The government has postponed the introduction of the Building Safety Levy by a year following warnings from house builders that it could jeopardise the target of delivering 1.5 million new homes.
Originally set for autumn 2025, the levy – designed to raise £3.4bn over a decade to address building safety defects – will now take effect in 2026.
The Ministry of Housing, Communities and Local Government (MHCLG) said the delay would allow developers time to incorporate the cost into their financial plans and for councils and the Building Safety Regulator to prepare.
Inside Housing reports that the decision follows opposition from over 100 house builders, who argued that the levy, originally introduced by the Conservative government to address post-Grenfell safety concerns, would significantly reduce housing supply.
TIME TO PLAN
An MHCLG spokesperson stated: “This government is determined to make Britain’s homes safer by ensuring developers contribute their fair share to fixing unsafe buildings. The extension gives developers time to plan while we continue to accelerate cladding remediation.”
The charge applies to all new-build homes and purpose-built student accommodation in England requiring a building control application. Exemptions include affordable housing, supported housing and homes built by not-for-profit providers. The levy will vary by location and land type, ranging from £17 per sq m for brownfield sites to £34 per sq m for greenfield sites.
Industry leaders welcomed the delay but remained critical of the levy.
Neil Jefferson, Chief Executive of the Home Builders Federation, called it “grossly unfair,” while Ian Fletcher of the British Property Federation warned that the levy could threaten housing viability, particularly in lower-value areas.
