Real Estate Bulletin - March 2025

Commonhold White Paper

On 3 March 2025 the government published a White Paper on Commonhold.

We take a look at the proposals contained in the White Paper in more detail here.

We also consider whether the proposals if implemented may lead to an increase in home ‘repossessions’.

Spring Statement 2025 - Macro perspective

You can read our economic analysis of the Spring Statement 2025 here.

Building Safety Levy delayed until Autumn 2026

The Ministry of Housing, Communities and Local Government (MHCLG) has published a response to the second consultation on the Building Safety Levy (BSL) which closed in February 2024.

Despite previous indications the BSL would come into force in Autumn 2025 the government has now confirmed the BSL will come into effect in Autumn 2026.

The government has also confirmed it intends to implement the policy largely in line with previous proposals. The BSL will be paid on ‘all new dwellings and purpose-built student accommodation in England (with certain exemptions) which require a building control application’. The consequence for non-payment of the levy will be the withholding of a building control completion certificate, or rejection of a final certificate. Other measures include:

• local authorities being designated as the collecting agent for the levy, and moving forward retaining a proportion of receipts to cover administration costs;
• for the purposes of calculating the levy charge applicable to a new development, the consultation response confirms floorspace will be measured using gross internal area, as set out in the RICS Code of Measuring Practice 6th Edition. The levy will be charged on a square metre basis and a differential geographic levy rate will be applied based on local authority boundaries. A 50% levy rate will be applied to developments built on previously developed land (brownfield). The consultation response sets out the levy rates for each local authority area.
• the levy will be reviewed every three years (although in its response to the most recent consultation it notes it will retain the ability to conduct more frequent reviews if warranted).
• affordable housing, non-social homes built by a not-for profit registered provider, NHS hospitals, care homes, supported housing, children's homes, domestic abuse shelters, accommodation for armed services personnel, criminal justice accommodation, and developments of fewer than 10 units, will be excluded from the levy charge. The consultation response notes that hotels serve a primarily commercial function and the government, therefore, intends to exclude them from the levy as well as certain types of communal accommodation which were specified in the consultation.

The response also provides further details on methodology, the process for collection of the levy and dealing with disputes.

Regulations are expected to be published later this year.

Watch on demand…

If you missed our recent webinars you can catch up on demand via the links below:

Building Safety in 2025 - After developers who's next in the firing line

As we approach the eighth anniversary of Grenfell, by the Government’s own admission, there remain thousands of unsafe and unremediated buildings. The law is clear. The Grenfell Inquiry Phase 2 report further added to the clarity, yet progress of remediation remains slow. We look in depth at the ‘Joint Plan to accelerate developer led remediation and improve resident experience’ and, with speculation of further legislation imminent, we identify where we think the Government will move next in order to resolve the building safety crisis.

Watch on demand here.

Building Liability Orders: The first BLO has been made by the court

The court has handed down judgment in 381 Southwark Park Road v Click St Andrews. This case represents the court, for the first time, awarding a building liability order under s130 Building Safety Act 2022. Join us as we discuss the case, the basis of the order (specifically the basis upon which the ‘just and equitable’ threshold was met) and the implications for the construction industry.

Watch on demand here.