Building safety levy threats prompt industry backlash amid affordability concerns

The HBF said the concern is especially acute among small and medium-sized builders, a group it argues will bear a disproportionate share of the burden. Thirty-six per cent of those surveyed said they had already delayed, redrawn or cancelled schemes in anticipation of the levy, while 69% said they were less likely to invest in new development opportunities.

In London, where delivery has repeatedly lagged targets, 86.7% said the levy would make them less inclined to commit capital.

The federation says the pressure comes on top of sharply rising development costs. Its research suggests the average cost of building a new home has climbed by about £76,000 over the past five years, with the levy accounting for £2,320 of that increase.

The HBF has also argued that many medium-sized developments should have been exempt, on the grounds that smaller builders have had little or nothing to do with the high-rise safety failures the policy is intended to address.

The federation has also stepped up its lobbying against the measure. It has written to the Chancellor alongside more than 100 home builders urging the levy to be suspended, arguing that the industry has already committed around £6 billion to remediation and that the government has not published a full impact assessment.

HBF says the policy risks undermining Labour’s pledge to accelerate housebuilding and deliver 1.5 million new homes, while leaving untouched other parties it says should also be contributing to the cost of fixing historic safety defects.

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Inspired by headline at: PBC Today ^[1]

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Source: Noah Wire Services