The draft Building Safety Levy (England) Regulations 2025 have been laid before Parliament.
The levy is to apply where the building involves development of either at least 10 dwellings or 30 bedspaces in purpose-built student accommodation.
Buildings that are exempt from paying the levy include hospitals, care homes, secure residential institution or other premises for the supervision and rehabilitation of persons charged with or convicted of offences, residential accommodation provided by a school for the use of its students, accommodation for victims of domestic abuse, children’s homes, residential family centre or supported accommodation for children, hotels or hostels, and temporary accommodation for homeless people.
There are also certain exempt persons. These are non-profit registered provider of social housing and any company that is a wholly owned subsidiary of a non-profit registered provider of social housing.
Certain information regarding the levy will be required at building control approval stage.
There is a formula to calculate the amount of the levy. Broadly speaking it is the amount of chargeable accommodation floorspace plus the amount of chargeable communal floorspace multiplied by the applicable area rate.
The area rates are set out in Schedule 3 of the regulations and vary depending on a) the area of the country the proposed development is located; and b) whether the land was previously developed.
The commencement notice, which is required to be given no later than 5 days after works commence, will require certain information to be included in relation to the levy, including a statement as to the number of dwellings to be provided as a result of the building work and certain further information described as levy charging information which includes floor space information in relation to each relevant residential building.
The levy is payable when a levy liability notice is given and is paid to the local authority in the area in which the building is located.
The levy will usually be paid by the person named as client in the application for building control approval and will usually be paid when giving or applying to the relevant building control authority/approver/building safety regulator for a completion notice/certificate.
The regulations are due to come into force on 1 October 2026. For further information see the guidance published by the government.
Our content explained
Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.