Consultation begins on way to pay for dangerous cladding removal

The government has launched a consultation on the proposed Building Safety Levy, which will pay for the removal of dangerous cladding on blocks of flats.

The levy is being introduced in the wake of the Grenfell Tower tragedy. Thousands of leaseholders have been stuck, unable to move home, because of a huge potential bill to remove unsafe cladding.

Now developers must pay to fix unsafe buildings rather than leaseholders, with fees being levied as part of the building control process on new developments.

The levy will be used to pay to remove cladding in buildings over 11m in height. Some developers have already committed to remove cladding in buildings they have been involved with over the past 30 years but the government estimates another £3 billion is needed to pay for buildings not covered by this.

The government has already committed £5.1 billion of taxpayers’ money to fix building safety problems.

Affordable homes exempt

To protect the supply of affordable homes, the consultation proposes that they are exempt from the levy. The government has also suggested excluding developments under 10 units, or the square metre equivalent, so that smaller building firms are not adversely affected.

The consultation is seeking views on the delivery of the levy, including how it will work, what the rates will be, who must pay, what sanctions and enforcement will apply, and who is responsible for collecting the levy.

It will also include an option to alter levy rates depending on where in the country the building is, with lower rates in areas where land and house prices are less expensive.

The government is suggesting two options on how to calculate the levy – either per housing unit, or on a square metre basis.

The full scope of the consultation can be found on the government website.

If you want to make a submission you can respond respond via the online form, or email your response to [email protected]. The consultation ends on 7 February 2023.