Developer

In January the government published the draft Commonhold and Leasehold Reform Bill alongside a consultation on the move to commonhold and banning leasehold for new flats.

In June 2026 the government published its response to its earlier consultation on home buying and selling reforms with a roadmap for changes.

Home buying and selling reform roadmap

Key takeaways are:

• In 2026 to identify sales pack information and publish a non-statutory code of practice for property agents;
• In 2027/2028 consult on mandatory qualifications for estate and letting agents and consult on sales information legislation;
• By the end of parliament, require sales packs prior to listing, the use of binding contracts once sales packs are established and support secure data sharing and make sales packs digital.

Residential developers should remain alert to proposed changes which could result in additional costs and changes in process when preparing residential developments for market.

The English Devolution and Community Empowerment Act 2026 received Royal Assent on 29 April 2026 and includes a ban on upwards only rent review provisions in commercial leases by amending the Landlord and Tenant Act 1954.

The ban is not expected to take effect until 2027 or 2028 which will require secondary legislation.  Upwards only rent reviews in commercial leases completed before the ban comes into force will not be affected and will remain enforceable.

For more information on the detail of the changes introduced please see our article here What goes up might now come down – the new ban of upwards only rent reviews in commercial leases | Foot Anstey.

The ban will mean landlords of commercial developments may want to consider alternative ways to structure their rent reviews to reduce the impact of the ban, such as index linked reviews, higher rents, shorter leases or stepped rents.

New obligations to register information about contractual control rights will be implemented through The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 which were made on 8 June 2026.

They will come into force on 6 April 2027 and relate to certain options, pre-emptions, conditional contracts and promotion agreements.  Grantees of contractual control agreements will need to instruct a conveyancer to register contractual control information on a new register held by HM Land Registry.

Transitional provisions mean that contractual control rights granted between 8 June 2026 and 6 April 2027 will need to be registered after the register opens on 6 April 2027 and by 6 October 2027.

Developers should be aware of the Regulations and the potential impact they will have including the mandatory reporting by a conveyancer (and therefore additional costs) and issues surrounding confidentiality of deals relating to sensitive or strategic sites.

Please see our article for more details.   Contractual control database – the transitional provisions are here | Foot Anstey

On 18 June 2026, two sets of secondary legislation relating to the Nature Restoration Fund were laid before parliament:

1. The Nature Restoration Levy Regulations 2026; and
2. The Environmental Delivery Plans (Appropriate Prioritisation) Regulations 2026.

The Nature Restoration Fund enables Developers to satisfy environmental obligations by paying a levy instead of arranging their own site mitigation. Natural England will pool these payments and deliver nature recovery at a landscape scale through Environmental Delivery Plans (EDPs).

1. Nature Restoration Levy Regulations 2026 set the framework for how the levy will operate and how developers can discharge obligations through it. This statutory instrument is currently making its way through the House of Lords.
2. The Environmental Delivery Plans (Appropriate Prioritisation) Regulations 2026 set out how Natural England must prioritise different types of conservation measure when preparing EDPs. This statutory instrument came into force on 9 July 2026.

The government published updated guidance on the compulsory purchase process on 17 June 2026.

One notable change is the express recognition of conditional confirmation of Compulsory Purchase Orders (CPOs). A confirming authority may confirm a CPO even where an obstacle to delivery remains, by imposing pre-exercise conditions that must be satisfied before the powers are used. This should help promoters keep schemes moving while resolving outstanding issues, rather than seeing them delayed.

The guidance also reflects changes enabling CPO notices and documents to be served electronically where the recipient has agreed in writing to receive them by that method. This may make service quicker and more efficient than relying solely on the postal system.

The government is expected to publish an updated National Planning Policy Framework (NPPF) shortly, following consultation on a draft framework launched in December 2025 and closed in March 2026. We understand that publication could take as early as the week commencing 20 July, although no confirmed publication date has been announced.

The revised framework is expected to have implications for plan-making, housing land supply assessments and other key areas of planning policy. Developers should review the final published version carefully, particularly in relation to site promotion strategies and live planning applications. We would be pleased to advise further on the potential impact of the changes once the updated NPPF is available.

From 31 October 2026 there will be a new framework for the determination of planning applications in England by local authorities. This framework will fall under the National Scheme of Delegation of Planning Functions (the ‘Framework’). The purpose of the incoming Framework is to streamline applications where appropriate and minimise the number of applications that need to be determined by planning committees, which can be a lengthy process.

The regulations have two classes of applications:

1. Schedule 1 Applications deal with projects of a smaller scale, such as minor residential and minor commercial developments. These must be determined by planning officers.
2. Schedule 2 Applications are reserved for more intensive matters such as major planning applications and applications to modify or discharge planning obligations.

For Schedule 2 Applications there is an ‘overriding presumption’ that there will be determination by a planning officer rather than a planning committee. Referral to committee can only be justified if the application-

• Raises a significant economic, social or environmental issues; or
• Raises a significant planning matter ( having regard to the development plan and other material considerations).

What counts as “significant” is explored in more detail in our article, along with other points to consider.

On 4 February 2026 the Government Commercial Function issued guidance on contract payment information, which is information that contracting authorities are required to publish in accordance with s70 of the Procurement Act 2023.

Date: this section of the Act is expected to be in force on 1^st April 2026.

Which payments: under this legislation, any payments over £30,000 (including VAT) made by a contracting authority under public contracts must be published on a quarterly basis.

Application: it applies to public contracts procured on or after 1 April 2026 (when this section enters into force).

Exceptions: the publication obligation does not extend to a public contract that is:

• a utilities contract awarded by a private utility;
• a concession contract;
• awarded by a school;
• awarded by a transferred Northern Ireland authority (although there are exceptions to this);
• awarded as part of a procurement under a transferred Northern Ireland procurement arrangement; or
• the establishment of a framework agreement (under which not payments are made) or dynamic market (i.e. not a public contract).

The guidance clarifies that this legislation will apply to payments made under call-off contracts where those contracts are:

• Public contracts;
• Awarded under a framework or dynamic market established under the Procurement Act 2023; and
• Commenced after 1 April 2026

The aim of this section of the Act is to improve transparency in public procurement. The publishing of this contract payment information will allow payments to be linked to specific contracts.

The guidance can be found here: Guidance_-_Contract_Payment_Information_FINAL.pdf and Guidance – Contract Payment Information (HTML) – GOV.UK

On 23 March 2026 the UK Government’s Department for Work and Pensions published a consultation seeking views on the proposal to combine the Engineering Construction Industry Training Board (ECITB) and the Construction Industry Training Board (CITB) to create a single, unified “Industry Training Board” (ITB).

Some of the reasons for the proposed reform include:

• Too few people entering the workforce;
• Experienced workers leaving at all stages of their career (research suggests more people are leaving the construction workforce each year than joining);
• Lack of skills is a significant barrier to employment;
• Skills shortages are a critical constraint on productivity growth;
• Transferability of skills within the workforce hampered by lack of recognition.

The consultation closes on 14 June 2026 and can be found here: Industry Training Board reform – GOV.UK

Following the appointment of the new prime minister on 20^th July 2026, it will be worth keeping an eye on potential changes in policies which may impact the progress of this consultation.

On 25 February 2026 the UK Government published a consultation on the proposed reform of the regulation of construction products. Like many new/reformed building safety measures in recent years, this is part of the Government’s response to Grenfell. The regulation of construction products has been impacted by the UK leaving the EU as many of the product safety regulations were mandated by EU law and have not been materially updated since then.

The consultation seeks views on:

1. expanding the current construction products regulatory regime;
2. the introduction of a “general safety requirement” for currently unregulated products; and
3. the provision of enforcement powers to the national regulator for construction products.

Key proposals include:

1. mandatory risk assessment by manufacturers of products;
2. provision of clear product information;
3. labelling and traceability with unique identifiers to facilitate recalls;
4. record keeping of risk assessments, product documentation and safety incident records for 10 years;
5. safe storage and transportation;
6. obligations on importers and distributors;
7. monitoring of safety issues; and
8. enhanced powers for the national regulator to enforce including market surveillance, investigatory powers, and proportionate intervention measures.

The proposals for sanctions for breach of the regulations include monetary penalties, cost recovery, and criminal offences for serious breaches.

The consultation closes on 20 May 2026, with new regulations aiming to be introduced by the end of 2026 and coming into force in late 2027.

Following the appointment of the new prime minister on 20^th July 2026, it will be worth keeping an eye on potential changes in policies which may impact the progress of this consultation.

The consultation can be found here: Consultation on the General Safety Requirement for Construction Products – GOV.UK

The Building Safety Levy is due to come into force on 1 October 2026 and will apply to most residential developments requiring building control approval. Developers should review procurement strategies, development agreements and construction contracts to determine how levy costs are allocated and whether any projects can benefit from transitional arrangements. The levy is likely to affect tender pricing, viability assessments and project structuring.

The government launched a consultation in July 2025 in relation to proposals to reform poor payment practices in business to business relations. Noting that healthy cash flow benefits businesses and the wider economy, and that over 1.5 millions businesses are affected by late payments costing the UK economy almost £11 billion a year, the government is seeking to tackle:

• late payments;
• long payment terms;
• disputed payments; and
• unfair practice around retention payments.

The consultation sought feedback on a number of potential measures to tackle the main issues identified, but notably for the construction industry, proposed amendments to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”) to either prohibit the use of retention or introduce requirements to protect retention funds deducted and withheld from insolvency and late/non payment.

The other proposed measures cover:

1. introducing audit committees and board-level scrutiny of payment practices at large companies;
2. introducing maximum payment terms (limiting payment terms between businesses to 60 days);
3. introducing a 30-day deadline for disputing invoices;
4. making statutory interest mandatory on late payments;
5. requiring additional reporting on statutory interest;
6. enforcing financial penalties for persistent late payers;
7. introducing additional powers for the Small Business Commissioner (designed to improve their ability to conduct investigations into poor business to business payment behaviour);
8. changes to/removal of the use of retention in construction contracts.

All of the proposed measures would impact on the construction supply chain, though it is possibly the proposed changes to retention that will cause the biggest shake-up, given that these are routinely used throughout the construction industry and their removal or stricter regulation will force parties to consider alternative means of security.

The results of the consultation were published in March 2026 and  include a proposal by the Government to move forward with a ban on construction retentions. This is significant for contractual risk allocation and payment mechanisms across the sector and will likely see a move to different forms of security (such as performance bonds or parent company guarantees).

Following the transfer of the Building Safety Regulator into a standalone body in January 2026, the Government is progressing wider reforms intended to create a more integrated construction regulatory regime. Developers should monitor changes to gateway processes, approval timeframes and regulatory oversight of higher-risk buildings, together with the Government’s expected response to consultation proposals for a future single construction regulator.

In Paragon Group Ltd v FK Facades [2026] EWHC 78 (TCC), the Technology and Construction Court faced the novel  question of who may exercise the right to adjudicate where rights under a construction contract have been assigned.

In this case the original Employer had assigned its rights under the contract to Paragon. The works were delayed and Paragon commenced adjudication to recover liquidated damages from FK Facades. The adjudicator made an award in Paragon’s favour and ordered FK Facades to pay the adjudicator’s costs. However, FK Facades asserted that Paragon had no right to refer the dispute to adjudication as it was not an original party to the contract.

The main issue for the Court to decide was whether an assignee qualify as a “party” for the purposes of the statutory right to refer to adjudication under section 108(1) of the Housing Grants, Construction and Regeneration Act 1996 (as amended) (“the Construction Act”).

The Court found that a valid assignment of contractual rights will generally include the right to adjudicate and if parties want to restrict this right then it must be clearly drafted.

Chloe Wood discusses the importance of the judgment here: Assignment of construction contracts: who has the right to adjudicate? | Foot Anstey

Laing O’Rourke Delivery Ltd v Shepperton Studios Ltd [2026] decided that a defective Payment Notice does not automatically invalidate an otherwise valid Pay Less Notice.

When one notice fails: why a defective payment notice does not invalidate a pay less notice

Edgewater (Stevenage) Limited v Grey GR Limited Partnership [2026] considered how Remediation Contribution Orders (“RCOs“) can be used to look beyond corporate structures. This decision confirms that liability for remediation does not depend on an entity’s direct involvement in, or financial gain from, the development. The TCC may draw adverse inferences and treat group companies as one economic enterprise, taking an “all or nothing” approach to imposing RCOs against all group entities.

Vista Tower explained: new guidance on the scope of the Building Safety Act 2022

In Mulalley & Co. Ltd v Sto Ltd & Sto SE & Co KGaA [2026] EWHC 1552 (TCC), the High Court had to determine the practical question of who will foot the bill when a building turns out to be unsafe because of defective cladding. One of the key points to arise from this decision is that product manufacturers are likely to face significant exposure in the event of a building being unsafe as a result of defective cladding.

Mulalley v Sto: Cladding supplier held primarily liable and parent company caught by Building Liability Order

The Government’s draft Commonhold and Leasehold Reform Bill proposes substantial changes including a move away from leasehold flats, restrictions on ground rents and abolition of forfeiture for long residential leases. Although implementation is unlikely immediately, developers should monitor progress because the reforms could fundamentally alter development structures, estate management models and future litigation concerning service charges and covenant enforcement.

Please see our article for more information – Leasehold Reform 2026: what developers of new-build sites need to know

Many provisions of the Leasehold and Freehold Reform Act 2024 remain unimplemented. As commencement regulations continue to be rolled out, developers and freeholders will face changes to enfranchisement claims, RTM disputes, service charge challenges and lease extension claims. The volume of tribunal litigation is likely to increase as parties test the new regime.

Please see our article for more information:

Leasehold and Freehold Reform Act Published

The Building Safety Levy is due to take effect from 1 October 2026 and will apply to most new residential developments. Developers should anticipate disputes around scheme viability, development agreements, land promotion arrangements and contractual allocation of levy costs. Expect increased scrutiny of project appraisals and greater scope for claims where levy assumptions prove incorrect.

Please see our article for further details:

The Building Safety Levy – what you need to know

The second phase of Awaab’s Law is expected to come into force in October 2026, extending mandatory repair timeframes to additional housing hazards beyond damp and mould. Developers delivering affordable housing, regeneration schemes or retained rental portfolios should review defects liability arrangements, handover processes and latent defect exposure. The legislation is likely to strengthen disrepair and housing condition claims.

Please see our article for more information:

The implications of Awaab’s law

Mandatory Biodiversity Net Gain requirements will apply to NSIPs from 2 November 2026. This will increase the scope for judicial review challenges, planning disputes and disagreements over biodiversity baselines, habitat delivery and off-site mitigation obligations. Infrastructure and strategic land developers should expect closer scrutiny of environmental compliance.

Please see our article for more information:

Biodiversity Net Gain for NSIPs: What developers and landowners need to know ahead of November 2026

Following the continued rollout of Biodiversity Net Gain, nutrient neutrality requirements and environmental planning obligations, developers should expect greater challenge from local authorities, community groups and environmental organisations. The trend is towards more litigation concerning compliance with environmental conditions and section 106 obligations.

Please see our article for more information:

Biodiversity Net Gain (BNG) – where are we now?

Whilst the Government has dropped the previously proposed EPC C milestone for 2027, it has confirmed its intention to strengthen MEES requirements for larger commercial premises by 2031. The immediate litigation risk is likely to arise from lease obligations, dilapidations claims, asset value disputes and landlord and tenant disagreements concerning responsibility for improvement works.

Please see our article for more information:

MEES, green leases and the “reset”: what the 2026 interim response means for commercial property

The High Court decision significantly alters long-assumed practice on service notices under the Landlord and Tenant Act 1954. The Court held that were a commercial lease includes its own mandatory service provisions (in this case, s196 LPA), that method becomes the exclusive method for service notices – even statutory notices such as s.25 notices. A notice returned undelivered therefore failed to be validly served. The ruling has immediate implications for developers acting as commercial landlords, particularly where possession or re-development strategies rely on correctly served notices.

On 11 March 2026, the Department for Energy Security & Net Zero (DESNZ) launched a consultation on reforms designed to tackle speculative electricity demand connection applications. Whilst the focus on the proposals is predominantly on data centres, the proposals would, if adopted, have consequences for other large demand customers, including large housing developments.

The proposals form part of Ofgem’s “Curate, Plan and Connect” demand connections reform programme and seek to ensure scarce network capacity is allocated to projects that are both viable and strategically important.

The “Curate” Pillar – Removing Speculative Projects focuses on strengthening entry and retention requirements for projects including:

• Financial Commitment Requirements
• Stronger Readiness Requirements

The Government intends to use powers under the Planning and Infrastructure Act 2025 to amend connection methodologies, industry codes and licence conditions. The expectation is that these reforms will be implemented before the next Gated Application Window (likely Q3 2026).

The “Plan” Pillar – Prioritising Strategic Projects allows Government to identify certain projects as “Strategic Demand Projects” and give them preferential treatment.

The “Connect” Pillar – concerns practical measures to speed up infrastructure delivery. Developers could be given greater ability to design and construct transmission assets themselves, subject to NESO agreement. A new licensing framework could allow independent parties to own and deliver transmission infrastructure.

How the Demand Connections’ reform will impact data centre development

In Charge My Street Ltd v HMRC [2026]  the First-tier Tribunal, tax chamber partially allowed an appeal challenging HMRC’s view that electricity supplied via public EV charge points must always be charged at the standard 20% VAT rate. The Tribunal held that, in certain circumstances, public EV charging can fall within the reduced 5% VAT rate for domestic electricity, rejecting HMRC’s narrow interpretation of “supply for domestic use” and confirming that drivers can be “persons at any premises”, such as a car park. It also found that the reduced rate does not depend on a continuous monthly supply. The decision, if upheld, could open the door for charge point operators and housing developers offering EV charging to reduce prices or improve margins where VAT cannot be recovered by customers.

Please see our article for more details: Charge My Street Ltd v Revenue and Customs Commissioners – Reduced VAT rates for public Electric Vehicle (EV) chargers?

The English Devolution and Community Empowerment Act 2026 includes a ban on upwards-only rent review provisions in new commercial business tenancies. Although commencement regulations are still awaited, developers, landlords and investors should consider the impact on underwriting assumptions, investment valuations, funding models and leasing strategies. The reform has the potential to alter traditional income security assumptions underpinning commercial investment assets, particularly within retail, office and industrial portfolios. Transitional provisions, renewal arrangements and lease structures entered into after 17 March 2026 require particular scrutiny.

What goes up might now come down – the new ban of upwards only rent reviews in commercial leases

The Government has confirmed that it does not intend to proceed with the previously proposed minimum energy efficiency standard (“MEES”) EPC C milestone for 2027 and is instead targeting EPC B by 2031 for larger commercial properties. This provides greater short-term certainty but reinforces the need for developers and investors to consider future retrofit costs, stranded asset risk and ESG requirements within investment strategies.

Institutional investors continue to increase ESG requirements across leasing and financing arrangements. Developers should expect greater scrutiny of green lease provisions, sustainability data-sharing obligations, operational energy performance commitments and compliance reporting. These issues are increasingly affecting investment liquidity and pricing.

Please see our recent article on MEES: MEES, green leases and the “reset”: what the 2026 interim response means for commercial property

The new contractual control rights regime will come into force on 6 April 2027, requiring prescribed information about qualifying options, promotion agreements, conditional contracts and pre-emption arrangements to be provided to HM Land Registry. The regime is designed to improve transparency of development land control and will create a publicly accessible source of information regarding strategic land interests.

Developers, promoters and investors should review existing land acquisition structures, update transaction precedents, establish reporting processes and assess the implications for confidentiality, due diligence and land bank management. Transitional provisions may affect agreements entered into before commencement.

Contractual control database – the transitional provisions are here

In April 2026, the maximum ‘protective award’ for failure to consult in collective redundancy doubled from 90 days’ pay to 180 days’ pay.

For employers in the developer sector, this is particularly relevant where multiple employees need to be made redundant due to delayed or cancelled projects or early conclusion of construction phases. Employers should prepare by understanding their collective consultation requirements, and when these are triggered.

The waiting period for SSP has been removed from 06 April 2026, so SSP will be paid from day one of sickness. The lower earnings limit has also been removed so all employees, regardless of their earning, qualify for SSP.

For employees who earn less than £123 per week, they are entitled to receive 80% of pay as SSP.

Employers in the developer sector will need to be heightened to the greater payroll and absence-management administration, as well as potential knock-on effects to subcontractors and labour supply-chains where workforce availability is critical.

From 6 April 2026, new obligations came into force which require employers to keep records demonstrating compliance with annual leave and pay for annual leave – and to keep these for 6 years. Failure to do so will constitute an offence, punishable by a fine.

In sectors engaging employees with a range of working patterns, employers should ensure their payroll system can evidence leave accrued and taken, can accurately calculate holiday pay and payments in lieu of termination. Employers should also ensure systems and retention policies keep these records for a minimum of 6 years.

From October 2026, employers must take “all reasonable steps” to prevent workplace sexual harassment, including harassment by subcontractors, agency workers, and clients.

Read our article: Third party harassment: Preparing for October 2026

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.

The ERA 2025 introduces new restrictions on zero‑hours arrangements. Key changes include:

• Workers can request guaranteed minimum hours based on a 12‑week reference period.
• Employers will need to justify refusals and may owe compensation for short‑notice shift cancellations.

This will materially affect sectors that rely on flexible site resourcing, including property development and construction.

Dismissing someone then rehiring them on worse terms and conditions will become an automatically unfair dismissal in most cases. Changes are expected to take effect in January 2027, and an updated code of practice is also expected in 2027.

A recent Employment Appeal Tribunal decision highlights the discrimination risks that can arise following any TUPE transfer, where transferred employees are left on less favourable terms than their new employer’s existing workforce.

TUPE, race discrimination and the two-tier workforce – why the GOSH case matters

A recent EAT case of PGMOL v HMRC highlights that employers need to be clear at the outset of any recruitment or onboarding whether there is an employment relationship – and this needs to be mirrored across contracts of engagement but also in the substance and practical realities of the relationship itself.

Employment tribunal and court judgments | June 2026

In the case of Kankanalapalli v Loesche Energy Systems Ltd, the EAT held that a binding contract had been formed on the Claimant’s acceptance of the job offer, and found that the ‘subject to’ conditions were conditions subsequent meaning that the contract was operative but could be terminated if the conditions were not met (rather than ‘conditions precedent’ which would prevent the contract from arising until the conditions were fulfilled).

If you do not want a job offer to create a binding contract until certain conditions are met, this must be clearly stated. This includes (i) structuring conditions as conditions precedent; (ii) avoiding bundling conditions precedent with conditions subsequent (such as probation periods); and (iii) ensuring that all documents provided at the time of the job offer are consistent.

Employment tribunal and court judgments | May 2026

The ICO has set several priority areas for 2026, which will continue to drive enforcement and guidance updates throughout the year.

We expect there will be a focus on the following areas, from the regulator:

• Online advertising practices (including advertising technologies, profiling, and targeted advertising);
• Direct marketing and unlawful electronic communications; and
• AI and automated decision‑making, especially where decisions produce significant effects on individuals.

Although the ICO has indicated it will prioritise action where the harm is most likely, developers should take note of the ICO’s increased enforcement powers (both in greater latitude of application and increased fine amounts).

As of 19 June 2026, the Data (Use and Access) Act 2025 (the “DUAA”) is now fully in force, representing one of the most significant modernisations to UK data protection law since the UK GDPR and Data Protections Act 2018.

The changes will directly affect how developers collect, use and manage data, which is even more prevalent if digital tools, AI and smart-site technologies are being harnessed by the business.

Several provisions make it easier for organisations to develop and use AI systems. Under the UK GDPR, using solely automated systems to make decisions with “legal or similarly significant effects” (such as hiring or shift patter) was heavily restricted. The DUAA relaxes this provided that appropriate safeguards are in place. Safeguards include:

• transparency around the logic used;
• ability for individuals to contest decisions; and
• meaningful human intervention where required.

The relaxation allows developers the freedom to further harness AI system to, for example:

• schedule their workforce;
• support recruitment and onboarding;
• monitor safety compliance;
• support performance evaluations; and
• predict maintenance and project analytics.

Developers may wish to review their processes and policies to take advantage of the widening ‘innovation-friendly’ changes brought in by the DUAA.

From 06 February 2026, the DUAA removes certain thresholds relating to breaches the Information Commissioner’s Office (ICO) could fine organisations for.

Prior to the change, and under the Privacy and Electronic Communications (EC Directive) Regulations 2003 (the “PECR”), the ICO could only issue fines for contraventions in cookies law if it was a ‘serious’ contravention and ‘likely to cause substantial damage or distress’. These two thresholds have been removed, meaning any breach of the cookies rules can now, in principle, result in a fine.

The change increases potential regulatory exposure. We have previously noted the ICO’s increased scrutiny of UK websites, following its investigation of the top 1,000 UK websites to conduct cookie compliance checks.

Construction firms are not exempt. Long ago are the days of considering the developer sector as a bricks-and-mortar industry. Most developers operate websites, digital portals, tender platforms, project dashboards and recruitment pages. These all fall within the UK’s cookie law regime and are equally exposed to ICO enforcement (potentially bringing fines and reputational damage).

Developers may wish to consider:

• conducting cookie compliance audits;
• updating their cookie banners; and
• review their privacy and cookie policies.

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

The Data (Use and Access) Act 2025 (DUAA) introduces a statutory duty for organisations to maintain a formal, publicised process for handling data protection complaints, effective from 19 June 2026.

Organisations must acknowledge complaints within 30 days, investigate promptly, and inform complainants of their right to escalate to the ICO.

The statutory duty applies to all organisations with personal data (including employee data). Developers may wish to:

1. Implement or review their complaints process to ensure it meets the requirements of the statutory duty (including acknowledging the complaint within 30 days); and/or
2. Consider forming a dedicated team to deal with such complaints or ensuring they form part of the responsibilities of an existing team within the organisation.

The new data protection complaints rules are here: Are you ready?

The ICO has set several priority areas for 2026, which will continue to drive enforcement and guidance updates throughout the year.

We expect there will be a focus on the following areas, from the regulator:

• Online advertising practices (including advertising technologies, profiling, and targeted advertising);
• Direct marketing and unlawful electronic communications; and
• AI and automated decision‑making, especially where decisions produce significant effects on individuals.

Although the ICO has indicated it will prioritise action where the harm is most likely, developers should take note of the ICO’s increased enforcement powers (both in greater latitude of application and increased fine amounts).