Brocade
TL;DR: Building Safety Act compliance costs for higher-risk buildings fall into six categories: regulatory fees, assessments, remediation, ongoing compliance, staffing and training, and insurance. Most costs are recoverable through service charges, but you need to budget proactively, consult leaseholders properly, and keep clear records. This guide breaks down each category with real numbers where publicly available.
Download the BSA compliance checklist ->
Why BSA Compliance Costs Catch Managers Off Guard
Building managers who budget only for fire risk assessments are underestimating their obligations. The Building Safety Act 2022 introduced a layered compliance regime for higher-risk buildings -- registration, safety cases, mandatory occurrence reporting, PEEPs, resident engagement, and the Golden Thread -- each carrying its own costs.
The Building Safety Act 2022 places ongoing compliance duties on Accountable Persons that extend well beyond the initial registration and assessment phase. Budgeting for compliance is not a one-off exercise.
The government's own Impact Assessment estimated ongoing compliance costs at £9-£26 per leaseholder per month (central estimate £16), but this figure has been widely criticised as understating the real cost. The problem is not that any single cost is enormous. It is that the costs are spread across multiple categories, many are recurring, and failing to budget for them creates cash flow problems that lead to non-compliance. A building with 80 flats and an annual service charge budget of £400,000 might find BSA compliance adds 5-15% to operating costs, depending on the building's starting position.
Category 1: BSR Regulatory Fees
The Building Safety Regulator charges fees for its regulatory functions. These are set out in the BSR charging scheme and are updated annually.
Known fees (2026-27 charging scheme):
- Building registration: approximately £264 per building
- Building Assessment Certificate application: £302 per application
- Hourly rate for BSR assessments: £159 per hour (applies to safety case report reviews, BAC assessments, and other regulatory activities)
- Annual inflationary increases: the BSR applies approximately 5% annual uplifts to its charging scheme
BSR charges are calculated using a set application charge plus additional hourly rates for assessment time. Fees are reviewed annually. -- BSR Charging Scheme 2026-27
The hourly rate means that complex buildings with more extensive safety cases will pay more. A straightforward BAC assessment might take 10-15 hours of BSR time; a building with significant fire safety concerns could require substantially more.
Budget estimate: £1,000-£5,000 per building per year for BSR fees, depending on assessment complexity and whether a safety case report review is requested.
Category 2: Assessments and Professional Services
This is typically the largest single cost category. It covers the professional assessments your building needs to demonstrate compliance.
Fire Risk Assessments
Every higher-risk building needs a comprehensive fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005. For higher-risk buildings, this is more detailed than a standard Type 1 assessment.
- Type 1 FRA (non-destructive, common areas): £300-£800
- Type 3 FRA (destructive, includes sampling): £1,000-£3,000+
- Type 4 FRA (full destructive survey): £2,000-£5,000+
These ranges are consistent with industry pricing guides and the government's Fire Safety Regulations 2022 Impact Assessment. Higher-risk buildings typically require at least a Type 3 assessment. Buildings in London and the South East pay a 20-30% premium. Assessments should be reviewed annually and fully refreshed every 3-5 years.
Safety Case Preparation
The Building Safety Case is a structured argument, supported by evidence, that demonstrates your building's safety risks are being identified and managed effectively (Building Safety Act 2022, s.85). Many buildings need specialist consultants to prepare this.
Government ministers have warned about "unacceptably high" consultant charges for safety case report preparation. Costs vary widely:
- Simple building, good existing documentation: £3,000-£8,000
- Complex building, gaps in records: £8,000-£20,000+
- Building requiring structural surveys or specialist fire engineering input: £20,000-£50,000+
Accountable Persons must be able to justify any costs passed to leaseholders. The BSR has been clear that buildings with good existing compliance records should not face excessive consultant fees.
EWS1 and External Wall Surveys
If your building has an external wall system that needs assessment, an EWS1 form or more detailed intrusive survey adds further cost. Costs depend on the complexity of the cladding system and typically range from £5,000 to £20,000+ for intrusive surveys.
Budget estimate for assessments: £5,000-£30,000+ in the first year, £2,000-£10,000 recurring annually for reviews and updates.
Category 3: Remediation and Capital Works
Remediation costs are the most variable and potentially the most significant. They depend entirely on what your assessments reveal.
Leaseholder protections in Part 5 of the Building Safety Act 2022 restrict charges for historical building safety defects, but ongoing safety-related works identified through the new regime may still be recoverable through service charges.
Common BSA-triggered remediation works:
- Fire door replacement or upgrade: £400-£1,200 per door (higher-risk buildings require quarterly checks on flat entrance doors under Regulation 6 of the Fire Safety (England) Regulations 2022)
- Compartmentation repairs: £2,000-£20,000+ depending on scope
- Fire detection and alarm upgrades: £5,000-£30,000+
- Emergency lighting improvements: £2,000-£10,000
- Evacuation alert systems: required for buildings with simultaneous evacuation strategies
For large remediation projects, Section 20 consultation applies when any leaseholder's contribution exceeds £250 (Landlord and Tenant Act 1985, s.20). This adds time and process costs -- plan for 2-3 months for the consultation period alone.
Read our detailed guide on how Section 20 consultation interacts with BSA costs.
See the full compliance calendar ->
Category 4: Ongoing Compliance Costs
These are the recurring costs that must be built into your annual service charge budget. The government's Impact Assessment for the Higher-Risk Buildings (Management of Safety Risks) Regulations provides estimates for many of these obligations.
Quarterly Fire Door Checks
The Fire Safety (England) Regulations 2022 require quarterly checks on flat entrance fire doors and annual checks on common area fire doors in higher-risk buildings. If you outsource this:
- Contractor cost per quarterly check: £15-£40 per door
- Building with 80 flat entrance doors: £4,800-£12,800 per year for quarterly checks alone
PEEPs Implementation
Personal Emergency Evacuation Plans became a legal requirement on 6 April 2026. Costs include resident identification, individual plan creation, specialist equipment, and annual reviews.
- Initial PEEPs assessment per building: £1,000-£5,000
- Individual plan creation: £50-£200 per resident requiring a plan
- Specialist evacuation equipment (evacuation chairs, refuge communication systems): £500-£5,000+
- Annual reviews: £500-£2,000
Read more in our PEEPs implementation guide.
Compliance Software
Tracking FRA actions, scheduled checks, issues, and the Golden Thread manually in spreadsheets becomes untenable as obligations accumulate. A building with 40 open FRA actions, quarterly fire door checks on 80 doors, PEEPs for 15 residents, and mandatory occurrence reporting needs a system, not a filing cabinet.
Compliance software costs vary but typically range from £50-£200 per building per month, depending on the number of buildings managed and features included.
Mandatory Occurrence Reporting
Mandatory occurrence reporting (Building Safety Act 2022, s.78) requires you to report structural and fire safety incidents to the BSR. The direct cost of reporting is minimal, but maintaining systems to identify and log occurrences -- and training staff to recognise reportable events -- adds to overhead.
Resident Engagement
Your Residents' Engagement Strategy (Building Safety Act 2022, s.83) requires documented processes for consulting residents on safety matters. Budget for communication materials, meetings, and the administrative time to maintain the strategy.
Budget estimate for ongoing compliance: £10,000-£30,000 per building per year, depending on building size and the extent of outsourcing.
Category 5: Staffing and Training
Compliance is not just about hiring consultants. Your team needs to understand the regime.
- Building safety manager salary or contract: £35,000-£55,000 per year (full-time) or £5,000-£15,000 per year (part-time or shared across buildings)
- BSA compliance training for existing staff: £500-£2,000 per person
- Fire safety training (fire warden, evacuation coordinator): £200-£500 per person
- Competence assessments (Building Safety Act 2022, s.81): the Act requires that anyone carrying out building safety duties is competent -- budget for periodic competence reviews
For RTM companies managing a single building, the training cost per director may be modest, but it is a real obligation. See our guide on BSA compliance obligations for RTM companies.
Category 6: Insurance
Building safety compliance directly affects your insurance position. Insurers increasingly ask for evidence of BSA compliance, and buildings without it face higher premiums or refusal of cover.
- Buildings insurance premium increases: variable, but buildings with outstanding FRA actions or cladding concerns can see premiums rise 20-50% or more
- Directors' and officers' insurance (for RTM directors): £500-£2,000 per year
- Professional indemnity insurance (for Accountable Persons): costs vary widely based on building risk profile
Maintaining good compliance records -- with audit trails showing when actions were completed and by whom -- strengthens your position in insurance negotiations.
The Building Safety Levy
The Building Safety Levy launches on 1 October 2026. This is a charge on developers of new residential buildings in England, not on existing building managers directly.
The Building Safety Levy is charged per square metre of floorspace at rates set for each local authority area, weighted by average house prices. Brownfield developments receive a 50% discount. -- Building Safety Levy Guidance, GOV.UK
If you manage an existing building, the levy does not apply to you. However, if your building is undergoing major refurbishment that triggers building control approval, the levy may be relevant. Read our full explainer on the Building Safety Levy.
How to Present Costs to Leaseholders
Building safety costs recovered through service charges must comply with the Landlord and Tenant Act 1985. This means costs must be reasonably incurred and services provided to a reasonable standard.
Practical steps:
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Create a separate building safety line item in your service charge budget. Do not bury BSA costs across multiple categories -- leaseholders need to see what they are paying for and why.
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Explain the legal basis. Each cost should be traceable to a specific statutory obligation. "Fire door quarterly checks -- required by Fire Safety (England) Regulations 2022, Regulation 6" is better than "fire safety works."
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Consult under Section 20 where required. Any qualifying works where a leaseholder's contribution exceeds £250 triggers the consultation process. Build the 2-3 month consultation timeline into your project planning.
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Comply with s.20B time limits. Service charge demands must be made within 18 months of costs being incurred (Landlord and Tenant Act 1985, s.20B). Late demands are irrecoverable.
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Know the leaseholder protections. Part 5 of the Building Safety Act restricts charges to leaseholders for historical building safety defects. Ongoing compliance costs are generally recoverable, but remediation of pre-existing defects may not be.
For a detailed guide on service charges and building safety costs, read Service Charges and Building Safety Costs: A Guide for RTM Directors.
Budgeting Tips: A Practical Framework
Building a 3-year compliance budget removes the surprise from BSA costs. Here is a framework:
Year 1: Assess and Plan
- Commission a comprehensive fire risk assessment (Type 3 minimum)
- Register your building with the BSR (if not already done)
- Prepare your safety case documentation
- Identify PEEPs-eligible residents and create initial plans
- Audit your Golden Thread -- do you know where your building information is?
- Estimated one-off cost: £15,000-£40,000
Year 2: Implement and Embed
- Complete priority remediation works identified by your FRA
- Implement compliance tracking (software or structured process)
- Train staff on BSA obligations and competence requirements
- Apply for your Building Assessment Certificate
- Estimated cost: £10,000-£30,000 (varies significantly with remediation scope)
Year 3: Maintain and Review
- Annual FRA review
- Quarterly fire door check programme
- PEEPs annual reviews
- Safety case updates
- Resident engagement activities
- Estimated recurring cost: £10,000-£25,000 per year
See how Brocade handles compliance tracking ->
What Happens If You Do Not Budget
The penalties for BSA non-compliance are significant. The BSR can issue compliance notices requiring specific actions within set timeframes (Building Safety Act 2022, s.99). Failure to comply with a compliance notice is a criminal offence.
But the financial risk goes beyond fines. Unbudgeted compliance costs create cash flow crises that force reactive spending at premium rates. A building that needs emergency fire door replacements because quarterly checks were not funded will pay more than one that planned replacements over a maintenance cycle.
Questions
How much does Building Safety Act compliance cost?
Costs vary by building but typically include BSR fees (registration at around £251, BAC applications at £288 plus hourly assessment charges at £151 per hour), fire risk assessments (£500-£2,000+ for higher-risk buildings), safety case consultant fees (£3,000-£50,000+ depending on complexity), PEEPs implementation, and ongoing compliance software. Total first-year costs for a typical higher-risk building can range from £10,000 to £50,000+ depending on building complexity and existing compliance gaps.
Can building safety costs be passed to leaseholders through service charges?
Most ongoing BSA compliance costs can be recovered through service charges, provided they are reasonably incurred and services are provided to a reasonable standard. However, leaseholder protections in Part 5 of the Act restrict charges for historical building safety defects. Section 20 consultation under the Landlord and Tenant Act 1985 applies if any leaseholder's share exceeds £250 for qualifying works. You must also comply with s.20B, which requires demands within 18 months of costs being incurred.
What are the BSR fees for higher-risk buildings?
The BSR charges a registration fee of approximately £264 per building, a Building Assessment Certificate application fee of £302, and an hourly rate of £159 (under the 2026-27 charging scheme) for time spent assessing applications and reviewing safety case reports. These fees are subject to annual inflationary increases of approximately 5%.
What is the Building Safety Levy and who pays it?
The Building Safety Levy launches on 1 October 2026 and applies to developers of new residential buildings in England. It is charged per square metre of floorspace at rates set by local authority area, weighted by average house prices. Brownfield sites receive a 50% discount. Existing building managers do not pay the levy directly -- it is a charge on new development to fund remediation of historical building safety defects.
How should building managers budget for BSA compliance?
Start by auditing your current compliance position against BSA requirements. Budget separately for one-off costs (fire risk assessments, safety case preparation, gap remediation) and recurring costs (BSR fees, quarterly fire door checks, PEEPs reviews, compliance software, training). Build a 3-year compliance budget and present it to leaseholders through your annual service charge estimates with clear line items for each obligation.
Further Reading
- BSA Compliance Checklist -- full requirements breakdown
- Golden Thread in Practice -- what the Golden Thread means for your records
- Accountable Person Duties -- your legal responsibilities
- BSR Assessment Process: How to Prepare -- getting ready for your BAC
This guide is for informational purposes. BSR fees are from the 2026-27 charging scheme. Other cost estimates draw on the government's Building Safety Bill Impact Assessment, the Fire Safety Regulations 2022 Impact Assessment, and industry sources. All figures are indicative as of April 2026. For building-specific advice, consult a qualified fire safety professional.