
England's about to make it even harder to build homes, starting 1 October 2026
Quick context: England's short on homes by the millions. The government wants 1.5 million new homes by 2029, which is roughly 820 a day, and England is nowhere close to that right now.
Now add a new fee on top of that. From 1 October 2026, anyone building 10+ homes (or 30+ student beds) owes a per-square-metre charge to their council before the project can complete, under the Building Safety Levy. No payment, no completion certificate. No certificate, no sale, no move-in day.
There is a good reason behind it though. After the Grenfell tragedy, the government spent over £5 billion of taxpayer money on remediation. The Building Safety Act 2022 gave ministers power to shift that cost onto developers instead of taxpayers footing it forever. Thus the levy was passed.
The issue is with the timing. This is all happening right now, right when England's furthest behind on its housing target.
Also, the ones getting hit the hardest aren’t your big developers. HBF says building a home costs £76,000 more since 2020 from taxes and policy costs, and most developers facing this levy are small builders who've never touched anything taller than a standard sized house.
Someone building 12 semis in a small town gets pulled into the same rule as someone building a tower, even if the bill ends up very different.
The industry's pushing back on this too. RE:UK wants it delayed alongside real viability and planning reform, while other trade bodies like Build UK want a full review of every tax hitting builders at once.
Not arguing the safety funding is wrong. Just that the timing's rough, hitting a stretched industry right when it needs to build faster, not slower.
While this all seems uncontrollable as a developer, there are some things in your control, like the paperwork, floorspace errors or missed due dates. Tools like Mitti (by SafetyCulture) can help lessen that extra cost and catch those things before they cost you.