The Building Safety Levy explained for small developers

Since 1 October 2026, building control applications for new homes in England have carried an extra step. The Building Safety Levy is now in force, and while most small schemes won't pay it, almost every scheme that creates a new dwelling now needs to deal with it. Here's what it is, who pays, and what it means for your Initial Notice and your Final Certificate.

What the Levy is

The Building Safety Levy is a government charge on certain new residential developments in England. It came into force on 1 October 2026 under the Building Safety Levy (England) Regulations 2025, and it applies where the building control application or Initial Notice is submitted on or after that date.

It's collected by the local authority, not by your building control approver, and it's separate from Yorkshire Building Control's fees.

Does the Levy apply to my scheme?

The Levy is generally chargeable where all three of these apply:

- The work forms part of a major residential development, defined as 10 or more new dwellings, or 30 or more bedspaces in purpose-built student accommodation

- New chargeable residential floorspace is being created

- The client is not exempt

So if you're building a scheme of 1 to 9 homes, you'd generally expect no charge. That doesn't mean you can skip the Levy paperwork, which we'll come to below.

Which developments are exempt?

Some types of housing and building fall outside the Levy. They include:

- Social and affordable housing, and homes built by non-profit registered providers of social housing

- Care homes, hospitals, hotels and hostels

- School accommodation and children's homes

- Supported and certain other specialist accommodation

The full list is set out in the regulations, and exemptions depend on the detail of each scheme, so it's worth checking early rather than assuming.

How the Levy is calculated

Where the Levy is payable, it's based on the chargeable floorspace, measured as gross internal area. Rates are set by legislation for each local authority area, and there's a lower rate where the site counts as previously developed land.

As an example, in Leeds the rate is £24.57 per square metre, or £12.29 per square metre on previously developed land. Other authorities across Yorkshire have their own rates, so check the figure for the area your site sits in.

What we need from you, even when nothing is payable

This is the part that matters most for small developers. Government guidance is clear that works below the 10-dwelling threshold still need to provide Levy information, so the local authority can confirm there's no charge. Only works that create no new dwellings or student bedspaces are outside this.

In practice, when we submit an Initial Notice for a scheme that creates one or more new homes, it has to include the Levy information. Expect to be asked about things like the number of new dwellings, their floor areas and whether the site is previously developed land. If someone other than the client submits the Initial Notice, the client also needs to sign a statement confirming the Levy information is accurate.

Further Levy information and supporting evidence is then needed with the first commencement notice.

How the Levy affects your Initial Notice

If the required Levy information isn't included, the local authority must reject the Initial Notice. It then has to be resubmitted with the information in place, which means time lost before you can get going on site.

That's the main reason we'd encourage you to talk to us before you submit. A missing form is a simple thing to fix at the start and a frustrating thing to discover once your programme is already set.

How the Levy affects your Final Certificate

The Levy also comes back at the end of the job. When the client makes the compliance declaration, they confirm one of two things: either the Levy has been paid in full, or the local authority has issued a notice of no charge.

If the Levy hasn't been paid in full, the local authority will reject the Final Certificate. For a small developer looking to sell or hand over homes, that's exactly the kind of last-minute delay worth avoiding. Once payment is made in full, the local authority issues a Levy payment certificate within two weeks.

What if my Initial Notice went in before 1 October?

Existing Initial Notices submitted before 1 October 2026 aren't brought into the Levy simply because work starts, or an amendment is made, after that date. If you're unsure where your scheme stands, give us a call and we'll talk it through.

The short version

- The Levy came into force on 1 October 2026 and is collected by the local authority

- It's generally payable on schemes of 10 or more new homes, unless exempt

- Smaller schemes usually pay nothing, but still need to provide Levy information

- Missing information can stop an Initial Notice, and an unresolved Levy can hold up your Final Certificate

None of this needs to slow your project down if it's sorted at the start. That's what Ask YBC First is for.

Planning a scheme in Yorkshire? Talk to us before you submit so nothing holds up your Initial Notice.