Nine in 10 small house builders think Building Safety Levy will make sites unviable – HBF
Summary
The Home Builders Federation says most SME house builders believe the Building Safety Levy will make more development sites financially unviable. The article reports that 91% of surveyed SME builders expect the levy to undermine viability, with some schemes already delayed, redesigned or cancelled ahead of its planned introduction on 1 October 2026.
Why it matters
Changes to development viability can affect the supply of new homes, which in turn influences market conditions, valuations and pipeline risk for surveyors. The levy also sits within the wider building safety funding landscape, making it relevant to professionals tracking development costs and regulatory impacts.
Key points
- 91% of surveyed SME builders expect the Building Safety Levy to make developments unviable.
- 36% say they have already delayed, redesigned or cancelled schemes in anticipation of the levy.
- HBF says the cost of a typical new home has risen by around £76,000 over five years.
- The levy is due to start on 1 October 2026.
- HBF is calling on government to pause the levy and review whether it is still needed.
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