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Non-payment of the levy will result in the withholding of a Building Control completion certificate, or rejection of a final certificate.
Some developments, including NHS hospitals, affordable housing, care homes, supported housing and domestic abuse shelters, will be exempt from the levy.
The levy has been subject to both a public and a technical consultation. The government said it received 80 responses to the latter, the majority (55%) from local government, 19% from developers and 26% from others.
The levy regulations are expected to be laid in Parliament later this year.
Home builders concerns
Earlier this month, the Home Builders Federation (HBF) wrote to the chancellor highlighting concerns about the levy’s impact on the government’s housebuilding targets.
It also asked for product manufacturers, which were heavily criticised by the Grenfell Tower Inquiry final report, to be required to make a bigger contribution.
“We anticipate that the new Building Safety Levy will have a substantial impact on housing supply in the short- and medium-term and will likely suppress delivery in the long term as well,” said the HBF letter, signed by more than 100 homebuilders.
“Indeed, because of the stance of the previous government and its general approach to development, it seems likely that the levy was devised and designed to reduce housing supply, particularly in parts of the country with the greatest housing affordability pressures.”
The government’s response to the technical consultation also includes a table with the levy rates.
The levy will be charged on a per square metre basis, with differential rates applied based on local authority boundaries. The rates and structures will be reviewed every three years.
