A new Building Safety Levy will come into effect in England on 1st October 2026, introducing an additional consideration for developers – and potentially for estate agents marketing affected new-build properties.

Despite its name, the Building Safety Levy is not limited to high-rise buildings or leasehold flats. It can apply to qualifying residential developments of 10 or more new homes, including developments comprising freehold houses, leasehold flats and certain residential conversions.

For estate agents involved in new-build sales, understanding whether a development falls within the new regime could become important when managing buyer expectations and anticipated exchange and completion dates.

What is the Building Safety Levy?

The Building Safety Levy is a charge that developers must pay on certain residential developments in England. It forms part of the Government’s wider building safety programme and is intended to contribute towards the cost of addressing building safety defects.

The levy will apply to certain building-control applications and notices submitted on or after 1st October 2026, subject to the relevant criteria and exemptions.

Developments of fewer than 10 new dwellings are generally exempt, alongside a number of other exempt categories.

Which developments could be affected?

The levy can apply where works form part of a major residential development of 10 or more new dwellings. It can also apply to qualifying purpose-built student accommodation developments of 30 or more new bedspaces.

This means agents should not assume the levy is relevant only to high-rise apartment schemes.

Depending on the circumstances, affected developments could include:

• new-build housing developments;
• apartment developments;
• mixed developments containing qualifying residential elements; and
• certain developments involving a change of use to residential accommodation.

Whether the levy applies will depend on the particular development, building-control application and any applicable exemptions.

Why does 1st October 2026 matter?

The timing of the relevant building-control application or notice is important.

Applications submitted before 1st October 2026 will generally fall outside the levy. If an existing application is subsequently varied after 1st October, current Government guidance provides that the levy generally does not become payable simply because of that variation.

However, where an application made before 1st October 2026 is rejected and subsequently resubmitted on or after that date, the new application may become subject to the levy.

For developments around the implementation date, establishing when the relevant application was submitted could therefore be important.

How could the Building Safety Levy affect a property sale?

Although responsibility for paying the levy generally sits with the developer, failure to deal with it could have consequences further down the transaction.

Where a levy is payable, it must be paid in full before the relevant building-regulations completion certificate can be issued. Where a Registered Building Control Approver is used, an outstanding levy can result in the local authority rejecting the final certificate.

For individual property transactions, this could potentially mean:

• delays to completion or occupation;
• difficulties satisfying a mortgage lender’s requirements;
• the buyer’s conveyancer being unable to confirm that the building-control process has been satisfactorily completed; and
• anticipated exchange or completion dates having to change.

For the individual buyer and their lender, the important document will ordinarily be the appropriate building-regulations completion or final certificate, rather than the developer’s levy payment documentation itself.

What should estate agents be asking developers?

Where you are marketing properties within a potentially affected development, obtaining information early could help identify possible issues before a transaction approaches exchange or completion.

Agents may wish to establish:

• whether the development is expected to fall within the Building Safety Levy regime;
• when the relevant building-control application or initial notice was submitted;
• whether an exemption applies;
• whether provision has been made for any levy due;
• when the appropriate building-regulations completion or final certificate is expected; and
• whether the anticipated completion timetable allows sufficient time for the levy assessment and certification process.

The objective is not for the estate agent to determine the developer’s levy liability. It is to identify early whether the issue could have an impact on the transaction and ensure the appropriate professionals are involved.

Does the levy affect ordinary residential resales?

An ordinary residential resale does not become subject to the levy simply because the property is leasehold or forms part of a larger residential development.

The new regime is principally relevant to qualifying development and the associated building-control process.

Estate agents should therefore avoid assuming that every flat, leasehold transaction or property within a large development will be affected.

Preparing for 1st October 2026

For agents marketing new-build developments, the introduction of the Building Safety Levy creates another reason for early communication between developers, agents, conveyancers and buyers.

Understanding the position at the beginning of a transaction may help prevent an unexpected certification issue emerging close to completion.

If you are marketing a new-build property or development and are unsure how the Building Safety Levy could affect a transaction, our Residential Property team at Vyman Solicitors can advise on the conveyancing implications and help identify the information required to keep the transaction progressing.

Speak to our Residential Property team

This article provides general information only and does not constitute legal advice. The application of the Building Safety Levy will depend on the circumstances of the individual development and transaction.