In this article, we highlight some of the most active legal issues, which we expect to see develop further during the remainder of 2025. Essential reading for landlords, developers and landowners, this article answers key questions surrounding the latest legal developments in the real estate sector.

Will new rules require sale contracts and options to be disclosed?

An exchange of letter between the Minister for Housing and Planning and HM Land Registry (HMLR) was published in April which referred to "reforms to widen and deepen transparency of land ownership and control". The Minister expressed a desire to see "rapid design and delivery of the digital systems required to collect and publish details of contractual control arrangements, ahead of the planned full public launch of the data collection system in 2026".

We understand that - as the letter suggests - plans are taking shape for the new system which will collect and publish "contractual control" information: including some details from option agreements. Although the consultation suggested a target date of 6 April 2026, this initiative is clearly a priority for the Government. Therefore, it is not outside the realm of possibility that implementation could occur earlier than that if they can get the system up and running and the secondary legislation in place.

There is not much detail on how and when this will be implemented, but it might be a good time to re-start thinking about the strategic or process implications for transactions going forwards.

The regime will be implemented pursuant to powers in Part 11 of the Levelling-Up and Regeneration Act 2023. The previous Government consulted on the exercise of these powers in 2024. There were many strong objections to some of the proposals in that consultation – not least, that details of agreements entered into up to five years prior to the coming into force of the new system would also be disclosable. The Government has not yet published an analysis of the responses to that consultation, nor a draft of the proposed legislation, but it is to be hoped that when introduced the requirements will apply to agreements entered into after the relevant date only. Even if that is the case, however, deals that are being negotiated in the second half of this year may (depending on when they exchange) find themselves subject to disclosure.

What changes are being made to security of tenure for business tenants?

At the end of 2024 / beginning of 2025, the Law Commission ran a consultation on the right to renew business tenancies under the Landlord and Tenant Act 1954. It examined four potential models, ranging from mandatory security of tenure, to contracting-out (the current model), to contracting-in, to complete abolition of security of tenure altogether. The Commission has provisionally concluded that the current "contracting-out" model should remain.

A second consultation, which will focus on the technical detail of reform to the Act (including how the current contracting-out regime works), will follow.

The Law Commission has indicated that it is likely to consult on increasing the threshold for a tenancy being excluded from the ambit of the Act from a maximum six month term to two years.

Although the Law Commission will make its recommendations to the Government, it remains to be seen whether the Government is willing to make Parliamentary time available for reform. If industry believes the proposed reforms will genuinely help the market and provide benefits for small and medium-sized enterprises (SMEs) to access and use property quickly and efficiently, the Government may take notice.

What's happening with the Renters' Rights Bill?

This Bill is still at the Report Stage in the House of Lords. A number of amendments remain outstanding and sittings are scheduled throughout July. After that, the Bill will need to be read a third time in the Lords before passing back to the Commons to consider the amendments made b y the Lords. The Bill may then ping-pong between the Houses.

The House of Commons rises for its summer break on Tuesday 22 July. If the Bill does not pass before the recess then it will be picked up where it left off when Parliament resumes on 1 September.

In 2024, we published an article analysing the content of the Renters' Rights Bill, and will provide a further update when the legislative process reaches its final stages.

When will the new Commonhold law be introduced?

In March, the Government published a White Paper on Commonhold. the Government intends to reinvigorate commonhold through the introduction of a "comprehensive new legal framework" based on the vast majority of the recommendations made by the Law Commission in their 2020 report.

A draft Bill is expected in the second half of this year.

A Government consultation is also expected later this year on the best approach to banning new leasehold flats so that commonhold becomes the default tenure (the Leasehold and Freehold Reform Act 2024 already contains a ban on new leasehold houses, although these provisions are not yet in force).

Why hasn't the Leasehold and Freehold Reform Act 2024 fully come into force yet?

Although this Act was passed last year, the majority of its provisions have not yet been brought into force. The Government has indicated that there are serious flaws with the Act which may require primary legislation.

Among the provisions currently idling on the statute book (apart from the ban on new leasehold houses, above) are various provisions relating to collective enfranchisement and lease "extensions" (including a change in the non-residential limit on collective enfranchisement claims, from 25% to 50%); the abolition of ground rents in existing long residential leases (a ban has existed on ground rents in certain newly granted leases since June 2022); and a range of provisions governing service charge, insurance and estate management charges.

What is Awaab's Law and when does it come into effect?

Awaab's law refers to new legal requirements for landlords to investigate and fix health issues in their properties within a specified time following the death of two-year-old Awaab Ishaak who passed away because of a severe respiratory condition due to prolonged exposure to mould in his home.

The first part of a phased approach to implementation is due to come into effect in October. The Hazards in Social Housing (Prescribed Requirements) (England) Regulations 2025 were laid on 25 June and, once passed, will come into effect on 27 October.

Social landlords will be required to address damp and mould issues within fixed timescales, and emergency repairs as soon as possible (but in any case within 24 hours).

Draft guidance for social landlords and the Government's response to the consultation which ran from January to March 2024 (under the previous Government) have also just been published.

The Renters' Rights Bill (above) contains provisions which will extend Awaab's Law to the private, as well as the social, rented sector.

What changes are being made to the RICS Service Charge Code?

The Royal Institution of Chartered Surveyors has published a second edition of its Service Charge Code which applies to all RICS members and RICS regulated firms which will come into effect on 31 December 2025.

The update is intended to improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of service charges in commercial property.

What further changes are expected under the Building Safety Act 2022?

More legislation

There are currently over 25 pieces of secondary legislation made under the Building Safety Act 2022 (BSA) (and that's just in relation to England – when Wales is taken into account, the figure is even higher). The Government has also announced its intention to legislate further (likely including primary, as well as secondary, legislation).

Such legislation is likely to address, among other things: target-setting for the remediation of remaining buildings with unsafe cladding; the definition of a Higher Risk Building (including the courts' interpretation of a "storey" for the purposes of working out whether a building is caught by the BSA); and potentially the Building Safety Levy.

The introduction of the Building Safety Levy was originally planned for autumn 2025 but has been postponed by a year. A Planning Reform Working Paper published at the end of May considers whether, medium-size sites of between 10 and 49 homes should also be exempt from the levy (in addition to exempting sites of fewer than 10 homes).

Phase 2 Grenfell Tower Report – implementation of recommendations

The Government accepted all the recommendations directed to it under the Phase 2 Grenfell Tower Report, and some of these will require legislation (above).

Many of the recommendations will require further reviews and consultation; some of which – such as the consultation process for a single construction regulator (see below) - are likely to be published in the second half of this year.

Review of the regulator

The House of Lords Industry and Regulators Committee has launched an inquiry into building safety regulation, with a particular focus on the work of the Building Safety Regulator (BSR). The inquiry follows concerns that delays in BSR approvals, particularly at the Gateway 2 stage, have slowed down the delivery of new buildings and homes. The call for evidence closes on 31 August and the BPF are involved in making submissions. However, the Government appears to have wanted to get on the front foot and on 30 June announced a new Fast Track Process to enhance the review of new build high-rise applications. The process "will bring building inspector and engineer capacity directly into the BSR ", as well as investing in more than 100 new members of staff.

Meanwhile, the Government announced earlier in the year that a new Regulation Enforcement Unit would be launched this summer at the BSR, to hold owners of ACM clad buildings to account.

The Phase 2 Grenfell Report also made recommendations as to the establishment of a single regulator for the construction industry – a prospectus and consultation on the design of this regulator is also expected in the latter half of this year. In the meantime, the Government also announced on 30 June that a new arm's length body to MHCLG is being established with the intention for this to take on the functions of the BSR from the Health and Safety Executive (HSE) in due course.

What building safety changes are coming in Wales?

The law in Wales differs from the law in England in relation to building safety.

The Welsh Government recently closed a consultation on a new building control regime for higher-risk buildings, and wider changes to building regulations in Wales so changes announced on the back of this may come later in 2025.

In the meantime, regulations come into force on 20 December 2025 that will implement in Wales changes that took effect in England in 2022, mainly related to prohibited cladding. Read our article on key changes to building regulations in Wales for 2025 to find out more.

What changes are coming to EPCs and MEES?

A response is awaited to the consultation which closed in February on proposed reform to Energy Performance Certificates (EPC) and Display and Energy Certificates (DEC). It is expected that changes to the triggers for when an EPC needs to be produced, and reducing the validity period of EPCs, will close some of the loopholes which currently exist - which may in turn increase the circumstances in which the Minimum Energy Efficiency Standards (MEES) apply.

There may also be structural changes to the metrics which EPCs measure.

The current Government consulted early in the year on raising the minimum standard for domestic MEES. The proposal is for higher standards to be applied to new domestic tenancies from 2028, and for all domestic tenancies by 2030. The uplifted required standard itself has not yet been published, as it will be formulated using the new style EPC metrics – but the Government is aiming for properties to be improved on the basis of similar measures as would be required in order to achieve a "C" rating under the current metric.

The Government has not yet published its response to this consultation and implementing legislation has not yet been brought forward. There is no published position on non-domestic MEES from the current Labour Government.

What is the latest update on biodiversity net gain?

Two consultations are currently running: on improving the implementation of Biodiversity Net Gain (BNG) for minor, medium and brownfield development, and on BNG for nationally significant infrastructure projects (NSIPs), which we wrote an article on in June 2025.

A response and draft regulations are expected relatively quickly (the proposal in relation to NSIPs is to make BNG mandatory from May 2026).

In the meantime, the 'BNG Good Practice Guide' has been launched to help developers and other professional navigate the implementation of BNG.

What is the current status of the Planning and Infrastructure Bill?

This Bill has now reached the Committee stage in the House of Lords. The Government's intention was to help unlock barriers to deliver 1.5 million homes and 150 major infrastructure project decisions within the current Parliament.

The Government published an Impact Assessment to go alongside it, which is accompanied by detailed annexes examining various aspects including reforms to nationally significant infrastructure projects, electricity network connections, and the offshore transmission owner regime, amongst others.

The Bill is expected to continue progress throughout this year as the Government looks to deliver on its objectives.

What are the new planning rules for housing delivery reporting?

Using powers in the Levelling-Up and Regeneration Act 2003, the Government is proposing to introduce a new statutory build out reporting framework which would apply to certain residential developments.

For these types of developments it will be a requirement to:

  • Submit a build out statement with a planning application to the Local Planning Authority (LPA).
  • Notify LPAs before development is commenced through a commencement notice.
  • Report annually to LPAs on housing delivery through a development progress report.

LPAs will be able to decline to determine planning applications made by developers who fail to build out development authorised by an earlier planning permission at a reasonable rate.

For more information, see the Technical consultation on implementing measures to improve Build Out transparency, which runs until 7 July following which regulations to implement the measures will be prepared.

What changes are being made to planning in Wales?

A Bill will be laid in the Senedd in September to consolidate planning legislation in Wales, with the purpose of bringing together the main planning Acts and some subordinate legislation and modernising the Bill's structure and wording to make it easier to understand and use – not to change policy or reform planning law.

New fee regulations are expected by the end of the year, with additional revenue invested into planning services in Wales to enhance performance and reduce waiting times following a consultation last year.

When is the Autumn Budget, and what might it include?

Finally, the Government will make various announcements in the Autumn Budget, which traditionally takes place towards the end of October.

It is anticipated that after the summer, we will start to see speculation leading to discussion of how possible policies and likely tax rises will affect the real estate market.

Next steps

With so many reforms in motion, the second half of 2025 will be a critical period for the UK real estate sector. Staying informed and prepared will be key for navigating legal, regulatory, and operational change.

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To discuss any of the topics in this article further, please reach out to your usual Gowling WLG contact.