The Building Safety Levy: a consultation

A consultation setting out the detail for how developers will pay to fix unsafe orphaned buildings via the new Building Safety Levy on new builds was released on 22 November 2022.

The consultation is open for 10 working weeks from 22 November 2022 through to 7 February 2023. If you want to have your views heard, ensure you take part in the consultation within this window.

Key proposals for the Building Safety Levy

• The levy will apply to all residential buildings that require building control approval (regardless of height) and is to be paid by the developer.
• The levy rate will be calculated on a “per unit” of residential dwelling or a “per square metre” basis. This point will be concluded based on the outcome of the consultation.
• Levy rates will vary depending on the location of the building. Rates will be set based either on local authority boundaries, or on a regional basis in line with average house prices. Views are also being sought on whether different rates should be applied for brownfield and greenfield developments.
• There will be a few exemptions from the levy, including the development of affordable homes and community buildings (e.g. NHS facilities and children’s homes). It is proposed that small developments of under 10 units (or the square metre equivalent) will also be excluded to protect small and medium developers.
• The approach for developers of build-to-rent, purpose-built student accommodation and older people’s housing has not yet been determined and will be revisited following the outcome of the consultation.
• Local authorities are expected to act as the collection agents for the Levy.

One key missing item from the Levy is the likely amount, so there is no clarity on actual cost to developers yet.

This article was co-authored by Katey Iliffe.