A consultation of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has recently closed and has sought views on proposals to amend these regulations to implement higher minimum energy efficiency standards in the private rented sector.

The Government confirms it will pursue amendments to these regulations to introduce higher minimum energy efficiency standards. These two standards are as follows:

1. A primary standard based on the building’s fabric; and
2. A secondary standard based on either the heating system or a smart metric.

Landlord will be free to choose which secondary metric to apply giving flexibility to retain existing heating systems or adopt alternative technologies such as solar or smart controls. The Government’s view is that the dual metric approach preserves tenant bills, savings and carbon reductions at a lever comparable to the existing EPC “C” proposal while avoiding the situation where landlords are penalised for installing low carbon heating such as heat pumps.

Landlords will be required to invest £10,000 per property on relevant energy efficiency improvements to bring the property up to standards. Where improvements costing up to this limit still do not bring the home to the required standard, the landlord may register an exemption lasting 10 years and continue to let the property during this time. When an exemption expires, the landlord must again carry out the energy efficiency works to attempt to meet the standards. The £10,000 limit is the maximum investment expected from a landlord over a 10 year period.

Landlords must take this into account when looking at their portfolio over the forthcoming years to upgrade EPC standard levels.

 

If you have any questions, or want to find out more contact the Residential Property team. 

Source of funds enquiries are not discretionary. They are designed to protect buyers, solicitors, lenders and the wider property market, and failure to address them properly can result in delay or, in some cases, an inability to proceed.

What Is Meant by “Source of Funds”?

“Source of funds” refers to the origin of the monies being used to purchase a property. This may include, for example:

• Mortgage funds provided by a lender
• A financial gift from a family member
• An inheritance
• Proceeds from the sale of another property or asset
• Investment or dividend income
• Personal savings accumulated over time

As residential property solicitors, we are required to obtain clear documentary evidence to verify the legitimacy of these funds. The nature of the evidence required will depend on each client’s circumstances but commonly includes bank statements, probate documentation, completion statements, investment records or formal gift letters.

Why Are Source of Funds Checks Required?

Anti-Money Laundering Compliance – Solicitors are subject to strict anti-money laundering legislation. Property transactions can be vulnerable to misuse by those seeking to conceal or legitimise the proceeds of crime. Carrying out robust source of funds checks is essential to comply with these regulations and to uphold the integrity of the residential property market.

Protecting Buyers and Their Investment – These checks are also in the buyer’s own interests. Where property is purchased using funds later linked to criminal activity, enforcement authorities may have powers to recover the asset, even where the buyer was unaware of any wrongdoing. Proper verification at the outset significantly reduces this risk.

Managing Transactional Risk and Delay – If satisfactory evidence of funds is not provided, a transaction may be delayed or prevented from progressing. Addressing source of funds requirements early, and providing clear documentation promptly, helps ensure that the conveyancing process runs smoothly.

What Evidence May Be Requested?

Depending on the circumstances of the transaction, buyers may be asked to provide:

• A signed gift letter together with supporting bank statements from the donor
• Investment or shareholding statements
• A completion statement from the sale of a property
• A grant of probate or confirmation from executors where funds derive from an inheritance
• Recent bank statements demonstrating the build-up of savings

How You Can Assist the Process

To minimise disruption and delay, buyers are encouraged to:

• Retain copies of all relevant paperwork
• Avoid unnecessary transfers between accounts, which can complicate the audit trail
• Provide requested documentation promptly
• Be open and transparent about the origin of their funds

Final Thoughts

Source of funds checks are an essential and unavoidable part of any residential property transaction. While they can feel onerous, they are in place to ensure compliance with legal obligations, protect buyers, and safeguard the transaction as a whole.

Behind every title plan and contract pack sit legal risks that, if missed, can cause delay, unexpected cost, or long-term problems with your property. As residential real estate solicitors, our role is to ensure that your transaction completes smoothly while protecting you from those hidden risks.

Residential Work Is Not Just Form Filling

Residential work is sometimes perceived as an administrative exercise. In fact, it is a legal process that requires careful analysis and informed judgement.

Common issues that arise in residential transactions include:

• Defective or missing rights of way
• Boundary discrepancies and unregistered land
• Leasehold restrictions, escalating ground rent, or inadequate management arrangements
• Planning or building regulation breaches
• Restrictive covenants that affect future use or value

Identifying these issues early — and knowing how to resolve or mitigate them — can make the difference between a successful completion and a failed transaction, which none of us want.

The Risks of a “Low Cost” Approach

Many buyers and sellers are drawn to online or volume conveyancing providers offering low headline fees but with hidden extra costs on completion. While cost is always a consideration, it is important to understand what you may be sacrificing.

High-volume providers often operate with limited solicitor involvement, heavy caseloads, and minimal continuity. This can result in:

• Slow response times
• Missed legal issues
• Little strategic advice when problems arise
• Increased stress at critical stages of the transaction

Residential property transactions frequently move at pace. Having a solicitor who is accessible, proactive, and accountable is invaluable.

What a Specialist Residential Property Solicitor Adds

Instructing a specialist residential real estate solicitor means you benefit from:

• Clear, practical advice, explaining legal issues in plain English and setting out realistic options
• Early risk identification, spotting title or lease problems before they become expensive
• Strategic negotiation, dealing with counterpart solicitors, managing agents, and lenders efficiently
• Transaction management, keeping the process moving and anticipating potential delays

Whether you are a first-time buyer, an experienced homeowner, or a property investor, tailored advice is key.

Leasehold Properties: A Particular Area of Risk

Leasehold transactions deserve special care. Issues such as short lease terms, onerous ground rent clauses, inadequate service charge provisions, or poor management can materially affect both mortgageability and resale value.

A thorough lease review is not optional, it is essential. Buyers should understand exactly what they are committing to, not just now but for the life of their ownership.

Residential property transactions involve more than just buyer and seller. Estate agents, managing agents, lenders, surveyors, and freeholders all play a role.

Local Knowledge and Professional Relationships Matter. An experienced solicitor brings established professional relationships and an understanding of how to resolve issues pragmatically, rather than allowing them to stall progress.

Choosing the Right Solicitor

When choosing a residential real estate solicitor, clients should ask:

• Will a qualified solicitor be responsible for my matter?
• How accessible will my solicitor be?
• What experience do they have with properties like mine?
• How will issues be raised and explained to me?

Peace of mind comes from knowing your transaction is being handled with care and expertise.

Final Thoughts

Your home is likely one of your most valuable assets. Whether buying, selling, or refinancing, it is worth ensuring that the legal work is done properly.

If you are considering a residential property transaction and would like clear, experienced advice, speaking to a specialist residential real estate solicitor at an early stage can save time, cost, and stress later on.

We act for London Estates, house builders, developers and a range of other parties in the residential sector including HNW and UHNW individuals in the luxury real estate market. Our clients are based across the UK, Europe, America, Middle East and Asia and we regularly advise international clients on their inbound related needs.

1. Abolishment of Fixed-Term Assured Shorthold Tenancies (ASTs) – All tenancies will become periodic, allowing tenants to give two months notice to end a tenancy at any time from the commencement of the tenant.
2. Limit on Rent Increases – The shift to periodic tenancies means that Section 13 notices will be the only way for landlords to raise the rent’ these can only be served once per year, and must be in the correct prescribed format.
3. Abolishment of Section 21 Evictions – Landlords will no longer be able to serve “no-fault) eviction notices to regain possession of their properties. From 1st May 2026, no further Section 21 Notices can be served. Notices can be served prior to 1st May 2026 but must be enforced by 31st July 2026.
4. Expansion of Section 8 Possession Grounds – The Government is adding and updating both mandatory and discretionary grounds for possession due to the abolition of Section 21 Notices from 1st May 2026, these notices will be the only way to regain possession of a property should the tenant not give notice to vacate.
5. Introduction of a Landlord Ombudsman (mandatory membership for all landlords) – This will help resolve disputes between landlords and tenants impartially. Landlords will be expected to join this scheme in 2028, although this is still to be confirmed by the Government in terms of timescales.
6. Creation of a Private Rented Sector Database (mandatory registration for all landlords) – Designed to compile information about landlords and properties and provide visibility on compliance. Landlords will be expected to register on the database toward the end of 2-26, although this is still to be confirmed by the Government in terms of timescales.
7. Application of the Decent Homes Standard and Awaabs Law to the Private Rented Sector – All rental properties must meet minimum quality standards. The application of this is still to be confirmed by the Government in terms of timescales, however, this is proposed under Phase 3 of their implementation plan to be in 2035 or 2037.
8. Prohibiting Discrimination – Landlords cannot refuse tenants on benefits or with children.
9. Allowing Renting with Pets – Landlords cannot unreasonably refuse tenants with pets.
10. Ban on Rental Bidding – Landlords and agents cannot accept offers above the advertised price.
11. Banning of Rent in Advance – Tenants will no longer be able to be asked to pay rent in advance.
12. Student Charges – Properties must be let exclusively to full time students and possession can only be gained using a Section 4A notice. Student tenancies will be periodic from the outset, with two months required from the tenants should they wish to end the tenancy.
13. Notice Changes for Landlords Selling Properties – Landlord must serve 4 months notice on tenants (not to expire within the first 12 months of a tenancy) to regain possession of a property in order to sell. The property cannot be subsequently re-let within 12 months of the expiry of such a notice in the case of a sale falling through, or being withdraw from the sales market.

This pace of change will be fast over the next year and landlords, courts and local authorities will need to adapt quickly so this sector can flourish once again. The hope is landlords are not put off by such changes and will re-join the market to grow it once again.

What is the intention of the Commonhold White Paper?

The aim is to make commonhold the default tenure for apartments going forward.  With this white paper, the Government intends to replace the traditional leasehold format with a more revitalised format allowing owners to jointly own and manage their building.

Furthermore, the aim is to make it easier for existing leaseholders to transition their building to commonhold by reducing the percentage of owners needed to agree.

What will happen to existing leaseholds?

It’s not an immediate, blanket ban on all existing leaseholds.  The Leasehold and Freehold Reform Act 2024 (now law) bans the creation of most new leasehold houses — meaning almost all new houses in England and Wales must be sold freehold instead of leasehold.

Existing leasehold homes are not being automatically abolished. Owners of existing leasehold flats and houses will still hold leaseholds, though reforms seek to improve their rights and protections and make it easier to convert to commonhold voluntarily.

Developers can still grant new leases in certain scenarios (e.g., replacements for expiring leases) until the formal ban on new leasehold flats comes into force.

What is the benefit of commonhold ownership?

In practical terms, here are the main benefits:

• You truly own your home (no ticking clock)

With commonhold, you own your flat outright and forever — there’s no lease that runs down over time, and no need (or cost) to extend it later. That alone removes a big source of stress and expense.

• No external landlord / freeholder

There’s no separate freeholder making profit from the building. Instead:

• Each flat owner owns their own unit
• All owners jointly own and control the building through a commonhold association

So decisions are made by the residents, not an outside investor.

• Fairer service charges

Because residents run things themselves (or appoint managing agents they choose):

• Service charges are based on actual costs, not profit
• Charges are more transparent
• You have real voting power over budgets and major works

This helps avoid issues like inflated fees or unnecessary projects.

• No ground rent

Commonhold has zero ground rent. That’s a big win compared to leasehold, where ground rent can exist even though you get nothing in return.

 

What next?

The consultation period end in April 2026 and further update will be expected then.

 

To find out more speak with Asha Ngai, or the Residential Property team. 

From April 2028, a new tax will be levied on property owners, being the High Value Council Tax Surcharge (HVCTS). The rates are:

Threshold (£m)	Rate (£m)
£2.0-2.5	£2,500
£2.5-3.5	£3,500
£3.5-5	£5,000
£5+	£7,500

The HVCTS can be viewed as a second council tax payment which will be levied on owners of properties valued at £2 million or more. It will be collected much like council tax by Local authorities.

A public consultation should take place early this year, to work out how to bring the new tax in. There are currently no details on how the Valuation Office will calculate whether a property is valued at £2 million or over. It makes sense that the Valuation Office will review properties currently in Council Tax bands F, G and H. Revaluations will be carried out every five years, catching more properties over time. The HVCTS rate could also increase with CPI inflation each year.

The Government will provide exemptions, which could include those who may struggle to pay the tax, for example pensioners who have no provisions to cover a new annual tax, or the owners of historic houses who are asset rich but cash poor, and employee occupiers.

The consultation will also need to address how the surcharge applies to properties held through complex ownership structures such as trusts, companies, or partnerships which are often used for succession planning, asset protection, or tax efficiency.

Most properties valued over £2 million are currently located in London and the Southeast, so prospective buyers looking in these areas will need to factor in this additional annual cost. Therefore, it could encourage buyers to search in a wider geographical area.

Prior to implementation we will likely see price bunching just below the thresholds and this may happen every five years when the revaluations are carried out.

For those moving home or for first-time buyers in the £2–£5 million bracket there may be some initial caution as the new tax is factored into purchasing decisions.  The surcharge may prompt negotiation on price to offset the annual charge.

For investors, this represents yet another cost since they are already facing higher property income tax from April 2027 and their freedom to deal with their properties is being restricted by the Renters Rights’ Act 2025.

Whilst the new tax may be a consideration for some buyers, it could also create opportunities particularly if prices become more competitive as a result.

One hopes that the tax is not significant enough to lead to widespread price drops or a surge in owners selling up. However it is possible that we could see a reverse in the policy decision where there are falling values.

 

To find out more contact Caroline Vernon or the Residential Real Estate team. 

However, most of its changes are expected to come into force from 1 May 2026, these include:

• Removal of fixed-term assured shorthold tenancies (ASTs), replacing them with rolling periodic assured tenancies. Tenants can terminate giving at least 2 months notice (expiring at the end of the rent period).
• The abolition of section 21 “no-fault” evictions. Landlords will need to seek possession from tenants using one of the Section 8 Grounds (which have been substantially modified). Court proceedings will be required if the tenants refuse to leave upon expiry of a Section 8 Notice.
• Rent increases will be limited to once a year through a formal process, with tenants able to challenge increases they believe exceed market levels.
• Awaab’s Law extended to tenants, allowing them to challenge hazardous conditions within properties and require landlords to act within prescribed timescales.
• Fairness introduced on discriminating against potential tenants who have children or receive benefits.
• Landlords cannot unreasonably refuse consent to a tenant wishing to keep a pet at the Property.

These reforms are expected to impact the property market, particularly where properties are sold with tenants in situ. Some landlords may reassess their portfolios in response to increased regulation and longer possession timeframes, which may lead to more tenanted properties being offered for sale. This is likely to increase the importance of pricing and planning around vacant possession.

What this means for you

• Landlords should plan early for compliance, possession and potential sales.
• Buyers must understand tenancy status and whether vacant possession is realistic.
• Sellers of tenanted property should seek early advice to avoid delays.

 

To find out more, contact Claire Levy or the Residential Real Estate team. 

 

The position with tenancies for high rents over £100,000 or more needs to be considered. The current position is rents over this sum are not protected by the Housing Act 1988, such tenancies cannot be Assured or Shorthold tenancies where the rent is above the high rent threshold. Therefore current tenancies with annual rents over £100,000 are exempt from the statutory protections of The Housing Act 1988. They are considered as common law tenancies governed by the terms of contract and common law requirements. The exemption is there as such tenants are deemed sophisticated consumers who do not need statutory protection and who can afford to obtain legal advice. Therefore, these tenancies being exempt, fall outside the reform to Assured tenancies in the Renters’ Rights Bill.

However the Government could of course increase the high rent threshold bringing tenancies with high rents into the reformed assured tenancy regime.

Historically, the threshold was increased in 2010 from £25,000 to £100,000 to reflect rising inflation and changing market conditions. The increase in the annual threshold therefore, meant many more tenancies were then protected by the Housing Act legislation. Clearly rents have risen once again, 15 years having elapsed since the last review. Therefore, we could see that the threshold is raised once again.

These higher rent tenancies would then fall within the scope of the Renters’ Rights Bill which means landlords are restricted on rent increase and rent review clauses and landlords would be subject to statutory procedures for rent changes, tenancy renewals and evictions. Grounds for possession would be required before serving Notices to Quit and compliance would be needed with the Deposit Protection Rules, registering on the private rented sector database and with the private rented sector landlord ombudsman and of course repairing obligations to meet standards under the Decent Homes Standards and AWAAB’s law.

Although only a small number of tenancies will be affected if the threshold raised from £100,000, it would affect landlords, requiring them to follow the increased regulation.

It does appear that the market is re-setting due to the Government’s proposed changes and it remains to be seen whether we will have an active and profitable rental market following November’s budget.

To find out more, please contact the Residential Real Estate team. 

Although the Land Registry has existed for many years, a surprising number of properties across England and Wales remain unregistered, especially where ownership has not changed hands for generations. If your home or land is unregistered, proving ownership depends entirely on old title deeds, which can create risks and complications.

What Does “Unregistered” Mean?

When a property is registered, HM Land Registry holds an official, digital record of who owns it, together with details of mortgages, rights of way, and covenants affecting the land. This register is secure, up-to-date, and easily accessible.

In contrast, an unregistered property has no such official record. Ownership is established only through original paper deeds and documents, sometimes going back decades. These papers must show an unbroken chain of ownership to prove a valid title.

Why Registration Matters

Registering your property offers several important advantages:

1. Protection against fraud
   Sadly, property fraud is on the rise. Fraudsters may attempt to pose as the owner of unregistered land and sell or mortgage it without your knowledge. Registration makes it much harder, as HM Land Registry has robust checks and safeguards in place.

2. Clear proof of ownership
   If you want to sell, remortgage, or transfer ownership in the future, having your title registered makes the process far simpler and more secure.

3. Avoiding lost or damaged deeds
   If the original title deeds are lost, damaged, or incomplete, proving ownership of unregistered land can beome costly and time-consuming. Registering your property now removes this risk.

4. Certainty about boundaries and rights
   A Land Registry title plan shows the general boundaries of your property and records key rights, restrictions, and covenants. This clarity reduces the risk of disputes with neighbours and helps future buyers understand exactly what they are purchasing.

5. Speed and efficiency in transactions
   Registered land is easier to sell or mortgage. Buyers, lenders, and solicitors can rely on Land Registry records, so transactions proceed more smoothly and with fewer delays.

 

Voluntary Registration

Registration of unregistered property is compulsory when it is sold, mortgaged, or gifted. However, you do not have to wait until then. You can choose to register your property voluntarily at any time, and benefit from a more streamlined process.

How We Can Help

Our Residential Property team can guide you through the registration process from start to finish. We will review your deeds, prepare the necessary application, and liaise with HM Land Registry on your behalf. Once registration is complete, you will receive an official copy of your registered title – clear, secure proof that you are the legal owner.

Registering now gives you peace of mind and makes any future property transactions far simpler.

 

As of October 2013, a buyer of a property takes free from CR, where it is not protected by an entry at the Land Registry. However, if the land has not changed hands since that date, and the purchase is the first since then, a CR notice could still be entered before the registration is complete, creating liable. As a result, it is still common practice to carry out a CR search and obtain an indemnity policy when the search flags that there is a potential risk.

The Law Commission aims to ensure that CR does not bind buyers, unless they are registered and visible, reducing the need for CR searches or insurance. 

The Law Commission’s proposals would mean that the title register could be relied upon as an accurate picture of the position at any one time. The Law Commission published the new consultation on 15 July 2025, with the consultation closing on 15 November 2025. With the Law Commission aiming to publish its final report in 2026.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below.