The Building Safety Levy (England) Regulations 2025

Schedule 2 Ordinary residential dwellings: exemptions

Regulation 8(2) Part 1 Social housing “Social housing”: general 1 A dwelling is “social housing” if it satisfies at least one of conditions 1 to 4. Condition 1 2 Condition 1 is that— (a) the dwelling is let by a registered provider of social housing on one of the following— (i) a demoted tenancy, (ii) an introductory tenancy, (iii) a secure tenancy, (iv) an arrangement that would be a secure tenancy but for paragraph 4ZA or 12 of Schedule 1 to the Housing Act 1985, (v) an assured tenancy, including an assured shorthold tenancy, (vi) an assured agricultural occupancy, (vii) an arrangement that would be an assured tenancy or an assured agricultural occupancy but for paragraph 12(1)(h) or 12ZA of Schedule 1 to the Housing Act 1988, and (b) either— (i) the dwelling is one in relation to which the Rent Standard 2020 set under section 194(2A) of the Housing and Regeneration Act 2008 applies, or (ii) if sub-paragraph (i) does not apply, the rent is no more than 80% of market rent, including service charges. Condition 2 3 (1) Condition 2 is that the following criteria are met— (a) the dwelling is occupied in accordance with shared ownership arrangements within the meaning of section 70(4) of the Housing and Regeneration Act 2008, (b) the percentage of the value of the dwelling paid as a premium on the day on which a lease is granted under the shared ownership arrangement does not exceed 75% of the market value (where the market value at any time is the price which the dwelling might reasonably be expected to fetch if sold at that time on the open market), (c) on the day on which a lease is granted under the shared ownership arrangements, the annual rent payable is not more than 3% of the value of the unsold interest, and (d) the restricted rent increase condition is met in respect of the lease. (2) The restricted rent increase condition is met in respect of a lease if— (a) the annual rent payable under the lease is not increased more than once in any 12 month period, and (b) if the annual rent is increased with effect from a date within that period (the “rent increase date”), either— (i) the percentage increase does not exceed the RPI increase for the reference period plus 0.5%, or (ii) the percentage increase does not exceed the CPI increase for the reference period plus 1%. (3) In sub-paragraph (2)(b), the “reference period”, in relation to a rent increase date, means a period of 12 months— (a) beginning on the first day of a month specified in, or determined by reference to, the lease, and (b) ending less than 12 months before the rent increase date. (4) In this paragraph— (a) “consumer prices index” means— (i) the general index for consumer prices for all items published by the Statistics Board, or (ii) if that index is not published for a particular month, any substituted index or index figures published by the Statistics Board; (b) the “CPI increase”, in relation to a reference period, means the percentage change in the consumer prices index for the period; (c) “retail prices index” means— (i) the general index of retail prices for all items published by the Statistics Board, or (ii) if that index is not published for a particular month, any substituted index or index figures published by the Statistics Board; (d) the “RPI increase”, in relation to a reference period, means the percentage change in the retail prices index for the period. Condition 3 4 Condition 3 is that— (a) the dwelling is let by a person who is not a registered provider of social housing on one of the following— (i) an assured tenancy, including an assured shorthold tenancy; (ii) an assured agricultural occupancy; (iii) an arrangement that would be an assured tenancy or an assured agricultural occupancy but for paragraph 12(1)(h) of Schedule 1 to the Housing Act 1988; (iv) a demoted tenancy; (v) an introductory tenancy; (vi) a secure tenancy; (vii) an arrangement that would be a secure tenancy but for paragraph 4ZA or 12 of Schedule 1 to the Housing Act 1985; (b) the following criteria are met— (i) the dwelling is let to a person whose needs are not adequately served by the commercial housing market, and (ii) the rent is no more than 80% of market rent, including service charges, and (c) a planning obligation designed to ensure compliance with both criteria at sub-paragraph (b) has been entered into in respect of the planning permission which permits the building work to which the building control application relates. Condition 4 5 Condition 4 is that the following criteria are met— (a) the first sale of the dwelling is for no more than 70% of its market value (where the market value at any time is the price that the dwelling might reasonably be expected to fetch if sold at that time on the open market), and (b) a planning obligation has been entered into prior to the first sale of the dwelling designed to ensure that any subsequent sale of the dwelling is for no more than 70% of its market value. Definitions 6 In this Part of this Schedule— “assured agricultural occupancy”, “assured shorthold tenancy” and “assured tenancy” have the same meanings as in Part 1 of the Housing Act 1988; “demoted tenancy” means a tenancy to which section 20B of the Housing Act 1988 or section 143A of the Housing Act 1996 applies; “introductory tenancy” has the same meaning as in Chapter 1 of Part 5 of the Housing Act 1996; “market rent” means the rent which the lease might reasonably be expected to fetch at that time on the open market; “planning obligation”means an obligation under section 106 of TCPA 1990; “secure tenancy” has the same meaning as in Part 4 of the Housing Act 1985; “unsold interest” means the freehold interest or the leasehold interest owned by the person providing the dwelling. Part 2 Supported housing Supported housing 7 (1) Each of the following is “supported housing”— (a) accommodation which is provided by a body listed in sub-paragraph (2) where that body, or a person acting on its behalf, also provides a person resident in the accommodation with care, support or supervision; (b) accommodation— (i) which is provided by a body listed in sub-paragraph (2), (ii) into which people are admitted in order to meet a need for care, support or supervision, and (iii) where that person receives care, support or supervision. (2) For the purposes of sub-paragraph (1) the bodies are— (a) a local authority, (b) a housing association, (c) registered charity, or (d) a voluntary organisation, (3) In this paragraph— “housing association” has the meaning given by section 1 of the Housing Associations Act 1985; “registered charity” means a charity registered under the Charities Act 2011. Part 3 Exempt accommodation 8 (1) “Exempt accommodation” means— (a) school accommodation, (b) accommodation for victims of domestic abuse, (c) supported accommodation for children, (d) temporary accommodation for homeless people, or (e) accommodation provided in— (i) a care home, (ii) a secure residential institution or other premises for the supervision and rehabilitation of persons charged with or convicted of offences, (iii) a hospital, (iv) a children’s home or residential family centre, (v) a hotel or hostel, (vi) a monastery, nunnery, seminary or similar establishment, or (vii) an almshouse. (2) Terms used in sub-paragraph (1) have the same meaning as in Schedule 1.