What does 2026 hold for the real estate sector in England?

A range of significant legal developments are set to impact England’s real estate market in 2026. In the commercial sector, review and reform of the landlord and tenant legislative framework is expected, and evolving building safety requirements, enhanced transparency around property interests and planning system overhauls are likely to affect developers. In the residential sector, implementation of renters’ rights legislation will begin, and continued reform of long leasehold ownership is also expected. 

Commercial leases and occupiers 

Prohibition of upwards‑only rent reviews in new commercial leases 

Proposals to ban upwards-only rent reviews in commercial leases came as a surprise to many when they appeared at the end of the English Devolution and Community Empowerment Bill last July. There has been no consultation to date, although many in the industry would likely welcome an opportunity to participate in the discussion and highlight potential impacts on valuation, funding and income profiles.

The measures are expected to become law later in 2026 or 2027 and if enacted as trailed, we could see the market move towards fixed rental increases or other alternative rent structures, and potentially more landlord break options following review dates. The ban may also deter existing tenants from subletting, given the risk of a rental shortfall as the upwards-only provisions in their pre-ban headleases will remain unaffected.

Security of tenure

The Law Commission's review of the security of tenure regime is under way. While the first consultation confirmed the core right to renew will remain, a second consultation is expected shortly, which will explore in detail potential reforms to modernise processes for statutory renewals, obtaining possession and contracting out under the Landlord and Tenant Act 1954. We anticipate an increase to the minimum lease term for statutory rights to two years, clarification of landlord grounds for opposing a renewal, and allowing for the incorporation of modern lease provisions (such as green/sustainability clauses or turnover rents) into renewal leases.

Reform is unlikely to be implemented within the next year and in the meantime, landlords and tenants must continue to operate within the existing complex and heavily litigated regime.

Assignments and guarantors

The Landlord and Tenant (Covenants) Act 1995, which governs the transmission of passing of landlord and tenant covenants on leasehold assignment, is set to be reviewed under the Law Commission's 14^th Programme of Reform. The specific focus of this review is yet to be confirmed, but it is hoped that restrictions on tenants assigning to their guarantors will be addressed to remove unintentional barriers to commercial intra-group dealings even where there is landlord consent.

Rights of first refusal and maintenance of commercial leasehold buildings

The programme will also consider rights of first refusal regime under the Landlord and Tenant Act 1987 (in respect of commercial premises) and the law governing the maintenance, repair and upgrading of leased commercial buildings, which could result in changes to service charge mechanisms and dilapidations proceedings.

Landlord insurance commissions

The high profile High Court case of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors (2025) is to be appealed, with implications for those who have participated in landlord/broker commission sharing arrangements which may be deemed to be unreasonable. Landlords and tenants will be interested to see how the case plays out and may consider reviewing the nature of insurance rent provisions in their leases and the need for transparency. Depending on the outcome of this appeal, there may be widespread claims from tenants for historic overcharges which will likely lead to increased scrutiny of insurance arrangements and broker relationships. 

Service Charge Code

Landlords and tenants should be aware of the new second edition of the RICS Service Charge Professional Standard, which came into effect on 31 December 2025. While this is not mandatory for landlords unregulated by RICS, it is considered to provide a balanced position on service charge management and administration.

Key changes relate to timescales for issuing budgets and accounts and guidance for dispute resolution with a recommendation for all new leases (including renewals) to include an alternative dispute resolution provision as a cost-effective alternative to court action.

Business rates

From April 2026, occupiers will see changes to their business rates bills following revaluation and the introduction of new multipliers.

Small and standard retail, hospitality and leisure (RHL) properties will receive a 5p discount on the standard multiplier, though revaluation may offset some of the saving, and RHL relief will disappear. A high‑value multiplier of 2.8p above standard will apply to properties with a rateable value of at least £500,000, affecting larger properties across all sectors. Increases to rateable values will bring more properties within the higher band, and may prompt more occupiers to challenge their bills.

Broader reform remains on the horizon, and a call for evidence launched in November 2025 seeks views on improving investment incentives and administrative certainty, including moving to a "slice" tax structure, enhancing Small Business Rates Relief, refining Improvement Relief, reforming Empty Property Relief and shortening the antecedent valuation date gap.

Energy efficiency and sustainability: commercial 

The outcome of the government's consultation on commercial minimum energy efficiency standards and energy performance certificate (EPC) reform is awaited, but tighter standards and more robust assessment are considered inevitable. 

Building owners can expect reforms to the EPC regime taking effect in the second half of 2026, with expected changes to when EPCs are required, assessment methodology and data sharing requirements: all aimed at improving operational energy performance. Enforcement of EPC requirements is also expected to increase.

An update on the trajectory for raising minimum energy efficiency ratings for commercial rented premises is urgently needed, but no definitive timetable is currently set. Nevertheless, many stakeholders have their own net-zero commitments, and tenant demand for sustainable space is driving the upper end of the market forwards and raising rents for high class assets. However, upgrade costs can be significant, sharpening the focus on landlord–tenant cost allocation and increasing the risk of stranded assets where investment levels are too high. Tightening sustainability covenants and requirements from lenders and insurers are also expected to continue to influence the market and the availability of real estate finance.

Green lease clauses are expected to continue to evolve. Institutional landlords and lenders may seek to impose more stringent obligations across their portfolios and tenants may seek sustainability assurances from their landlords. Clauses mandating data sharing, obligations to cooperate on asset upgrades, operational performance targets and cost‑sharing frameworks for energy efficiency improvement works are expected to become increasingly mainstream.

Corporate sustainability disclosure and reporting are set to become more stringent. Government consultations on the UK Sustainability Reporting Standards concluded in September 2025 and are expected to be published in 2026, initially for voluntary use.  Confirmation of which non-FCA regulated entities may be caught by these requirements is awaited, and could capture large property companies and other substantial corporates. As obligations expand, so does the risk of greenwashing, emphasising the need for robust data.

Building safety 

Building safety regulation will continue to evolve as pressures for remediation of existing defects and an efficient regulator overseeing ongoing project approvals continue to mount. 

Building safety levy

Developers will be subject to the new Building Safety Levy from October 2026, which will impose significant additional costs for projects in England encompassing one or more residential dwellings or purpose-built student accommodation (PBSA) bedspaces which constitute or form part of a "major residential development", and the application for building control approval is submitted on or after that date (subject to exceptions). Critics argue that the new levy constitutes an unnecessary obstacle to achieving the government’s homebuilding targets and have called for its suspension.

Second staircase requirements

From 30 September 2026, new residential buildings over 18 metres in height will be required to have a minimum of two staircases, to provide an additional means of escape. Building designs and costs will be affected, and many developers and designers will be adjusting their designs in preparation. Any reductions to net sellable floor areas could potentially affect the profitability and viability of schemes at design stage. 

Reform of the regulator

The Building Safety Regulator (BSR) has faced criticism for persistent and substantive delays in approving Gateway 2 and 3 applications, due in part to resource constraints in an already stretched construction sector.

The BSR is now due to transition from the Health and Safety Executive (HSE) to a new, arm's-length public body sitting under the Ministry of Housing, Communities and Local Government. While this change is set to come into force in late January 2026, transitional arrangements (including the continued delegation of BSR functions to the HSE) are expected until the end of 2026. Developers should welcome this change but any intended practical impact, including the streamlining of Gateway applications, are likely to take time to come to fruition given existing backlogs.

Streamlined court processes

The Building Safety Working Group is to publish proposed updates to the Technology and Construction Court Guide to streamline court resolution processes for building safety claims.  Parties should expect procedural changes to address court listing issues due to the jurisdictional overlap between the Technology and Construction Court and the First Tier Tribunal.

Remediation of existing defects 

We may see the publication of the Remediation Bill, trailed in the government's Remediation Acceleration Plan update last July. The bill will impose a legal duty to remediate defective buildings within fixed timescales, with potential criminal prosecutions for those who fail to comply. The government is yet to provide a timetable for the implementation of the bill beyond “as soon as parliamentary time allows.” 

The update also sets out various other initiatives to accelerate remediation and improve resident experience. These include giving social landlords equal access to government remediation funding as private landlords, the tightening of fire assessment standards to facilitate remediation, supporting the delivery of Local Remediation Plans and  establishing a National Remediation System as the single data source for all buildings over 11m and implementing a long-term and sustainable approach to the Waking Watch Replacement Fund.

Litigation

The industry continues to grapple with numerous claims under the Building Safety Act 2022, as parties seek to better understand and allocate liability, and 2026 promises to provide some much-anticipated clarity as various key cases make their way to the appellate courts.

The Court of Appeal is due to hear the landlord's appeal of the Upper Tribunal's decision in Almacantar Centre Point Nominee No.1 Ltd v De Valk & Others. This case exposes a fundamental issue with the leaseholder protections under the Act, in relation to service charges and the costs of cladding remediation. With various key terms being left undefined in the Act – "cladding", "cladding system" and "cladding remediation" – the Court of Appeal's decision will provide parties with a new and binding authority on these matters.

Two other significant cases, both dealing with the extent of the retrospectivity of the Act, will be heard by the Supreme Court. Confirmation of the hearing dates is still pending. Triathlon Homes LLP v Stratford Village Development Partnership will see the court grapple with retrospectivity in relation to Remediation Contribution Orders and costs incurred before the Act came into force. In Adriatic Land 5 Limited v Long Leaseholders of Hippersley Point, the Supreme Court will test retrospectivity in relation to specified service charges falling within Schedule 8 to the Act. With the Court of Appeal initially being split on whether specified costs incurred before the Act came into force would still be payable, the Supreme Court's decision will provide some much-needed clarity for landlords and leaseholders alike. 

Public venue security

From April 2027, wide‑ranging new security measures will apply where premises are to be used for public events where at least 100 people may be present. Duties may be imposed on property owners, occupiers and event organisers to maintain security plans and register the premises once the regime takes effect.

Properties including entertainment arenas, shopping centres, large office buildings with significant public footfall, and places of worship could potentially fall within scope. Advance preparation will be critical for planning, budgeting and rolling out the necessary protective security measures and training, and failure to do so could lead to substantial fines or enforcement action, including notices that may restrict a venue’s ability to operate once these obligations come into force.

Transparency 

Contractual controls on land

It is expected that the government will proceed with a new public register of contractual controls, as envisaged under Part 11 of the Levelling Up and Regeneration Act 2023.

Under the current proposals, parties will be required to disclose details of certain contractual arrangements which confer control over third party land (including options, pre-emptions, promotion agreements and conditional contracts) affecting developers and housebuilders, landowners and promoters. This increased visibility has the potential to influence strategies for acquiring development land. The awaited outcome of the 2024 consultation is expected to provide further details on the reporting obligations and agreements within scope. Earlier proposals that agreements dating back to 1 January 2023 would be captured prompted strong opposition on the basis this would be unduly unfair and onerous. 

ECCTA 2023: failure to prevent fraud

The corporate failure to prevent fraud offence took effect on 1 September 2025. Large organisations may now face criminal prosecution if an employee, agent, subsidiary or service provider commits fraud intending to benefit the organisation.

In-scope organisations are required to have reasonable procedures in place to prevent fraud, and government guidance has been issued to support and evaluate compliance. As real estate is widely regarded as a high‑risk sector for fraud, property businesses should review and, where needed, strengthen policies and controls across acquisitions, leasing, development, insurance and service charge processes.

Land ownership involving trusts

Confirmation of whether the government will proceed with proposals to enhance transparency around land ownership involving trusts is still awaited and the outcome of the 2023-24 consultation is yet to be published. Transparent land ownership is considered a matter of legitimate public interest, and aims to tackle financial crime and address issues within the housing sector (including identifying those liable for defect remediation under building safety legislation). 

Overseas entities holding UK land on trust

Changes to Trust Registration Service registration requirements are expected to come into force in early 2026 via amendments to Money Laundering Regulations.

Non‑exempt overseas entities that hold UK land will be required to register and provide beneficial ownership information, regardless of when the land was acquired, removing the current carve‑out for land acquired before 6 October 2020.  

UK sanctions regime

The property sector may be subject to increased scrutiny following the Office of Financial Sanctions Implementation April 2025 report on threats to UK sanctions compliance in the property and related services sectors, which identifies UK property as a high-risk area for sanctions breaches. In May 2025, mandatory new reporting requirements came into force for letting agents when working on instructions from parties to a prospective letting and they know or have reasonable cause to suspect that a person is a "designated person" or has breached the financial sanctions regulations.

Purchasers

Chancel repair reform 

The Law Commission's recommendations on reform of the chancel repair liability (CRL) and registration regime are expected in 2026. 
Despite longstanding criticism of this historic liability, neither full abolition nor capping CRL liability is currently envisaged. Instead, the proposals contained in last year's consultation paper focus on tackling uncertainty over whether liability applies by clarifying that purchasers of registered land would be bound only where a notice of any chancel repair liability is entered on the title register, which should remove the need for and cost of CRL searches and insurance. 

Housebuilding and development  

Housebuilding standards

Housebuilders should be aware of new and imminent sets of standards for ensuring the quality of new homes:

• The Future Homes and Buildings Standard will establish a regulatory framework to improve energy efficiency in new homes and commercial buildings to ensure they are zero-carbon ready.  Publication of the final Standard and the Home Energy Model is expected imminently and will be followed by secondary legislation. Transitional arrangements will allow the industry time to adapt, but upskilling will be required.  Impacts on design and layout, construction costs and delivery timelines are anticipated.
• The Healthy Homes Standard, published in November 2025, sets design requirements and good-practice guidance for more accessible and healthier living environments. Although intended primarily for Homes England and its partners, it also provides an unofficial benchmark for the wider housebuilding industry.
• The Water Efficiency Standard could also be tightened following the review conducted by Defra at the end of last year.

Government support for housebuilding

We may see further action through the New Homes Accelerator, which was established in 2024 to support large-scale housing developments experiencing significant obstacles to delivery. Further announcements are also expected from the New Towns Taskforce, which is in the process of narrowing its shortlist of potential new development sites, with onsite construction targeted on at least three sites by the next general election.

Housebuilders in London may benefit from a proposed temporary support package to address viability concerns, potentially including reduced affordable housing requirements, community infrastructure levy (CIL) relief, changes to design standards on density and new mayoral powers to review and call in applications for over 50 homes.

Additionally, the establishment of the new publicly owned National Housing Bank is intended to support housing delivery by offering providing a range of accessible, affordable and flexible financing options, with a particular focus on SMEs. 

VAT on development land for social housing

We await the government consultation on reform of VAT rules to incentivise the development of land intended for social housing. This could offer good news for developers if golden brick rules are amended and zero rating is applied at an earlier stage, although confirmation of the reforms is still awaited.

Home buying and selling reform

At the end of last year, the government consulted on changes to house buying processes, including a requirement for sellers and estate agents to provide upfront material information packs, and for greater digitalisation of transactions. The government will need to take into account the issues identified with the failed 2007 Home Information Pack initiative, including delays to sales, higher costs and duplication of information. Further details, including a roadmap to implementation, is expected shortly. Firms will need to plan for training, resourcing and associated costs and adjustments to timescales.

Construction 

Late payments

The government's response to its consultation on tackling late, long and disputed business to business payments and reforming construction retentions is expected early this year. This could result in either a ban on the withholding of cash retentions (making retention clauses unlawful) or alternatively the introduction of requirements to protect retention funds from insolvency and late or non-payment either by allocating funds to designated bank accounts or requiring them to be covered by a guarantee. The outcome will need to offer a practical mechanism to maintain security without prejudicing smaller contractors.

Tackling Construction Industry Scheme fraud

From April 2026, HMRC will be granted enhanced powers to tackle fraud within the Construction Industry Scheme. Businesses that knew or ought to have known they were party to a transaction linked to fraudulent tax evasion risk losing Gross Payment Status and being liable for the lost tax and penalties. Construction businesses should therefore ensure their compliance processes are sufficiently robust. 

Construction products

The much-trialled introduction of a new construction products regime is expected to take shape in 2026, with the government confirming that a white paper on construction products reform is to be published in spring 2026. From 8 January 2026, the Construction Products (Amendment) Regulations 2025 take effect, cementing the recognition of CE marking alongside UKCA for construction products used in the UK.

Construction disputes

The Supreme Court's judgment in Providence Building Services Ltd v Hexagon Housing Association Ltd is expected in 2026. The case concerned whether, under an amended JCT Design and Building Contract (2016 edition), a contractor may immediately terminate for a repeated employer breach where the original breach had been remedied and no right to terminate had accrued. The interpretation of this issue is relevant across the JCT suite of contracts (and beyond) and could have significant consequences for employers and contractors.

Planning 

The government’s commitments to improve the planning system, expand clean energy generation, accelerate decisions on major infrastructure projects and deliver 1.5 million new homes in England are making this an exceptionally busy period for planners.

Planning and Infrastructure Act

The Planning and Infrastructure Act 2025 (PIA) received royal assent shortly before Christmas and will bring significant changes to the system and further implementing legislation and guidance are expected to follow shortly. Key measures include:

• Reforming the Nationally Significant Infrastructure Projects (NSIP) regime to keep policies up to date, reduce the scope for certain court challenges and streamline processes, including the removal of the requirement for pre-application consultation.
• Reintroduction of a system of strategic planning across England delivered through the preparation of spatial development strategies (SDSs). These measures will dovetail with the provisions of the English Devolution and Community Empowerment Bill, which is likely to become law in 2026.
• A national scheme to delegation to determine which applications are decided by planning committees and which are decided by officers.
• Enabling Natural England to set up environmental delivery plans (EDPs) to address the environmental impact of development, provide an additional environmental uplift, and allow developers to discharge certain environmental obligations by making a payment.
• Compulsory purchase reforms aim to improve efficiencies and encourage authorities to utilise the process where appropriate.
• Enhancing development corporation powers to support the delivery of large-scale projects, such as new towns and substantial urban extensions.
• Providing certain Ramsar sites with additional statutory protection under the Habitats Regulations.
• Amending the process of making certain transport orders and schemes.

One notable omission from the Act is any provision to address issues relating to overlapping planning permissions following the Supreme Court's decision in Hillside Parks Ltd v Snowdonia National Park Authority, which has caused concerns for developers of large, multi-phased schemes. However, this may yet be dealt with in future legislation and section 73B of the Town and Country Planning Act 1990 will be brought into force to provide some assistance.

Consultation on changes to the NPPF

Planned changes to the National Planning Policy framework are currently under consultation. They are likely to represent the most significant re-writing of planning policy since the NPPF was first published in 2012.

Plan-making and decision-making policies are to be separated, with decision‑making moving to a more rules‑based approach. Proposals include the introduction of a so-called permanent presumption in favour of suitably located development, and a presumption in favour of granting permission for suitable development around existing rail stations, including within the Green Belt. Further changes would support higher density development, strengthen the policy around renewable and low carbon energy and mandate that substantial weight is given to the benefits of commercial development which provides growth (including development supporting AI Growth Zones, logistics, and town centres). The consultation runs until early March 2026, and the government is then expected to move quickly to publish the finalised document.

Environmental Improvement Plan and BNG

A revised Environmental Improvement Plan was published in December 2025, which sets a five-year roadmap intending to improve England's natural environment. This includes the implementation of Biodiversity Net Gain requirements for NSIPs by May 2026 and improving the implementation of BNG for minor, medium and brownfield sites, launching the first set of Environmental Delivery Plans later this year to assist with unlocking sites held up by nutrient neutrality issues, consulting on measures to cut emissions from domestic combustion and introducing Environmental Outcome Reports, with timing to be confirmed.

The NPPF consultation seeks views on limiting when development plans may seek BNG contributions exceeding the statutory requirement. It also confirms that the government will set out the details of its plans for relaxing BNG requirements and providing additional exemptions for certain categories of site shortly. Defra is also due to consult on an additional BNG exemption for brownfield development, possibly applying to sites up to 2.5 hectares.

NSIPs

The government's response to its consultation on streamlining infrastructure planning for NSIPs is expected. Proposed changes, many of which relate to guidance, aim to update application and consenting processes to support changes made by the PIA, including the removal of the requirement for pre-application consultation.

Build-out rates consultation

In 2025, the government consulted on proposals to pressure developers to speed up the rate at which residential development is built out, including by giving local planning authorities the power to decline to grant future permissions to those who have not progressed earlier permissions at a "reasonable rate". The government is expected to make clear in 2026 whether it intends to take forward these controversial proposals.

Energy

As the UK seeks to meet energy security and net-zero goals and accommodate an unprecedented growth in demand from housing, logistics and AI data centres, forthcoming reforms to facilitate new grid connections and supporting infrastructure will be increasingly critical. 

Electricity grid connections

The Planning and Infrastructure Act 2025 (see above) introduces significant reforms to electricity network connection processes, moving towards a "first ready, first connected" approach and granting temporary powers to the secretary of state and Ofgem to prioritise strategically important connections. These provisions sit alongside Ofgem and the National Energy System Operator's (NESO) TMO4+ connections reforms, which are expected to substantially reduce wait times by removing unviable "zombie" projects from the connections queue. Implementation will continue throughout 2026, with developers required to demonstrate project readiness through Gate 2 criteria assessments and comply with new project designation methodologies.

AI data centres 

Government support to facilitate AI data centre delivery and meet their substantial power requirements was expressed in its Delivering AI Growth Zones policy paper. It includes prioritising AI Growth Zones for grid access, rolling out the Connections Accelerator Service, and allowing certain data centre operators to construct high‑voltage connection assets beyond the current two‑kilometre limit (with “build and transfer” and “build and operate” models being considered).

Measures to streamline planning processes are also on the way, including updates to the NPPF, providing additional specialist resources within planning departments, protecting land and unblocking planning decisions for AI Growth Zones, and further streamlining consenting for NSIPS (discussed in more detail in the Planning section above). Additionally, Ofgem’s connection reforms will introduce enforceable milestones and financial penalties for delays. 

Energy infrastructure

To support the development of energy infrastructure, updated National Policy Statements for energy infrastructure (EN-1, EN-3 and EN-5) came into force on 6 January 2026, with further amendments expected in 2026 relating to Centralised Strategic Network Plans and electricity transmission design principles, which should provide greater certainty for developers. Alongside this, the government’s commitment to determine 150 major infrastructure project applications within the current Parliament should also accelerate grid infrastructure approvals. Energy projects will be prioritised according to the Clean Power 2030 Action Plan and Centralised Strategic Network Plan, so developers who align projects with these national priorities should benefit. For more anticipated developments to planning, see the Planning section above.

Residential long leasehold and housing estates 

Enfranchisement

Implementation of leasehold enfranchisement reforms under the Leasehold and Freehold Reform Act 2024 (LFRA) may pick up pace in 2026. Progress appeared to stall while the High Court considered a legal challenge (on human rights grounds) to the proposed abolition of marriage value, the cap on ground rents, and the removal of landlords’ ability to recover non‑litigation professional costs on enfranchisement. The court has rejected the challenge, potentially clearing the way for implementation, although an appeal is expected. A consultation on lease‑extension costs is also awaited.

Reinvigorating commonhold

The government plans to reinvigorate commonhold and make it the default tenure for new flats. The commonhold white paper published in March 2025 anticipated that a draft Leasehold and Commonhold Reform Bill would be published by the end of 2025, but this has been delayed – perhaps reflecting the complexity of reshaping the intricate legal framework.

The bill is now expected in early 2026 and is to be accompanied by a consultation on banning new leasehold flats. Mandating commonhold will pose particular challenges for mixed-use schemes, potentially converting existing leasehold developments and managing the risks of commonhold association insolvency. The transition will need to be carefully planned and implemented to minimise disruption to the housing market.

The bill is also expected to address existing ground rents, although it remains unclear how far these will be restricted and to what extent landlord and investor concerns over lost income streams and reduced asset values will be taken into account.

Leaseholder service charge and fees

New regulations to strengthen leaseholder protections in relation to charges and services are expected, as envisaged under LFRA and explored further in the 2025 consultation. The intention is to enhance transparency and the ability to challenge costs perceived as unreasonable.

The proposals also include reform of the section 20 consultation process for major works funded through service charges, to ensure substantial expenditure is properly planned and not imposed unexpectedly on leaseholders. In addition, measures to enhance the regulation of managing agents, including the introduction of mandatory qualifications, are being explored.

Insurance fees

The government has also committed to enhancing the transparency and fairness of insurance fees charged to leaseholders, particularly by addressing excessive brokerage commissions disguised through building insurance premiums.

Following last year's consultation outcome, regulations are expected to restrict landlords from charging costs of managing and arranging building insurance beyond certain specified "permitted insurance payments". Any such legislation will need to balance strengthened leaseholder protections with sufficient flexibility for landlords to recover legitimate insurance costs, particularly for more complex policies for mixed-use buildings or entire property portfolios.

Housing estate management

Regulatory reform to estate management practices is intended to strengthen the rights and protections of freehold homeowners on privately managed estates. The Law Commission is to review the estate management rights for freehold residents and whether the leasehold right to manage regime could be adapted and applied to housing estates.

The consumer protection provisions under LFRA, which largely focus on achieving fairness and transparency of estate management charges and increasing the accountability of estate managers, are to be brought into force and a government consultation was published in December 2025 seeking views on its implementation. The consultation also proposes removing certain statutory remedies now deemed too draconian, which allow rent charge owners to take possession of, or grant a lease over, property subject to arrears.

A linked consultation has also been launched examining options for reducing the prevalence of unadopted amenities on privately managed estates, which takes forward some of the recommendations given in the Competition and Markets Authority’s 2024 market study into the housebuilding industry.

Residential renters  

Renters' Rights Act 2025

Phased introduction of the landmark Renters' Rights Act will begin from May 2026 (with local council investigatory powers in force since December 2025) and these extensive reforms will affect landlords, tenants, letting and estate agents, and operators of purpose-built student accommodation and build-to-rent schemes.

Phase 1 will implement core reforms to private rented sector tenancies, including the abolition of assured shorthold tenancies and section 21 "no fault" evictions, revised possession grounds, restrictions on annual rent increases, bans on rental bidding and rent in advance, and anti-discrimination measures. With only a six-month lead-in period to prepare, many landlords face a significant challenge to achieve compliance in time.

From late 2026, Phase 2 will include the gradual introduction and rollout of the Private Rented Sector (PRS) Database and PRS Landlord Ombudsman (although mandatory ombudsman membership is not expected until 2028). Social rented sector tenancy reforms will apply from 2027.

Phase 3 will introduce the Decent Homes Standard and extend Awaab's Law to the private rented sector, which will be subject to prior government consultations.

Decent Homes Standard and Awaab's law

The Decent Homes Standard (DHS) is to be updated, with further direction to be provided in the government's response to last year's consultation. The revisions will include a new criterion specifically targeting damp and mould, designed to support Awaab's Law, which imposes new duties on social landlords from 27 October 2025. The updated DHS is to apply across both the social and private rented sectors, with longer-term implementation currently indicated for 2035 or 2037, although the precise timetable is yet to be confirmed. 

Energy efficiency in homes

Domestic minimum energy efficiency standards are expected to rise to rating "C" by 2030. This could require substantial investment in improved insulation and heating, with individual private landlords particularly expected to feel the impact – although a potential cap on landlord expenditure and the availability of green loans could limit the burden. Implementation may take place in phases. In the longer term, the updated Decent Homes Standard is expected to introduce a new minimum energy standard for the social rented sector.  

Property income tax

Tax on property income will rise from April 2027. Individual landlords and others in receipt of property income will be subject to new higher income tax rates for rental income that are 2% above the standard rates. The increased tax burden will add to existing pressures on private landlords and may prompt some to exit the market, potentially reducing supply and affecting rents.

High value council tax surcharge

From April 2028, a high value council tax surcharge will apply to residential properties in England worth at least £2 million, in addition to council tax. It is intended that this be paid by owners rather than occupiers, and therefore will affect landlords of higher value residences and potentially increase rents at the higher end of the residential market. A consultation is expected in early 2026 to explore support, relief, exemptions and rules for more complex ownership structures.

Short term lets: overnight stay levy

Short-stay accommodation operators should be aware of a potential new overnight stay levy, which local mayors will have the power to introduce at a local level. Details are yet to be confirmed, and a consultation is currently open until 18 February 2026.

Telecoms 

In the Telecoms sector, operators and site provides will be affected by changes to the Electronic Communications Code introduced by the Product Security and Telecommunications Infrastructure Act 2022 (PSTIA).

From 7 April 2026, the renewal provisions under sections 61 to 64 of the PSTIA will come into force, changing the valuation basis for lease renewals under the Landlord and Tenant Act 1954 where the tenant benefits from Code rights. The existing framework will be replaced by the “no network” valuation model, aligning renewals with the approach under the Code.

We anticipate greater use of alternative dispute resolution in resolving disputes under Code agreements. The PSTIA amends the Code to require information to be provided on ADR and the consequences of refusing to participate. Both operators and site providers will need to engage constructively in ADR processes to avoid adverse costs consequences.

This article was written with the assistance of Tomisin Agbonifo, paralegal at Osborne Clarke