LendInvest and MDA Consulting issue guidance ahead of Building Safety Levy
The paper, 'Building Safety Levy: Implications for Lenders & Monitoring Surveyors', outlines how the levy could affect development appraisals and project completions.
LendInvest and MDA Consulting have published a joint whitepaper examining the implications of the Building Safety Levy (BSL) for property developers, lenders and monitoring surveyors.
The paper, ‘Building Safety Levy: Implications for Lenders & Monitoring Surveyors’, outlines how the levy could affect development appraisals and project completions.
The BSL is being introduced under the Building Safety Act 2022 and Building Safety Levy (England) Regulations 2025, with the Government aiming to raise approximately £3.4bn over 10 years towards the remediation of legacy building safety defects.
The levy applies to major residential developments in England creating 10 or more homes, as well as purpose-built student accommodation (PBSA) developments of 30 or more bedspaces, regardless of building height.
Dan Lohn (pictured), relationship manager at LendInvest, said: “As property development lenders, our role extends beyond providing capital; it’s about offering certainty as developers navigate major regulatory shifts like the Building Safety Levy.
“With the Levy directly impacting scheme viability, cash flow timing and completion sign-offs, proactive partnerships are essential.
“By joining forces with MDA Consulting, LendInvest is delivering practical clarity on complex calculations, brownfield exemptions and adapted funding structures to help SME developers manage these obligations and keep projects moving forward securely.”
Chris Chadwick, director at MDA Consulting, added: “Where much of the post-Grenfell reform agenda is procedural, the Building Safety Levy is a direct cash cost sitting on every qualifying scheme’s balance sheet.
“Calculated on measured floorspace and varying by local authority, its mechanics demand disciplined, stage-by-stage verification so costs are not overlooked.
“In collaboration with LendInvest, MDA is sharing practical guidance to help lenders, developers, and surveyors successfully manage this shared financial risk from initial appraisal right through to final completion certification.”
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