On the horizon – winter 2025/26

In the latest edition of his quarterly column for Estates Gazette, which appeared in the new year edition, Bill Chandler previews some of the most significant legal developments affecting real estate expected in the coming weeks and months.

Happy new year! As we all return to the office (whether real or virtual) after the festive break, there are lots of upcoming legal developments to be aware of affecting the real estate sector.

Long and winding road

The Renters’ Rights Act eventually received Royal Assent on 27 October 2025, but that doesn’t mean we can stop talking about it. Having discussed the Renters’ Rights Bill (and the Renters (Reform) Bill before it) for so long, 2026 will finally see the implementation of once-in-a generation changes to the law relating to residential tenancies in England.

A few provisions took effect on 27 December 2025, two months after Royal Assent. This included the welcome exclusion of long leases from the assured tenancy regime, removing the risk that a long lease purchased for a significant premium could be regarded as an assured tenancy (and become vulnerable to mandatory possession proceedings) if the ground rent rose above the relevant thresholds.

However, most of the Act requires commencement Regulations. The government’s roadmap published in November 2025 advised that phase 1 will be implemented with effect from 1 May 2026.

Phase 1 includes a number of headline-grabbing reforms:

• abolishing assured shorthold tenancies and fixed term tenancies for the private rented sector (the social rented sector will follow in phase 2),

• abolishing ‘section 21 notices’ (no fault eviction) under the Housing Act 1988 for the private rented sector (the social rented sector will follow in phase 2),

• restricting rent increases and payments in advance,

• prohibiting bidding wars and discrimination against renters with children or who receive benefits,

• the right to request to keep a pet.

Enforcement will also increase, and the maximum penalty under a rent repayment order will double.

The Regulations required for the exemption of Purpose-Built Student Accommodation (PBSA) from the assured tenancy regime will also be introduced in Phase 1, even though the provisions of the Act exempting PBSA came into effect on 27 December.

Assuming no delays to the timetable, from 1 May 2026 all new and existing residential tenancies will be assured periodic tenancies.

Phase 2 will start in ‘late 2026’, introducing the Private Rented Sector Database and the PRS Landlord Ombudsman.

Phase 3 (improving conditions in private rented homes, including the Decent Homes Standard and Awaab’s Law) will follow later, after further consultations.

Help!

Whilst not specific to real estate, a couple of new regulatory requirements have the potential to catch real estate folk unawares.

(1) Taxman

HMRC has confirmed that the proposed registration of tax advisers is due to commence in May 2026. It is not yet entirely clear what registration will involve, but all will hopefully become clear during January when HMRC publishes its promised guidance.

It is important that all affected organisations take the necessary action to register. For example, HMRC considers that any law firm that deals with Stamp Duty Land Tax on property transactions is caught, even if the firm does not consider itself to be giving tax advice and notwithstanding that law firms are already heavily regulated.

(2) Nowhere man

Changes to the Companies Act 2006 effected by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) require directors of UK companies, persons with significant control and members of limited liability partnerships to verify their identities.

Whilst verification should see the end of situations like the fictitious officers of the now-infamous Spypriest Ltd, it also has implications for the real estate sector.

Anyone who operates through a company or LLP needs to comply before the next confirmation statement after 18 November 2025 is due. Non-compliant directors and members are prohibited from acting as such, with criminal and civil penalties.

New section 167M(6) in the Companies Act will validate their actions, so that third parties dealing with them need not be overly concerned. But cautious third parties, particularly lenders, are likely to insist on everything being in order.

Additional requirements for anyone who makes filings at Companies House are also being introduced in spring 2026.

Paperback writer

For a Bill currently comprising 380 pages, the English Devolution and Community Empowerment Bill is making steady progress through Parliament. This is the Bill which would effectively ban upwards-only rent reviews in commercial leases, as well as making significant changes to the Assets of Community Value regime.

Having cleared the House of Commons in late November, committee stage in the House of Lords began on 20 January and is scheduled to run until 11 February. If it maintains this pace, it could well become law in the first half of 2026, although the provisions of most relevance to real estate would require implementation by way of commencement regulations. In reality, the ban on upwards-only rent reviews is unlikely to take effect until at least 2027.

The Bill continues to evolve during its passage through Parliament. In particular, the extension of the upwards-only rent review ban to leases that are ‘potentially’ within Part 2 of the Landlord and Tenant Act 1954 removes the loophole I discussed in October whereby the ban might not apply to a headlease (because the tenant is not in occupation) but would apply to an identically-drafted underlease.

Get back

Two of 2025’s most significant cases are returning to court for appeals to be heard.

• London Trocadero (2015) LLP -v- Picturehouse Cinemas Limited [2025] EWHC 1247 (Ch) – this case, in which the High Court ordered the landlord to refund significant sums in respect of insurance commissions unlawfully charged to the tenant over several years, is scheduled to be heard by the Court of Appeal on 3 June 2026.

• National Iranian Oil Company -v- Crescent Gas Corporation Limited and another [2025] EWCA Civ 1211 – this case, where the Court of Appeal held that an agent or attorney cannot declare a trust of land, is headed to the Supreme Court. No date has been set yet, and it is perhaps optimistic to expect this case to be heard and judgment given this year.

Let it be

Other things to look out for in the early part of this year include:

• Residential conveyancing - the new 6th edition of the TA6 Property Information Form becomes mandatory for members of the Law Society’s Conveyancing Quality Scheme on 30 March 2026, on which date the old 4th and 5th editions will be withdrawn.

• Business rates – the next revaluation takes effect from 1 April 2026, based on rental values as at 1 April 2024. Changes to the business rates system announced in the autumn Budget will also take effect.

• Land registration – the Land Registry is planning to retire its older online registration system, eDRS (electronic Document Registration Service), in spring 2026. The Land Registry will also be running the new register of contractual controls over land (options, pre-emptions, conditional contracts etc) established by the Levelling-up and Regeneration Act 2023, which is expected to go live this year.

• Leasehold reform – the draft Leasehold and Commonhold Reform Bill promised for the latter part of 2025 may finally materialise in early 2026. And there are still large parts of the Leasehold and Freehold Reform Act 2024 to implement.

Beyond the horizon

Looking further ahead:

• Energy efficiency – the consultation that closed in February 2025 on changing the Energy Performance Certificate (EPC) regime anticipated that any changes would be introduced in the second half of 2026, although it is perfectly possible that this timescale may slip given that the government has not yet formally responded following the consultation. We also expect the government’s response following the consultation on raising the Minimum Energy Efficiency Standard (MEES) for privately rented homes. And we are still awaiting the consultation on MEES for commercial property that was promised ‘early in 2025’!

• Building Safety Levy – the Levy, which will be charged to residential developers and used to pay for the remediation of building safety defects, is scheduled to start on 1 October 2026.

• Residential conveyancing – we should expect further progress with the government’s plans to reform home buying and selling, following the consultation that closed on 29 December.

• Law Commission – the second part of the consultation on business tenancies is promised in spring 2026, considering how the current lease renewal process and contracting out procedure can be improved. It is probably too soon to expect a response following the recent consultation on chancel repair, or much progress with the real estate projects in the 14th programme of law reform, published in September 2025.

An earlier version of this article appeared in Estates Gazette.