Industry news

The government has published 2 key documents impacting infrastructure and development across the UK: the Modern Industry Strategy (with supporting Sector Plans currently covering Advanced Manufacturing, Clean Energy Industries and Digital and Technologies); and CP1344 UK Infrastructure: A 10 Year Strategy. The Modern Industrial Strategy is part of the government’s wider ‘Plan for Change’ and sets the economic and strategic vision. CP1344 lays physical and digital groundwork to support/help realise that vision, with specific focus on transport and logistics, energy networks, housing and planning, digital infrastructure, and environmental resilience.

The government published its June 2025 spending review. Key items affecting the Living sector (non-exhaustively) include:

• Confirmation of £39 billion for a new 10-year Affordable Homes Programme.
• Confirmation of £4.8 billion in financial transactions (FTs) from 2026-27 to 2029-30, to be managed by Homes England.
• Investment in infrastructure and land remediation to deliver new housing schemes in partnership with the private sector.
• Launch of a permanent, UK-wide Mortgage Guarantee Scheme in July to ensure the consistent availability of mortgages for buyers with small deposits.
• Providing £2.5 billion of low-interest loans over the spending review period for social housing providers to further boost their capacity to invest in new development.
• Over £1 billion of new investment between 2026-27 and 2029- 30 to accelerate the remediation of social housing, by giving social housing providers equal access to government funding as private building owners.

Awaab’s Law: Guidance for social landlords

Social landlords should be aware that Awaab’s Law will come into force in a phased approach from October 2025:

• From 27 October 2025 – Awaab’s Law will apply to damp and mould hazards that present a significant risk of harm and all emergencyhazards
• In 2026 – Requirements will be extended to also include significanthazards including: falls, structural collapse, excess cold/heat, fire, electrical and explosions, hygiene hazards
• In 2027 – Requirements will be extended to remaining in-scope hazards (The full list can be found in Schedule 1).

The government has published draft guidance for social landlords, which can be accessed here. Finalised guidance will be published before Awaab’s law comes into force.

Alongside Awaab’s law, the government has laid before Parliament new electrical safety regulations introducing mandatory electrical safety checks within the social rented sector, to increase safety standards and align with the private rented sector. The regulations are due to come into force on 1 May 2026 in relation to tenancies granted before 1 December 2025 under which the landlord is a registered provider of social housing, and otherwise on 1 November 2025.

To end the CMA’s probe into unlawful information exchange between them, the seven housebuilders under investigation have offered to: make a combined £100 million payment which will be split between affordable housing programmes across all 4 nations; work with the Home Builders Federation (HBF) and Homes for Scotland to develop industry-wide guidance on information sharing; and agree not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.

And as one investigation draws to a close… The CMA has launched a market study into the civil engineering sector. The CMA has said it will focus on how to improve the design, planning, and delivery of key road and railway infrastructure in the UK in support of the government’s growth mission and 10 year infrastructure strategy. It intends to conclude the review within 10 months. Walker Morris’ market-leading Competition team, working cross-sector with Real Estate, Construction and Infrastructure & Energy colleagues, has extensive experience of advising businesses on CMA market studies and investigations.

Six people have been arrested at an East Anglian housing development construction site in a police raid following concerns of modern slavery. It’s understood that the developer isn’t under investigation, but the sub-contractor who may have employed illegal workers could face a substantial fine.

Improving housing standards for renters

Two consultations reflect a desire to raise and equalise standards in the private residential rental market and the social residential rental market: the consultation as to whether the Decent Homes Standard should be applied to the private residential rental market; and the consultation as to whether the MEES regime should be applied to the social residential rental market in the same way as it already applies to the private market.

The Royal Institution of Chartered Surveyors (RICS) is consulting, until 30 September, on proposed, wide-ranging updates to the RICS Homes Survey Standard. Proposed changes in the consultation include: Updated information on legislation and regulatory practices; technology and AI; greater clarity on levels of surveying; optional valuation for all levels of surveying; guidance for ‘additional risk’ dwellings; additional services, from retrofit buildings to drone inspections.

Also in relation to homes standards, the Former Information Commissioner Richard Thomas has joined the board of the New Homes Ombudsman Service (NHOS). The NHOS is projecting a 300% increase in complaints this year due to increasing awareness of the Future Homes Standard and its remit to provide redress for homeowners facing issues with the quality of their new build homes.

RICS has published the second edition of its professional standard, Service charges in commercial property (often referred to as the service charge code). It introduces some updates and improvements, including specifying timescales for service charge budgets (not less than 1 month before the service charge year starts) and accounts (not more than 4 months after the service charge year ends) and emphasis that service charge disputes should be referred to Alternative Dispute Resolution in the first instance. The code will become effective on 25 December 2025.

Leasehold and freehold reform

A new consultation on Part 4 of the Leasehold and Freehold Reform Act 2024 (LFRA 2024) seeks views on further proposed reforms relating to leasehold charges and services, including: (1) the introduction of new standardised service charge documentation (encompassing annual reports and demand forms); (2) enhanced transparency for building insurance policies; and (3) rebalancing the litigation costs regime and removing barriers for leaseholders to challenge their landlord.

We reported previously that the government had published The English Devolution White Paper, proposing significant plans to make devolution/local decision-making the default setting across a range of policy areas. On 10 July 2025, the English Devolution and Community Empowerment Bill was introduced to Parliament. Unexpectedly, it also included proposed legislation banning upward only rent reviews. The proposed ban would apply to new and renewal leases, but not to the continuing enforceability of rent review provisions in existing leases, nor to leases granted under agreements for lease entered into before the ban becomes effective. The Bill doesn’t provide for contracting out of the ban on upward only reviews. It has provoked concern within the commercial real estate investment community. The Bill also supports the government’s devolution ambitions through granting enhanced mayoral powers to speed up housing and infrastructure delivery, and extends powers for communities to purchase assets of community value. We’ll monitor and report on key developments.

The Joint Contracts Tribunal (JCT) has released the Target Cost Contract 2024 on 25 June 2025. It is the final piece in the publication of the JCT 2024 Edition suites. This new contract family introduces a fresh approach by the JCT to cost management and collaboration. See our briefing for more information.

The Ministry for Housing, Communities and Local Government (MHCLG) has published its response to the December 2024 consultation on insurance fees and commissions charged by freeholders, other landlords, managing agents and brokers.

Cooper v Ludgate House Ltd is an important new case on rights to light. Such cases rarely come to trial, and this grappled both with the long-running technical debate on how light should be measured, and on questions of quantum. The case confirmed that the traditional ‘Waldram’ method (which involves assessing how much of a room, at desk height, can see at least 0.2% of the sky) remains appropriate – preferring it, in fact, over more precise, modern methods. The case is also helpful for developers because, despite finding infringement of rights to light, the court refused to order demolition for a number of reasons, including: futility of demolition (on the basis that it was likely that the developer would obtain a new planning permission and re-build); the difference in harm to the interests of the developer and the adjoining owner if an injunction was granted; public benefit in retaining the building; and the fact that other adjoining owners had accepted voluntary settlements, suggesting monetary payments were sufficient remedy. The court also confirmed that the appropriate measure was “negotiating”, or “Wrotham Park”, damages, rather than damages based on loss of value.

Industry commentator Glenigan has published its Construction Industry Forecast for 2025 and 2026.

Shawbrook has published its Developers’ Insights UK Commercial Property Outlook 2025. It shows that confidence is coming back to the UK commercial property market, and that developers see senior living developments as a key opportunity for future growth.

The HBF has published a new report, Mind the Gap, which paints a stark picture of the London housing market and highlights broader implications for the UK housing sector. To address these issues, the report calls for: government action to streamline planning and suspend the Building Safety Levy; targeted support for first-time buyers; flexible Section 106 mechanisms and use of Homes England grants; review of green belt land; and a reduction of affordable housing targets to 25%.

The UK government has announced a plan to deliver up to 40,000 new homes on surplus railway land over the next decade.

MHCLG has reported that the New Homes Accelerator has helped speed up the building of almost 100,000 homes in its first year, and that a further 6 sites have been added to the scheme.

The government has also introduced a new, permanent Mortgage Guarantee Scheme helping to support homebuyers with a deposit from 5%.

The Guardian (18 August 2025) reported that the Chancellor is considering replacing the stamp duty land tax with a new ‘proportional’ property tax for homes sold for more than £500,000. The Law Society Gazette (19 and 20 August) has commented that uncertainty and speculation over changes could mean inertia for the housing market pending the budget, and with the possible tax change leading to sellers wanting to complete quickly to avoid paying the new property tax, but buyers wanting to stall to avoid paying stamp duty. It’s one to watch.

The Scottish government is consulting on potential measures to simplify planning processes and encourage the provision of new homes in rural areas and town and city centres. The consultation, which is open until 27 October 2025, also includes options related to domestic air source heat pumps and heat network connections.

Proposed energy efficiency regulations

Also in Scotland, the Scottish government is consulting on draft Energy Efficiency (Domestic Private Rented Property) (Scotland) Regulations, which would require all private rented sector properties to meet a minimum Energy Performance Certificate Heat Retention Rating of band C. The regulations would apply to new tenancies from 2028 and to all privately rented homes by the end of 2033. The regulations are expected to be laid before the Scottish Parliament in early 2026 and come into force in 2028.

A parliamentary inquiry has been launched into faulty energy efficiency installations in the UK’s housing sector. The inquiry will investigate the effectiveness of government policies, consumer protection, and the challenges faced by the industry and homeowners in delivering energy efficiency improvements.

The government is consulting on the land remediation relief scheme (LRR). The consultation seeks to review the effectiveness of LRR, determine whether it is still meeting its objective of boosting development of brownfield land, and improve understanding of how robust the scheme is against potential abuse.

The Law Society Gazette has reported that a review of referral fees paid by conveyancing firms to estate agents is to be carried out after allegations of misconduct. A BBC Panorama investigation alleged that leading estate agents pressured salespeople to use firms with whom they had a business arrangement. A thematic review will begin in early 2026 and will look at referral arrangements and compliance with the Council for Licensing Conveyancers’ transparency rules.

Also in relation to conveyancing, the Law Commission has proposed reforms that would clarify the law governing chancel repairs and reduce conveyancing costs.

A new report, by thinktank Commonwealth, finds that Right To Buy depletes council housing stock more quickly than public housing can be replaced. The report calls on the government to introduce buy back schemes and expand refusal rights.

The HBF has published A Drain on the Nation, which says “almost 30,000 homes are currently blocked, including 7,000 Affordable Homes,” as planning authorities withhold permissions over perceived drainage capacity concerns. HBF is calling on the government to: reassert paragraph 201 of the NPPF and the supporting planning practice guidance to urgently remind local planning authorities that questions relating to wastewater should not intrude into development management decisions; remind local authorities that water companies operate under a statutory duty to meet the requirements of the land-use planning system and home builders pay them charges to ensure that they do so; and insist that water companies make provision for the government’s home building targets in Water Resource Management Plans and Wastewater Infrastructure Plans.

Homes England

The government has launched National Housing Bank, a subsidiary of Homes England. It will be publicly owned and backed with £16 bn of financial capacity, on top of £6 billion of existing finance to be allocated this Parliament. The aim is to accelerate housebuilding and leverage in £53 billion of additional private investment.

Homes England has chosen City of Wolverhampton Council as the first local authority in the country to pilot the delivery of a new Affordable Homes Programme. The scheme will see council housing developed on new sites, and replacement of existing homes of poor quality, non-traditional construction, or with poor thermal efficiency.

Planning

The HBF’s New Housing Pipeline Report Q2 2025 shows the number of residential units approved fell by 6% during the second quarter of 2025. At 48,022, the number of units approved was 23% down on the second quarter of 2024 and the lowest quarterly total since 2012.

In the recent Rights: Community: Action Ltd appeal ([2025] EWCA Civ 990), the Court of Appeal has dismissed a legal challenge to a ministerial statement restricting the ability of local authorities to set higher energy efficiency standards for new housing in their local plans than those set by national building regulations. However, the court also highlighted an unresolved “tension” between the ministerial statement and other national policy and legal principle allowing councils the autonomy to set their own efficiency standards.

R (Moakes) v Canterbury City Council and Mr Walters [2025] EWCA Civ 927 related to an application for major development in the Kent Downs National Landscape. The council refused to allow representatives of Natural England or CPRE Kent to speak at the committee meeting. The Court of Appeal held that whether prejudice arises from an inability to speak is a question of fact, and there’s no heightened standard of reasoning required where the decision-maker departs from views of statutory consultees.

In Protecting Our Park Ltd v Cheshire East Borough Council [2025] EWHC 1848 (Admin) the High Court considered the lawfulness of a decision to grant planning permission for a care scheme and compliance with a planning policy which provided that residential development would be supported that released funds to enable the delivery of a proposed life science park. As there was no evidence about whether the planning committee had considered how the funds obtained would be used, the decision was considered irrational.

Streamlining the infrastructure planning process

The government has launched a consultation, open until 27 October 2025, on streamlining the infrastructure planning process for Nationally Significant Infrastructure Projects. The consultation seeks views on new guidance following removal of statutory pre-application consultation requirements; the use of Initial Assessments of Principal Issues to focus examinations; guidance for public bodies about their role; legislative changes to examination of applications including compulsory acquisition; reforms and improvements to pre-application services; and the removal of statutory pre-application requirements for onshore wind projects.

The Court of Appeal, in the Boswell case, has dismissed a judicial review challenge to Net Zero Teesside. Development consent for the infrastructure project was granted in February 2024. The judicial review challenge has been described by the Court of Appeal as “… a classic example of the misuse of judicial review in order to continue a campaign against a development (and the policy in a NPS) once a party has lost the argument on the planning merits“.  The challenge was based on the emissions impact of the project. Of interest are the findings that the evaluation of the significance of an estimated amount of GHG emissions and its acceptability is a matter of fact and judgement for the decision-maker – there’s no legal principle requiring a public authority to contextualise emissions or compare them with a benchmark. The Court of Appeal confirmed “There is no legal or practical reason why national planning policy should not provide guidance on the question of the “significance” of environmental effects of one kind or another. And there is no reason in law why national planning policy in a NPS should not include guidance on the question of whether particular effects will be, or are likely to be, “significant” in the sphere of EIA.”

Following on from the Boswell case, pressure is mounting on the UK government to renegotiate or leave the Aarhus Convention. Under the Convention, campaigners who challenge projects on environmental grounds but then lose in court against housing and big infrastructure have their costs above £10,000 capped and the rest met by the taxpayer. (As well as the cost to the taxpayer, the Boswell case caused delays of months at a cost of over £100m to the developers.) One to watch.

In Crest Nicholson Operations Ltd v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2194 (Admin), the claimant argued that a water neutrality planning condition was unlawful on the grounds (1) the Inspector and Secretary of State erred by proceeding on the basis that groundwater abstraction might continue at a level that could harm the protected habitats through reliance on imperative reasons of overriding public interest; and (2) they also erred in their approach to uncertainty in the appropriate assessment, contending that what was required was certainty as to the end (being protection of the site), not the means by which this would be achieved. The High Court dismissed the claim on both grounds.

From 29 May 2025, drivers and businesses will no longer need to submit a planning application to install public or private electric vehicle charging sockets.

Biodiversity net gain, nature and climate impact

The Future Homes Hub has published its BNG Good Practice Guidance – a practical tool to support those delivering onsite BNG or developing internal best practice procedures.

The Planning Advisory Service (PAS) has published model templates to facilitate securing BNG delivery by planning condition (for non-phased development) and planning obligation (with separate templates for habitat banks, onsite BNG and offsite BNG). PAS has also published 3 template section 106 agreements: Habitat banks; Securing onsite BNG; and Securing offsite BNG, which should help speed up the application process.

Equal Experts are working with Defra and Natural England on digital aspects relating to the Nature Restoration Fund (NRF). They’re conducting research into developer experiences with the current planning application process, to understand how the NRF can best operate within it. Anyone involved in land purchase and/or obtaining planning permission is invited to help shape the customer-facing aspects of the service via a max-1 hour discussion over Teams with Paul Blake of Equal Experts. (All information is wholly anonymised.) Anyone interested can consent via this form, then Paul will be in touch to arrange a time.

Defra has published guidance for designers, developers, local authorities and other interested parties (such as sewerage undertakers and the Environment Agency) on national standards for sustainable drainage systems. The non-statutory standards are intended to facilitate consistency, performance and resilience in surface water drainage for new infrastructure and development, whether on greenfield or brownfield sites.

On 19 August 2025, Defra announced planning reforms to accelerate infrastructure delivery and homebuilding while safeguarding the environment. The measures, backed by £500 million, include: The Lower Thames Crossing to be the first major infrastructure project to have one lead environmental body to “end the merry-go-round of developers dealing with multiple, overlapping authorities”; the new Defra Group Infrastructure Board to help accelerate the planning process for at least 50 major infrastructure projects, including Hinkley Point C nuclear power station, East West Rail and Heathrow Airport’s expansion; and The Nature Restoration Fund and Marine Recovery Fund, which are intended to enable infrastructure developers to meet environmental obligations faster by pooling contributions and making strategic interventions.

Water sector reform

In the biggest shake-up of the water sector since privatisation, the UK government has confirmed that Ofwat will be abolished. Its functions will be merged with water functions across the Environment Agency, Natural England and the Drinking Water Inspectorate to form a new single, powerful regulator.

We reported earlier in 2025 that Lewes District Council had agreed to recognise the legal rights of Sussex’s River Ouse, in a charter to protect the river’s fundamental right to “exist, thrive, and evolve”. The move was intended to promote action to restore the river’s and the surrounding catchment’s ecological and chemical health. Basingstoke and Dean Borough Council, Test Valley Borough Council and Southampton City Council have now similarly formally recognised rivers within their authorities. This is clearly a growing trend across the UK (and internationally – rivers and natural habitats in several other countries have also been granted legal rights/legal personhood). Granting rights to rivers and other natural resources could have significant implications for businesses operating near or impacting them. For example, companies discharging into or abstracting from these rivers/areas may face heightened scrutiny, and developers may face more rigorous environmental assessments and/or planning requirements, which could affect timelines, costs and viability.

The UK government has published the Net Zero Technology Outlook, which offers independent analysis of the technologies the UK must prioritise by 2050 to deliver on its net zero commitments. The report covers 18 sub-sectors within five major emitting sectors: industry; transport; heat and buildings; agriculture, land use and waste; and power.

Building Safety updates

The government has announced reforms to the Building Safety Regulator (BSR) to address concerns about delays to building new high-rise homes. Measures include a new fast track process to enhance the review of newbuild applications and moving the BSR from within the Health and Safety Executive to an arm’s length body of the MHCLG (the latter paving the way for a single construction regulator).

In related news, the Regulator of Social Housing (RSH) has published a memorandum of understanding setting out the functions of it and the Health and Safety Executive (HSE) in its function as the BSR. The memo is a statement of intent as to the framework of communication, cooperation and exchange of information between the parties. Under the memo, the RSH will give the BSR advance notice of its regulatory judgements where building safety concerns are identified for social housing providers with buildings at least 18 metres (seven storeys) high.

The government has published the draft Building Safety Levy (England) Regulations) that will be needed to bring the Building Safety Levy into effect. If approved, they will introduce the Building Safety Levy from 1 October 2026.

MHCLG has published its updated Remediation Acceleration Plan. It includes plans to bringing forward a new Remediation Bill requiring landlords of buildings 18m or more in height with unsafe cladding to complete remediation by the end of 2029. The Bill also sets a 2031 cladding remediation deadline for owners of buildings 11-18m in height.

Those failing to comply without a reasonable excuse could face unlimited fines or imprisonment. The legislation will also give named bodies, such as Homes England and local authorities, new powers to remediate buildings with unsafe cladding if the landlord fails to do so.

In URS Corporation Ltd v BDW Trading Ltd the Supreme Court has dismissed an appeal regarding the scope of the contractor duties for the developer’s alleged losses. The case and its significance were discussed in our earlier briefing, following the Court of Appeal’s decision in 2023 – see here The Supreme Court has now concluded:

• The developer’s repair costs were not outside the scope of the contractor’s duty of care
• Section 135 of the Building Safety Act allows claims for repair costs in negligence or contribution, even if a related Defective Premises Act (DPA) claim was time-barred. However, it doesn’t affect whether the repair work was reasonable, which must still be assessed at trial.
• The duty under section 1(1) of the DPA is owed to any person, including a developer, for whom a dwelling is being built “to order”. That person will ordinarily be its first owner. It was rejected that those who owe duties and those to whom duties are owed must be mutually exclusive. A developer can be both.
• Developers aren’t prevented from bringing a claim for contribution against a contractor by the fact that there has been no judgment against the developer or settlement between the developer and any third party and no third party has ever asserted any claim against the developer. The right to contribution arises when the damage has occurred and the party seeking contribution has already paid, agreed to pay, or been ordered to pay compensation.

A recent case, The Central, 163–165 Iverson Road, has raised complex questions about the scope of insurance liability where leaseholders no longer have to contribute to costs under Schedule 8 of the Building Safety Act 2022. The decision seemingly opens the door for insurers to avoid or paying out in certain cladding remediation claims. That, in turn, may prompt insurers to direct resources, instead, to pursuing landlords and freeholders. Arguments and claims are likely to abound while the law in this area remains undeveloped. Definitely one to watch.

The BSR and Construction Leadership Council have published guidance on the Approval with Requirements route for building control applications for higher-risk buildings. It explains how developers can submit partial designs at gateway two if they can still prove their buildings will comply with Building Regulations.

The Welsh government has introduced the new Building Safety (Wales) Bill and its Explanatory Memorandum, as well as its response to the Phase 2 recommendations of the Grenfell Tower Inquiry. 

Homes England has published guidance, for leaseholders, residents and resident-led organisations, on reporting unsafe cladding. It may prompt further complaints or claims against landlords and developers.

Retirement and Care Living Sector

Do you operate in the retirement/care living sector? If so, this industry outlook may be of interest.

The government has published its 10 year healthcare plan for England, Fit for the Future. It’s key areas of focus are increasing neighbourhood care, making the NHS digitally accessible, and preventative care.

Colliers has published its Healthcare Market Snapshot for Q1 2025.

Shawbrook’s latest Developers’ Insights UK Commercial Property Outlook 2025 shows that developers see senior living as a key investment opportunity for future growth. In related news, both Cushman & Wakefield and Savills have reported that US investors are dominating the UK care homes market, with the sector receiving some of the greatest capital inflows from among core markets.

LaingBuisson has reported that a decline in fostering is prompting growth in the value of the children’s residential and foster care independent sector market.

Churchill Living has reportedly become the first retirement property provider to abolish exit fees for residents selling their apartments, removing a financial burden for residents and potential barrier to reselling retirement properties.

The government has released a roadmap for the implementation of the raft of new employment rights to be introduced through the Employment Rights Bill. We’ve summarised the key changes here.

The government has announced major restrictions to the sponsorship of migrant workers (notably on the Skilled Worker route), taking effect from 22 July 2025. Key changes (non-exhaustively) include:

• Other than in limited circumstances, only roles which are classified as being skilled to degree level or above (RQF Level 6) will be capable of being sponsored from this date; and
• General minimum salary thresholds will increase, as well as ‘going rate’ salaries applicable to individual occupation codes, for all applications (meaning individuals already sponsored will need to meet the increased salary thresholds for extension applications).

See our briefing for further information and recommended urgent advice.

The Employment Rights Bill will have implications for the later living sector, as a result of staffing models typically used. Flexible employment arrangements are likely to be particularly impacted. Key changes include:

• stricter regulation of zero-hour contracts, including offering those on zero hours contracts guaranteed hours based on their average hours, and providing zero hours/irregular workers with reasonable notice of shifts and changes of shifts, including cancellation (similar provisions will also apply to agency workers)
• flexible working changes, including requiring any refusal to flexible working requests to be “reasonable”
• “day one” unfair dismissal rights, which will make robust probationary period provisions and disciplinary and dismissal procedures vital
• family leave and statutory sick pay becoming “day one rights”
• greater trade union rights.

Retirement living/care providers will need to re-evaluate their policies and procedures and should consider the implications the changes may have on agency worker relationships versus more permanent staffing models. See our briefings for further insight, and contact us for tailored advice.

MPs have approved a bill which would pave the way for huge social change by giving terminally ill adults in England and Wales the right to end their own lives. Care England has set out the current status and key provisions of the Bill and stressed that the care sector urgently requires a clear road map for implementation. If the Bill is passed, all care and later living providers will have to fully consider all possible impacts on their policies, practices, residents, and staff.