Mortgage lenders take security over the property they are financing. They therefore need to be satisfied that the property represents acceptable security, not only for the buyer today but also if the lender ever has to sell it.

This can make apparently technical legal issues surprisingly important.

Here are some of the issues that can cause difficulties.

Ground rent

Ground rent provisions have been under scrutiny for some time.

It is not necessarily just the amount of ground rent that matters. The provisions for future increases and the particular lender’s requirements may also need to be considered.

Government proposals to reform ground rents make this an area which is likely to continue evolving.

The length of the lease

A flat with a diminishing lease term may become more difficult to mortgage and sell.

Different lenders have different requirements and buyers should not assume that because one lender is prepared to lend, every lender will take the same approach.

Building safety

Building safety legislation has added another layer of complexity to transactions involving certain residential buildings.

Depending on the building and circumstances, solicitors may need to consider the Building Safety Act 2022 and associated documentation as part of the transaction.

This is a specialist area and assumptions should not be made simply on the basis of the appearance or age of the building.

Problematic lease provisions

Sometimes the problem is buried in a lease granted decades ago.

Rights of access, repairing obligations, insurance provisions and rights relating to the use of the building can all potentially affect mortgageability.

A solicitor acting for a buyer with a mortgage is not only advising the buyer. They will usually also be required to comply with the lender’s requirements.

That can mean raising issues which a cash purchaser might have been prepared to accept.

Alterations

Alterations carried out without the consent required by the lease can create another problem.

The issue may only come to light when the buyer’s solicitor reviews the lease against the current layout of the property.

Resolving the position can involve obtaining retrospective consent or considering another solution acceptable to the buyer and lender.

Why sellers should care about mortgage-ability

It is tempting to regard all of these as the buyer’s problem.

If a mainstream lender will not lend against a property, the pool of potential purchasers can become considerably smaller. That can affect both the speed of the sale and potentially the price achievable.

Sellers of leasehold properties should consider having their title and lease reviewed before the property is marketed.  If there is an issue that a lender is likely to raise, it is far better to know about it before accepting an offer.

Property transactions inevitably produce surprises. The role of an experienced residential property solicitor is to ensure that as few of those surprises as possible occur the week before exchange.

To find out more, please contact our Residential Real Estate Team. 

The scheme will be implemented through the draft Private Rented Sector Database Regulations 2026 and will require all residential landlords in England to register their properties through a new online portal, provisionally titled Register your rental property.

Purpose and Policy Objectives

The stated aim of the Private Rented Sector Database is to create a comprehensive national record of privately rented properties and their landlords. The Government’s objectives are threefold:

1. to increase transparency within the sector;
2. to equip local housing authorities with the tools to identify and act against non-compliant landlords more efficiently; and
3. to provide prospective tenants with greater assurance when selecting private rented accommodation.

From a landlord’s perspective, the Database presents an opportunity as well as an obligation. Those who maintain full compliance with their existing legal duties — including safety, licensing, and tenancy obligations — will be well placed to distinguish themselves from those who do not. Responsible landlords should view registration not merely as a regulatory burden, but as a mechanism that levels the playing field against rogue operators.

 

Phased Regional Rollout

Registration will be introduced on a regional basis across England, commencing in the West Midlands on 15 December 2026, and extending progressively across England over the following twelve months, with London brought within scope on 15 July 2027.

Registration becomes mandatory in each region upon the scheme’s local commencement. Once the scheme goes live in the relevant region, landlords will have a period of three months in which to register.

We strongly advise all landlords to register promptly upon commencement rather than waiting until the expiry of that three-month window.

Importantly, from 15 December 2026, landlords may voluntarily register any of their properties in advance of the scheme’s mandatory commencement in their region. Early registration is likely to be in most landlords’ interests as a matter of good practice.

 

Legal Consequences of Non-Compliance

Failure to register in accordance with the Regulations carries significant legal risk. Landlords who do not comply within the required timeframe may be exposed to the following:

• Financial penalties of up to £40,000;
• Rent Repayment Orders, entitling tenants to recover rent paid during a period of non-registration;
• Restrictions on the exercise of possession rights, potentially limiting a landlord’s ability to recover their property through the courts.

The last of these consequences is particularly serious and mirrors the approach already adopted under the Housing Act 2004 in relation to Houses in Multiple Occupation licensing, where failure to license can render a Section 21 notice invalid.

Local authorities will have access to the register, enabling them to cross-reference landlords against their compliance records and to take targeted enforcement action where appropriate.

 

The Registration Obligations in Detail

Who Must Register?

The obligation to register rests with the landlord personally. Where relevant, the duty may fall upon a personal representative of a deceased landlord, a donee under a power of attorney, or a trustee in bankruptcy.

Letting agents and property managers are not permitted to register on a landlord’s behalf, although the Government has indicated that guidance will be issued setting out the extent to which agents may assist with the process and the information they may submit in support.

Landlords should not assume that their managing agent will deal with this obligation without express confirmation.

 

What Must Be Registered?

Landlords are required to create:

1. A landlord entry — registering themselves as a private residential landlord; and
2. A dwelling entry — a separate registration for each rental property they own.

An annual fee of £65 per property will apply under the draft Regulations.

The information required covers the landlord’s personal details, property particulars, tenancy information, and evidence of compliance with key statutory safety requirements.

 

Ongoing Obligations

Registration is not a one-off exercise. Each registration remains valid for 12 months and must be renewed annually. If a renewal is not completed within the required period, the registration will lapse and become inactive, with the attendant legal consequences described above.

Landlords are also required to ensure that the information and documents held on their active registration remain accurate and up to date. Any changes to the registered information, or any document which expires or otherwise becomes outdated, must be updated within 28 days of the relevant change or expiry.

 

Display of Registration Numbers

Landlords and letting agents will be required to display the relevant registration number on all rental property advertisements. This will enable prospective tenants to verify registration status before entering into a tenancy agreement.

 

What Should Landlords Be Doing Now?

Although the Regulations are not yet in force, there is a clear practical advantage in beginning preparations immediately. We recommend that landlords take the following steps without delay:

1. Review property ownership and management records to ensure all information is current and accurate.
2. Audit statutory compliance documentation, including gas safety certificates, EICR reports, EPCs, smoke and carbon monoxide alarm records, and any applicable licensing documentation.
3. Identify the relevant commencement date for their region and diarise both the commencement date and the three-month registration deadline.
4. Confirm the position with any managing agent as to their role in the registration process and what assistance, if any, they will provide.
5. Monitor the Government portal for release of the formal registration link and supporting guidance, expected in advance of 15 December 2026.
6.  

The Private Rented Sector Database represents a significant new compliance layer for residential landlords, and the financial and legal consequences of non-registration are not to be underestimated.

However, for landlords who already manage their properties in accordance with their legal obligations, the practical burden of registration should be manageable with appropriate preparation.

 

To find out more contact Caroline Vernon or our Residential Property Team. 

Building safety, leasehold reform, lender requirements, planning issues, estate management arrangements and increasingly detailed due diligence all mean that transaction should not simply be regarded as an administrative process.

The Government itself has recognised that the current home-moving process needs improvement. Its Home Buying and Selling Reform Roadmap states that transactions currently take around 120 days on average from offer to completion and that around one in three transactions fall through.

One of the Government’s key objectives is therefore to make more information available at the beginning of a transaction so that potential problems can be identified earlier.

That is something experienced property solicitors have been advocating for years.

Spotting problems before they become problems

Many of the issues that delay transactions are entirely predictable.

A lease may contain provisions that are unacceptable to a mortgage lender. Alterations may have been carried out without the necessary consents. A management company may not have been properly constituted. There may be restrictions on the title which prevent registration of the buyer without additional documentation.

For flats, the position can be even more complicated. Service charges, major works, building safety, ground rent and the remaining lease term can all affect both the buyer and their lender.

None of these issues necessarily prevents a property being sold. The difficulty arises when they are discovered three months into the transaction rather than before the property is marketed.

Getting sale ready

For sellers, instructing a solicitor early can make a significant difference.

Title documents can be reviewed, leasehold information obtained and potential defects identified while the property is being marketed.

For leasehold properties in particular, obtaining the management information at an early stage can avoid one of the most common sources of delay.

The Government’s reform programme is moving in precisely this direction, with greater emphasis on comprehensive upfront property information and digital sales packs.

Experience matters

There is inevitably pressure on costs when moving home and it can be tempting to select a residential real estate solicitor simply by comparing quotes.

However, the true value of a good property solicitor is not simply their ability to process a transaction. It is their ability to recognise an issue, understand whether it really matters and find a practical solution.

In a property market where transactions remain vulnerable to delay and chains can collapse, that experience can make a significant difference.

My advice to anyone thinking about selling is simple: speak to your solicitor before you find your buyer, not afterwards.

A little preparation at the beginning of a transaction can save a considerable amount of time and frustration later.

 

Interested in finding out more? Contact our Residential Real Estate Team here. 

Here are five things worth checking before putting a leasehold property on the market.

1. How long is left on your lease?

Do not wait for the buyer’s solicitor to tell you that the remaining lease term is an issue.

The length of the lease can affect value and mortgageability. If the term is becoming short, take advice before marketing about whether a lease extension should be considered.

The law relating to lease extensions is itself undergoing significant reform, so current advice should always be obtained rather than relying on what may have applied when the property was purchased.

2. What does your lease say about ground rent?

Check both the current ground rent and any provisions for it to increase.

Ground rents have been a significant issue for lenders and buyers in recent years and the Government is now proposing further fundamental reform of existing ground rents.

The precise terms of the lease therefore need to be considered rather than simply looking at the amount currently being paid.

3. Are there major works on the horizon?

Buyers will want to know the current service charge, whether there are arrears and whether substantial expenditure is anticipated.

If the managing agent has already indicated that major works are planned, it is usually better to deal with the issue openly at the beginning.

Questions about who will pay for works taking place after completion can then be addressed as part of the negotiations rather than immediately before exchange.

4. Have you made alterations to the flat?

Removed a wall? Changed the flooring? Replaced windows? Reconfigured the layout?

Your lease may have required the landlord’s consent.

If consent should have been obtained but was not, identifying that issue before marketing gives your solicitor time to consider how best to deal with it.

5. Order the management pack early

One of the most avoidable causes of delay in leasehold transactions is waiting for information from the landlord or managing agent.

The buyer’s solicitor is likely to require information about service charges, insurance, planned works and management arrangements.

Ask your solicitor what information can be requested as soon as you decide to sell.

Leasehold is changing

Leasehold law is currently undergoing substantial reform.

The Government has published a draft Commonhold and Leasehold Reform Bill and intends commonhold ultimately to become the default tenure for new flats, alongside a proposed prohibition on most new leasehold flats.

That does not mean existing leasehold flats cannot be bought and sold. Millions of homes remain leasehold and will continue to change hands.

It does mean that obtaining specialist advice is increasingly important.

The best leasehold transactions are often those where the legal work begins before the buyer has even been found.

If you are considering selling a leasehold property, getting the title and lease reviewed at the outset can identify potential problems and give you time to resolve them before they threaten your sale.

To find out more, please contact our Residential Property Team. 

For landlords, investors and homeowners alike, understanding the proposed reforms is becoming essential.

What is an EPC?

An EPC measures the energy efficiency of a property and assigns a rating from A (most efficient) to G (least efficient). The certificate also contains recommendations for improving energy performance and reducing running costs.

EPCs are generally required whenever a property is sold, let or constructed. They currently remain valid for ten years.

The Current Position

Under the existing Minimum Energy Efficiency Standards (MEES), most residential properties in the private rented sector in England and Wales must achieve a minimum EPC rating of E before they can be lawfully let. Landlords who fail to comply may face financial penalties and enforcement action.

While this standard has been in place for several years, the Government considers it insufficient to meet fuel poverty and carbon reduction targets.

The Government’s Proposed Reforms

The Government has confirmed its intention to increase minimum energy efficiency standards within the private rented sector, with a target of requiring privately rented homes to achieve the equivalent of EPC C by 2030.

The proposals form part of the Government’s wider Warm Homes Plan and are intended to create warmer, more energy-efficient homes while reducing tenants’ energy bills.

If implemented, the changes would represent one of the most significant regulatory developments affecting residential landlords in recent years.

EPC Reform – More Than Just a Letter Rating

Perhaps the most significant aspect of the proposals is that the EPC system itself is expected to change.

The Government is proposing to move away from the current single rating system and introduce new metrics that assess a property’s energy performance in greater detail. Future EPCs are likely to place greater emphasis on factors such as:

• Energy efficiency;
• Carbon emissions;
• Heating systems;
• Fabric performance of the building; and
• Running costs for occupants.

As a result, achieving compliance may no longer be as straightforward as obtaining a particular letter rating. Properties will instead be assessed against a broader range of energy performance measures.

What Could This Mean for Landlords?

Many landlords are likely to face investment requirements over the next few years.

Properties built before modern insulation standards, particularly Victorian and Edwardian housing stock, may require upgrades such as:

• Loft and wall insulation;
• Double or triple glazing;
• Improved heating controls;
• Solar panels;
• Low-carbon heating systems; and
• Heat pumps.

The Government’s consultation suggested that millions of privately rented homes may require improvements before 2030.

To mitigate the financial burden, the Government has also proposed a maximum investment cap and various exemptions where compliance would be disproportionately expensive or impractical. Recent announcements indicate a proposed cost cap of £10,000 per property, together with affordability exemptions in certain circumstances.

Impact on Property Transactions

Energy efficiency is increasingly becoming a factor in property valuations, mortgage lending and purchaser due diligence.

Prospective buyers are paying closer attention to EPC ratings because future upgrade costs may affect a property’s overall affordability. Likewise, lenders are under growing pressure to improve the environmental performance of their mortgage portfolios.

For investors acquiring buy-to-let properties, EPC compliance should now be considered at the outset. A property that appears attractively priced may require significant capital expenditure before it can continue to be let lawfully after 2030.

What Should Property Owners Do Now?

Although some details of the reforms are still being finalised, property owners should avoid taking a “wait and see” approach.

Practical steps include:

• Reviewing existing EPC ratings across property portfolios;
• Identifying properties currently rated D, E, F or G;
• Obtaining advice on likely upgrade costs;
• Considering energy efficiency improvements alongside planned refurbishment works; and
• Monitoring further legislative developments as the Government finalises EPC reforms.

Early planning is likely to be significantly more cost-effective than undertaking works immediately before any compliance deadline.

Looking Ahead

Energy efficiency is becoming a key regulatory and commercial consideration within the residential property sector. While the final detail of the new EPC framework is still emerging, landlords and property investors should expect higher minimum standards, increased scrutiny and greater emphasis on building performance over the coming years.

Those who prepare early will be best placed to protect asset values, maintain compliance and meet the expectations of both tenants and future purchasers.

To find out more contact Caroline Vernon or the Residential Property Team. 

1. What Defines a Buyer’s Market?

A buyer’s market exists when supply exceeds demand sufficiently to give purchasers meaningful negotiating power: the ability to buy below asking price, impose conditions, and take their time. Classic indicators include:

• Availability of properties rising
• Properties sitting on the market longer (increased average days to sell)
• Sale prices achieved consistently below asking price
• Fewer competing offers per property
• Motivated sellers accepting subject-to-survey or subject-to-finance conditions without resistance

 

2. Supply & Demand

One of the clearest signals in 2026 has been a sustained increase in the number of homes coming to market. Estate agents have reported the highest levels of available stock since the pre-pandemic era.  This has been driven by:-

• Landlord exits — the cumulative effect of increased Stamp Duty Land Tax (SDLT) on additional dwellings (raised to 5% in late 2024), loss of mortgage interest relief, EPC upgrade obligations, and the Renters’ Rights Act 2024 has prompted a significant wave of buy-to-let disposals, flooding certain markets — particularly flats and terraced houses — with stock.
• Upsizers and downsizers re-entering the market — households who delayed moves during the 2022–2024 high-rate period are now acting, creating both supply and demand simultaneously.
• New build completions — housebuilding has recovered modestly, adding further pressure to resale properties particularly in outer London and the Midlands.

The result: buyers in many areas are choosing between multiple comparable properties rather than scrambling for scarce choices.

 

3. House Price Trends

After the market correction of 2022–2023 and the subdued recovery of 2024–2025, UK house prices in mid-2026 are broadly flat to marginally positive on an annual basis — a marked contrast to the double-digit growth of the pandemic years.

Prices are, however, heterogeneous. Prime central London and highly desirable commuter villages continue to hold firm; ex-rental flats and new build apartments in oversupplied urban markets are where buyer leverage is greatest and provides a great opportunity.

 

4. Mortgage Market Conditions

The Bank of England’s base rate cutting cycle — which began in August 2024 — has continued into 2026, bringing the rate to around 3.75–4.00% as at mid-2026. The practical effect:

• Two-year fixed rates are broadly available in the 4.0–4.5% range for well-qualified borrowers, down significantly from the 2023 peaks of 6%+.
• Five-year fixed rates are slightly lower, offering medium-term certainty.
• Affordability remains stretched relative to pre-2022 norms, meaning the pool of active, proceedable buyers — though growing — is still constrained. This continues to moderate upward price pressure.

The affordability constraint is itself a buyer’s market driver: sellers cannot realistically achieve peak 2021/22 valuations and those who need to sell are pricing to the market.

 

5. Stamp Duty Reversion (April 2025)

The temporary SDLT thresholds introduced in September 2022 expired on 31 March 2025. Since then:

• The nil-rate threshold for standard residential purchasers has reverted to £125,000 (from £250,000).
• First-time buyer relief reverted to a nil-rate threshold of £300,000 (from £425,000), with the relief ceiling back at £500,000.

This has added meaningful transaction costs back into the equation, particularly for mid-market buyers in London and the South East. It has slightly dampened demand at those price points and given buyers a further bargaining chip — many are openly negotiating price reductions to offset their increased SDLT liability.

 

7. Practical Implications for Buyers

For buyers actively in the market, the following conditions currently apply in their favour:

• Negotiating room exists — offers of 3–5% below asking are being accepted on properties that have been listed for more than four weeks.
• Conditions can be imposed — buyers can more readily insist on survey conditions, longer completion periods, and vacant possession warranties.
• Chain-free and cash buyers hold significant premium — sellers are paying a premium for certainty given the elevated fall-through rate.
• Leasehold flats — post-Leasehold and Freehold Reform Act 2024 uncertainty around service charges and enfranchisement valuations has created genuine buyer leverage in the flat market; appropriate due diligence should be undertaken before pricing in too deep a discount.

 

8. Conclusion

UK residential property market in June 2026 is the most buyer-friendly it has been since the post-pandemic correction. Increased stock, motivated sellers (particularly departing landlords), a moderating price environment, and declining but not yet fully normalised mortgage rates have together shifted negotiating power materially toward buyers.

That said, this is a segmented buyer’s market. It is most pronounced in:

• Leasehold flats and urban apartments
• Former buy-to-let properties
• Properties in less demand-constrained regional markets

It is least pronounced in:

• Good-quality family houses in sought-after school catchments
• Prime locations with persistent international or wealth demand
• Undersupplied rural or coastal markets

 

For conveyancers and property lawyers, the practical upshot is an uptick in conditional offers, renegotiations post-survey, and buyers exercising more scrutiny over title and service charge issues before exchange. Due diligence windows are longer and fall-throughs more frequently – both factors worth building into transaction management advice to clients.

To find out more contact our Residential Real Estate team. 

What is proposed is a ban on new leasehold flats as the Labour government takes steps to honour its manifesto commitment to ensure commonhold becomes the default tenure. Commonhold, introduced in 2004 under the Commonhold and Leasehold Reform Act 2002, offers a freehold alternative where flat owners hold direct ownership of their unit, and the communal areas are held in shared ownership through a commonhold association (CA).

Unlike leasehold, commonhold eliminates issues related to ground rent, service charges, and lease extensions, providing homeowners with long-term security and control. It is worth noting that owners will still be bound to contribute towards maintenance, insurance and management costs through commonhold obligations, budgets and reserve funds.

Despite its benefits, commonhold has seen limited adoption due to its rigid legal framework and concerns from lenders and developers. The government seeks to address this with a range of proposals to improve and expand the commonhold system, making it more attractive and practical for developers, homeowners, and lenders.

Why this matters?

This will obviously have a significant impact on the super prime market in London and the surrounding areas.  It will affect prime mansion blocks, mixed use schemes and newly constructed high value estates.  With this being a new system to the UK, buyers will not be ofay with the new regime and lenders may have a limited appetite in this area at first.

The proposed new commonhold regime is intended to reduce long-term costs and improve transparency by removing ground rent, landlord profit and complex leasehold management structures, although there may be upfront costs associated with conversion, valuation, lender consent and the establishment of a commonhold association. Ongoing costs are expected to consist primarily of service charge contributions to meet actual maintenance, insurance and reserve fund requirements, controlled directly by unit owners rather than a third-party freeholder.

Governance is vested in the commonhold association, a company limited by guarantee owned and democratically run by the unit holders, with decision-making governed by the commonhold community statement. This provides a clear statutory framework for voting, budgeting and dispute resolution, enhancing accountability while reducing scope for abuse and opaque charging practices seen in traditional leasehold arrangements.

Key Proposals for Change

Flexibility in Management: The introduction of “sections” within commonhold developments will allow different areas or groups of units to be managed separately. This will be crucial in mixed-use buildings and complex estates, enabling CA’s to fairly apportion costs and limit voting to specific decisions which just affect those areas or groups of units.  This will work well where there are a number of commercial units dispersed amongst a building with residential apartments incorporated, such as the Shard or One Hyde Park.

Financial Protections: New rules will mandate reserve funds to mitigate unexpected costs, and unit holders will have a greater say in budgeting decisions. The ability to challenge excessive expenditure will help keep commonhold developments financially sound.

Improved Dispute Resolution: The current process for resolving disputes between unit holders will be streamlined, with less paperwork and more accessible processes through tribunals, aiming to prevent costly court procedures.

Stronger Minority Protections: Measures to prevent majority owners from unfairly imposing decisions will be introduced, allowing minority unit holders to challenge certain decisions at the tribunal.

Debt Recovery and Enforcement: In response to concerns about unpaid debts in the absence of a landlord, the government proposes that CA’s will be able to apply to the court for an expedited order to sell a unit if the owner fails to pay their share of costs. There will also be safeguards, including protections for lenders, such as ability to control the sale process or add debt to the mortgage.

Winding Up Commonhold: The White Paper proposes improving the voluntary termination process for commonhold developments, ensuring owners have a chance to vote, and safeguard the interests of all parties when a commonhold development becomes insolvent.

Converting Leasehold to Commonhold: A crucial area of reform still under consideration is the process for converting existing leasehold properties to commonhold, including addressing the issue of non-consenting leaseholders. This is an area where further consultation and legislative proposals are expected. The current Act requires 100% participation at present however, the Bill proposes to allow conversion to commonhold with a majority of leaseholders, proposed as 50% subject to final legislation.

The Road Ahead

Although a new concept to England and Wales, forms of commonhold have long since operated in many jurisdictions, although the terminology and legal structures vary. Australia and New Zealand operate strata title systems, while Canada (notably British Columbia and Ontario) uses condominium ownership. In the United States, condominiums and common interest developments perform a similar role, as do sectional titles in South Africa. Across Europe, comparable regimes include Copropriété in France, Wohnungseigentum in Germany and Austria, Propiedad Horizontal in Spain, and apartment ownership systems in the Netherlands and the Nordic countries. In each case, individual owners hold a proprietary interest in their unit together with shared ownership and democratic governance of common parts, broadly reflecting the core principles of commonhold.

The Bill lays the foundation for substantial reforms in commonhold law. The success of these changes will depend on the outcome of the pre-legislative scrutiny.  The government’s consultation with the industry closed on 24 April 2026, so we await the government’s response on scope, timing, exemptions and transitional arrangements.  The final Bill is likely to be introduced into Parliament in late 2026 and the earliest date it will be come law is 2027 to 2028.

Commonhold could present an opportunity to move away from the complexities and costs associated with leasehold ownership. However, the real challenge lies in the transition. Commonhold developments will require careful management from the outset, and a well-thought-out approach will be essential to avoid the pitfalls that plagued the leasehold system.  It could allow standardised documentation which would speed up and aid the negotiation process.

So far commonhold has failed to take off, since the Act was implemented in 2002 fewer than 20 developments have been built comprising fewer than 200 commonhold units.  As a Real Estate lawyer there is a real fear about committing clients to this system, until the market and particularly lenders are on board with this new style of ownership.

This legislation is of course in line with the government’s wider reform in the leasehold sphere, the proposal to cap ground rents, measures to address unfair costs and practices, and the abolition of marriage value. 

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. 

 

Why Climate Risks Matters in UK Property? 

Climate risks are increasingly affecting residential property in tangible ways:

• Increased flood risk and extreme weather events
• Rising insurance premiums—or reduced availability of cover
• Tighter environmental and planning regulations
• Changing lender and investor requirements

These factors can directly impact property value, marketability, and long-term viability.

Key Climate Issues in Property Transactions

When buying, selling, or developing property, climate considerations are becoming a core part of due diligence. Clients should be aware of:

• Flood risk: Not just rivers and coasts, but also surface water flooding
• Energy efficiency: Minimum Energy Efficiency Standards (MEES) continue to tighten
• Searches and reports: Enhanced environmental and climate risk searches are increasingly recommended
• Insurance: Availability and affordability may vary significantly depending on location

Early identification of these issues can prevent delays and unexpected costs later in the transaction.

Planning and Development Pressures from Climate Change

Planning policy is evolving rapidly in response to climate targets. Developers in particular should consider:

• Restrictions on building in high-risk areas
• Sustainability and net-zero requirements
• Biodiversity net gain obligations
• Increasing expectations around climate resilience

These requirements can affect both project timelines and overall feasibility.

Lender and Investor Focus

Financial institutions are placing greater emphasis on climate risk:

• Lending decisions increasingly reflect environmental exposure
• Investors are favouring sustainable, energy-efficient assets
• Climate disclosures are becoming more detailed and expected

This means climate considerations are now central to funding and investment strategies.

Looking Ahead

As climate change continues to shape the property market, proactive legal advice is more important than ever. Whether you are acquiring, developing, financing, or managing property, understanding these risks—and opportunities—will be key to protecting long-term value.

To find out more, contact our Residential Real Estate Team.

What is the Renter’s Rights Act Information Sheet? 

The Government’s Information Sheet has now been published, see the prescribed guidance in the following link:

The Renters’ Rights Act Information Sheet 2026

The Information Sheet is designed to provide existing assured tenants with a clear explanation of how their rights and tenancy structures will change from 1 May 2026.

The Information Sheet sets out:

• The transition from fixed-term tenancies to the new periodic tenancy system.
• The end of Section 21 no‑fault evictions, and the protections replacing it.
• Updated rent increase rules, possession grounds, and the strengthened rights of tenants to challenge unfair practices.
• Routes for obtaining support or making complaint.

It is in a prescribed form and it must not be altered.

 

Who Must Receive the Renter’s Rights Act Information Sheet? 

It needs to be sent by private rented sector landlords to all assured and assured shorthold tenants, whose tenancies commenced or will commence prior to 1 May 2026.

It must be sent prior to 31 May 2026 and Government guidance is to serve it as soon as possible to avoid potential non-compliance and penalties being imposed.

It does not need to be given it to lodgers but a copy must be given to every tenant named on the tenancy agreement.

For HMOs or shared households, each tenant must receive the sheet individually unless they share a single written agreement.

If a landlord has a letting agent who manages the property on their behalf, the letting agent must also provide the Information Sheet to the tenant, even if the landlord has also provided it.

 

How Should the Renter’s Rights Act Information Sheet Be Provided? 

It must be provided to the tenants by either printing a hard copy, which is posted or given to the tenants by hand or by sending the PDF electronically as an attachment, for example, to an email or text message.

For those tenancies which have yet to be entered into but are due to commence before 1 May 2026, the Information Sheet should be provided at the point of completion of the new tenancy.

Any verbal tenancy agreements, need to be formalised in writing by a landlord and tenant.

 

What Happens If Landlords Fail to Comply to send the Renter’s Rights Act Information Sheet? 

If you fail to serve the Information Sheet, this is treated as a breach of the landlords’ statutory duties under the Renters’ Rights Act 2025 and the following penalties may ensue:

• Civil penalties starting at around £4,000, rising to £7,000;
• Continued non‑compliance beyond 28 days after a penalty may escalate to a criminal offence, with fines up to £40,000 or prosecution in serious cases.

 

New forms published for use post 1 May 2026

The Government has also published draft versions of a number of the forms to be used as amended by the Renters’ Rights Act 2025 after 1 May 2026.

They include the new Notice of Seeking Possession, the new statutory rent increase notice Form 4A etc and we would encourage all landlords to review the new forms so they are ready to start using the same after 1 May 2026 in relation to private rented sector stock.

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