The Building Safety Levy is a new charge applying to most new residential developments in England. It comes into effect on 1st October 2026 and will apply where Building Control applications or Initial Notices are submitted on or after this date. 

The levy is calculated based on chargeable residential floorspace, with rates set by Government.

Residential developments of nine or fewer dwellings 

However, a development of 10 or more new dwellings will trigger application of the Levy, regardless of the number of exempt dwellings (see below) which that development includes (although exempt dwellings will not themselves be included in the Levy charge). 

The Levy cannot be avoided by submitting multiple applications for building control approval for a single site, each for fewer than 10 dwellings, if the planning permission to which those applications relate is for more than 10 dwellings. 

Social housing and supported housing 

Although communal space for residents may be subject to the Levy charge, depending on for whose benefit it is provided and if it is shared with other occupiers 

Hotels, children's homes, domestic abuse shelters, criminal justice and military accommodation, and care/nursing homes 

Please note there is a full list of exempt buildings in Schedule 1 to the Regulations.

Source: Gowling WLG

For many developments, the levy represents a meaningful additional cost that may affect viability, funding assumptions and delivery programmes.

Timing will be critical, as missing the submission deadline could result in unplanned levy exposure.

As we expect a spike in submissions, we ask that Initial Notices with us are submitted no later than 14th September 2026. This allows sufficient time for processing and acceptance ahead of the 1st October levy trigger.

We strongly encourage customers not to leave submissions until the last minute, as demand across the market is expected to increase significantly closer to the deadline.

No. We recognise that customers may not be ready to fully commit to a scheme this far in advance.

For Premier Guarantee Building Control customers, where a project is not starting within the next six months, you can:

• Submit an Initial Notice ahead of the levy deadline

• Do so without submitting a warranty application 

• Pay a non-refundable £300 (excl. VAT) deposit with your submission

In these circumstances, there is no requirement to pay Building Control fees or apply for a warranty until you are ready to build.

For sites starting within six months, the usual payment process will apply. 

Building Control pricing differs for sites using our Building Control services alone compared with those benefiting from an integrated Building Control and warranty offering, price indications are available upon request. 

Sites starting within six months

The standard payment structure applies (initial deposit followed by a payment plan).

Sites starting later than six months

Only the non-refundable £300 (excl. VAT) deposit is payable at submission, with no further Building Control fees due until the site is ready to start.  

The levy is expected to apply to most major residential developments, including:

• Schemes of 10 or more dwellings

• Purpose‑built student accommodation (subject to bedspace thresholds)

• Build‑to‑Rent and most senior living developments, unless classified as supported housing 

We provide early guidance, clear deadlines and flexible options designed to help you:

• Protect cashflow

• Manage exposure to levy risk