The government is consulting developers and other interested parties on its proposed Building Safety Levy.
Under the plans, developers will pay a levy on new residential buildings. The levy fund – expected to collect £3bn over the next 10 years – will then pay to fix unsafe buildings.
Under the proposals drawn by the Department for Levelling Up, Housing and Communities (DLUHC), developers of residential buildings, regardless of their height, will have to pay the levy as part of the building control process.
If developers do not pay the levy they may not be able to move on to the next stage of the building process, which could lead to project delays and impact future revenues.
The government’s proposals include an option to alter levy rates depending on where in the country the building is, with lower rates in areas where land and house prices are less expensive. It also suggests local authorities could act as the collection agents.
Exemptions
Affordable homes will be exempt from a levy charge. This is alongside a number of community buildings, including NHS facilities, children’s homes and refuges, including those for victims of domestic abuse.
The consultation seeks views on the delivery of the levy, including how it will work, what the rates will be, who must pay, what sanctions and enforcement will apply, and who is responsible for collecting the levy.
The consultation will be open for 10 working weeks and seeks the views of all interested parties, especially developers of all sizes, building control professionals and local authorities.
Minister for local government and building safety, Lee Rowley, said: “We have been clear that developers must pay to fix building safety issues and the Building Safety Levy is an important part of making that a reality.
“Today’s consultation will give industry and local authorities an opportunity to work with us going forward.
“By having these plans in place, we can ensure that all leaseholders are protected, regardless of whether their developer has pledged to remediate or not.”
