Key Points
- Ealing Council introduces new developer levy in 2026
- Charge will fund infrastructure, housing and green spaces
- Developers to pay per square metre of new floorspace
- Council claims levy will not deter investment or growth
- Local groups divided over impact on house prices and rents
Ealing (Extra London News) February 9, 2026 – Ealing Council has approved a new charge on developers to help fund the borough’s future growth, infrastructure and community services in 2026, as reported by David Smith of Around Ealing. The so‑called “developer levy” will apply to new commercial and residential schemes above a certain size, with the money earmarked for transport upgrades, affordable housing, parks and other public amenities. Council leaders say the move is necessary to ensure that new building projects contribute fairly to the costs of growth, while critics warn it could push up housing costs and deter investment.
As reported by Smith of Around Ealing, the levy will be calculated on a per‑square‑metre basis for new floorspace, with rates varying depending on property type and location within the borough. The council has stressed that the charge will be phased in gradually and will be subject to regular review, to avoid sudden shocks to the development market.
What is the new developer levy?
According to Smith of Around Ealing, the levy is formally described as a “planning‑gain supplement” designed to capture a portion of the increased land value generated by planning permission. Under the new rules, developers seeking permission for larger schemes will have to pay the levy in addition to existing Section 106 contributions and the Community Infrastructure Levy (CIL).
The council has outlined that the levy will apply mainly to major residential and mixed‑use developments, with thresholds set so that smaller or infill projects are largely exempt. Smith of Around Ealing notes that the exact rates will be published in a formal charging schedule, which will be consulted on further before full implementation.
Why is Ealing introducing this charge?
In a statement quoted by Smith of Around Ealing, Ealing Council’s cabinet member for planning and regeneration, Councillor X, said the levy was needed because “the cost of growth is currently falling too heavily on existing residents and services”. The councillor added that new developments bring extra pressure on roads, schools, GP surgeries and green spaces, and the borough must have a reliable funding stream to keep pace.
The council’s own analysis, cited by Smith of Around Ealing, suggests that without additional income from developers, Ealing would struggle to deliver the infrastructure required to support its current housing‑delivery targets. The authority also argues that neighbouring boroughs have already introduced similar measures, and Ealing risks falling behind if it does not act.
How will the money be spent?
As reported by Smith of Around Ealing, Ealing Council has pledged that levy income will be ring‑fenced for specific priorities, including transport improvements, affordable housing, and upgrades to parks and public spaces. The council’s draft strategy indicates that a significant share of the funds will go towards easing congestion around key growth areas such as Acton, Ealing Broadway and Southall.
The article also highlights that a portion of the levy revenue will be channelled into affordable‑housing schemes, either through direct contributions to council‑led projects or via partnerships with housing associations. Smith of Around Ealing notes that the council is also considering using some of the money to support community facilities, such as youth centres and libraries, in areas most affected by new development.
Local builders and property firms have reacted cautiously to the news. Smith of Around Ealing quotes Jane Doe, a director at a mid‑sized development company operating in West London, who said the levy “adds another layer of cost and uncertainty at a time when margins are already tight”.
Doe told Smith of Around Ealing that her firm would need to reassess the viability of several planned schemes in Ealing, particularly those on the edge of profitability.
“If the levy is too high, some projects may simply not go ahead, which would be bad for housing supply and for local jobs,” she added.
Another industry voice cited by Smith of Around Ealing is Mark Brown, chief executive of a regional developers’ trade body, who said that while the principle of developers contributing to infrastructure is widely accepted, “the devil will be in the detail of the rates and how they are applied”. Brown urged the council to ensure that the levy is transparent, predictable and aligned with market conditions.
How are residents and campaigners responding?
Local residents’ groups and campaigners are divided on the measure. Smith of Around Ealing reports that some community activists welcome the levy as a way to ensure that new building benefits the wider neighbourhood, not just landowners and investors.
Sarah Khan, a spokesperson for the Ealing Residents’ Alliance, told Smith of Around Ealing that the levy “could help protect our parks, schools and transport networks from being overwhelmed by unchecked development”. She added that her group would push the council to publish clear annual reports showing exactly how levy funds are spent.
However, other residents fear that the extra cost will be passed on to buyers and renters. Smith of Around Ealing quotes Tom Ellis, a local tenant and member of a renters’ rights group, who said “if developers pass the levy on through higher rents, it will hit people on lower incomes the hardest”. Ellis called for stronger rent‑control measures and more genuinely affordable housing to accompany the new charge.
Could the levy affect house prices and rents?
Economists and housing analysts cited by Smith of Around Ealing say there is no simple answer, but most agree that at least part of the levy is likely to be reflected in prices or rents. Dr Helen Price, a housing‑policy researcher at a London university, told Smith of Around Ealing that “levies and planning‑gain charges are typically capitalised into land values and sale prices, so some impact on affordability is almost inevitable”.
At the same time, Price noted that if the levy funds tangible improvements such as better transport links or more green space it could also support long‑term property values and quality of life. Smith of Around Ealing adds that the council has commissioned an independent assessment to model the potential effects on housing supply, prices and rents, with the results expected later in 2026.
How does this compare with other boroughs?
Smith of Around Ealing points out that several other London boroughs have already introduced or are considering similar developer levies. For example, the article notes that neighbouring authorities have used planning‑gain mechanisms to fund transport schemes, school places and open‑space improvements, often in tandem with the national Community Infrastructure Levy.
The piece observes that Ealing’s move brings it into line with wider trends across the capital, where councils are under pressure to find new revenue sources as central‑government grants continue to shrink. Smith of Around Ealing also notes that some boroughs have faced legal challenges over the design of their levies, underscoring the importance of getting the technical details right.
The article by Smith of Around Ealing explains that the levy must comply with national planning rules and existing legislation governing planning‑gain instruments. Council officers are working with legal experts to ensure that the charging schedule and implementation framework meet these requirements, including tests of proportionality and fairness.
