It was interesting to read a few weeks back that the HBF wrote to the Chancellor calling on the government to suspend the Building Safety Levy, which the HBF call an, “anti-development new tax”. The letter, backed and signed by 115 developers, argued that the additional burden will result in fewer homes (including affordable) being built.
In response to the HBF’s letter, the Ministry of Housing, Communities and Local Government has announced (on Monday 24 March) the implementation for the Building Safety Levy will be pushed back from Autumn 2025 to Autumn 2026.
This is a short term win for the industry, but it seems that the levy will still be implemented in the future, which will inevitably put pressure on developers’ costs and viability. The government have a hugely ambitious target to deliver 1.5 million homes in this Parliament and face rising pressure from the industry who clearly see this as a blocker to productivity, economic growth and housing delivery.
The letter argues that the need for the new tax has not been clearly demonstrated, especially considering that more than £2.5 billion remains unallocated in the existing £5.1 billion Building Safety Fund, established over four years ago. It calls for a more thorough analysis before proceeding with the levy, calling for the Government to publish a robust impact assessment and consider how the tax will affect the delivery of both private and affordable homes.