The Building Safety Levy has moved one step closer as the Department for Levelling Up, Housing and Communities has begun its consultation of developers and other interest parties.
It is seeking views on its plans for the levy, which sets out how developers will be expected to pay to fix unsafe buildings as part of the building control process instead of leaseholders – regardless of the height of the building.
Unless the levy is paid, developers will not be able to move to the next stage of the building process, which the DLUHC say will lead to project delays and impact future revenues.
Other elements of the 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 that local authorities will be best placed to act as the collection agents as they have the necessary systems, data, knowledge, and relationships in place with the developer sector.
In order to protect the supply of affordable homes, the DLUHC has proposed they 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.
“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,” said Minister for Local Government and Building Safety Lee Rowley, adding:
“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.”
The Building Safety Levy will run alongside the developer pledges announced earlier this year which to date have seen 49 of the UK’s biggest homebuilders commit to fix fire safety defects in buildings over 11 metres where they had a role in developing those buildings in the last 30 years.
Consultation details
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 from 22nd November 2022 and seeks the views of all interested parties, especially developers of all sizes, building control professionals, and local authorities. Their views will be taken into account before any final decisions are made next year.
Have your say here: https://www.gov.uk/government/consultations/the-building-safety-levy-consultation
