UK Property Law Changes 2025: Guide for Investors and Occupiers

Commercial Property Reforms

Security of Tenure Framework Changes in UK Property Law 2025

Following feedback to its first consultation, the Law Commission has provisionally decided to retain the existing contracting-out model of security of tenure, prioritising market stability over radical reform. This decision affects thousands of commercial lease arrangements across England and Wales. The second consultation, expected later this year, will examine:

• Increasing minimum terms for statutory protection from one to two years
• Simplification of contracting-out processes
• Modernisation to allow green clauses and turnover rents
• Streamlined renewal and opposition procedures

Business Impact: These UK property law changes 2025 will provide greater flexibility while maintaining the fundamental protections that have underpinned commercial property investment for decades.

Sustainability and Energy Efficiency Requirements

The government has consulted on improving the quality of energy performance certificates (EPC), advising that changes would be implemented in the second half of 2026. The government's response is awaited, but if the implementation timetable is to be met, the sector can expect to see detail on changes to EPC methodology and the rules regarding when certificates are required shortly. Commercial property owners must prepare for:

• Enhanced EPC quality standards and assessment criteria
• Clarification on minimum energy efficiency standards (MEES)
• Potential tightening of minimum EPC ratings beyond current levels
• Updated certification requirements and compliance timelines

Clarity on the tightening requirements for minimum EPC ratings for commercial lettings are still awaited as part of the government's response to its consultation on minimum energy efficiency standards (MEES) for commercial premises, despite repeated calls for confirmation that the previously targeted minimum EPC C by 2027 standard will not be imposed.

Landlord Insurance Commission Reforms Under UK Property Law Changes 2025

In light of the recent High Court case of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors, there may be an increase in tenant claims for repayment of unreasonable sums paid as insurance rent where landlords have entered into commission-sharing arrangements with their brokers. This case exposes sophisticated commission-sharing arrangements that have been quietly draining substantial sums from commercial tenants. The implications include:

• Increased scrutiny of landlord-broker commission arrangements
• Potential tenant claims for repayment of unreasonable charges
• Greater transparency requirements in insurance cost allocation
• Revision of standard lease insurance clauses

Note: The case is expected to be appealed, so it remains to be seen how the issue plays out.

Enhanced Security Measures for Public Venues

Owners and occupiers of certain qualifying premises used for public events and event organisers must prepare for the extensive new security obligations under the Terrorism (Protection of Premises) Act 2025, to ensure they have compliant plans to address the risk of terrorist attack. With an April 2027 deadline, duty holders must begin preparations immediately. Requirements vary based on:

• Expected number of people present
• Nature and classification of premises
• Risk assessment and mitigation planning
• Staff training and emergency procedures

Penalties for breach include considerable monetary fines and statutory notices which could limit a business's ability to operate.

Building Safety and Security Updates

Building Safety Levy Implementation in UK Property Law Changes 2025

Further details have finally been published, although the Building Safety Levy introduction has been delayed to autumn 2026. The confirmation of rate calculation methods will assist developers in their financial planning, though the delayed implementation has created additional market uncertainty. Key details include:

• Confirmed rate calculation methodologies for accurate budgeting
• Application to qualifying development projects
• Revenue allocation for building safety improvements
• Compliance requirements and reporting obligations

The government is "exploring all possible options" to support the capacity of the Building Safety Regulator amid continued backlogs for gateway approvals. It is hoped this will reduce current construction delays and improve lender confidence in the market.

Second Staircase Requirements

From 30 September 2026, developers must comply with new second staircase requirements for residential blocks exceeding 18 metres in height. This represents one of the most significant structural changes in the UK property law changes 2025 agenda. Design implications include:

• Increased construction costs and timeline adjustments
• Revised architectural planning requirements
• Enhanced fire safety and evacuation procedures
• Impact on unit layouts and communal space allocation

There may be regulations amending the definition of "higher risk building". An update on the government's plans to review this definition is expected this summer and was driven by recommendations made in the Grenfell Phase 2 Report. In particular, the review will seek to ensure that the risk to vulnerable people arising from buildings is effectively managed.

An acknowledgement of a need to clarify the legal criteria for determining whether a new building is considered a "higher risk building" has been included in the current government guidance. This was prompted by conflicts between the guidance and a decision of the first-tier tribunal in relation to whether a rooftop garden constitutes a storey for these purposes, although the latter has subsequently been criticised by the upper tribunal on appeal.

Remediation and Contribution Orders

The government's response to the Public Accounts Committee's report into the remediation of dangerous cladding is still awaited. It could result in changes in policy and law to accelerate the remediation process.

The June 2025 Comprehensive Spending Review extended the right to claim government funding for remediation to social housing providers and many will be looking to take advantage of this as they seek to relieve financial pressures.

The Supreme Court judgment in URS Corporation Ltd v BDW Trading Ltd (2025) offers greater clarity on the scope of the duty of care owed by designers responsible for structural design defects. Consequently, it could prompt a rise in negligence claims brought by housing developers seeking to recover their losses incurred or anticipated for relevant remediation works.

Two significant Court of Appeal judgements (SVDP & Get Living v Triathlon Homes and Adriatic Land v Long Leaseholders at Hippersley Point) are expected to clarify key issues relating to remediation orders and remediation contribution orders, establishing crucial precedents for:

• Statutory processes for obtaining court orders
• Scope and application of remediation requirements
• Cost allocation between responsible parties
• Timeline and compliance procedures

Planning and Infrastructure Developments

Planning and Infrastructure Bill Streamlining UK Property Law 2025

The extensive Planning and Infrastructure Bill principally seeks to speed up and streamline planning processes to accelerate delivery of infrastructure and housing. It provides for planning committee modernisation with the introduction of a national scheme of delegation, compulsory purchase reform, amendments to streamline the nationally significant infrastructure projects (NSIP) regime, support for clean energy and for the creation of Environmental Delivery Plans and the Nature Restoration Fund. A consultation on the reform of planning committees has been launched.

The extensive Planning and Infrastructure Bill represents the most comprehensive reform of planning legislation in decades, designed to accelerate infrastructure and housing delivery through:

• Planning committee modernisation with national delegation schemes
• Compulsory purchase reform for faster land acquisition
• Streamlined nationally significant infrastructure projects (NSIP) regime
• Enhanced support for clean energy developments
• Creation of Environmental Delivery Plans and Nature Restoration Fund

A series of reforms are also on the horizon to support the "Get Britain Building" political agenda, with a particular focus on SME builders, and a suite of policy papers and consultations have been published. The "Get Britain Building" agenda focuses particularly on supporting SME builders through:

• Simplified planning decisions for small sites
• New "medium site" category creation
• Streamlined biodiversity net gain requirements
• Targeted land release and funding options

Proposals include streamlined planning decisions for small sites, creation of a new "medium site" category and simplified biodiversity net gain requirements for minor, medium and brownfield development. Additional funding options and targeted release of land for SME development are also being considered. A raft of measures aimed at driving up build out rates has also been proposed. These include a mandatory build out reporting framework (intended to apply from 2026) and planning and financial sanctions for slow build out. Many have expressed concern that these add to an already extensive and growing set of administrative and financial burdens for developers.

Biodiversity Net Gain Requirements

The introduction of the Biodiversity Net Gain regime for NSIPs is to be delayed to May 2026, and there is currently an open consultation seeking views on implementation. This delay provides additional time for developers to understand and prepare for these environmental requirements within the broader UK property law changes 2025 framework.

Residential Property Transformations

Revolutionary Shift to Commonhold System in UK Property Law Changes 2025

Considerable change is afoot for those operating in the residential and mixed use leasehold markets. The government's stated intention is to see long leasehold replaced with commonhold for both new and existing flats in England and Wales. Flat owners are to hold the freehold interest and collectively manage common parts through commonhold associations. This transformation will affect millions of properties across England and Wales. Key changes include:

• Flat owners holding freehold interests directly
• Collective management through commonhold associations
• Elimination of ground rents and lease extension costs
• Enhanced owner control over building management

Following the publication of the white paper in March, a consultation and a draft Leasehold and Commonhold Reform Bill are expected to follow later this year for industry input. Allaying lender concerns will be essential. The legal framework will be particularly complex for mixed-use buildings, and converting existing leaseholds to commonhold will present significant practical challenges.

Leasehold reform-related consultations on achieving transparency and fairness of fees payable by home owners via service charges on valuation rates to calculate the cost of enfranchisement premiums and to address problems with current private estate management arrangements are awaited. The outcome of a consultation on the limits of what leaseholders can be charged in respect of building insurance are also awaited, as are details on proposals to regulate ground rents in pre-July 2022 leases and to "remove the threat of forfeiture" as a means of ensuring compliance with lease obligations.

Renters' Rights Revolution

Landlords in the residential rented sector will be preparing for the sweeping reforms to be introduced by the Renters' Rights Bill, which is expected to become law this autumn. These changes represent some of the most significant UK property law changes 2025 affecting residential landlords. Major reforms include:

• Abolition of no-fault evictions (Section 21)
• Elimination of fixed terms for tenancies under seven years
• Strict limits on rent increase frequency and amounts
• Enhanced tenant rights and protection measures

Court System Concerns: Calls from landlord groups to address the overburdened court system before implementation look likely to be dismissed and with possession claims and rent challenges requiring court involvement under the bill, further delays may be on the horizon. Despite calls from landlord groups to address court system backlogs before implementation, the government appears determined to proceed, potentially exacerbating possession claim delays.

It remains envisaged that purpose-built student accommodation will be exempted from the assured tenancy system, to ensure providers have sufficient flexibility and certainty to manage tenant turnover from one academic year to the next. This is to be subject to a requirement for providers to sign up to a government approved code of management practice. The exemption does not feature expressly in the bill and is to be introduced through secondary legislation, so full details are yet to be released. See our Insight discussing the potential impact on the student and build-to-rent sectors.

Future Homes Standard

It is expected that the Future Homes Standard will be published this autumn and will require solar panels by default for most new homes. The Future Homes Standard publication this autumn will require solar panels by default for most new homes, representing another significant element of the UK property law changes 2025. Developers will be hoping that, where needed, the process for agreeing exceptions or reductions to the requirement will be administratively straightforward and will not cause delay.

The June Comprehensive Spending Review included a package of measures aimed at promoting the development of affordable homes and represents a significant uplift on previous spend. The target of 1.5 million homes over the course of the parliament continues to look ambitious, but social housing providers have welcomed the greater certainty and access to funding.

Transparency and Tax Changes

Contractual Controls Register

Government plans to introduce a new public register of contractual controls on land appear to be moving forwards. This would require disclosure to the Land Registry of information relating to certain land option agreements, pre-emption agreements, conditional contracts, and promotion agreements. Government plans for a new public register of contractual controls on land are progressing, requiring Land Registry disclosure of:

• Land option agreements and terms
• Pre-emption agreements and conditions
• Conditional contracts and completion requirements
• Promotion agreements and development rights

Draft regulations are still awaited, so it is not yet confirmed whether the policy will apply retrospectively to agreements entered into from 2023, as proposed by the previous government (and strongly opposed by many in the industry).

Overseas Entities Disclosure Requirements

Companies House has announced that additional duties will be imposed on overseas entities to disclose information about changes in its beneficial ownership which occurred from 28 February 2022 prior to the entity registering at Companies House. Where obtaining this information is not reasonably practical (for example where the entity has changed hands), it is anticipated that a statement can be made to this effect to ensure the entity can remain compliant. This is intended to be imposed from 31 July 2025, so regulations are expected imminently, otherwise there could be a delay in implementation.

It appears that the government still has no current plans to introduce regulations governing disposals of property by insolvency practitioners appointed on the administration or insolvency of an overseas entity.

Capital Goods and Tax Adjustments in UK Property Law Changes 2025

As part of the government's aim to simplify the tax system, the Capital Goods Scheme is to be adjusted to increase the capital expenditure limit for land and buildings to up to £600,000 (excluding VAT), thereby increasing the level of VAT which can be reclaimed. Timings are yet to be confirmed. This change supports the government's tax system simplification objectives. Unless there is a significant uptick in economic performance, autumn may well see tax rises to fund government spending commitments, potentially affecting property investment returns.

Frequently Asked Questions

Conclusion

The UK property law changes 2025 represent a fundamental transformation of the property sector, affecting every aspect from ownership structures to building safety requirements. Property professionals must begin preparation immediately to ensure compliance and capitalise on opportunities within this new legal framework. For expert guidance on navigating these complex changes, professional legal advice is essential.