Building Safety Levy 2026: What UK Developers Need to Know Before the October Deadline

15th June 2026

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The Building Safety Levy comes into force on 1 October 2026 and will apply to most new residential developments in England with 10 or more dwellings.

The key point is simple: the levy must be paid before final certification is issued. This makes it a programme, cost and delivery issue, not just a compliance step.

How the Building Levy Works.

The levy is charged per square metre of residential floorspace, including communal areas. Rates vary by local authority.

In Brighton & Hove, current rates are £49.60 per m² on greenfield land and £24.80 per m² on brownfield land. Brownfield sites can qualify for a 50% discount where at least 75% of the land is previously developed.

What types of development are included

The levy applies to new residential developments and conversions to residential use.

For mixed-use schemes, only the residential floorspace is charged. Clear and accurate measurement at an early stage is important for reliable cost planning.

Who Is Exempt from the Building Safety Levy

Not all developments fall within scope.

The levy does not apply to schemes with fewer than 10 dwellings, or to certain types of housing and community uses.

Key exemptions include

• Affordable housing and supported housing
• Developments by registered providers and their wholly owned subsidiaries
• Some purpose-built student accommodation (under 30 bedspaces)
• Care homes, hospitals and schools

Understanding whether your scheme qualifies for an exemption, or for the brownfield discount, can materially affect viability.

The October 2026 Deadline: No Grace Period

• There is only one route to avoid the levy entirely.
• You must submit a building control application, initial notice, or pass Gateway 2 before 1 October 2026.
• There is no grace period. If the deadline is missed, the levy will apply in full.

What Developers Should Do Now

If your scheme is approaching submission, now is the time to review your programme and confirm whether meeting the deadline is realistic. The levy should already be reflected in land appraisals, viability assessments and cost planning. Addressing it early reduces the risk of pressure on margins later.

Practical steps to keep projects on track

• For mixed-use developments, ensure residential and non-residential floorspace is clearly defined from the outset.
• Confirm early whether your scheme qualifies for an exemption or discount.
• Align your submission route and timing with the October 2026 deadline to avoid unnecessary costs.

A Practical View

The Building Safety Levy introduces a clear and measurable cost that will influence how residential schemes are delivered. Projects that move forward with clear information, early planning and realistic programmes will be better placed to avoid delays and protect viability.

If your scheme is close to submission, reviewing your position now will give you more options and fewer surprises later.