Horizon Scanner

Developer

Our horizon scanner provides clarity on the legal and regulatory changes which lie ahead for developers so that you can plot your course with confidence.

Move through each area to see the key dates and upcoming changes which will be of interest to support your business. Please get in touch with our team if you would like to discuss further.

The ‘bigger picture’ issues affecting the acquisition, management and disposal of land and buildings, from small projects through to large-scale complex mixed-use development.

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Planning and environmental matters are constantly evolving, affecting strategic planning and consenting strategies and the ability to get development projects off the ground.

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Navigating the complexities of the construction industry means managing and resolving risk is essential to the successful delivery of development projects, from inception to completion.

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The prospect of real estate disputes, now or in the future, can prove costly in terms of lost opportunities, revenue and even reputation. Whether you’re an investor or a developer, a housebuilder or a retailer, a charity or a farmer, the way you manage your land and property is fundamental to how you operate.

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The renewable energy sector and the delivery of low carbon projects is now core to development – from retrofitting of existing housing stock, provision for electric vehicles and consideration of battery energy storage, to district heat networks and contracts relating to energy services.

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Facilitating investment and development finance transactions and joint ventures is key to the ability to deliver development projects.

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No matter the size or stage of your business, employment and HR advice and training is critical. Being proactive and operating strategically creates a positive business asset that can actively help you achieve your strategic goals.

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Property technology, data protection, compliance and risk strategy, are fundamental to success in an ever-evolving world.

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In our view notable land issues for developers to look out for across 25/26 include:

  • Implementation of the publication of contractual control agreements in the Levelling Up and Regeneration Act 2023;
  • Residential leasehold reform;
  • Changes to the minimum energy efficiency standards, particularly stricter regulation in the private landlord market.

Please check the horizon scanner entries for more details.

A Private Members’ Bill that seeks to regulate short-term letting was presented to Parliament by Labour MP Rachael Maskell on 2 June 2025 and is due for its second reading on 4 July 2025.

The Bill aims to address concern around the growth of holiday lets, particularly in rural and coastal areas where local residents are being priced out of residential housing. The Bill would introduce a new planning use class for short-term lets that would require local planning authorities to licence individual lettings. The authority would then also have the power to remove licences, for example in the case of anti-social behaviour (addressing the issue with so-called ‘party flats’).

The Bill would also make changes to small business rates relief as it is understood that the government is looking to remove some of the tax advantages landlords have providing short-term holiday lets and encourage them to provide more residential housing.

Short-term Let Accommodation Bill – Parliamentary Bills – UK Parliament

As also detailed in our Disputes section, the Government has set out plans for commonhold reform in its new white paper to bring the system of long leasehold flats to an end.  Commonhold White Paper: The proposed new commonhold model for homeownership in England and Wales – GOV.UK

Commonhold is an alternative management structure to the long leasehold system which allows occupiers to own the freehold of individual flats in a building with the common parts of the building being jointly managed by the flat owners through a commonhold association.  It was first introduced in 2002 but has not been widely adopted. The White Paper proposes changes aimed at reinvigorating the tenure including:

  • New rules to give more flexibility which will help commonhold to work for all types of developments, including mixed-use buildings and shared ownership homes;
  • Greater security for mortgage lenders by protecting the solvency of commonhold associations by making public liability insurance mandatory, greater availability of reserve funds and oversight of commonholders to approve annual budgets to keep costs down;
  • Improve management of commonholders with new rules for appointing directors, clear standards for repairs and mandating use of reserve funds;
  • Amended rules will mean more democracy in agreeing the annual budget and clarity with safeguards for changes to “local rules” which relate only to a particular commonhold building.  This will allow homeowners to prioritise what is important for their building;
  • A Code of Practice will be released to set out how costs should be apportioned and increase transparency;
  • The Government will strengthen regulation of managing agents, who will now report to the common holders who will be able to hire or fire managing agents.

The government is holding consultations with key stakeholders and intends to publish a draft bill (the Leasehold and Commonhold Reform Bill) in the second half of 2025.

It is anticipated that as well as reinvigorating the drive towards a commonhold system, the Bill will contain more detail on the timeframe for the transition to commonhold and how it proposes to convert existing leaseholds to commonhold tenure.

A comeback for commonhold? | Foot Anstey

The Levelling Up and Regeneration Act 2023 (“LURA 2023”) included requirements for disclosure of contractual rights over land in England and Wales.  Secondary legislation will determine how the information will be requested but the requirements for disclosure will include key information such as the type of agreement, the parties involved, the date of the agreement and details of the solicitors involved in the transaction. This will impact certain land agreements including option agreements, conditional contracts and promotion agreements.  The Government consulted on draft regulations seeking views on the implications of collecting and publishing information on contractual control agreements. The consultation closed in March 2024.

Potential disclosure requirements in relation to contractual control agreements will mean that parties to such documents will have to supply more potentially sensitive commercial information. This will also cause further administrative steps for developers and their advisers to correctly file information in line with regulations.  If information is not provided or false information is given knowingly or recklessly, this could constitute a criminal offence under LURA 2023 which carries a maximum of 2 years imprisonment and an unlimited fine.

This article provides more information on the proposals – Government consults on more transparent picture of controls on land | Foot Anstey

In a letter in early 2025 to the Chair of the Land Registry board, Matthew Pennycook MP confirmed he would like to see rapid design and delivery of the systems to collect and publish contractual control agreements.  This is the first indication that the new government will proceed with these proposals. There were no details of timing.

In 2021, the Government proposed to raise the minimum energy efficiency standard to C by 2027 and B by 2030.

The original proposals were abandoned for residential properties but a new consultation was launched on the proposal to raise the minimum energy efficiency standard for domestic (residential) properties.  The proposals include revised metrics for calculating asset ratings and would require that from 2028, all new leases need to comply with the new higher standard; and by 2030, all leases need to comply with the higher standard. The consultation closes on 2 May 2025.

The Government is yet to confirm whether it will implement the original plans for commercial properties. Developers will want to know whether an existing property is exempt under the proposed changes and may consider undertaking works to improve their EPC rating in the long term.  Clarity is also needed as to the standard to which new properties must be constructed.

Improving the energy performance of privately rented homes: consultation document (HTML) – GOV.UK

Another consultation was recently launched dealing with improving the energy efficiency of socially rented homes in England with proposals to introduce a minimum energy efficiency standard for socially rented homes in England for the first time.

Improving the Energy Efficiency of Socially Rented Homes in England – GOV.UK

On 3 March, changes to Right to Manage (RTM) which had been set out in the Leasehold and Freehold Reform Act 2024 were brought into force via the Leasehold and Freehold Reform Act 2024 (Commencement No. 3) Regulations 2025.

These changes look to make it easier and cheaper for leaseholders to take over management of their buildings (there is no requirement for mismanagement by the landlord to be proved for leaseholders to make a claim).

Some of the changes include:

  • The requirement to pay the landlord’s reasonable costs upon making a RTM claim has been removed except in limited circumstances. Landlords will therefore have to pay their own costs if such a claim is made.
  • RTM previously only applied to buildings where no more than 25% was non-residential. This has been increased to 50%, meaning that more buildings will be eligible for a RTM claim and consequently more leaseholders will have the right to take over management from their landlords.

The Leasehold and Freehold Reform Act 2024 (Commencement No. 3) Regulations 2025

Subsequent to these regulations, a Private Members’ Bill has been introduced to the Commons by Labour MP Rachel Blake, which aims to expand the RTM provisions further in favour of leaseholders.

The Bill’s stated aims are to:

  • define qualifying tenants for the purposes of claiming a RTM;
  • reduce the number of qualifying tenants required to give notice of a RTM;
  • establish a duty on freeholders to assist RTM companies in connecting with leaseholders in their properties;
  • establish a presumption in favour of RTM schemes in certain circumstances.

The Bill was presented to Parliament on 18 June 2025 and is progressing slowly.

Right to Manage and Leasehold Bill – Parliamentary Bills – UK Parliament

The government has published a consultation proposing changes to the home buying and selling process including:

  • Provision of upfront information;
  • Binding conditional contracts;
  • Streamlining transactions;
  • Professionalising property agents.

The aim is faster, more reliable transactions with fewer fall throughs.  The consultation closes in Deecember.

The proposals would impact the conveyancing process of individual dwellings, likely improving the efficiency of the process for consumers.

Home buying and selling reform – GOV.UK

The English Devolution and Community Empowerment Bill introduced to Parliament in July 2025, proposes a ban on upwards only rent reviews for new commercial leases.  This has the potential to impact rent negotiations for leases and create a two tier market until all existing commercial leases are renewed or terminated.  This will likely impact investment valuations if it becomes law.

A turning point for commercial leasing: reforming rent reviews in England and Wales | Foot Anstey

The Act will reform private renting including abolishing section 21 “no fault” evictions, introducing a tenancy structure where all assured tenancies are periodic and applying the Decent Homes Standard and ‘Awwab’s Law’ to the private rented sector.  The aim is to give renters greater security and stability and includes the following proposals:

  • all tenancies will be periodic tenancies;
  • existing possession grounds and notice periods are to be reformed, but there are new grounds for possession that are accessible to registered providers of social housing;
  • there are changes to the way rent increases work for private registered providers of social housing;
  • there are changes around provision for the possession of properties and rent changes, specifically for the social housing sector, including temporary and supported housing;
  • a statutory consultation process is required so abolition of section 21 can be applied to social tenancies (where the landlord is a private registered provider of social housing) at a later date.

The Government published a Guide to the Renters’ Rights Act – GOV.UK

Investigatory powers guidance for Renters’ Rights Act 2025 – GOV.UK

Renters’ Rights Act 2025: Implementation roadmap – GOV.UK

The Act will cause significant changes to the rented housing sector.

The Guide to the Renters’ Rights Act – GOV.UK notes that assured shorthold tenancies are typically only used in the social sector where there was an expectation that a tenancy would be for the short-term, and therefore the majority of social tenants already enjoy secure assured tenancies, which have greater security and do not allow the use of section 21.

This Foot Anstey article aimed at developers flags the key issues – Renters’ Rights Act 2025 – All Systems Go! | Foot Anstey

In our view notable planning issues for developers to look out for across 25/26 include:

  • The eagerly awaited Planning and Infrastructure Bill which has gone through a period of significant amendment and is currently proceeding to Royal Assent as of 17 December 2025;
  • Homes England guidance published on social and affordable homes programme; and
  • Continued developments in the BNG space, with Nationally Significant Infrastructure Projects being proposed to come within the BNG regime in 2026.

Please check the horizon scanner entries for more details.

The bill was introduced to Parliament earlier this year as a part of the government’s package of reforms to deliver the building of 1.5 million new homes. It is currently proceeding to Royal Assent.

The bill has so far been subject to several amendments, including:

  • Removal of the mandatory pre-application consultation for a DCO (Development Consent Order) to consult prescribed bodies, local authorities, local community or persons with an interest in land. This is predicted to reduce the preapplication process by up to 12 months.
  • Removal of the requirement for specific authorisation by the Secretary of State to enter and survey land.
  • Amends to Part III of the bill to address environmental concerns.

An impact assessment was published on 6 May. This found that the bill could benefit the economy by between £1.3 and £7.5 billion over the next 10 years.

However, this does not take account of recent amendments to overhaul the pre-application stage for critical infrastructure which could add another £1 billion.

On 28 May 2025 the government launched a technical consultation calling for input into its proposed reforms for planning committees which ran for 8 weeks. This consultation looked for input on, most notably, creating a national scheme of delegation and introducing mandatory training for committee members.

Under the consultation proposals, planning decisions would be split into two ‘tiers’ with one tier (containing the more simple applications) to be dealt with by a planning officer in every instance, while the other (containing the more complex or controversial applications) to be dealt with by an officer, unless the Chief Planner of Chair of Committee agree it passes a ‘gateway test’ to go to committee.

The consultation was light on detail as to what training committee members should undertake, or how this would be enforced in practice.

The results of this consultation will be eagerly awaited, due to the effect these changes will have on the approval process for planning permissions.

Part III of the bill (Development and Nature Recovery) has attracted the most controversy and opposite from wildlife groups, with the Office for Environmental Protection describing it as a ‘regression’ on environmental protections.

In July 2025, the Government proposed amendments to Part III of the Bill to address concerns that the original draft would weaken environmental protections, as can be seen from the statement made by Wild Justice and their solicitors.

The revised provisions place greater emphasis on nature recovery, the safeguarding of sites of special scientific interest (SSSIs) and the promotion of biodiversity net gain in rural development.

The government has published a draft NPPF and associated consultation on 16 December 2025 which seeks views on proposed reforms and other changes to the planning system contained in the draft NPPF.

View are also being sought on data centres and onsite energy generation, standardised inputs in viability assessments and reforming site thresholds. The consultation closes 10 March 2026.’

Link to include: National Planning Policy Framework: proposed reforms and other changes to the planning system – GOV.UK

On the 7 November 2025 the Ministry of Housing, Communities & Local Government (MHCLG) published guidance for the Social and Affordable Homes Programme (SAHP) 2026–36.

The SAHP is a new £27.2bn initiative designed to help achieve the building of 1.5 million new homes by to delivering around 300,000 affordable homes, including 180,000 for social rent, across England (excluding London).

Bidding is expected to open in February 2026, with the first grants distributed from April 2026. Bidding will be open to registered providers, local authorities, housebuilders and developers, charities and community-led organisations.

Comment

Key take aways for developers:

  • The SAHP emphasises regional strategic leadership in affordable housing delivery by increasing regional mayors’ roles in the decision making process for grant-funding and giving mayors responsibility for setting the strategic direction for affordable housing delivery in their areas.
  • There is no proposal to extend additionality rules so Section 106 Affordable Housing can be purchased via the grant funding, as is being considered for London.
  • Opportunities for community land trusts and housing co-operatives to deliver affordable housing delivery in their areas.
  • The Right to Shared Ownership does not apply to rented housing developed under the new scheme, as can be seen from MHCLG guidance here.

Developments in the Biodiversity Net Gain (BNG) space continue as more and more developments become subject to the BNG regime.

As previously reported, the mandatory BNG regime for all TCPA (Town and Country Planning Act) developments came into force on 12 February 2024. Since this date, developers have had a statutory obligation to ensure a 10% improvement in biodiversity per development.

On 14 March 2025, the government published its first annual report around the income taken from statutory BNG credits.

Comment

BNG currently only applies to developments subject to the TCPA regime, which excludes NSIPs (Nationally Significant Infrastructure Projects). A key development we expect to see in 2026 is the BNG regime extending to NSIPs.

The government previously proposed to bring NSIPs within the BNG regime from November 2025, but this has now been pushed back to May 2026. We can expect to see a surge in interest in BNG leading up to this date, and with it the potential for the demand to drive down the overall price of the off-site credits.

The recent High Court decision in Chidswell Action Group, R (On the Application Of) v Kirklees Council [2025] EWHC 2256 (Admin) has reinforced the procedural requirement set by the Court of Appeal in Greenfields (IOW) Ltd v Isle of Wight Council for local planning authorities (LPAs) to publish draft Section 106 Agreement which contain planning obligations prior to granting planning permission.

This has reaffirmed concerns around procedures for agreeing and publishing Section 106 Agreements, because the developer’s planning permission was quashed after it was decided that the LPA’s failure to publish the Section 106 Agreement before granting planning permission invalidated the decision.

The alarming point for LPAs and developers is that it has been common practice for Section 106 Agreements to be published to the LPA’s planning register after the grant is made (or at the same time). However, in this case the judge decided that there was a strong possibility that publication may have led to a substantially different outcome as the Section 106 obligations would likely have been improved and the committee may have asked for updated biodiversity work to be done before deciding whether to proceed.

The key implication for developers is that planning permissions risk invalidation. We recommend developers check the LPA’s public register regularly to ensure compliance and liaise with the LPA on the timescales for publication, to ensure draft Section 106 Agreements are published early enough during a planning application for scrutiny.

The Supreme Court clarified how environmental protections apply when discharging planning conditions. Our article summarises the issues.

Supreme Court clarifies Nutrient Neutrality and Environmental Protection: The CG Fry Judgment | Foot Anstey

In our view notable construction issues for developers to look out for across 2025 include:

  • Unsafe cladding remediation;
  • Creation of new separate Building Safety Regulator;
  • Update on the new Building Safety Levy;

Please check the horizon scanner entries for more details.

On 17 July 2025 the Government published a joint plan together with the social housing sector which set a statutory deadline for the removal of unsafe cladding from high-rise buildings in England. A new Remediation Bill is being brought forward to crystallise the laws intended under the Remediation Acceleration Plan as soon as the parliamentary timetable allows.

Under the new legislation:

  • Buildings that are over 18m in height must be fully remediated by the end of 2029; and
  • Buildings that are between 11m and 18m in height must have remediation completed by the end of 2031.

Failure to comply with the strict deadlines could lead to unlimited fines or imprisonment.

Legal deadline confirmed: Unsafe Cladding Remediation | Foot Anstey

The Government has put before Parliament the new Building Safety Regulator (Establishment of New Body and Transfer of Functions etc) Regulations 2026. The new Building Safety Regulator (“BSR”) will be a corporate body reporting directly to the Secretary of State for Housing, Communities and Local Government. These new regulations will:

  • Come into force on 27 January 2026 and the new Building Safety Regulator will formally take control of high-rise building safety in England and Wales (having formerly been part of the HSE) from that date;
  • Transfer the current powers, staff and live cases that the HSE have managed under the Building Safety Division;
  • Enable the BSR to prosecute for non-compliance and charge for services;
  • Require the BSR to produce annual reports (with the first being due shortly after the end of March 2026);
  • Give the BSR the discretion to “do anything it thinks appropriate for the purposes of, or in connection with, its functions”.

The draft Statutory Instrument is available to view here.

The Ministry of Housing, Communities and Local Government published further guidance earlier this year on the new Building Safety Levy, which includes specific advice for developers of residential buildings and advice for local authorities.

The levy is essentially a tax on new residential buildings which will be collected by local authorities and used to contribute to fixing building safety defects across the country to ensure residents are safe.

Importantly, the Building Safety Levy has been pushed back a year and will now come into force on 1 October 2026. It will apply to building control approval applications for one or more dwellings and/or one or more purpose-built student accommodation bedspaces on or after that date (unless an exemption applies). For example, exemptions apply to social housing and supported housing provided by a local authority, housing association, charity or voluntary organisation.

Our earlier article flags the key issues – The Building Safety Levy – what you need to know | Foot Anstey

In the case of Jaevee Homes v Fincham [2025] EWHC 942 (TCC) the Technology and Construction Court (TCC) was asked to consider the circumstances where a contractor had quoted for work by email, followed by an exchange of WhatsApp messages with the client during which it was confirmed the contractor was successful, and a subsequent formal contract was not executed.

The TCC issued a judgment:

  • reaffirming that legally binding contracts can be formed via informal electronic platforms such as WhatsApp provided the language and context support it; and
  • establishing that a construction contract can be valid even without agreement on key details like the project duration, start date, or payment terms as these terms can be implied by law.

Lee Ward and Chloe Wood discuss the importance of the judgment and some key tips for parties negotiating a construction contract here.

The Labour Government has set out its plans for commonhold reform to “reinvigorate commonhold tenure” by making it the default tenure for shared residential flats and mixed-use blocks.

Commonhold is a way of owning freehold properties which have communal facilities. The unit holder owns the freehold interest in their respective unit and is a member of the commonhold association which owns and manages the common parts of the building or estate.

Commonhold ownership has been an available alternative to leasehold ownership since 2002 but has not been favoured in the UK until now. There are approximately 20 commonhold ownership structures currently in use in the UK.

The Commonhold White Paper, published on 3 March 2025, proposes the following:

  • A ban on new leasehold flats;
  • Restriction or abolition of a freeholder’s right to forfeit;
  • Enhanced, and more flexible, commonhold framework;
  • Reforms to strengthen management and governance of commonhold properties; and,
  • Support for existing leaseholders.

A draft Leasehold and Commonhold Reform Bill is expected later this year.

After 70 years in force and of prominence in the UK property industry, the first of the Law Commission’s two Consultation Papers reviewing how the Part 2 of the Landlord and Tenant Act 1954 (the Act) might be reformed was closed earlier this year, on 19 February 2025.

Part 2 of the Act gives business tenants the right to renew their tenancies, also known as “security of tenure”. It applies automatically to most business tenancies unless the parties have specifically opted-out of the provisions before the grant of the lease.

The aim of the review and consultation is to modernise commercial leasehold legislation, as the last significant updates were made nearly 20 years ago. The review intends to create a framework which will be used more widely and will improve the use of commercial space in town centres, taking into account net zero targets.

The Law Commission has published an interim statement setting out the following provisional conclusions:

  1. The existing security of tenure model remains the right model. Based on consultees’ feedback, the model ‘strikes the best balance between landlords and tenants’ and any change to this would cause ‘unwarranted disruption to the commercial leasehold market’.
  2. The existing list of tenancies benefitting from security of tenure should be retained as is.
  3. As currently drafted, the Act excludes from security of tenure tenancies granted for a term not exceeding 6 months. There is support from consultees’ for increasing the 6-month period to two years meaning that a business tenancy granted for a fixed term of 2 years or less would not benefit from security of tenure under the Act.

The second Consultation Paper will focus on the ‘technical detail of how the Act might be reformed including potential reform to the contracting out procedure’. Currently, there is no timescale for its publication.

Please see this article for more information – Standing the test of time? Law Commission review of the LTA 1954 | Foot Anstey

The Renters Rights Act (RRA) received Royal Assent on Monday 27 October,

The RRA will abolish the ability of a residential landlord to evict a tenant on a “no fault” basis by serving a notice under section 21 of the Housing Act 1988. This will apply to both existing and new tenancies. The change will mean landlords must provide a statutory reason to evict a tenant. Reasons like rent arrears will remain, but the thresholds will be increased.

The RRA will also abolish assured shorthold tenancies (ASTs) and fixed-term assured tenancies of less than 7 years. These types of tenancies will be made periodic (i.e. month to month). The practical effect of this is that tenants will be able to stay in a residential property until they decide to end the tenancy by giving two months’ notice, unless one of the statutory grounds for the landlord to terminate the tenancy is satisfied.

As alluded to, the RRA makes significant changes to the grounds for possession available to landlords, including by: (1) introducing new mandatory and discretionary grounds, (2) altering or removing existing mandatory or discretionary grounds, and by (3) generally increasing notice periods and where certain grounds are used (such as new mandatory ground 1A, which will allow a landlord to evict a tenant if they wish to sell a property (or let it for more than 21 years)), preventing the landlord from re-letting the property for 12 months from the notice date.

The RRA places significant limits on landlords’ ability to increase rent. Landlords will only be permitted to increase rents once per year on two months’ notice to the tenant. Tenants will also be given increased powers to challenge the rent increase and validity of the notice to the First Tier Tribunal. Rental bidding beyond the levels of rent advertised for a property will also be prohibited, with breaches punishable by financial penalties.

The RRB also requires all private rented sector landlords to register with a new independent Private Rented Sector Landlord Ombudsman, likely for a small annual fee. The Ombudsman will be able to make binding decisions regarding tenant complaints, enforceable using both civil penalties and criminal prosecution. Landlords will also need to register with a new Private Rented Sector Database to let a property and obtain an order to evict a tenant.

On 27 December 2025, a limited number of provisions in the Act will come into force, which include:

  • Chapter 2 of Part 1 – Sections 31 and 32 under this chapter specify the types of tenancies that cannot be assured tenancies.
  • Section 59 – This section removes Part 3 of the Housing and Planning Act 2016 that sets out a private landlord’s procedure for recovering possession of abandoned property let under an assured shorthold tenancy.
  • Section 110 – This section imposes duties on local housing authorities and county councils to report the exercise of their functions upon request by the Secretary of State.
  • Chapter 3 of Part 4 – This chapter sets out the investigatory powers granted to local housing authorities by the Act.

Further implementation will take place in 3 phases, the abolition of ASTs / section 21 evictions being prioritised in Phase 1.

Renters’ Rights Act 2025 – All Systems Go! | Foot Anstey

The Upper Tribunal’s (UT) decision in BNPPDS(J) Limited And BCI Limited V Amanda Hitchings (Valuation Officer) [2025] reaffirms key principles from the Supreme Court ruling in Newbigin v Monk [2017] regarding the rateable value (RV) of properties undergoing refurbishment.

The dispute involved a warehouse in Newcastle undergoing substantial refurbishment from 28 November 2022 to 24 March 2023. The works involved fitting out the property as a “dark kitchen” for use by McDonalds.

The Premises were assessed for RV in the 2017 rating list as a warehouse and premises at £31,500. The owner issued a check and subsequent challenge on 10 January 2023 and 21 March 2023, citing that the Refurbishment Period rendered the Premises incapable of beneficial occupation.

The issue in question was whether the property was capable of beneficial occupation during the refurbishment period, impacting its rateable value (the value ascribed to a domestic or commercial building based on its size, location, and other factors, used to determine the rates payable by its owner).

The UT held that the property was not capable of beneficial occupation during the refurbishment, and consequently its rateable value should be reduced to £1 during this period.

This decision provides clarity for property developers and owners, confirming that substantial refurbishment rendering a property unoccupiable can justify a temporary reduction in the rateable value.

BNPPDS(J) Ltd & Anor v Hitchings (Valuation Officer) (RATING – HEREDITAMENT – 2017 List – warehouse – works carried out following termination of lease and prior to opening as a delivery kitchen – whether property incapable of beneficial occupation – whether state of reasonable repair to be assumed – Local Government Finance Act 1988, Sch 6, para 2(1)(b)) [2025] UKUT 104 (LC) (26 March 2025)

This case revolved around the interpretation an insurance clause in a commercial lease.

The lease provided that the tenant, Picturehouse Cinemas (the Tenant), should pay insurance by reference to the ‘premium payable…for keeping the Centre insured’. However, in practice, the landlord, London Trocadero (the Landlord), obtained insurance via brokers and paid them a commission. The amount of the broker’s commission could be increased and part of that commission was then repaid to the Landlord (the Landlord’s Commission). The effect of this was that when the total amount was recharged to the Tenant, the Tenant funded the Landlord’s Commission, allowing them to profit at the Tenant’s expense.

The High Court ruled that the Landlord could not pass on the fee paid to the broker to the Tenant as part of the insurance rent as it did not form part of the cost of insurance policy itself and required repayments to the tenant to be made.

This decision unravels a decades old practice of insurance commissions being subsumed into insurance rent payable by tenants which produces pure profit for landlords. This will have significant implications for landlords, with more tenants likely to enquire whether landlords have been earning a profit on any commissions.

The judgment may be viewed here: London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors [2025] EWHC 1247 (Ch) (23 May 2025)

A dispute arose in the context of the construction of an extension. The Court of Appeal ruled that two neighbours were bound by a boundary demarcation agreement they had no knowledge of which was entered into by their predecessors in title. This case reaffirms the importance of boundary demarcation agreements, as successors in title will only acquire title as delineated by the agreement regardless of their knowledge of the agreement’s existence.

The judgment may be viewed here: White v Alder & Anor [2025] EWCA Civ 392 (07 April 2025)

In the Autumn Budget 2024, the government committed to substantial funding to accelerate the UK’s clean energy transition; from carbon capture and renewable infrastructure to electric vehicles (EVs) and green hydrogen.

This article gives a breakdown of the top announcements affecting the energy sector: Autumn Budget 2024: Boosting the UK’s Clean Energy and Net Zero Goals

In August 2024 the Government commissioned the National Energy System Operator to provide practical advice on how to achieve the Government’s clean power goals for 2030. The output of this advice will form the basis of the Government’s ‘Clean Power 2030’ action plan.

In October 2024, the Government commissioned the same body to publish and implement a Strategic Spatial Energy Plan (‘SSEP’) in respect of the UK’s national energy infrastructure. The SSEP will consider the optimal spread of energy projects across the UK and whilst it is independent from the Clean Power 2030 plan it is intended to work alongside the latter. The first iteration of the SSEP is anticipated in 2026 and will focus on electricity generation and storage, including hydrogen.

The output of SSEP is likely to have far reaching impacts for any entity that interacts with the energy system, including developers who are looking at ways to decarbonise their residential and commercial developments, as well as their own portfolio of assets. Developers are advised to engage with any consultation on the proposed recommendations of the SSEP, once such a consultation is announced.

The energy sector is undergoing a considerable transformation in 2025. This will have potential impact on the availability of grid connection capacity for new residential and commercial developments, as well as the way in which developers procure the energy.

Clean energy procurement: Key considerations | Foot Anstey

Clean energy trends to watch in 2025 | Foot Anstey

On 6 November 2025, Ofgem published guidance setting out how it intends to address the significant increase in demand connection applications, which it states have surged sharply since November 2024, purportedly surpassing all forecasts and expectations. As part of this guidance Ofgem is considering various options for reshuffling the demand queue, including potentially the implementation of a similar process as the one that was followed under the Grid Connection Reform.

As part of this process, NESO launched a Call for Input to gather information about the current composition of the demand queue. The Call for Input closes on 5 December 2025. Affected customers are those with:

  • An existing transmission-level demand connection agreement, or
  • A directly connected generation agreement (that includes demand technologies, i.e. co-located sites).

The Future Homes Standard (“FHS”), was intended to be published in Autumn 2025, but as of November 2025, we are still awaiting its publication.

The FHS will, once published, include new rules obliging housebuilders to incorporate solar pv panels to new housing developments. The Government has indicated that developers will be required to provide at least 40% coverage (and where this is not possible to still install a ‘reasonable amount’). A lot of the detail is currently unknown and we anticipate that exemptions will be introduced.

In the interim, housebuilders are, in anticipation of the introduction of the FHS, actively looking to incorporate renewable energy generation technologies to their proposed schemes.

The Act designates a government owned statutory clean energy company, Great British Energy, which, using the government’s financial assistance, will invest in and support clean technology and power projects. Great British Energy will contribute to the government’s Clean Power 2030 objectives.

Its key functions are to facilitate

  • production, distribution, storage and supply of clean energy.
  • reduction of greenhouse gas emissions.
  • improvements in energy efficiency to support decarbonisation.
  • security of supply measures to support UK energy independence.
  • ensuring that supply chains and business are free from slavery and human trafficking.

Great British Energy will be independent from the government in its operational and investment decisions. Its effectiveness will be reviewed by an independent person.

The deployment of clean energy projects (both of established and less-established technologies) may provide additional opportunities to those operating within the developer sector to decarbonise their stock.

UK launches bold call to global investors: “Build it in Britain” | Foot Anstey

Great British Energy: Statement of Strategic Priorities – GOV.UK

The Labour Government has expressed its continued support for the Boiler Upgrade Scheme. In the Autumn 2024 Budget the Government committed £5.8 million of funding to develop England’s first heat network zones in 5 cities (Leeds, Plymouth, Bristol, Stockport, Sheffield and London). Construction is expected to start from 2026. The Government also reaffirmed its plans to introduce secondary legislation as outlined above.

Following the enactment of the Energy Act 2023 (‘Act’)

“The Heat Networks (Market Framework) (Great Britain) Regulations 2025” were made on 2 March 2025. The provisions are coming into force on a staggered basis, such that as of 1 April 2025 it is prohibited to carry out a ‘regulated activity’ without authorisation. Broadly, a ‘regulated activity’ involves the operation of a heating network and the supply of heating or cooling through such a network.

So far, OFGEM has consulted on proposed measures that are intended on protecting end consumers (for instance the tenants of residential buildings), by providing for transparency around pricing and a set of standards that suppliers need to adhere to. OFGEM will have regulatory responsibilities under the proposed new regime.

A lot of the detail is yet to be ironed out, so for now those who operate heat networks or supply heating or cooling through such networks are encouraged to: (i) where they own or operate buildings that are connected to a district heat network or buildings that use a communal heat network, identify whether they are a “heat supplier” or “operator” and (ii) monitor the developments in this space to ensure that they are well placed to respond to any transitional arrangements that the Government may put in place.

From 1 April 2025, all existing communal and district heat networks (i.e. those in existence prior to 1 April 2025) will be deemed authorised. Operators of such networks and suppliers of heat or cooling in those networks will be required to register their regulated activities with Ofgem by 26 January 2027.

All new developments, whether they are residential or commercial or an energy project, require a connection to the grid to be able to import electricity (and where there is on-site generation) export electricity to the grid. Whether a development is connecting to the distribution system or the transmission system, it will be affected to some extent by the Grid Connection Reform that National Grid has instigated.

The Grid Connection Reform is a process by which applications for new connections are submitted, assessed and managed is significantly amended. Additionally, the existing queue for projects connecting to the transmission system is going to be rearranged.

The first phase of the Grid Connection Reform, being the submission of evidence as part of the Gate 2 process, has now been completed and developers of clean energy projects will be notified in the w/c 1 December 2025, whether they have been successful in securing a Gate 2 Offer (with a guaranteed date of connection and point of connection) for their projects.

There is currently no indication from NESO as to when the next Gated Application Window will be. This is bound to create further uncertainty in the energy sector and cause delays in the delivery of clean energy projects. For those residential and commercial developers, who are looking to procure their energy through a renewable energy source, the delays resulting from the Grid Connection Reform, could have a direct impact on their energy procurement strategy.

Heat networks in the spotlight: 2025 and beyond | Foot Anstey

Grid connection reform: The big shake-up | Foot Anstey

NESO moves the goalposts on connections’ reform | Foot Anstey

For those heat networks that are deemed authorised, the general authorisation conditions will become effective from 27 January 2026 and Ofgem will have powers to take enforcement action from that date.

For more information please read here: Ofgem Consultation: Heat networks regulation: authorisation and regulatory oversight

In our view notable investment issues for developers to look out for across 2025 include:

  • The impact of corporate governance changes;
  • Budget issues;
  • The potential ban on upwards only rent reviews.

Please check the horizon scanner entries for more details.

The impact was less than expected but the budget announced some changes to property taxes which will be of interest to investors.

Budget 2025 – what did and didn’t happen to property taxes? | Foot Anstey

Since July 2025 there have been the following key corporate governance updates, which will be of relevance to all corporate investors:

  • Since February 2025 there have been the following key corporate governance updates, which will be of relevance to all corporate investors:
  • On 25 February 2025 the Financial Reporting Council published an updated “Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risk”.
  • The Institute of Directors establishes a commission to investigate the role of non-executive directors in the UK.
  • On 8 April 2025 Companies House launched a new voluntary online identity verification service.

Please see our article below for further detail about each of these.

Corporate governance key updates | July 2025 – October 2025 | Foot Anstey

The English Devolution and Community Empowerment Bill introduced to Parliament in July 2025, proposes a ban on upwards only rent reviews for new commercial leases.  This has the potential to impact rent negotiations for leases and create a two tier market until all existing commercial leases are renewed or terminated.  This will likely impact investment valuations if it becomes law.

A turning point for commercial leasing: reforming rent reviews in England and Wales | Foot Anstey

The Employment Rights Bill was introduced by the Labour government, proposing wide-ranging and fundamental reform of employment law, including (amongst other measures):

  • Removing two-year qualifying period for unfair dismissal claims
  • Extending the time limit for most Tribunal claims, from three months to six
  • Banning zero-hour contracts
  • Ending “fire and rehire”
  • Introducing worker “day-one” rights
  • Extending probation periods
  • SSP rights for workers
  • Better flexible working arrangements
  • Additional protection for women
  • Updated trade union laws

We’re closely monitoring the progress of the Employment Rights Bill, which subject to Royal Assent is expected to come into force over the next 12 months.

This is a detailed and wide-ranging programme of updates to the employment landscape, and will have a wide-ranging impact on all employers.

Employment Rights Bill – Parliamentary Bills – UK Parliament

The government has a long-term aim to give self-employed people the right to a written contract, take action to tackle late payments and extend health and safety and blacklisting protections to the self-employed.

The government plans to extend limitation periods for bringing tribunal claims from 3 to 6 months. We expect further clarity on this proposal before the end of 2025. In some cases, this will allow additional time for resolution but overall, it may result in higher numbers of tribunal claims.

The government also intends to establish a new state enforcement body the “Fair Work Agency” with powers to inspect workplaces and take legal action.

The new body is likely to have powers to enforce working time, holidays, pay, sick pay, agency rules and ‘discriminatory practices against migrant workers’. It is expected to launch in April 2026.

Employers’ compliance and record keeping will become significantly more important if scrutiny increases.

There will be increased rights for trade unions to access workplaces, in a regulated and responsible manner, on appropriate notice. There could be greater powers for the Central Arbitration Committee to enforce rights.

This will be more extensive than the existing limited rights of entry ahead of a statutory recognition ballot.

The government also intends to grant recognition to unions if supported by a simple majority of votes in a ballot. The current requirement that recognition must also be supported by 40% of those entitled to vote will be scrapped, as will the requirement to show that at least 50% of workers are likely to support recognition before the process can begin, making it easier for unions to secure statutory recognition.

These measures are currently under consultation in conjunction with the Employment Rights Bill, and are expected to come into force in 2026.

This is a Private Members’ Bill. Although unlikely to pass into law, the Bill provides for a statutory definition of bullying at work; to make provision relating to bullying at work, including to enable claims relating to workplace bullying to be considered by an employment tribunal; to provide for a Respect at Work Code to set minimum standards for positive and respectful work environments; to give powers to the Equalities and Human Rights Commission to investigate workplaces and organisations where there is evidence of a culture of, or multiple incidents of, bullying and to take enforcement action.

A second reading is scheduled for January 2026, so watch this space.

The government has reformed its apprenticeship programme, with wide ranging changes to apprenticeships including the following items:

  • The minimum duration for an apprenticeship is now 8 months, or 187 hours of off-the-job training, whichever is longer.
  • For apprentices with no prior learning, off-the-job training hours (which will be published for each apprenticeship standard) must be delivered.
  • The apprenticeship funding rules for 2025-2026 have been updated.

Changes are now in effect for English and maths requirements.

This is a Private Members’ Bill. Although unlikely to pass into law, the Bill provide for a statutory definition of bullying at work; to make provision relating to bullying at work, including to enable claims relating to workplace bullying to be considered by an employment tribunal; to provide for a Respect at Work Code to set minimum standards for positive and respectful work environments; to give powers to the Equalities and Human Rights Commission to investigate workplaces and organisations where there is evidence of a culture of, or multiple incidents of, bullying and to take enforcement action.

A second reading is scheduled for January 2026, so watch this space.

Bullying and Respect at Work Bill 2nd reading – Parliamentary Bills – UK Parliament

 

The government intends to make ethnicity pay gap reporting compulsory for employers with at least 250 employees.

It also plans to introduce compulsory disability pay gap reporting, based on employee self-reporting of disability (they will not be forced or obligated to disclose their status), and judged on a binary basis of “disabled -v- non-disabled” without greater analysis of the different types or degrees of disability.

We await the new draft legislation and the outcome of consultation in this area.

The waiting period for SSP shall be removed, so SSP is paid from day one of sickness. The lower earnings limit will also be removed so all employees, regardless of their earning, qualify for SSP. For employees who earn less than £123 per week, they will be entitled to receive 80% of pay as SSP. These changes will come into force in April 2026.

Under the Employment Rights Bill, the ability of employers to use fire and rehire practices to change terms and conditions of employment will be significantly restricted. It will strengthen the remedies against abuse of the current rules on collective redundancy consultation and fire and rehire.

Changes are expected to take effect in October 2026.

The Department for Science, Innovation and Technology (DSIT) is expected to publish a summary of responses and the governments response to its consultation on its AI management essentials (AIME) tool, which closed in early 2025. Throughout 2025, DSIT has been considering the consultation responses and using the feedback to refine the AIME.

The consultation was prompted by DSIT’s awareness that the proliferation of AI guidance from the UK and around the world can be confusing for organisations to navigate. AIME is a self-assessment tool that aims to help organisations assess and implement responsible AI management systems and processes.

The final version of the AIME tool is expected to include three components: a self-assessment questionnaire, a rating for each section of the self-assessment and a set of action points for improvement.

On 12 November 2025, the Cyber Security and Resilience (Network and Information Systems) Bill was published following its first reading in the House of Commons. It will now proceed to a second reading, which will provide the first opportunity for MPs to debate the general principles and themes of the Bill.

The Bill is expected to:

  1. Broaden regulatory reach by bringing managed service providers (MSPs), data centres, and other digital infrastructure operators within its scope.
  2. Enhance regulators supply chain oversight allowing them to impose obligations on both suppliers and customers within key supply chains.
  3. Grant regulators wider and stronger powers to conduct audits, request information, and issue enforcement directions.
  4. Make incident reporting stricter, with firms needing to notify regulators and the NCSC within 24 hours of a serious incident and provide a report after 72 hours.

To prepare for the Bill developers should: (1) assess whether they fall within the scope of the Bill, (2) review and strengthen incident-response plans for the 24 / 72 hour reporting, (3) update supplier contracts to include cyber duties, (4) align internal security policies with recognised standards such as ISO 27001 or the NCSC Cyber Assessment Framework.

The EU Commission has said it continues to assess UK data protection standards as being “essentially equivalent” to those in force in the EU. It has proposed to renew its UK adequacy decisions for a period of six years, enabling the continuing free flow of personal data between the EEA and the UK. The adequacy decision will now need to approved by various other EU institutions.

Without the adequacy decisions being in place between the EU & UK, developers that transfer personal data from the EU to the UK would face much greater compliance costs as additional transfer mechanisms would need to be implemented. It is positive news for developers operating across the UK and EU that the adequacy decisions are likely to be renewed, as personal data can continue to flow freely from the EEA to the UK without additional safeguards.

Draft UK adequacy decisions: EDPB adopts opinions | European Data Protection Board

The Information Commissioner’s Office (ICO) launched a new cookies enforcement strategy in the UK (January 2025). It has begun reviewing the top 1,000 UK websites for cookie compliance. Its first sweep of 200 sites revealed widespread issues and because tracking technologies are visible without investigation, this is one of the most straightforward areas for the regulator to enforce. In addition to greater UK regulator attention, there will be increased fines for cookies non-compliance. The DUAA has raised the ceiling for fines dramatically: fines can now reach up to 4% of global annual turnover, the same level as UK GDPR sanctions. For larger organisations, this represents a major compliance risk.

With significantly higher DUAA fines now in force, increased UK regulatory attention and landmark fines being imposed across Europe, large organisations should:

  • Conduct a cookies compliance audit – review all cookies, tracking scripts, and third-party integrations on the site.
  • Update cookie banners – ensure users can clearly “accept” or “reject” cookies in line with UK best practice.
  • Review privacy and cookie policies – make sure they are transparent, accurate, and easy to understand.
  • Keep compliance records – document the approach to cookie management and data processing.

Monitor ICO enforcement updates – stay informed on ICO enforcement 2025 activity and guidance.

ICO’s cookies enforcement strategy: what businesses need to know in 2025 | Foot Anstey

The Data (Use and Access) Act received Royal Assent on 19 June 2025.

It amends UK GDPR, the Data Protection Act 2018, and the Privacy and Electronic Communications Regulations (PECR). Notably it (1) adds a new lawful basis ‘recognised legitimate interests’, (2) eases the consent requirements for non-intrusive cookies, (3) aligns PECR fines with GDPR levels; and (4) broadens the grounds that can be relied upon for solely automated decisions, among other things. Beyond data protection the act introduces “smart data” sharing schemes, a digital identity verification framework, and a national register for underground infrastructure.

The Act’s provisions will be implemented over the course of 2025 and 2026 and developers should begin integrating these changes into their privacy strategies, audit marketing and data sharing contracts. They should also engage with ICO guidance

More information can be found in our article – Data (Use and Access) Act 2025: Changes to Data Subject Access Requests and NEW right to complain to the controller

The new General Data Protection Regulation introduces additional rules to speed up the cross-border enforcement of the GDPR and clarify the relevant procedures and rights.

Among other things, it will:

  • Set clear deadlines: Once a lead authority is designated, investigations must conclude within 15 months, extendable by 12 months for complex cases.
  • Simplify co-operation: A streamlined procedure applies when the case scope is clear, no objections arise and similar cases exist. The deadline is 12 months, with possible extensions due to national procedures.
  • Strengthen complainants’ rights: Complainants can express their views before decisions are made and gain better access to case information, with member states free to offer broader access.

After 17 November 2025 the Regulation will be published in the Official Journal of the European Union and enter into force 20 days after its publication. 15 months after this, (i.e. March 2027) the regulation will be enforceable.

The greater predictability and efficiency with which GDPR will be enforced cross-border represents a significant step for multinationals operating across several EU member states. Developers should review their internal procedures now to ensure they are prepared for the new enforcement landscape.

Data protection: clearer rules for cross-border enforcement | News | European Parliament

In this case, the Court of Appeal made several landmark rulings:

  • Claimants do not need to prove that their personal data was disclosed to a third party to bring a GDPR claim – mere “processing” (like printing and mailing) is enough.
  • There is no “threshold of seriousness” for data protection claims under English Law

In principle, a claimant can recover compensation for fear of the consequences of an infringement of their rights under the Data Protection Act 2018 (DPA 2018). The harm does not have to be material. However, such fears must be objectively well-founded rather than purely hypothetical or speculative.

Farley and others -v- Paymaster (1836) Limited (trading as Equiniti) – Courts and Tribunals Judiciary

Note: The Horizon Scanner is up-to-date as of 30 November 2025 and is updated at regular intervals throughout the year. 

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