Building Safety Levy is an Anti-Growth Policy
March 25, 2025
The Government has released its response to the Building Safety Levy (BSL) consultation, confirming the taxation levels it seeks to impose across the development industry.
Richard Beresford, Chief Executive of the National Federation of Builders, said:
“The Building Safety Levy is anti-growth, anti-SME policy, which will weaken the housebuilding industry and put the Government’s 1.5 million home promise in further jeopardy. It rejects the polluter pays principle, targeting innocent housebuilders, and risking unintended consequences, such as shrinking the size of new build homes.
The industry already knew that the Conservative government had chosen to tax innocent housebuilders while letting guilty parties off the hook. We had hoped that Labour, the Government of growth, would reject such a bad policy that hinders industry growth, but instead it choose proportionate unfairness.”
The BSL will come into force in Autumn 2026 with levy rates charged per square-metre of chargeable floorspace for works on non-previously developed land (PDL) and works on previously developed land. PDL rates are discounted by 50%.
Rates are highest in areas with the most expensive housing and lowest in the least expensive.
Several BSL exemptions will be in place, including for government funded projects and sites of fewer than ten homes.
Rico Wojtulewicz, Head of Policy and Market Insight at the NFB and House Builders Association (HBA), commented:
“Small builders came to the Government with a solution that shared remediation costs across all accountable industries, as well as delivered a ‘polluters should pay more’ principle. It is devastating news that a fairer form of unfairness has been rejected.
Our solution would raise funds more quickly, therefore freeing leaseholders of their nightmare. Would not disproportionately target innocent builders and building companies yet to be created. Ensured that SMEs, who train 73% of our apprentices, offer the most secure employment, who were not involved in various industry scandals, and who build the social and affordable housing the Government is basing its reputation on, were not being targeted for the sake of political expedience.”
You May Also Enjoy
UK House Price Index for December 2025
The latest UK House Price Index shows that: The average monthly rate of house price growth in December was -0.7%. Average UK house price annual inflation was 2.4% in the 12 months to December 2025. As a result, the average UK house price currently sits at £270,000. Here are some thoughts from the Industry.…
Read More 
10 things all tenants need to know when renting now
The Renters’ Rights Act 2025 received Royal Assent on 27th October 2025 and will introduce major reforms to private renting in England. The first raft of measures affecting tenants will come into force on 1st May this year. So, whether you currently have a tenancy agreement or are planning to rent this year, here are…
Read More 
Average monthly mortgage payment down £119 year-on-year in January
Rightmove’s monthly mortgage tracker shows that the national average monthly mortgage payment in January was £1,592, based on January’s average asking price for a home of £368,031: Average monthly mortgage payments are £119 (7%) lower than a year ago, despite the average price of a home rising by 0.5% year-on-year in January A big January…
Read More 
Homes with a great view command premiums
Buyers are paying a 28% price premium for homes with a great view The latest research from Yopa reveals that homebuyers who want to secure a property with a great view are going to have to pay an average price premium of 28%, rising beyond 35% in the North East. Every house has windows, and…
Read More 
More sellers looking to enter the property market
The latest research from eXp UK has revealed that an increasing number of home sellers are entering the UK market, as demonstrated by recent growth in online search interest for terms such as ‘estate agent’ and ‘best estate agent’. Previous research from eXp UK recently found that sellers started reentering the market in the opening…
Read More 
Non-standard home insurance cover and how to get it right
Leading insurer provides the low-down on non-standard home insurance cover and how to get it right Most home insurance policies in the UK are designed for ‘standard’ homes, but not every home is considered standard. Whether the property is built with timber frames, has a flat roof or is a listed building, it may fall…
Read More