Building Safety Levy Comes into Force
The levy forms part of the Government's wider building safety reforms and will raise funding to contribute towards addressing building safety defects across England. It applies to certain new residential developments and is collected by local authorities.
For NFRC members, the levy is particularly relevant to contractors working on larger residential developments, including new-build housing, mixed-use schemes, and purpose-built student accommodation.
How does the levy work?
The Building Safety Levy is charged on certain developments that create new residential floorspace. Generally, the development must constitute, or form part of, a major residential development, defined as 10 or more new dwellings, or 30 or more new bedspaces in purpose-built student accommodation (PBSA).
The levy can also apply where an existing building is converted or extended to create new residential floorspace. Developments of fewer than 10 new dwellings or 30 PBSA bedspaces are generally outside the levy, although the wider planning permission can affect whether a particular application is considered part of a major development.
The charge is calculated using the relevant residential floorspace and a rate set for the local authority area. Rates vary across England and are set out in legislation. Developments on previously developed land can qualify for a discounted rate.
The levy is in addition to other development costs, including planning obligations such as Section 106 agreements and the Community Infrastructure Levy.
There are a number of exemptions. These include qualifying social housing and supported housing, as well as certain types of accommodation such as hospitals, care homes, schools, hotels, and accommodation for victims of domestic abuse. Housing associations that qualify as exempt persons are also exempt, although joint ventures do not automatically qualify where not every party meets the exemption requirements.
What does this mean for roofing contractors?
The levy is a charge on the developer or named client, rather than a direct charge on the roofing contractor. However, it is another cost associated with residential development that may feed into wider project budgets and procurement decisions.
For roofing contractors tendering for larger residential schemes, understanding the wider cost and regulatory environment will continue to be important. The levy should be considered alongside other changes affecting residential development, including the Building Safety Act, Building Regulations, the Building Safety Regulator, and requirements around competence and construction products.
The levy also reinforces the importance of early engagement between clients, principal contractors, specialist contractors, and building control. The Government's guidance confirms that levy information may need to be provided as part of building control applications, including applications made through the Building Safety Regulator and those involving Registered Building Control Approvers.
For roofing contractors, this is particularly relevant where their work forms part of a larger residential development. While the contractor will not normally be responsible for paying the levy, project teams should understand how the development is structured and whether the work forms part of a chargeable scheme.
Latest changes to the regulations
The Government has made further amendments to the Building Safety Levy Regulations. The Building Safety Levy (Amendment) (England) Regulations 2026 were made on 12 September 2026 and came into force on 1 October.
The amendments make a number of technical changes to the levy regulations and associated building control legislation, including changes to the information required through building control processes. They also clarify aspects of how levy information is incorporated into applications and notices.
One important transitional point remains. Building control applications made before 1 October 2026 are generally outside the levy. However, if an application submitted before that date is rejected and subsequently resubmitted on or after 1 October, the resubmitted application can become liable for the levy. Variations to an existing pre-1 October application do not, in themselves, trigger the levy.
The Government also issued specific guidance on 10 September 2026 highlighting the interaction between the levy and building control procedures, particularly for new dwellings using the local authority route.
