A new tax on the real estate industry risks trading a crisis in building safety for one of housing supply, argue Rick Atha and Amber Wright

The building safety levy is due to come into effect in Autumn 2026, a year later than the government had previously indicated. The government aims to raise around £3.4bn over at least 10 years, ensuring the real estate industry, not leaseholders or taxpayers, meet building safety expenditure. While this objective is laudable, the timing and structure of the levy risks creating unintended consequences for housing supply. The government has set a target to build 1.5m homes this parliament yet there is growing concern that the levy, even with its delayed implementation, could frustrate that ambition.

What developments are impacted by the levy?

All new dwellings requiring a building control application in England will be subject to the levy, including purpose-built student accommodation, the build-to-rent sector, independent retirement communities, housing with care (and similar) and........

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