Building Safety Levy: Government publishes draft regulations and guidance

On July 10, 2025, the government published the Building Safety Levy (England) Regulations 2025 (BSL Regulations) and accompanying guidance in advance of the Building Safety Levy’s (BSL) expected commencement in Autumn 2026. Originally intended to come into effect this year, the long-anticipated BSL is a tax that will be payable on applications seeking permission to develop certain new residential buildings. The income raised — an estimated £3.4 billion over the next decade — will be used to contribute to remediating building defects across England.

The draft BSL Regulations outline which types of developments will be chargeable under the BSL, how the levy will be calculated, who will be liable for paying it, and when it must be paid. 

Who will be liable? 

Provided that a development meets other necessary conditions, the BSL will be charged on works resulting in new residential floorspace amounting to at least 10 new dwellings (or at least 30 new bedspaces in purpose-built student accommodation), regardless of the building’s height.

How will the BSL be calculated?

The sum of the levy will be calculated according to the local authority’s set rate (based on average house prices) and the building’s residential floorspace, with developments on brownfield sites receiving a 50% discount. 

What are the consequences of failing to pay?

A failure to pay the levy may result in the building control completion certificate or final certificate for the completed works not being issued.

What other obligations are contained in the BSL Regulations and guidance?

In line with the Building Safety Act 2022’s (BSA) broader aim of ensuring the maintenance and transparency of information on building safety compliance, the BSL Regulations require developers to provide a levy liability statement and collecting authorities to publish levy liability notices, levy payment certificates, and levy update notices where necessary. The guidance contains optional proformas for these documents, which are designed to meet legislative requirements.

In addition, the guidance provides a useful summary of how the BSL operates, alongside a process map. There is also practical advice for developers who may be liable to pay the BSL, local authorities responsible for collecting the levy, and Registered Building Control Approvers who have been appointed by clients to oversee building work.

How will the BSL impact developers? 

The BSL poses another, potentially significant, cost which developers will need to account for in both the financing and construction timeline of their projects which are already facing challenges and delays due to complex gateway approval processes and increased construction costs. Its success will ultimately be based on whether or not the government manages to achieve its target of 1.5 million new homes by 2029. Only time will tell.

Remediation Acceleration Plan: government bill announces deadlines, penalties and funding for unsafe cladding removal

On July 17, 2025, the Ministry of Housing, Communities and Local Government (MHCLG) published plans for the next phase of its Remediation Acceleration Plan (RAP), an ambitious strategy to speed up the identification and removal of unsafe cladding while supporting residents in the process. Following last year’s launch of the RAP (which we reported on in our December 2024 edition of the Real Estate Focus), the update brings forward the publication of a new Remediation Bill which will set strict deadlines for the removal of unsafe cladding.

The RAP prioritises residential buildings taller than 18 metres, which must have unsafe cladding removed by the end of 2029. The bill will also require buildings taller than 11 metres to have unsafe cladding remediated by the end of 2031. Those who fail to comply with the new duty to remediate could find themselves criminally liable, facing unlimited fines or imprisonment. Where a landlord fails to remove unsafe cladding, the new legislation will empower named bodies (such as Homes England and local authorities) to carry out remediation works instead.

The update also outlines plans to:

• Tighten fire assessment standards to minimise delays to remediation start dates and provide certainty on the scope of works;
• Establish a National Remediation System to serve as a single source of data for all relevant higher-risk buildings;
• Provide exceptional funding to buildings under 11 metres tall, where needed to address life-critical fire safety risks;
• Bring forward legislation to enforce remediation or mitigation of critical issues following a necessary, temporary move of residents from buildings of 11m+, ensuring that residents can return to their homes as quickly as possible; and
• Implement a long-term, sustainable approach to the Waking Watch Replacement Fund.

Nationally, this plan is to be supported by a government commitment to invest over £1 billion in funding for social landlords. At the local level, the MCHLG briefs on progress with Local Remediation Action Plans (LRAPs), which coordinate collaboration between metro mayors, local authorities and regulators. LRAPs that have already been shared highlight aims to ensure clear communication and data-sharing, streamline decision-making, and fast-track training. Millions more pounds in funding are set to be allocated towards implementing these projects.