Building Safety Levy

The Building Safety Levy is a tax on new residential buildings that is expected to come into force from 01 October 2026. The Levy was initially legislated for under the 2022 Building Safety Act; having had two rounds of public consultation. 

The tax is collected by the relevant Local Planning Authority (LPA) as part of the Building Control process.  The income raised from the levy - expected to raise approximately £3.4 billion - to contribute to fixing building safety defects across England, ensuring residents are safe - particularly addressing issues such as remediation of Aluminium Composite Material (ACM) cladding, amongst others. 

The levy is to be charged on certain applications for works that result in new dwellings and/or new bedspaces in purpose-built student accommodation (PBSA) and change of use to residential purposes.

Two levy rates have been published for each local authority in England, localised according to local house prices.  Each local authority area has a brownfield development rate, expressed in £/m2 terms for Gross Internal Area (GIA, measured in accordance with RICS Code of Measuring Practice 6th Edition - COMP), and a corresponding greenfield rate, which is twice as much per square metre.

It is expected to operate similarly to CIL (Community Infrastructure Levy) also operated by LPAs on GIA

The Building Safety Levy (England) Regulations 2025 pursuant to  Statutory Instrument 2025:1236 

The BSL will come into effect on 1 October 2026. Anyone submitting an application for building control approval relating to the provision of one or more dwellings and/ or one or more Purpose Built Student Accommodation (PBSA) bedspaces on or after that date will be liable to pay the levy, save where an exemption applies.

The levy does not apply to existing applications for dwellings or PBSA that were submitted before 1 October 2026.

If such existing applications are varied after 1 October 2026 (for example via a further full plans application for the same works, amendment notice or change control application) the levy does not apply to such applications.

If an application submitted before 1 October 2026 is rejected for failing to meet the required standards and is resubmitted on or after that date, it will be liable for the levy.

Charging Condition 1: the works must constitute, or form part of, a major residential development.

For the purposes of the BSL, a major residential development is a development of 10 new dwellings or more; or 30 new bedspaces or more, if the development is PBSA.

Charging Condition 2: the works must result in the creation of new residential floorspace

The creation of new “residential floorspace” which is floorspace of:

1. new dwellings, other than social housing, supported housing or other exempt uses,

2. new PBSA, and

3. new communal areas which are intended to be used by chargeable dwellings or PBSA (in whole or in part).

Charging Condition 3: the client is not an ‘exempt person’

If the client is an exempt person, that is, a non-profit registered provider of social housing (or a wholly owned subsidiary company), all of their works are exempt from the levy charge, whether or not the intended use of the buildings is otherwise classed as chargeable.

The information below must be included as part of an application for building control approval, for works that relate to the provision of one or more new dwellings or one or more new bedspaces of purpose-built student accommodation.

This information (as with CIL) must also be included if, before the submission of the first commencement notice, a variation application is submitted.

The information is:

• number of dwellings that will be created (or bedspaces if the works are PBSA) by the works in the application or notice.

• if permitted development rights are being used, confirmation of this and whether or not prior approval is necessary, has been applied for, or granted 

• if the works are being developed under a planning permission, confirmation of this and the relevant reference number, or if not yet been granted, the planning application identifier number. or if applicable a relevant Development Consent Order.

• a statement as to whether or not the works in the application or notice are anticipated to be major residential development – that is, a development of 10 dwellings or more, or 30 or more bedspaces, if the works are PBSA, or form part of a wider development.

• a signed statement from the client confirming that the levy information provided is accurate must be included.

• the GIA of any chargeable dwelling and/or purpose-built student accommodation (in accordance with the RICS COMP).

For more information call a member of our team on 0345 230 6450 or by completing the adjacent enquiry form for a no obligation, no fee initial discussion.

As a team with significant expertise advising on the CIL Regulations since 2014, we have market leading knowledge and expertise to help you with any queries and advise as may be required to understand the application process of the BSL charge and help ensure the quantum is correct.

Whether you are a housing provider or another applicant for building control approval under these imminent new rules, E³ Consulting can provide tailored advice on the BSL Regulations.