Overview
The Government’s new Building Safety Levy will apply to most residential developments in England from 1 October 2026. This is particularly relevant for those interested in Building Safety Levy South West projects and developments.
Introduced under the Building Safety Act 2022, the levy is designed to help fund the remediation of unsafe residential buildings and ensure that the cost of historic building safety failures does not fall on leaseholders or taxpayers.
What Does it Apply To?
The levy will apply to most residential developments requiring building control approval, including:
- Housing developments
- Build-to-rent schemes
- Student accommodation
- Mixed-use schemes with residential elements
The charge is calculated on a £/m² basis using gross internal area (GIA).
Exemptions
Key exemptions include:
- Developments of fewer than 10 dwellings
- Affordable housing
- Care homes
- Supported housing
- NHS accommodation
- Certain non-profit registered providers
When is it Payable?
The levy is linked to the building control process rather than planning permission.
Developers will be required to submit levy information during the building control approval process and again at commencement stage. The local authority will then calculate the levy liability and issue a levy notice.
Importantly, completion certificates and final certificates cannot be issued until the levy has been paid in full, meaning occupation of the development could be delayed if payment remains outstanding.
Brownfield Discount
A 50% discounted rate applies to qualifying previously developed land (PDL), commonly referred to as brownfield sites.
To qualify, at least 75% of the land within the planning red line boundary must meet the definition of previously developed land.
South West Levy Rates
The levy rates vary significantly across the South West, reflecting local house prices and development values.
| Local Authority | Brownfield (£/m²) | Standard (£/m²) |
| Bath & North East Somerset | 19.60 | 39.20 |
| Bournemouth, Christchurch & Poole | 17.65 | 35.29 |
| Bristol, City of | 21.48 | 42.97 |
| Cornwall | 14.79 | 29.58 |
| Cotswold | 20.55 | 41.10 |
| Dorset | 17.24 | 34.48 |
| East Devon | 17.03 | 34.06 |
| Exeter | 16.17 | 32.35 |
| Forest of Dean | 14.83 | 29.66 |
| Gloucester | 14.42 | 28.83 |
| Mid Devon | 13.49 | 26.98 |
| North Devon | 14.42 | 28.84 |
| North Somerset | 16.09 | 32.18 |
| Plymouth | 12.06 | 24.13 |
| Somerset | 14.23 | 28.45 |
| South Gloucestershire | 17.77 | 35.54 |
| South Hams | 15.71 | 31.42 |
| Stroud | 15.75 | 31.50 |
| Swindon | 13.53 | 27.06 |
| Teignbridge | 14.89 | 29.78 |
| Tewkesbury | 16.00 | 32.01 |
| Torbay* | Awaiting confirmation | Awaiting confirmation |
| Wiltshire* | Awaiting confirmation | Awaiting confirmation |
What Does This Mean for Developers?
For many developers, the levy represents another significant viability pressure alongside:
- Biodiversity Net Gain requirements
- Nutrient neutrality mitigation
- Section 106 obligations
- Community Infrastructure Levy (CIL)
- Future Homes Standard compliance
- Rising construction costs
- Higher finance costs
The timing of the levy will be critical. Developers progressing schemes through building control before October 2026 may avoid the charge altogether.
Final Thoughts
The Building Safety Levy marks a major shift in how building safety remediation is funded in England. While the objective of improving building safety standards is widely supported, the additional cost will inevitably place further pressure on development viability.
Developers bringing forward residential schemes should now be reviewing project programmes and appraisals to ensure the levy is properly factored into future developments.
For advice on development viability and land strategy, visit our Development page: Expert Development Consultancy Services in the South West – Vickery Holman
