Regulation
The Building Safety Levy, explained
A tax on new residential development in England, introduced to fund the removal of unsafe cladding on existing buildings. Charged per square metre of internal floor area at Building Control sign-off. Rate varies by local authority and whether the site is previously developed land.
Applies to
- Housebuilders and developers submitting Building Control applications in England for new residential development
- Not applied in Scotland, Wales or Northern Ireland
Key dates
- October 2025: Levy comes into effect for Building Control applications.
- Annually: Rates reviewed and adjusted by the Ministry of Housing.
Why the Levy exists
In the aftermath of Grenfell, the government committed to remediating unsafe cladding across the country. The Building Safety Levy is the funding mechanism: new development pays, because new development is where the industry's future capacity to build safely is proved.
The Levy sits alongside the Building Safety Fund and the industry-funded Developer Remediation Contract. Together they finance work that would otherwise fall on leaseholders.
How the charge is calculated
The Levy is per square metre of internal floor area on residential units in the scheme. The rate depends on two things: the local authority (rates are banded to reflect land values) and whether the site is previously developed land (a lower rate applies as an incentive against greenfield).
Precise rates are published by MHCLG and updated. As a rough steer: rates are in the low tens of pounds per m² for previously developed sites in most authorities, and materially higher for greenfield.
What is exempt
Affordable housing (as defined by the National Planning Policy Framework) is exempt. Purpose-built student accommodation, care homes, refuges and NHS accommodation are also outside scope. Small sites below 10 dwellings currently sit outside the initial rollout but may be brought in later.
Evidence Building Control needs
At sign-off, the Building Control body needs to see: the calculated Levy amount, evidence of payment (or an exemption claim with justification), and the internal floor area figures used in the calculation. Missing evidence delays the completion certificate.
Common questions
Does the Levy apply to conversions?
Change-of-use conversions creating new dwellings do fall in scope. The internal floor area of the new dwellings is the calculation base. Extensions to existing dwellings do not.
Can the Levy be recovered from buyers?
Legally the developer pays. Commercially, developers price it into the sale like any other cost. The Levy tends to be less than 1% of an average new build sale price in most authorities, but it is not zero and needs to be in the appraisal.
How does Ubrix help with Levy compliance?
Ubrix tracks the internal floor area per plot in the plot record, calculates the Levy at the applicable rate, and stores the payment or exemption evidence alongside the Building Control sign-off. The evidence is filed with the plot, not on a shared drive.
Take it with you
Full guide as a PDF
The long-form guide includes worked examples, evidence templates and a per-plot checklist. Free, no signup.
Download the Building Safety Levy guide (PDF)Related explainers
- Awaab's Law Part of the Social Housing (Regulation) Act 2023, Awaab's Law sets legally binding timescales for social landlords to investigate and fix hazards in tenants' homes, particularly damp and mould. Applies in phases from 2025 to 2027.
- BNG A planning requirement for new development in England to deliver a measurable 10% uplift in biodiversity value, calculated against a pre-development baseline. Applied to major applications from February 2024 and to minor applications from April 2024.
- BSA The primary piece of post-Grenfell building safety legislation. Creates the Building Safety Regulator, defines Higher-Risk Buildings, introduces the Gateway process, and imposes the Golden Thread requirement.
See how Ubrix captures the evidence you need.
Ubrix stores compliance evidence against the plot, not on shared drives. Timestamps, sign-offs and documents come out as an audit trail on demand.