On the home straight: what’s still to come for real estate in 2026?

In The Year of the Horse – new year, new hurdles and new risks for real estate  we anticipated a challenging course of legislative and regulatory developments that would shape transactions, compliance strategies and investment decisions across the real estate market in 2026.

As we approach the final furlong for this year, we take stock and consider the hurdles to be cleared before year-end as well as those that will need careful navigation going into 2027.

Contractual controls

The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 introduce new reporting requirements for qualifying contractual control rights, such as options, conditional agreements, rights of pre-emption and promotion agreements, in order to increase transparency over strategic land deals. Qualifying contractual control rights granted during the transitional period between 8 June 2026 and 5 April 2027 must be registered with HM Land Registry by 6 October 2027, while rights granted from 6 April 2027 onwards, together with later trigger events such as variations, assignments and terminations, must generally be reported within 60 days.

The contractual control register is not yet live and HM Land Registry’s submission system is still being developed. Once launched, the reporting obligation will fall on the grantee, typically the developer or promoter.

Failure to comply with the disclosure requirements, or the submission of false or misleading information, may result in criminal liability. Importantly, it may also prevent registration of notices or restrictions at HM Land Registry intended to protect the contractual control right in question, potentially affecting enforceability and priority against competing rights and interests.

Contractual control rights that are granted during the transitional period need to be identified and the information for registration collated and retained to avoid the need to resurrect the information once the register goes live. Developers, promoters and housebuilders should put systems and processes in place now and will also need to keep a careful watch on those agreements that are expected to be varied, assigned or terminated, to ensure that timely updates to HM Land Registry’s new register can be made.

For further details see our article Contractual control regulations: What to do now.

Building safety

Building safety is no longer just a compliance issue. It has become a critical legal, commercial and strategic consideration for anyone involved in the built environment. As regulation continues to evolve, developers, landlords, investors, contractors and advisers face increasing scrutiny, new responsibilities and a growing need to stay ahead of change.

In our four-part building safety vlog series Building safety: Navigating a changing landscape, we explore the latest developments shaping the sector, including the new Welsh building safety regime, the introduction of second staircase requirements, the proposed Remediation Bill, and the Building Safety Levy which will come into force on 1 October 2026.

For further information on the Building Safety Levy please see The Building Safety Levy: what developers need to know before October 2026  and you can keep up to date with all building safety related developments through our Building Safety Hub: The Building Safety Act.

Renters’ Rights

The mandatory national landlord registration scheme is set to commence from 15 December 2026 and all landlords and all properties they actively let are expected to be registered by 14 November 2027. The new digital register is intended to improve transparency, help local authorities identify rogue landlords more easily and allow tenants to check whether a landlord has complied with registration requirements. Landlords who fail to register may face financial penalties and will be prevented from advertising their properties to rent.

The Government has also announced that challenges to rent increases will move from the First-tier Tribunal to HMRC’s Valuation Office, with the aim of delivering quicker decisions and a simpler dispute process. This represents a move towards greater regulation, visibility and enforcement within the private rented sector, making compliance more important than ever.

This is another area where early preparation is critical. In our recent article Renters’ Rights Act: Landlords face new registration requirements and a new rent dispute regime we identify how landlords can begin preparing for the anticipated changes ahead.

Ban on upwards-only rent reviews

The ban on upwards-only rent review (UORR) is set out in the English Devolution and Community Empowerment Act 2026 which received Royal Assent on 29 April 2026. It is still unclear when the ban will be introduced – the current best estimate appears to be late in 2027 or early in 2028. Whilst we await guidance from the Government as well as a consultation including consideration of caps and collars (which may soften the impact of the ban for landlords whilst affording tenants some degree of protection) it is important for those negotiating new leases, agreements for lease or lease renewal arrangements to consider how the proposed reforms could affect transactions and to factor this into commercial discussions.

As we set out in our article  What goes up must come down after all – this really is the end of the upward only rent review, the Act does have limited retrospective effect and parties should be auditing live transactions and any renewals that have been agreed since 17th March 2026 and looking carefully at anything that may constitute an “arrangement” whether contained in a lease or the wider transaction documents to ensure that rental terms remain operable as intended. In particular, as part of renewal negotiations, parties will need to agree how rent is to be determined under such renewal leases because day one UORR provisions will be invalid. Landlords may also want to consider renewing or re-gearing leases early (before the ban comes into force) to preserve UORR mechanisms. Standard heads of terms which assume an UORR will also need revisiting.

MEES and EPCs

This year has seen some significant developments in the Minimum Energy Efficiency Standards (MEES) regime for both the domestic and the non-domestic sector with the Government publishing its interim response to the 2019 and 2021 consultations on 18 June 2026.

In the domestic sector, the biggest change will be the introduction of new-style domestic EPCs, with four headline metrics plus two secondary metrics with MEES for privately rented homes increasing to EPC ‘C’ with a single commencement date of 1 October 2030 for both new and existing tenancies.

The single carbon-based headline metric will be retained for non-domestic EPCs however all commercial properties over 1,000 square metres will now need to achieve an EPC rating of B by 2031 unless a valid exemption is registered (the seven-year payback test and other established exemptions continue to apply). The previously proposed interim milestone of EPC C by 2027 has been abandoned and the requirement for an EPC E for commercial buildings of less than 1,000 square metres remains (for now). It has also been confirmed that the current 10-year validity period will be retained for all EPCs.

The Government is still developing its policy and further guidance is expected. Secondary legislation will need to be passed for the EPC B requirement to take effect, but the bottom line is that the direction of travel is clear. This is no longer a problem for another day. Asset management strategy will need to be assessed and implemented well in advance of the deadline and landlords need to act now by auditing portfolios and planning accordingly.

For further information see MEES update: Government interim response confirms EPC direction for commercial property.

Martyn’s Law

We last mentioned Martyn’s Law this time last year in Banish the back to work/school blues with an A-Z of property developments on the radar this term! On 10 September, the Government laid the Terrorism (Protection of Premises) (Principal Use of Premises) Regulations 2026 (SI 2026/1005) which come into force on 15 October 2026. These Regulations seek to clarify how to determine the principal use of individual qualifying premises under the Terrorism (Protection of Premises) Act 2025, where those premises are used for more than one use specified in the Act. The assessment will focus on the purpose and nature of the premises, including how they were built or modified, how they are currently used, their physical characteristics and how they are treated by the local authority.

The Government has now also published supporting guidance which will assist landlords in assessing qualifying premises and in ensuring that during the implementation period and before the statutory duties become enforceable (likely spring 2027 – the exact date the Act will come into force will be confirmed by the Home Office), they have reviewed the security arrangements for their premises, invested in protective measures where applicable and importantly ensured that staff and occupiers have been trained and operational procedures appropriately updated all in good time.

Hurdles on the horizon

Business tenancy reform:

The Law Commission published its second consultation on business tenancy reform on 16 June 2026, building on the first consultation which concluded that the “contracting-out model” should be retained. The second consultation, which closed on 16 September 2026, focuses on how the existing model can be modernised and made fit for purpose to better reflect the needs of today’s commercial property market. For further information see our article A new lease of life for security of tenure: the Law Commission publish their second consultation on the Landlord and Tenant Act 1954. The consultation demonstrates that there is considerable scope for reform of the way the current regime operates. Although the reforms remain some way off, this is undoubtedly one for the watch list for landlords, tenants and property professionals alike.

Commercial leasehold reform:

The consultation on business tenancies has been accompanied by a separate consultation on commercial leasehold reform. This consultation, which also closed on 16 September 2026, considers whether particular aspects of the Landlord and Tenant Act 1987 and the Landlord and Tenant Act 1995 are operating as intended in relation to commercial leasehold transactions, or whether they are generating unnecessary cost, delay and uncertainty. For further details see our article Commercial leasehold reform: key proposals explained. This is another one for the watch list for anyone involved in commercial property transactions.

Commonhold:

Implementing the beginning of the end of the leasehold system continues to prove a tricky hurdle to negotiate from a legislative perspective. On 27 January 2026, the Government published the draft Commonhold and Leasehold Reform Bill. In Beyond the Bill: The journey to Commonhold starts here we examine the package of reforms aimed at reshaping the future of home ownership model for flats by strengthening commonhold and changing key economic and enforcement features of long residential leases. An amended Commonhold and Leasehold Reform Bill is expected to be introduced to Parliament this Autumn with the aim of receiving Royal Assent by mid-2027. For now, attention is firmly fixed on the next version of the Bill, as developers, investors, lenders and property owners nervously await clarification of the scale and speed of the Government’s proposed commonhold reforms.

Leasehold reform:

The Government’s long-awaited leasehold enfranchisement consultations mark another important step towards implementing the Leasehold and Freehold Reform Act 2024. The consultations, which close on 23 September 2026 (costs) and 21 October 2026 (valuation) respectively, focus on two key issues:

• first, the valuation rates that will be used to calculate the premium payable by leaseholders when extending their lease, buying their freehold or buying out ground rent; and
• secondly, the limited circumstances in which landlords and other parties may still be able to recover professional costs from leaseholders during the enfranchisement process.

The outcome could have a significant impact on both leaseholders and freeholders, affecting the cost, strategy and timing of lease extension and freehold acquisition claims. Property owners should therefore be reviewing affected assets now, considering whether existing enfranchisement strategies remain appropriate and keeping a close eye on the secondary legislation needed to bring the reforms into force. For further details see our article The UK Government launches long-awaited leasehold enfranchisement consultations: what property owners need to know.

Planning and Biodiversity Net Gain (BNG):

It would be remiss to conclude a final furlong piece for 2026 without a nod to planning reform. In particular, the August 2026 National Planning Policy Framework reforms introduce significant changes affecting housing delivery, Green Belt and grey belt policy, station-led development, local plans, infrastructure, density and climate resilience, while the 2026 changes to the BNG regime alter the scope and practical application of BNG for certain smaller, temporary and infrastructure developments. Together, these changes could materially affect site promotion, scheme viability, planning strategy and development timetables. Developers should therefore revisit planning assumptions, delivery programmes and viability appraisals to ensure that emerging policy and BNG requirements are properly factored into project strategy.

The final furlong of 2026 still has plenty of ground to cover. However, given the wide-ranging nature and scale of reforms all bets are off as to how the rest of the year will unfold. If you would like to follow the action as it develops, please subscribe to Property Perspectives.

How we can help

If you would like to discuss how any of these matters may affect you, please do contact our commercial real estate team.