The UK government has postponed the introduction of the building safety levy until late 2026.
This levy, applicable in England, is designed to generate an estimated £3.4bn ($4.39bn) over ten years, contributing to the costs of rectifying noncompliant cladding and fire safety systems in buildings.
The delay, revealed as part of the government’s Remediation Acceleration Plan, allows local governments, the Building Safety Regulator, and Registered Building Control approvers approximately 18 months to prepare for the levy’s implementation.
Housing developers, who are responsible for the levy, will also have the same period to incorporate these levy costs into their financial planning.
The levy will apply to all new residential units and purpose-built student accommodations in England that require a building control application, with certain exemptions.
The charge will be based on the development’s floor space, with a 50% reduced rate for projects on brownfield sites.
The aforementioned exemptions from the levy are in place to encourage essential community facilities and specific communal accommodations.
The exemptions cover a range of building types, including affordable housing, National Health Service hospitals, care homes, and small developments of less than ten units.
The government has published detailed levy rates per square metre for each local authority area.
The rates vary significantly, with the lowest being £6.35 per square metre for brownfield sites in County Durham and the highest reaching £98.01 per square metre for developments on greenfield land in Westminster.
Failure to pay the levy will result in the withholding of a building control completion certificate or the rejection of a final certificate.
Local authorities will collect the levy on behalf of the central government and revenues will be remitted quarterly.
