A charge on new residential developments has been delayed until April 2028.
The Scottish Government has just announced that the introduction of the Scottish Building Safety Levy (SBSL) is to be postponed by 12 months.
The SBSL, which will apply to residential developments, is being introduced to fund in part the Cladding Remediation programme in Scotland – an initiative that followed the Grenfell tragedy.
Homes receiving a completion certificate on or after 1 April 2028 will be subject to the levy. Indicative rates are expected to be published in June next year, with the industry currently estimating that the levy could increase the cost of building a new home by as much £3,500.
The residential housing sector had expressed significant concern about the lack of clarity on the introduction of the levy and the challenges that it would bring for the sector, which culminated in representatives from the sector giving evidence to the Finance and Public Administration Committee at Holyrood.
There are also concerns that the levy will stifle residential development, leading to fewer homes being built, at a time when the country is facing a housing crisis, thereby exacerbating the current emergency, as declared by the Scottish Government itself.
However, it is hoped that the delay will afford developers more time to prepare for the practical impact of the levy.
Thorntons has advised on cladding remediation projects across Scotland and welcomes any queries about the implications of SBSL or related matters.
