Levy

The Impact of Building Safety Levy on UK Housing Supply

Discover how a new building safety levy in the UK can affect housing supply and revenue generation.

A new building safety levy proposed by the UK government has sparked concerns among experts about its potential impact on housing supply. The levy, introduced as part of the Building Safety Act 2022, aims to raise revenue for building safety measures by imposing charges on certain new residential developments in England. However, critics argue that the levy could constrain new housing construction if the government does not broaden the exemptions for specific types of developments.

Propertymark has shown support for the new levy, emphasizing the importance of funding building safety initiatives. The inclusion of build to rent (BtR) developments and purpose-built student accommodation (PBSA) in the levy highlights the government's commitment to enhancing safety standards in various housing sectors. This move signifies a significant shift towards ensuring better safety measures in non-traditional housing models.

In a recent Statistical Notice, the Bank of England detailed its consultation paper on the Bank of England Levy Framework Document. The consultation paper, released on 8 November 2023, outlined the framework for the bank levy and its implications. This policy statement provides valuable feedback on the proposed levy structure, shedding light on the financial aspects and regulatory considerations behind the Bank's decision.

The Bank of England Levy Framework Document marks a crucial step in establishing a transparent and structured approach to levying financial institutions. By involving stakeholders in the consultation process, the Bank aims to create a fair and effective levy system that supports financial stability and growth in the UK market.

Interesting Fact: The Building Safety Act 2022 marks a significant legislative milestone in enhancing safety standards for new residential buildings in England. The inclusion of build to rent and student housing in the levy demonstrates the government's proactive stance on improving safety measures across various housing sectors.