Real estate

What's happening?

As part of the development of the register of contractual controls (under the aegis of the Levelling Up and Regeneration Act 2023), the draft Provision of Information (Contractual Control) (Registered Land) Regulations 2026 were published on 9th March 2026. The Government also published a response to the relevant consultation that took place in 2024, and a new set of guidance notes about the regime.

Under the new regime, the grantee of a contractual control right (such as options, conditional contracts, pre-emption rights, or promotion agreements) must submit certain information about it to HM Land Registry. There are some exemptions, such as rights granted as security for a loan or an obligation to pay overage, rights affecting leases with less than 15 years left, rights that are not held for development purposes, and rights granted for less than 18 months.

The Regulations will come into force on 6 April 2027. Anyone who is granted the benefit of a contractual control right after the date on which the Regulations are laid but before 6 April 2027 must submit the required information by 6 October 2027. If a right is granted, changed, or assigned after 6 April 2027, information must be provided within 60 calendar days.

From April 2028 onwards, HM Land Registry will begin publishing core information submitted under the Regulations, such as the location and extent of land affected, the identity of the grantee, the type and duration of the control right, and the date of grant or exercise.

Why it matters?

Failing to comply with these Regulations, or knowingly or recklessly providing false or misleading information in response to those requirements, constitutes an offence under section 225 of the Levelling-up and Regeneration Act 2023. It will also not be possible to register a notice or restriction at HM Land Registry in respect of rights which have not been registered on the new register, although the exact mechanism will not be known until HM Land Registry's own technical guidance is provided.

Our view:

The new regime represents yet another set of regulations impacting on the real estate sector and, as the submissions must be made by a conveyancer, yet another cost for business.

Some of the respondents to the consultation explained that the greater transparency could create pressure from development-averse communities on landowners, and that developers might adapt their behaviour by entering into different types of agreements or opting to purchase land outright stead of using contractual controls.

The register creates a duty to register control rights, their variation, exercise and their expiry. There is a concern that although conveyancers may well be involved in the initial grant of such a right, they might not be involved in any variation of the rights and will almost certainly not be instructed in relation to their expiry.

Why it matters:

The Renters' Rights Act 2025 represents a seismic shift in the residential lettings sector. The Government has published a roadmap showing the intended timing for implementation of the various aspects of the new regime, starting on 1 May 2026 with the abolition of section 21 'no fault' evictions, the introduction of Assured Periodic Tenancies instead of Assured Shorthold Tenancies, limits on rent increases and more rights for tenants to keep pets.

From 1 May 2026, landlords in the private rented sector will need to provide their tenants with an Information Sheet (for existing tenancies) or a Written Statement (for new tenancies) within a specific timeframe. The Government has published new regulations which set out what information will need to be provided to tenants, along with a guidance note.

Our view:

Whilst the sector is somewhat relieved that the details of the new rules are at last known, there are still several pieces of the jigsaw missing, and the main fear on the part of real estate investors and their lenders is that the courts will not have capacity to deal with the section 8 eviction processes and the rent review disputes that will follow from the introduction of the new regime.

Why it matters:

As discussed in Section 9, The Warm Homes Plan, published in January 2026, confirms the trajectory that has been trailed (but not decisively settled) for several years: from 2030, it will not be possible to let out residential properties in the PRS if they have EPC rating D,E or F, unless they have registered a valid exemption. EPCs themselves will be reformed, but in a recent announcement the Government has confirmed that this change will be pushed back to the second half of 2027 (from October 2026).

Our view:

Investors and lenders into residential real estate can now make plans to be compliant by 2030. Investors and lenders into commercial real estate are still asking Government for confirmation about what they can expect by way of MEES updates.

Why it matters:

On 27 January 2026, the Government published draft legislation to revolutionise the way in which flats are owned and managed in England and Wales. The headline provisions include: capping ground rents payable under existing long leases at £250 per annum, abolishing forfeiture for long residential leases, banning leasehold for new flats and mandating commonhold tenure for new flats instead, and continuing to implement the leasehold reforms contained in the Leasehold and Freehold Reform Act 2024.

Our view: 

This Act contains some very controversial proposals. Many freeholders, including large pension funds, are pointing out to Government that capping ground rents on existing leases is both unfair (in wiping up to £18.7 billion from ground rent investment values, according to a report commissioned by the Residential Freehold Association) and destabilising (by retrospectively changing contracts that were freely entered into by legally-represented parties).

The proposed ban on leasehold flats to mandate the introduction of commonhold has received a mixed response. Whilst the real estate sector is generally supportive of this move, they have warned Government that leasehold flats are likely to be devalued as a result, that there is likely to be a slowdown in housing delivery in the run-up to the implementation of the ban, and that (contrary to much media speculation) there is no guarantee that service charges will be any cheaper for owners of commonhold flats than leasehold flats.