Building Safety Levy adds further pressure to housing delivery
Summary
The article says the Building Safety Levy, due to take effect on 1 October 2026, will add further cost pressure to residential development at a time when viability is already under strain. It notes recent regulatory changes to the treatment of previously developed land may broaden access to the 50% levy discount, but argues the levy still adds to the cumulative burden on housing delivery and project viability.
Why it matters
Residential property surveyors involved in development appraisals, site viability and due diligence need to understand how the levy may affect scheme economics, especially on brownfield and lower-value sites. The article also highlights the wider market context in which regulatory costs may influence whether projects proceed.
Key points
- Building Safety Levy is due to start on 1 October 2026.
- Amendments to the levy regulations may widen the range of previously developed land qualifying for a 50% discount.
- The levy adds to existing pressures from construction costs, borrowing rates, labour shortages and planning delays.
- Brownfield, affordable housing-led and lower-value schemes may be most affected by viability constraints.
- The article warns the levy could reduce the number of schemes coming forward if cumulative costs continue to rise.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
