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.
Building Safety Levy information forms
To help determine whether the Building Safety Levy applies to your development, information must be provided at both the building control application stage and the commencement stage.
At the building control application or initial notice stage, applicants must submit basic levy information, including site details, planning permission references, the number of dwellings or purpose-built student accommodation bedspaces proposed, and any indication that an exemption or previously developed land discount may apply.
At the first commencement notice stage, applicants must provide the detailed information required to calculate any levy liability. This includes floorspace schedules, supporting evidence for any exemption claims, and evidence to support eligibility for the previously developed land discounted rate where applicable.
To assist developers and building owners, The government has published suggested Building Safety Levy information forms for the application stage and commencement stage, available in Annex D of the Building Safety Levy guidance.
Please note that levy liability cannot be determined until all required information, supporting evidence, and a valid commencement notice have been received. Failure to provide the necessary information may delay the levy assessment process and, ultimately, completion certification.
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
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.
Useful links