Building Safety Levy proposals to fix unsafe buildings

Proposals set out by the Department for Levelling Up, Housing and Communities, (DLUHC) outline that, regardless of height, developers must pay to fix unsafe buildings rather than leaseholders, which will be a levy contribution as part of the building control process.

This will mean that unless the levy is paid, a developer could not move on to the next stage of the building process, which could lead to project delays and affect future revenues.

Levy rates to protect everyone

The consultation seeks views which cover areas on the delivery of the Levy, including how it will work, what the rates will be, who must pay, what sanctions and enforcement will apply, and who is responsible for collecting the levy.

It will also include an option to alter levy rates depending on where in the country the building is, with lower rates in areas where land and house prices are less expensive. The proposals also suggest that local authorities will be best placed to act as the collection agents as they have the necessary systems, data, knowledge, and relationships in place with the developer sector.

In order to protect the supply of affordable homes, it is proposed they be exempt from a levy charge. This is alongside a number of community buildings, including NHS facilities, children’s homes and refuges, including those for victims of domestic abuse.

The consultation will close on 7 February 2023.

Building developers’ pledge

The Building Safety Levy will run alongside the developer pledges that were declared earlier in 2022. 49 of the UK’s biggest homebuilders committed to fixing life-critical fire-safety defects in buildings over 11 metres where they had a role in developing those buildings in the last 30 years.