The Building Safety Levy was introduced by the government following the Grenfell Tower fire in 2017, which exposed serious building safety issues across the country.
A number of government reviews identified widespread problems in the design, construction and regulation of high-rise residential buildings. As a result, significant work is required to fix unsafe buildings, particularly those with fire safety defects.
The government has decided that the cost of fixing these issues does not fall on leaseholders. Instead, the costs will be met by:
- contributions from developers through legal agreements
- The Residential Property Developer Tax
- The Building Safety Levy
The Building Safety Levy is intended to ensure that the development industry makes a fair and proportionate contribution towards the cost of making buildings safe.
The levy is designed to:
- support the funding of building safety remediation across England
- make sure that those involved in residential development contribute to fixing historic safety defects
- reduce the financial burden on leaseholders and residents
- help create a safer and more accountable construction industry
How it fits into the wider building safety system
The levy forms part of a wider programme of building safety reforms, including:
- The Building Safety Act 2022
- a new regulatory regime for higher-risk buildings
- stronger responsibilities for developers, building owners and duty holders
- increased oversight from the Building Safety Regulator
Together, these changes aim to improve building safety standards and restore public confidence in the construction and housing sectors.