The Government has committed circa £5billion towards funding the carrying out of remedial works to replace unsafe cladding installed to high-rise residential buildings in the UK. The cost to the taxpayer of funding these remedial works is to be recouped, in part, via a proposed new Building Safety Levy.
The Building Safety Levy will apply to the development of high-rise residential properties in England and is intended to be payable at the new "Gateway 2" stage of the new building safety regime to be implemented under the Building Safety Bill currently before Parliament. The Building Safety Levy will sit alongside the proposed new Residential Property Developer Tax (see here for details).
The Government's proposals for the Building Safety Levy are currently out for consultation (see here for details) and the Government is seeking views on the potential design of the levy, and evidence of possible impacts on housing supply and regeneration, and the housebuilding industry.
The consultation closes at 11:45pm on Friday 15 October 2021 and we strongly recommend that anyone with an interest in residential development in the UK responds to the consultation as this is likely to have a significant impact on the economic viability of residential developments in the future.