S106 §1:100 · BSL

Building Safety Levy and S106

Reviewed by Chartered Planner (MRTPI) and Chartered Surveyor (MRICS) · 2026-06-21
Direct answer · 55 words
The Building Safety Levy is a parallel charge to CIL and S106, payable on new residential development in England of 10 or more dwellings. It starts on 1 Oct 2026 under the Building Safety Levy (England) Regulations 2025. Rates are set per sqm by local authority. The BSL is not a substitute for S106; the reg 122 test is unaffected.

When BSL applies

The Building Safety Levy (England) Regulations 2025 were made on 19 Nov 2025 and come into force on 1 Oct 2026[Building Safety Levy (England) Regs 2025 (SI 2025/1236)]. The levy is charged under the Building Safety Act 2022 framework [Building Safety Act 2022]. It applies to building-control applications for new residential development in England of 10 or more dwellings submitted on or after 1 Oct 2026; schemes of fewer than 10 units are outside scope.

Exemptions

Exempt development includes affordable housing, homes built by not-for-profit registered providers, NHS hospitals and medical facilities, care homes, supported housing, children's homes, domestic-abuse refuges, armed-forces accommodation, criminal-justice accommodation, and any development of fewer than 10 dwellings. The affordable-housing exemption is tied to a planning obligation securing the affordable tenure, which is where the levy and the s.106 deed intersect in practice.

Rates set per local authority

Rates are charged per square metre of chargeable floorspace (gross internal area, RICS Code of Measuring Practice 6th edition) and are set for each local-authority area, weighted by local house prices, so higher-value areas carry higher rates. Development on previously developed land is charged at half the rate that applies to greenfield land in the same area. The per-authority rate schedule is set out in the regulations.

BSL alongside CIL and S106

BSL sits alongside CIL and S106 as a parallel charge, not a substitute. The CIL Regs 2010 reg 122 necessity test for S106 obligations is unaffected by BSL. Viability appraisal layers BSL as a build-cost line; it is not a deed obligation.

Payment timing

The levy is enforced through building control: a completion certificate cannot be issued until the levy has been paid, so BSL falls due late in the build programme. The development manager should layer the payment into the cashflow appraisal at that point rather than at commencement.

S106 §1:50 · related

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