Glossary · UK
What is Building Safety Levy?
A new charge on most new residential developments in England, paid by developers to help fund the remediation of unsafe cladding and other fire-safety defects on existing buildings.
Full Definition
The Building Safety Levy is a charge introduced under the Building Safety Act 2022, payable by developers when they seek building control approval for most new residential buildings in England, with the revenue ring-fenced to help pay for the government's building safety remediation programme — fixing dangerous cladding and other fire-safety defects on existing high-rise and other buildings identified after the Grenfell Tower fire. The levy rate varies by local authority area (reflecting differences in land and build costs) and by whether the development is on brownfield land, with certain developments — such as care homes, NHS facilities, and some affordable and small-scale housing — wholly or partly exempt to avoid discouraging supply of needed homes. The levy sits alongside other post-Grenfell measures such as the Building Safety Fund and developer remediation contracts, under which many large housebuilders committed to fund fixes to buildings they developed. Implementation timing has been delayed more than once as the government works through detailed regulations and consults with the housebuilding industry.