Building Safety Levy
The Building Safety Levy (BSL) is a new charge introduced by the Government under the Building Safety Act 2022, with detailed provisions set out in the Building Safety Levy (England) Regulations 2025.
It came into force on 1 October 2026 and represents a significant addition to the Building Control and development landscape in England.
The Levy has been established to fund the remediation of historic building safety defects, particularly those identified following the Grenfell Tower tragedy. Its core objective is to shift the financial burden away from leaseholders and taxpayers and onto the residential development sector.
The Government expects the Levy to raise approximately £3 billion to £3.4 billion over a 10-year period, contributing to the wider national programme of building safety remediation.
- Developments the Building Safety Levy applies to
- Calculation of the Levy
- Exemptions
- Collection and enforcement
- Implications for Building Control
- Key impacts
- Scope in the City of York
- City of York Levy rate
- How the Levy is calculated
- Worked example for York
- Exemptions in York
- Collection and enforcement in York
- Implications for City of York Building Control
Developments the Building Safety Levy applies to
The Building Safety Levy applies to most new residential developments, including:
- new build housing
- purpose-built student accommodation (PBSA)
- residential conversions and change-of-use schemes
- extensions creating additional dwellings
However, it applies only where development meets the definition of a ‘major residential development’, namely:
- 10 or more dwellings; or
- 30 or more purpose-built student accommodation (PBSA) bedspaces.
The Levy is triggered at the Building Control stage, meaning it is linked to applications for Building Control approval rather than planning permission.
Calculation of the Levy
The Levy is calculated on a per square metre basis, using the gross internal area (GIA) of new residential floorspace, including communal areas.
- Each local authority area has a set rate (£/m²) determined by Government.
- Rates vary geographically, reflecting local house prices.
- Brownfield (previously developed) land typically attracts a 50% discounted rate.
This creates a fixed, non-negotiable cost for developers, separate from other planning obligations such as CIL and Section 106.
Exemptions
A number of development types are exempt, including:
- affordable and social housing
- care homes and supported accommodation
- school accommodation
- temporary accommodation, for example, for homelessness
- certain community and institutional uses
These exemptions are intended to avoid impacting socially beneficial or publicly funded developments.
Collection and enforcement
The Levy will be administered and collected by local authorities as part of the Building Control process.
Key points:
- A Levy Liability Notice is issued following a Building Control application.
- Payment must be made before completion or occupation of the building.
- Completion certificates can be withheld if the Levy is unpaid.
- Authorities may impose penalties or pursue recovery for non-payment.
Implications for Building Control
For Building Control bodies, the Levy introduces new administrative responsibilities, including:
- collecting and verifying levy information
- calculating liability based on submitted data
- coordinating with developers and clients
- supporting enforcement through the certification process
It also strengthens the role of Building Control as a key gateway for compliance and financial assurance within the new building safety regime.
Key impacts
The Building Safety Levy will:
- increase development costs and influence scheme viability
- require earlier financial planning by developers
- add administrative demands to local authorities
- support long-term improvements in building safety across England
Scope in the City of York
The Levy applies to major residential developments, defined as:
- 10 or more dwellings; or
- 30 or more PBSA bedspaces.
It captures:
- new residential developments
- conversions and change of use
- extensions creating additional dwellings
The charging point is the Building Control application stage, not planning permission.
City of York Levy rate
Under the Government’s published Schedule 3 rates, City of York Council falls within a ‘mid-high value’ housing area.
- Standard rate (greenfield or non-previously developed land): approximately £37 per m²
- Discounted rate (brownfield or previously developed land): approximately £18.50 per m² (50% reduction)
Rates are set nationally but vary by local authority to reflect house prices, and are fixed per m² of gross internal area (GIA).
How the Levy is calculated
The Levy is calculated as:
Levy = chargeable residential floorspace (m²) × local authority rate (£/m²)
- It applies to gross internal area, including communal areas used by residents.
- It covers net additional floorspace created by the development.
Worked example for York
A scheme of 50 dwellings with a total GIA of 4,000m²:
Greenfield site
4,000m² × £37/m² = approximately £148,000 Levy
Brownfield site
4,000m² × £18.50/m² = approximately £74,000 Levy
Exemptions in York
The Levy does not apply to certain developments, including:
- affordable or social housing
- care homes and supported accommodation
- school accommodation
- temporary accommodation, for example, homelessness provision
Collection and enforcement in York
City of York Council, as the collecting authority, will:
- issue a Levy Liability Notice following Building Control submission
- require payment before final certification or occupation
- withhold Completion Certificates if unpaid
- pursue enforcement action where necessary
Implications for City of York Building Control
The Levy introduces additional responsibilities:
- verifying submitted floorspace and exemption data
- calculating and issuing levy liabilities
- coordinating with developers and Registered Building Control Approvers
- integrating Levy checks into completion and certification processes