on or after 1 October 2026, the new application may become liable for the levy.
This makes the quality of building control submissions particularly important as the deadline approaches.
Rushing an incomplete application through simply to meet the deadline could create additional risk. Developers and their project teams should make sure that submissions contain the required information and meet the necessary standards.
For qualifying schemes, the levy creates another cost that developers need to consider when planning a project.
Project budgets already need to account for construction costs, professional fees, planning obligations, contingencies and other expenditure. The Building Safety Levy could now add another significant cost.
The changes could also affect project programmes.
Developers should review upcoming building control submission dates and make sure their project teams have enough time to prepare and coordinate the necessary information.
Understanding the potential levy cost early can also help developers assess project viability and make informed decisions before a scheme progresses too far.
The introduction of the Building Safety Levy makes early project planning even more important.
JCA Consulting works with developers and project teams throughout the development lifecycle. Our team provides Quantity Surveying, Project Management, Employer’s Agent and Building Surveying services.
We can help clients consider changes such as the Building Safety Levy as part of wider project cost planning and delivery. This can help identify potential cost and programme implications at an early stage.
If you have a residential development in the pipeline or a project approaching building control submission, speak to our JCA Consulting team about the potential implications for your scheme.
Further information: official Government Building Safety Levy guidance
