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.

Sale of new flats on commonhold

The Government’s initial focus is a ban on the sale of new flats using the traditional leasehold structure. They are instead proposing that new flats are sold on a commonhold structure.  The Government will then introduce the Draft Leasehold and Commonhold Bill to Parliament during the second part of 2025.

The Government plans to adopt the Law Commission’s recommendation to enable developers to create sections within developments to enable those with different interests to vote on the issues that involve them but not on those that do not. For example, in a mixed-use estate, a floor of retail units that does not use the same facilities as the flats above could be a separate section from the flats. The Bill will contain rules about when sections can be created, combined or dissolved, but the expectation is that this will form part of the planning and construction phase. There will also be flexibility to allow the contributions from different sections to vary depending on the particular heads of costs.

Conversion of existing leasehold flats to commonhold

The Government also want to encourage the conversion of existing leasehold flats to the commonhold structure and to make commonhold the predominant form of home ownership in England and Wales.  Accordingly, the White Paper extends to their plans to amend existing commonhold procedure, which will also form part of the Draft Leasehold and Commonhold Bill.

It has been possible for residential units to be let on a commonhold basis since 2004, but uptake has been extremely low. Currently, conversion to commonhold requires the consent of the freeholder, all leaseholders and all those lending institutions with a charge over the freehold or any of the leasehold properties to create a commohold structure. The Government wants to implement the Law Commission’s recommendation that at least 50% consent is required for conversion in the future. This doesn’t completely remove all obstacles since the consent of the freeholder will still be required.  One option is therefore for a group of leaseholders to acquire the freehold first by way of collective enfranchisement and then convert to commonhold. 

The Government is keen to promote commonhold and increase awareness and understanding of how the proposed structure currently operates and could be improved via amendments to the existing legislation. Landlords, developers and those involved with residential and mixed-use properties will want to familiarise themselves with the commonhold process and education is key to the Government’s plans.

The Law Commission proposed that financial incentives may be needed for developers to offer new flats on commonhold. No such financial incentives are proposed by the Government, who intend to make it a mandatory requirement for new flats to be created in commonhold structure.  The Government’s message is that developers should start considering the implications of a move to commonhold for new flats now, together with the consultation due later in the year.

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 Shen using the details below. 

The key changes are as follows:

Abolish fixed term tenancies

The Bill will abolish fixed term Assured Shorthold Tenancies (“ASTs”) and so called “no-fault” evictions. Landlords will be prevented from serving Section 21 Notices giving at least 2 months’ notice to a tenant to vacate the premises. Instead, all tenants will become assured periodic tenants occupying the property on a month-by-month basis. A tenant will be able to give 2 months’ notice to a landlord if they want to leave the premises. Landlords, however, will need to prove a statutory ground in order to obtain possession. The Government has sought to strengthen those grounds of possession. The most commonly relied upon mandatory ground for possession is a specified amount of rent arrears, which, under the Bill will require a higher threshold of arrears to be established than under the current law. The new proposed ground 8 will require there to be at least 3 months’ rent arears both at the date of service of the Section 8 Notice and the date of the hearing. Under the current law, there must be at least 2 months’ rent arrears to rely on ground 8. This means that clients will need to factor in higher arrears before seeking possession.

Increasing rent

As the new style assured periodic tenancies will have no “end date”, landlords will need to rely on the statutory process for increasing rent. This requires landlords to serve a statutory notice of increase of rent giving at least 2 months’ notice of the increase. Tenants will be able to challenge rent increases in the First-Tier Tribunal (Property) Chamber (“FTT”). Once the Tribunal has determined the open market rent for the property, this will be payable from the later date of determination rather than the date of the notice of increase. Rental increases will be restricted to one per year. A notice of increase of rent can only be served after one year has elapsed since the date of determination by the Tribunal, or date when the last rent increase took effect. In addition, there is a general right to challenge the rent in the first 6 months of the tenancy. The new rent will be assessed on the basis of the open market rent for the property. The Government have confirmed during the passage of the Bill that it is opposed to the implementation of any rent controls under the legislation.

Requests to keep pets

There is a term implied into all assured tenancies, that a tenant has the right to request consent to keep a pet at the property and the landlord cannot unreasonably refuse consent. A landlord must respond to a request within 28 days and where consent is granted, the landlord can require the tenant to take out additional insurance as a result of having a pet in the property or reimburse the costs incurred by the landlord of doing so. Obtaining pet insurance will be permitted under the Tenant Fees Act 2019, by an amendment under the Bill. There may be wider restrictions in leasehold properties, under the head lease or new build developers of leasehold properties may limit pets to particular floors or buildings.

Property database

Underpinning the Bill is a new property database which will require landlords to have an active listing. Much of the detail about how the database will operate and what information will be required to achieve an active listing will be contained in secondary legislation, which is not currently available. Additional administrative costs should be factored into a clients’ business model in registering and updating their listings on the property database.

County Court capacity

There are no provisions in the Bill to deal with the potential increase in possession claims in the County Court or challenges to rent in the FTT. Landlords can currently use an accelerated possession procedure where a Judge will usually make a possession order without a Court hearing. As landlords will be required to prove a ground for possession, the majority of possession claims, once the Bill becomes law, will require at least one Court hearing. The Government have provided assurances that there is sufficient capacity in the court system to deal and the possession process will ultimately be digitised to ensure that this does not become longer than the current system.

Restrictions on rent in advance

The Government has restricted the ability for a landlord to request rent to be paid in advance. This is currently a useful option where a tenant does not meet affordability criteria or is in full time education. It provides a low-risk option for landlords to proceed with tenants who may not otherwise be in a position to enter into a tenancy. As a result, there is likely to be an increase in the use of guarantors to guarantee the obligations of a tenant under an assured periodic tenancy. However, guarantors liability is effectively “open ended” which means they could be on the hook for an unspecified period of time.

Transitional provisions

The Government will implement the Bill on a commencement date (to be announced). As from that date all existing ASTs will be converted to assured periodic tenancies. Where a Section 21 Notice has been served and possession proceedings sent to the Court immediately before the commencement date, the Section 21 Notice will remain valid until those possession proceedings are concluded. If a Section 21 Notice has been served before the commencement date but the landlord has not yet sent possession proceedings to the Court (whether or not because the Section 21 Notice has not yet expired), the landlord will not be able to start possession proceedings until either 6 months after the service of the Section 21 Notice or 3 months beginning with the commencement date, if the 3 month period ends before the 6 month period. So, the longstop date for possession proceedings would be 3 months from the commencement date. The Bill contains identical provisions for Section 8 Notices relying on a ground of possession served before the commencement date except that technically speaking a Section 8 Notice remains valid for 12 months from the date of service (not 6 months as for Section 21 Notices).

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.

This brings into force Section 27 of the Leasehold and Freehold Reform Act 2024 (“LAFRA 2024”). This means that it is no longer necessary for:

• the tenant of a leasehold house looking to purchase the freehold or extend their lease under the Leasehold Reform Act 1967 (“LRA 1967”) to have owned their house for the last two years; or
• the tenant of a leasehold flat seeking to extend their lease under the Leasehold Reform, Housing and Urban Development Act 1993 (“LRHUDA 1993”) to have owned their flat for two years before making a claim.

Section 27 also abolishes some ancillary provisions regarding the service of notices by personal representatives where the tenant has died.  The previous situation was that a personal representative could serve a notice of claim in the deceased tenant’s name within the first two years of the tenant’s death and then in their own name after two years.  Under LAFRA 2024, personal representatives remain able to make claims in the deceased tenant’s name, provided the tenant is registered at the Land Registry as the owner of the property.

Some minor amendments are also made to the prescribed form notices of claim to acquire the freehold or an extended lease of a house under the LRA 1967.

The Regulations only bring into force Section 27 of LAFRA 2024. So, whilst the qualifying criteria is removed, all other mechanics of lease extensions and freehold purchases of houses and flats and acquisition of the right to manage remain the same.

Other provisions of LAFRA 2024 concerning valuation, increasing the qualifying threshold for right to manage and enfranchisement to 50% non-residential parts, the ban on the creation of new leasehold houses and increasing regulation of service charges and estate management charges have not been brought into force and there is no fixed date set by the Government to implement the remainder of LAFRA 2024. This may depend on the outcome of judicial review proceedings being brought against the Government by various landlords in respect of some of the provisions of LAFRA 2024.

These Regulations are the start of a series of changes intended to be brought into force by the Government which will radically alter the leasehold landscape.

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.

These include the Proceeds of Crime Act 2002, the Criminal Finances Act 2017, the Terrorism Act 2000. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (“5th MLD”) and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR 2017”). The primary money laundering offences apply to everyone, and you commit an offence if you know or suspect that the property is criminal property.

Real estate transactions are seen by the UK Government and crime agencies as posing a particularly significant money laundering threat. As such the MLR 2017 require estate agents to understand and verify exactly who their customers are and have evidence that they have completed KYC checks. Should an estate agent become suspicious of a prospective customer or existing customer’s activities engaging in money laundering or terrorist financing activity, it must report this to the National Crime Agency. You need to take your anti-money laundering responsibilities very seriously, as if you do not complete KYC checks you would undermine your corporate responsibilities and also place yourselves at risk of prosecution.

Estate agents in the UK are required to comply with, amongst other things, legal and regulatory obligations including those defined under the MLR 2017 and obligations imposed by the Royal Institute of Chartered Surveyors (“RICS”). These place various key requirements upon estate agents, with one being to undertake KYC checks to verify the identities of their customers. For corporate customers these checks will need to be extended to enable you to identify the Ultimate Beneficial Owner and/or those who have ultimate executive control.

The client will need to provide you with documentation confirming identity and primary current residential address. Where they wish to sell their property Land Registry checks should be made to verify the client is the legal owner of that interest and has the right to sell. Where a client wishes to buy a property from one of your clients, or where the client wants advice on a particular purchase, you will also need information clarifying the origin of the funds being used to complete the transaction and a summary of your source of wealth.

You cannot place reliance on kyc carried out by external professionals.  You are ultimately responsible by law for ensuring that the KYC checks have been undertaken properly and comprehensively, you should undertake your own KYC checks.

The information must be used for the sole purpose of completing your KYC checks in order to meet legal obligations.  It must be held confidentially and should not be shared with any third parties unless required to, in order to comply with a regulator or law enforcement authorities.

Estate agents are regulated by HM Revenue & Customs (“HMRC”) to meet requirements of MLR 2017.

If a client fails to provide the necessary information, then you should not act on a client’s behalf.

You are legally required to periodically re-confirm the KYC information you hold about your clients if you remain in an on-going business relationship with them. The period of time that elapses between subsequent KYC approvals is dependent on a number of perceived risk criteria.  We obtain updated ID from our clients every two years.

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.

What is Commonhold?

Commonhold is a different way of owning flats that was introduced in 2004. Instead of buying a flat on a lease that eventually runs out, you own your flat outright, forever! You also automatically become part of a group (called a commonhold association) that looks after shared parts of the building, like the hallways, roof, or garden.

In theory, it gives flat owners more control and avoids some of the common problems with leasehold – like paying expensive ground rent or dealing with difficult freeholders. But despite the idea being around for 20 years, fewer than 20 buildings have actually switched to this system.

Why Haven’t More People Used It?

There are a few reasons:

• It’s complicated, people often find the rules and legal aspects hard to understand.
• Developers and freeholders don’t benefit under commonhold, they can’t make money from things like ground rent or service charges, so they don’t push for it.
• Lenders are cautious, banks aren’t used to lending on commonhold properties, so getting a mortgage could be trickier.

What’s Changing?

The government is now looking to make commonhold the standard way to own a flat, instead of leasehold. This comes after a big report from the Law Commission in 2020, which said the current leasehold system is outdated and often unfair.

A new law, the Leasehold and Commonhold Reform Bill, is expected in late 2025. Ahead of that, a White Paper (a kind of policy plan) has set out some big ideas:

Key Proposals

• Commonhold as the default: In future, most new flats would be sold as commonhold, not leasehold.
• Ban on new leasehold flats: Developers wouldn’t be allowed to build new flats under leasehold, except in special cases.
• More say for flat owners: People living in the building would have more control over matters like maintenance and budgeting.
• Easier to switch: It would become simpler for existing leasehold blocks to convert to commonhold.

What Could Get in the Way?

There are still a few bumps in the road:

• Banks might worry about lending for commonhold homes, since it’s unfamiliar territory.
• Developers might resist if they see it as less profitable.
• Legal details need fixing, especially when it comes to buildings that mix homes with shops or offices.

Why Does This Matter?

For a lot of flat owners leasehold has long been a source of stress and frustration. Commonhold could offer a fairer and more transparent alternative, where you truly own your home and have a say in how your building is run.

That said, the change won’t happen overnight. It will take time, but it could be the fresh start many homeowners have been waiting for.

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 Shen using the details below. 

The White Paper has proposed the ban 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. However, 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.

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.

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 Road Ahead

The White Paper lays the foundation for substantial reforms in commonhold law. While many of the proposals are promising, the success of these changes will depend on the details of the forthcoming draft Leasehold and Commonhold Reform Bill, expected later this year.

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.

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. 

 

The housing market activity in January was approximately 13% higher than the same period last year. This builds on the momentum from late 2024, where mortgage approvals returned to pre-pandemic levels, according to the Bank of England. 

In addition, the Bank of England have rewarded us with a further interest rate drop to 4.5%.  the prediction is that the Bank of England is likely to proceed with rate reductions in 2025.

House Prices Maintain Stability

House prices tend to fluctuate due to various economic factors, but consistent demand and a recovering mortgage market have helped with house price growth in January.

Further interest rate cuts will improve affordability for buyers and increase demand in the housing market. Additionally, discussions around mortgage regulation relaxation could further enhance buyer confidence and accessibility.

Luxury Property Market Continues to Thrive

The high-end property market continues to show strength, with activity in the £1m+ market up by 10% compared to last year.

The prime market over £5m in London also saw a notable increase in activity towards the end of 2024, reflecting renewed confidence despite tax changes following the Budget at the end of October 2024.

Trends in the Rental Market

In the rental sector, the Renters’ Rights Bill has made further progress in Parliament. A more balanced rental market, creating more sustainable opportunities for both tenants and landlords, is emerging.

How Can We Help?

With these promising trends shaping the 2025 housing market, now is an opportune time to navigate your property journey with confidence. Our team of residential real estate specialists is here to guide you through every step, whether you are buying, selling, or investing. Get in touch to see how we can assist you in making the most of this positive market landscape.

If you have questions or concerns contact us using the details below.