Viability warning as building safety levy looms
Summary
The article reports that the Building Safety Levy is due to come into force on 1 October for qualifying building control applications in England, with rates varying by local authority and land type. Industry bodies warn that, alongside other policy costs and weak market conditions, the levy could make more housing schemes unviable and slow delivery.
Why it matters
Residential property surveyors involved in development appraisals, viability work and due diligence may need to factor the levy into scheme assessments and client advice. It also adds to the wider regulatory and cost environment affecting housing delivery and affordable housing outcomes.
Key points
- Building Safety Levy starts for relevant applications submitted on or after 1 October.
- Rates vary by location and whether land is greenfield or previously developed.
- Schemes under 10 dwellings or 30 student spaces are outside scope, with some exemptions.
- Industry groups warn the levy may render more schemes unviable and delay delivery.
- Concerns are raised about cumulative policy costs on housebuilding viability.
Organisations:
Build UK, Home Builders Federation, Construction Products Association
Regulations:
Building Safety Levy, Residential Property Developer Tax, section 106
Locations:
England, Kensington and Chelsea, County Durham
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