UK Real Estate Round Up October 2026

Training

Join us for episode 9 in our PROPcast series at 10 a.m. on 10 November 2026 when our subject will be “Trusts in commercial property – what you need to know”. Trusts play a major role in commercial property ownership in England and Wales, offering flexibility for investors and organisations while creating important considerations when property is bought, sold or managed. In this PROPcast, Professional Support Lawyer Joe Geen explores what to watch for when buying or selling land held on trust, and key regulatory requirements. Book your place here.

If you missed episode 8 on the Building Safety Levy you can watch or listen back here.

Legal Updates

The Building Safety Act 2022

Building Safety Regulatory – newsletter

You can read the latest edition of the Regulator’s newsletter here: Building safety news and updates - October 2026

New Remediation Bill introduced into Parliament 

The Building Safety (Remediation of Unsafe Cladding etc) Bill was introduced to Parliament on 14 October 2026 and had its second reading at the end of the month.  The government says the Bill “will drive forward the remediation of unsafe cladding and ensure that those responsible pay towards the cost of remediation work”.  The bill will:

• introduce a register of all residential 11 to 18 metre-high buildings in England. 
• introduce a legal duty on those responsible for these buildings to assess them for fire-safety risks within twelve months of the legislation coming into force (NB many of these buildings will already have been assessed and if an assessment has been carried out between 16 May 2022 and the date of the Bill coming into force it need not be repeated if it remains compliant with the requirements in force at the time)
• introduce a legal duty to remediate requiring those responsible to remediate residential buildings over 11 metres high which were completed before 28 June 2022 (not just HRBs), in line with recommendations in FRAEWs (buildings subject to the developer remediation contract will be excluded from the legal duty to remediate because equivalent requirements are already in place).Remediation funding will be available and criminal sanctions will apply for deliberate failure to remediate
• introduce group company accountability provisions where the legal responsibility for remediating unsafe buildings lies with a single company that is part of a wider corporate group, has limited assets, while financial resources and decision-making sit elsewhere in the group. It will be possible to bring enforcement action for failure to remediate against other group companies in “the most egregious cases”.
• allow the BSR and other authorities to require building ownership information to identify the beneficial ownership of a building 
• introduce a last-resort backstop mechanism to allow a public authority to carry out remediation work themselves through “remediation management orders”, which a tribunal can make to allow a relevant authority to take control of works and recover costs from the responsible party

The legal duty to remediate will fall on parties with the relevant repairing obligation for the building (the ‘responsible entity’) and local authorities, fire and rescue authorities, and the Building Safety Regulator will have a duty to enforce the legal duty to remediate. The Bill is at a very early stage and these details are subject to change as it progresses through Parliament. More information is available here in the government’s guide: Guide to the Building Safety (Remediation of Unsafe Cladding etc) Bill - GOV.UK.

The House of Commons Public Bill Committee has also launched a call for evidence on the Bill from those with relevant expertise and experience, or a special interest in the Bill. The Committee will meet for the first time on 12 November and is expected to report on the Bill by 8 December. Building Safety (Remediation of Unsafe Cladding etc) Bill: call for evidence - UK Parliament

Welsh government consults on implementation of the Building Safety (Wales) Act 2026

The Welsh Government has published a consultation on regulations under the Building Safety (Wales) Act 2026 concerning building safety authorities in Wales (where there won’t be a central Building Safety Regulator like there is in England, and building safety matters will be dealt with by local authorities and fire authorities). The consultation closes on 18 December 2026. The proposals cover:

• Determining the principal accountable person (PAP), including when a building safety authority may leave the matter to the tribunal to decide.
• Registration of Category 1 (i.e. buildings which are defined very similarly to “higher risk buildings in England”) and Category 2 buildings (lower rise residential buildings between 11-18m), with an expected six-month period for existing occupied buildings and phased implementation.
• Registration information and what will be publicly available.
• Proposed fees of £100 for a PAP determination and £250 for building registration.

Implementing the Building Safety (Wales) Act 2026: principal accountable person, registration and fees [HTML] | GOV.WALES

Building Safety Levy – now in force

1 October marked the implementation date for the Building Safety Levy in England.  The Levy applies to developments where building control applications are submitted on or after 1 October and where the development creates additional residential floorspace by construction (including extension works) or change of use, resulting in at least 10 new dwellings or 30 PBSA bedspaces.  The Levy is calculated by reference to the GIA of residential floorspace including communal areas. It must be paid to the local authority by the client named in the building control application – usually the developer, and it must be paid in full before the date of the building regs completion notice or, if earlier, the date of first occupation.  Hotels are exempt, as are social housing, schools, social housing amongst others. Rates for the Levy vary by location and discounts are available for developments on “previously developed land” (broadly brownfield land). The rates are set out in the Schedule to The Building Safety Levy (England) Regulations 2025 (which were recently varied to clarify the provisions around previously developed land). 

ESG

Global Sustainability & ESG Insights

The latest edition of our Global Sustainability & ESG Insights, providing a summary of the key ESG developments from around the world is available on our website here or via LinkedIn here.

Consultation on access to EV charging

The government has issued a consultation on seeking views on how it can ensure landlords and freeholders provide timely permissions to install charge points for tenants and leaseholders living in properties with off-street parking via an ‘ability to charge’. It also requests wider views on improving access to charging for tenants and leaseholders. The consultation applies to England only. Read more here: Expanding electric vehicle charging access for tenants and leaseholders

Land Registry

You can read the latest HM Land Registry's customer newsletter here.

Opinion letters and overseas entities

The Land Registry has updated its Practice Guide 78 (Overseas Entities) due to concerns that an overseas entity may have ceased to exist in its territory of incorporation since it became the registered proprietor.  If this has happened, even temporarily – i.e. even if the company was later restored, the Land Registry says that title will have “escheated” to the Crown which is a technical legal phrase meaning that the overseas entity no longer holds it and any dispositions will be void.  In the updated Practice Guide the Land Registry confirm that they may ask for evidence that the entity has not ceased to exist since taking the title, by way of a legal opinion letter. In some cases this is likely to cause large administrative and financial obstacles for real estate deals. The legal community are continuing to raise concerns about this to the Land Registry, but for now it is likely to become much more common for legal opinions to be required on deals where previously a view may have been taken (e.g. where an overseas entity is granting a rack rent lease), in order to pre-empt any issues on registration.

Consultation on access to title information

The Land Registry is consulting on free access to ownership information of “significant land holdings”. It is already possible to download for free an HMLR data set listing all land owned by companies, but this consultation suggests that HMLR might go further and publish free to inspect ownership information for “significant land holdings” by which it means land holdings above a certain size and excluding residential properties. More information here: Consultation: Future of access to HM Land Registry information - GOV.UK

Landlord and Tenant

Break Clause Conditions: Landlord Estopped by Its Own Rent Invoice

In Sterling House Ltd v International Baccalaureate Organisation (UK) Ltd [2026] EWHC 2680 (BP), the High Court held that a tenant had validly exercised a break option despite not paying a full quarter's rent in advance. 

The landlord's agents had issued an invoice showing rent due only up to the break date, and the tenant paid that amount in reliance on the invoice. The court found that the invoice amounted to a clear representation as to the sums required for the break to take effect, giving rise to an estoppel that prevented the landlord from later claiming additional rent. The court also held that a demand for insurance rent served on the Friday afternoon before a Monday break date did not give the tenant a reasonable opportunity to pay before the break took effect. Accordingly, the landlord's argument that the break notice was ineffective failed, and the lease terminated on the break date. The decision is a reminder that landlords and their agents must exercise particular care when issuing invoices and demanding break-condition payments, as their communications may create binding estoppels. Our Real Estate Disputes team have commented on the case here: Lawbite: Landlord's own invoice saves tenant's break

Extension of Awaab’s Law

The Ministry of Housing, Communities and Local Government has launched a consultation on implementing Awaab's Law for private rented tenancies in England and potentially extending its protections to accommodation occupied under licence.  

Extending Awaab's Law to private rented tenancies and to licences - GOV.UK

New right to rent code and landlord’s guide published

The Home Office and UK Visas and Immigration have updated the statutory right to rent codes of practice and the landlord’s guide, with the revised materials applying from 1 October 2026. The main code for landlords and agents replaces the January 2024 version and applies in England to relevant breaches from that date, as well as initial or repeat checks required on or after that date to obtain or retain a statutory excuse. The updates clarify when prescribed checks are required, mandate the use of registered digital verification service providers (DVSPs) where digital verification is used, broaden the role of DVSPs and revise the acceptable document lists to include digital documents that landlords can verify. 

The updated right to rent code for landlords and agents can be accessed here. The updated landlord’s guide to right to rent checks can be accessed here. The updated right to rent discrimination code can be accessed here.

MHCLG publishes guidance on "register your rental property" service

MHCLG has published guidance on the "Register Your Rental Property Service", which will apply to landlords of assured and regulated tenancies in England, under the Renters' Rights Act 2025. The Act provides that landlords of assured or regulated tenancies in England will need to register themselves and their properties through a new registration service. On 9 September 2026, the government announced that it intends to roll out this new service in phases, region by region and on 29 October 2026,  MHCLG published guidance on the "Register Your Rental Property" service. There is separate guidance for landlords, letting agents and property managers, and third parties who have legal authority to manage a landlord’s rental property.

• Register your rental property service: guidance for letting agents and property managers - GOV.UK
• Register your rental property service: guidance for landlords - GOV.UK
• Register your rental property service: guidance for third parties - GOV.UK

Scotland

Scottish government publishes private rented sector energy efficiency consultation analysis 

The Scottish government has published its analysis of responses to its consultation on draft regulations introducing a minimum energy efficiency standard for private rented sector properties in Scotland. The proposals would require private rented homes, where possible, to reach reformed Energy Performance Certificate Heat Retention Rating band C from 2028 for new tenancies and from 2033 for all tenancies. Respondents broadly supported exemptions, use of technical suitability assessments, counting assessment and improvement costs towards the proposed cost cap, landlord support and local authority monitoring. However, concerns centred on the cost and deliverability of works, particularly for older, listed, rural, island and tenement properties. Respondents also highlighted risks to rental supply, possible rent increases, limited supply chain capacity and pressure on local authority enforcement resources. The analysis will inform the Scottish Government’s further consideration of the proposed regulations. You can read the analysis here: Private rented sector - minimum energy efficiency standard: consultation analysis - gov.scot

Tax

The Budget

An overview of the real estate related announcements in the Budget:

Business rates:

• Increase in the Small Business Rates Relief thresholds for qualifying retail, hospitality and leisure properties in England from April 2027. The rateable value threshold for 100% relief will rise from £12,000 to £18,000, while the threshold for tapered relief will increase from £15,000 to £21,000. 
• Qualifying retail, hospitality and leisure properties will also benefit from a real-terms freeze in business rates bills in 2027–28 and 2028–29. Taken together, the package means that half of all RHL properties in England will pay no business rates. 
• Separately, relief for pubs, social clubs and all but the largest live music venues will increase from 15–35% from 1 April 2027.

Housing:

• The government will provide an additional £1.5 billion to deliver around 10,000 homes in England, prioritising Social Rent, especially council homes. This takes total investment in the Social and Affordable Homes Programme to more than £40 billion over ten years. A forthcoming 10 Year Plan will set out reforms intended to increase councils’ housebuilding capacity, reduce the complexity and cost of development, and release public land for affordable housing.
• The government also confirmed a new £4.7 billion Your First Home scheme, providing first-time buyers with government equity loans of up to 20%, a reduced deposit requirement and a five-year interest-free period. The scheme is expected to support around 70,000 households in England and the delivery of an estimated 20,000 new homes.
• To support development, the government will introduce an exemption from Biodiversity Net Gain requirements for residential brownfield developments on sites of up to 1.5 hectares in England. 
• The budget papers also commit to avoiding major changes to building regulations for the remainder of this Parliament, except to continue improving building safety, including implementing the Grenfell Inquiry recommendations. The government will continue considering whether more proportionate regulations could support development.

Stamp duty land tax:

• SDLT group relief rules will be amended to ensure that relief is withdrawn as intended when a purchaser leaves a corporate group where the vendor company has been wound up. The changes will apply to transactions involving property situated in England and Northern Ireland from 29 October 2026 and will be introduced through Finance Bill 2026–27.

'Modernising the Taxation of Foreign Sovereign Investments' - Government Consultation

These proposals represent a significant change to the tax treatment of income and gains from UK real estate for sovereign investments. Broadly, sovereign investors will become taxable on the following:

• income arising from UK land;
• chargeable gains on disposals of direct holdings of UK land and interests in certain UK property rich vehicles; and
• UK trading income.

Some other important points included in the proposals:

• The changes will come into effect from 1 January 2029 - market values will be rebased at that date to ensure taxation of gains is prospective.
• Those eligible for sovereign tax status will be 'qualifying institutional investors' (QIIs) for the purposes of a number of investment regimes
• Income from interest, dividends and investment management activities of UK sovereign investment offices will not be taxed.
• REITs - a number of changes to the REIT regime including a new 'Sovereign REIT holding company' to allow investment via a REIT; a new 15% withholding tax rate; and changes to the Holder of Excessive Rights (HoER) rules (lots of detail to be worked through here).
• Transitional provisions - to allow time for investments to be restructured, there will be a number of transitional reliefs (including for SDLT and some anti-avoidance rules).
• The government will introduce a new status of “State operated Overseas Pension Fund” (SOPF) - which will benefit from an exemption on chargeable gains not available to others with sovereign tax status.
• There will be a new application process for sovereign tax status administered by HMRC.

The regime will come into effect from 1 Jan 2029.  You can read more detail on these proposals here: Microsoft Word - 20261027 - Modernising taxation of foreign sovereign investments - Consultation Document - FINAL

Other

• Run pilots to test FPCs in areas at risk of flooding during 2026 and 2027.
• Pilot a flood performance rating, which will assess the flood risk of a property due to its exposure, characteristics and resistance. This information is already available through the government's "check your flood risk" service.
• Publish an FPC template in due course

Articles & Publications

Publications from our Real Estate Disputes team:

Growing your knowledge, our real estate dispute resolution update – the latest edition of the team’s in Focus client publication.

Eaton and another v Cheshire East Council [2026] EWHC 2423 (KB): This High Court decision considered a highway authority's liability in private nuisance for repeated flooding of a neighbouring home. The court found that a purely reactive approach to maintenance was insufficient to discharge the council's duty. Links: Lawbite: Highway to (flooding) hell!/ LinkedIn

Shanmuganathan Paskaran v Blue Bricks London Limited [2026] EWCC 57: A recent County Court decision which provides important guidance for commercial landlords and tenants on how to protect arbitration clauses in lease disputes. The County Court found that a landlord who had applied to strike out or, in the alternative, stay its tenant’s defective court proceedings had not lost its right to pursue separate arbitration proceedings. Taking such action did not amount to taking a "step in the proceedings" for the purposes of section 9(3) of the Arbitration Act 1996 such that the landlord could be said to have demonstrated an intention to abandon arbitration in favour of litigation. Links: Lawbite: Forum shopping in rent reviews/ LinkedIn

Craigard (Dartford) Limited and Anor v Westbury Homes (Holdings) Limited and Anor [2026] EWHC 2453 (TCC): This decision involved a terminal dilapidations claim. Amongst other issues, the TCC considered whether disrepair to an ageing HVAC system justified the cost of its complete replacement. Although the system was found to be out of repair, the landlord had not established that replacement was necessary to satisfy the tenant’s repairing obligations, and the claim was therefore assessed by reference to the less costly repair option. The judgment also considers the impact of the landlord’s refurbishment plans, claims for consequential loss (including loss of rent), and the statutory cap on damages under section 18(1) of the Landlord and Tenant Act 1927. Links: Lawbite: Dilapidations Decoded: Repair or Replace, and the Cap on Damages/ LinkedIn.