What consideration it has given to introducing a reduced rate, exemption or other mitigation for developments in remote, rural and island c…

The Building Safety Levy contains a range of protections for housebuilding on remote, rural and island communities.These protections include a 29-unit levy free allowance will protect smaller developers from costs associated with the Levy, removing an estimated 85% of developers from scope. As smaller housing developments are more common in rural and island areas, including parts of the Highlands and Islands, the levy-free allowance will have a greater impact in these areas, with up to 89% of new homes in remote small towns and remote rural areas being exempt.Recognising the additional constraints faced by island communities, including more limited contractor availability and greater reliance on shipping-dependent supply chains, the levy includes an exemption for homes built on islands. In addition, this exemption will be extended to three exceptionally remote mainland communities, Cape Wrath, Knoydart and Scoraig, which are only accessible by boat.The Scottish Government has considered extending the islands exemption to other rural areas and engaged with stakeholders including local authorities, Highlands and Islands Enterprise, South of Scotland Enterprise, and Scottish Land and Estates.While recognising that many challenges affecting island developments can also apply in rural mainland areas, The Scottish Government also noted concerns raised by stakeholders regarding how a rural exemption could be defined and applied consistently. In response, the Scottish Government intends to mitigate any potential impacts from the Levy in rural areas through the 29-unit levy free allowance.