Building Safety Levy
A charge introduced under the Building Safety Act 2022 to fund remediation of building safety defects. The levy applies to major residential developments in England.
What is the Building Safety Levy?
The levy is a charge that helps pay for fixing dangerous cladding and other building safety problems to protect leaseholders. Local councils will collect the money and then pass it on to central government.
The Building Safety Levy (England) Regulations 2025 were approved by Parliament and made on 19 November 2025.
When does it apply?
The levy applies to building control applications and notices submitted on or after 1 October 2026.
Applications made before this date are not subject to the levy, even if later varied.
A levy liability notice is issued when developers submit a commencement notice for:
- an application for Building Control approval with full plans to a local authority or Building Safety Regulator (BSR) or
- an initial notice via a Registered Building Control Approver (RBCA).
Building Control Applications should be submitted to building.control@towerhamlets.gov.uk.
The levy applies to major residential developments, defined as:
- creating 10 or more dwellings or
- creating 30 or more bedspaces in purpose-built student accommodation (PBSA)
- mixed-use schemes that include residential floorspace are also in scope.
Exemptions
The following developments are exempt:
- affordable housing and supported housing
- housing built by non-profit registered providers (and their wholly-owned subsidiaries)
- care homes, hospices, hotels, hostels, hospitals, school accommodation, almshouses and temporary accommodation for homeless people.
How is the levy calculated?
- Charged per square metre of chargeable residential floorspace
- Rates vary by local authority based on BSL rate and whether the site is on previously developed land (brownfield sites attract a 50 per cent discount)
- For Tower Hamlets, the BSL rate on previously developed land is £30.60 per square metre.
Payment and enforcement
Payment must be made to the collecting authority before the earliest of occupation or completion of the development.
Failure to pay allows the building control authority to withhold the completion certificate or reject the final certificate.
Disputes and appeals
If a developer disagrees with the levy amount, the refund amount or a decision not to issue a refund, they can request a review.
They must do this within 28 days of receiving the levy notice. If the matter is not resolved after the review, the developer may appeal to the First-tier Tribunal.
Further information
The council is currently preparing for the implementation of the Building Safety Levy. While we cannot provide detailed responses to individual levy enquiries at this stage, you are welcome to contact us by email for general enquiries.
For full details and official guidance, please refer to the building safety levy guidance.
For enquiries regarding the Building Safety Levy, please email BSL@towerhamlets.gov.uk.
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