The Building Safety Levy: Use the delay to 2026 to your advantage

One thing in life is certain, just when you think you’re on top of something, things change. Whether it’s regulations, finances, or political viewpoints (especially over the Atlantic!), plans and budgets suddenly don’t add up anymore.

Many developers found themselves in this position late last year. They were staring down the barrel of the Building Safety Levy, which was due to land in late 2025. Just like that, it’s now been pushed back a year.

As of March 2025, the government have announced they are officially delaying the implementation of the Building Safety Levy to autumn 2026. This change gives everyone a bit of breathing room. But it’s not just a delay. It’s a signal. It shows yet again where policy is heading, how seriously safety is being taken post-Grenfell, and what the industry is expected to deliver going forward.

If you’re working on residential projects, especially at volume, pay attention. Although the tax clock isn’t ticking just yet, it’s still there in the corner of the room, quietly counting down.

The best advice at this point is to use this time wisely.

Where things currently stand

The Building Safety Levy is just one aspect of a wider post-Grenfell regulatory shake-up. Its purpose is to make the industry contribute financially to fixing and preventing unsafe buildings.

According to the Ministry of Housing, Communities and Local Government, the delay gives developers 18 months to “factor the levy into their planning”. All of us, including local authorities, the Building Safety Regulator and Registered Building Control Approvers like us have the same time to prepare.

The levy applies to most new residential developments in England that need building control approval, regardless of height. Two rates have been proposed: one for brownfield sites and a higher one (double, in fact) for greenfield schemes. Average costs across England are around £17/m² on brownfield and nearly £34/m² for greenfield. Local variations will apply, based on house prices.

Some developments will be exempt, like affordable housing, care homes, NHS projects, and domestic abuse refuges. But for most private schemes, especially those at scale, developers will need to budget for this cost from the outset.

Even with headline figures shared, many details still remain unclear. Parliament is expected to lay out the actual levy regulations later this year. Until then, questions remain. How will the levy be collected? Who will handle it? What will the final rates be? How will edge cases be treated / assessed?

What developers need to consider now

If you’re working on residential projects at any sort of scale, you’ve now got a head start, and how you use it matters.

The delay doesn’t mean the levy’s going away. It’s definitely coming. But you now have an 18-month window to plan. Update viability models. Revisit cash flow forecasts. Consider how the levy might tip the balance on marginal sites.

For greenfield developments, the £34/m² rate adds up quickly across large plots. Brownfield carries a lower charge, but the cost still remains a factor, especially in areas where development margins are already tight. With land values adjusting and build costs still volatile in early 2025, every extra pound per square metre makes a difference.

Larger developers may spread or absorb costs more easily. But smaller or mid-sized contractors working on fixed-price contracts could run into problems without early planning.

Key questions to start with:

• Will our projects hitting site in late 2026 fall within scope? For example, if you’ve got a phased development breaking ground in mid-2026, will phase one be exempt while phase two gets caught in the levy net? Map out the timings now to avoid surprises later.
• Should we accelerate or delay certain schemes based on exposure? You might bring forward a scheme that’s nearly through planning to avoid the levy. Or you might hold back a borderline one until you reassess viability with the new costs in mind.
• Are there exemptions or borderline cases, like mixed-use schemes or conversions, that could qualify for relief? These scenarios merit early conversations with planners or legal teams.

What to do with the time you’ve gained

Use this buffer to estimate the levy’s impact on future budgeting and returns. We might not have the full picture yet, but smart planning starts now.

Start including the Building Safety Levy in early-stage feasibility. Factor it into viability modelling, especially for anything breaking ground from summer 2026 onward. Talk to consultants, legal teams, and internal planners. This is just smart commercial planning.

If you’re working on tight-margin projects or delivering at volume, the cumulative impact matters. And if you’re running phased or multi-site builds, get clear on where your phases might straddle the levy introduction.

How enevo can support your next move

At enevo, we’re keeping our ear to the ground like everyone else. If you’re unsure how the levy might affect a project, or want a sanity check on your thinking, we’re happy to help. We work closely with developers during early feasibility to assess the likely impact of the levy — and whether it makes commercial sense to progress.

Through our Building Safety, BRPD support and Building Regulations division, we help clients navigate compliance and spot gaps early. We handle Gateway 2 and 3 submissions, statements of compliance, and ongoing design coordination. If you’re looking for help with viability tracking, gap analysis, or levy-aligned strategy, let’s start that conversation.

Beyond the levy: early risks that also shape viability

The levy might not be the only compliance hurdle in play. If your project’s already running on tight margins, other early-stage risks, and pre-planning / compliance requirements, can cause just as many delays or cost shocks.

That’s why we go beyond Building Regulations. Our in-house team supports feasibility-stage assessments across areas like thermal modelling, daylight calculations, and air quality, plus noise testing, acoustics, SAP calcs and energy and sustainability planning statements (see full list at enevo.co.uk). These services aren’t just tick-boxes. Done properly, they can often make the difference between smooth delivery and problematic project hold-ups.

Get in touch to find out more about our guidance and support services. We’d love to help you move your project forward with confidence.