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Comment & Opinion

Living Horizon Scanner: March 2026

“This edition of our regular scanner for the living sector shows a clear direction of travel: moves to streamline planning, tech innovation shaping construction, and far-reaching reform across leasehold, renters’ rights, employment, and building/construction safety. At the same time, environmental pressures such as BNG, PFAS contamination, water stress and climate related risk are generating new compliance challenges, accountability and exposure. Proactive preparation will be key, and we’re here to keep you on top of essential legal and sector developments.”

- Charlotte Spowage, Director, Real Estate

Industry news

The Planning and Infrastructure Act 2025 entered into law on 18 December 2025. The government has said the Act “will remove blockages and delays in the planning system, accelerating the construction of tens of thousands of new homes across every region. In addition, it will get dozens of new roads, railway lines, wind farms, and key critical infrastructure built quicker – all while securing a win-win for the environment and the economy.” Government guidance giving an overview of the Act can be found here. The overarching objectives are:

  • Delivering a faster and more certain consenting process for critical infrastructure, including through streamlining NSIP consultation requirements, ensuring National Policy Statements are kept up to date, and reducing opportunities for judicial review
  • Introducing a more strategic approach to nature recovery, including via the Nature Restoration Fund
  • Improving certainty and decision-making in the planning system, including through ensuring planning committees play their proper role in scrutinising development without obstructing it, and maximising the use of experienced professional planners
  • Unlocking land and securing public value for large scale investment
  • Implementing strategic planning at a sub-regional level through the production of Spatial Development Strategies to address development and infrastructure needs.

The government is consulting on proposed updates to the National Planning Policy Framework. The proposed changes will amount to the most significant update to the NPPF since its introduction in 2012. These include:

  • Introduction of a permanent presumption in favour of suitably located development, along with preferential treatment for developments which support local economies
  • Support for higher density developments in sustainable locations
  • Support for development of small and medium sites, including a new medium site category (10-49 homes)
  • Implementation of a default “yes” to building homes around train stations
  • Improvement of the diverse mix of housing, including rural affordable homes and accessible homes for older and disabled people
  • Streamlining Biodiversity Net Gain (BNG) requirements and encouraging nature-friendly new-builds
  • Clarification in relation to Grey Belt development

Leasehold, commonhold and residential property reform

Changes are being proposed under the English Devolution and Community Empowerment Bill which will reshape the Asset of Community Value regime. See our recent briefing for information and advice.

On 27 January, the UK government published the draft Commonhold and Leasehold Reform Bill intended to modernise residential property tenure, and transition away from the leasehold system for flats. Key provisions (non-exhaustively) include: capping and phasing out ground rents; abolishing forfeiture for small breaches such as unpaid ground rents or service charges; a ban on new leasehold flats; making commonhold the default tenure; and supporting leaseholder rights. The government is consulting until 24 April 2026.

The New Homes Quality Board released its first update to the New Homes Quality Code on 2 March 2026. See our recent article for advice on what the changes mean for you, and how you can prepare.

“With stricter rules on marketing, pricing, inspections and aftercare, the latest New Homes Quality Code update places greater responsibility on how you inform and support customers. You’ll need to update your processes, train your teams and ensure consistent compliance across every stage of the sales journey to meet the new requirements.”

imon Ingham black&white SMALL for TENDER digital version

Simon Ingham, Partner, Commercial Dispute Resolution

Phase 2 of the UK Government’s New Homes Accelerator expands the programme to smaller sites (under 500 homes) to speed up construction, adding 7 new sites and over 11,400 homes

Artificial intelligence in the built environment

As uptake of AI accelerates, project workflows are being augmented or replaced by more dynamic, tech‑driven approaches. AI isn’t just speeding up design and site monitoring; it’s beginning to run aspects of projects itself — predicting output, balancing demand, scheduling maintenance and improving quality control. In this article, we look at how you can capitalise on the efficiencies and competitive advantages AI can offer, whilst managing legal and operational risk.

“As artificial intelligence reshapes the way construction, infrastructure and energy projects are conceived, delivered and managed, its transformative potential is becoming impossible to ignore. If you’re a stakeholder in this area, now is the time to understand how AI could be harnessed to supercharge your projects, while taking steps to stay ahead of the legal and operational challenges it could bring to your business.”

Ryan Doodson, Director, Commercial

The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 have been published. They introduce a new transparency/disclosure regime for contractual control agreements over land in England and Wales. They require disclosure of certain information about contractual control rights to HM Land Registry and publicly via a new database. The Regulations will come into force on 6 April 2027, but disclosure obligations will also apply to relevant agreements entered into between the date the Regulations are made (expected in the first half of 2026) and commencement.

Findings from a Freedom of Information survey by the Home Builders Federation show that local authorities in England and Wales are sitting on more than £9 billion of developer contributions intended to fund essential local infrastructure such as schools, public transport and affordable housing.

The government has published a roadmap signalling intended improvements to how section 106 agreements deliver affordable housing in England.

Homes England has published its strategic plan 2025 – 2030.

Housing strategy, standards and sustainability

RICS has published the fourth edition of its global professional standard on environmental, social and governance (ESG) and sustainability in commercial property valuation. The updated standard, which takes effect from 30 April 2026, sets out how ESG factors should be reflected in valuation advice and responds to regulatory, market and professional developments since the previous edition.

RICS has also published its first global professional standard on the responsible use of artificial intelligence in surveying practice, imposing mandatory requirements on RICS members and regulated firms. The standard is effective from 9 March 2026.

A reminder that the Renters Rights Act 2025 has received Royal Assent. It will be brought into force gradually, but the new tenancy regime will be introduced on 1 May 2026. All existing assured shorthold tenancies will automatically convert to assured periodic tenancies with no fixed term, giving tenants security of tenure. The Ministry of Housing, Communities and Local Government (MHCLG) has published draft regulations setting out the new written statement of terms that will be required under the Renters’ Rights Act 2025 (RRA 2025). From 1 May 2026, landlords in the private rented sector will be required to provide tenants with written information about the key terms of their periodic assured tenancy before the tenancy is entered into. This information may be included within the tenancy agreement itself or provided in a separate document.

The government has taken the next steps towards fundamentally reforming parts of the residential and mixed use housing market. The draft Commonhold and Leasehold Reform Bill provides for the introduction of an updated form of commonhold ownership; the prohibition of traditional leasehold ownership on most types of new build residential flat; the imposition of a cap of £250 on any existing ground rents and the eventual reduction (after 40 years) of that cap to nil; and the removal of forfeiture as a remedy for non-payment of sums due under residential lease. The consultation also seeks views on the transition to commonhold in existing ownership structures. The consultation closes on 24 April 2026.

The Freehold and Leasehold Reform Act 2024 is not yet in force, for the most part. With policy and implementation still in flux, the government is currently considering consultation responses on enhanced protections for homeowners on freehold estates.

“The Supreme Court’s judgment in Providence v Hexagon clarifies interpretation of termination Clause 8.9.4 of the JCT Design and Build contract. It limits the ability to terminate for repeated default where an earlier default has been cured, reversing the position that had arisen in light of the Court of Appeal’s earlier decision in this litigation. The decision will be welcomed throughout the industry for its certainty and guidance. See our recent article.”

Carly Thorpe, Partner, Construction & Engineering

The recent case of Maxine Reid-Roberts and Brian Burkee v Hsiao Mei-Lin and Audun Mar Gudmundsson suggests that an exchange of WhatsApp messages could satisfy the requirements of the Law of Property Act 1925 so as to transfer an interest in land. The case envisages that land could be transferred via WhatsApp, provided that, in the relevant exchange of messages, each sender confirms the requisite ‘authenticating intent‘ by signing off the relevant messages with their name. It’s the latest iteration of the trend towards increasing informality and electronic execution in contracting and legal documentation.

The Home Builders Federation and Homes for Scotland have published guidance on complying with competition law.

Even though the competition law investigation into housebuilders was closed last year, Consumer Voice has announced an opt-out damages claim will be filed imminently against several housebuilders.

“Our specialist Competition and Dispute Resolution teams have considerable experience advising on competition law cases in the Competition Appeal Tribunal. In early 2025, they concluded settlements with all outstanding defendants on behalf of Arla Foods group in its multi-million-pound follow-on damages claim against members of the EU trucks cartel. Later in the year, they represented the Weis Group in a competition law challenge against Greater Manchester Combined Authority. They have also recently acted for clients in a confidential case concerning the settlement of damages for infringements of competition laws following a cartel finding by the European Commission.”

Sarah Ward, Partner, Competition

The Employment Rights Bill will make sweeping changes to UK employment law. Keep updated on the proposals, what they mean for employers, and how to prepare for the changes, with our tracker.

The government has published its New Towns Draft Programme and is consulting, until 19 May, on its operation and on a related Strategic Environmental Assessment (SEA) report which focuses on local environmental constraints and cumulative effects of new towns development. Following this consultation and completion of the SEA and Habitats Regulation Assessments, the government intends to publish final proposals and confirm the New Town programme locations later in summer 2026.

On 6 February 2026, the Department for Business and Trade launched a consultation, open until 1 May 2026, on the agency work regulatory framework. The consultation considers how regulation of the temporary labour market should address umbrella company activity and on broader, modernising changes. It addresses various areas, including: payment and provision of information about agency workers; transparency on pay, contracts and employment rights; and current working practices and administration. It’s anticipated that further consultation on more detailed proposals to streamline and simplify the regulatory framework may follow.

The government has published its policy statement on the new Decent Homes Standard. It creates a single, modern quality benchmark for both the social and private rented sectors. Further detail will be published ‘in due course’ and legislation to bring the new standard into force is promised by 2035.

Energy efficiency and sustainable transport

The government’s response to The Future Homes and Buildings Standards consultation has been published.

The government has published its Warm Homes Plan. It confirms that the Future Homes and Buildings Standards will continue to drive activity in the new build sector. It also places significant emphasis on heat network ambitions, anticipating that heat network products in the new build and communal network markets will become increasingly standardised.

The Plan also sets out the government’s approach to cutting energy bills and upgrading energy efficiency within the living sector. It confirms the MEES regime will change so that the minimum EPC rating for rental homes will be level C from 2030, and the amount landlords have to spend on any required upgrades will be increased to £10,000. This is particularly likely to impact schemes including older buildings.

The Department for Transport has announced a grant towards the cost of installing EV chargers for households and businesses. Key points include: renters, landlords and businesses will be able to claim up to half the cost of installing an electric charger – saving them up to £500 as grants extended for a further final year; and simplifying updates to the grant offering system, making it easier for people and businesses to access.

Planning

The government is consulting, until 4 May 2026, on proposals that require Local Planning Authorities to consult the Secretary of State on some planning decisions.

The government is consulting, until 18 May 2026, on new national default planning fees, a surcharge on planning fees for statutory consultees, and on a review of the future role of discretionary services such as Planning Performance Agreements and pre-application advice in light of proposed fee increases and the introduction of the local variation model.

The government is consulting on proposed changes to the planning system. Key proposals are noted above. The government has indicated that a new version of the National Planning Policy Framework (NPPF) will be implemented by summer 2026.

On 8 January 2026, Scottish Ministers published the fourth delivery programme supporting the implementation of National Planning Framework 4 (NPF4).

The Planning Inspectorate has completed the national rollout of its new digital appeals service, enabling all local planning authorities to manage planning appeals online.

The government has announced £8 million in development management funding to help local planning authorities with high economic growth potential. Funding will be allocated on the basis of Glenigan data for residential development, to LPAs with over 1,000 residential units pending a decision, spread across a minimum of 10 applications for major development submitted between 1 April 2022 and 31 March 2025.

In a recent planning appeal (Longwood Lane, Walsall), substantial housing shortfall justified significant harm to biodiversity. Outline planning permission (with all matters reserved except access) had been refused for up to 115 dwellings in the green belt. The site was a site of local importance for nature conservation, contained ancient trees and the inspector found the scheme would cause significant harm and a net loss of habitat units. However, with the severe housing land supply deficit (between 1.01 and 1.97 years), the benefits were judged to outweigh the harm and the appeal was allowed.

Nature/climate impact/sustainability

As part of its consultation on reforming the NPPF, the government has indicated that, on BNG, the government will introduce an area-based exemption for smaller sites (up to 0.2 hectares); consult on an additional targeted exemption for residential brownfield development (testing ranges up to 2.5 hectares); and make it easier, quicker and cheaper to deliver BNG offsite, to benefit medium-sized development. The government’s response to the May 2025 BNG consultation is awaited.

The UK government has published its revised Environmental Improvement Plan (EIP), 1 December 2025. Key aspects include:

  • Increased commitments to restore/create wildlife-rich habitats outside protected sites and hedgerows, and to double the number of farms providing year-round wildlife resources by 2030
  • £500 million allocated over 20 years to projects focused on habitat creation, flood risk reduction, and water quality improvements
  • £85 million targeted at peatland restoration, enhancing flood resilience, water quality, and public health
  • £1 billion for development of new National Forests
  • New plan to tackle PFAS (forever chemicals) pollution (and see below)
  • Emphasis on resource efficiency, advancing the circular economy, reducing waste, and turning pollution into green opportunity and jobs
  • Deployment of the Water (Special Measures) Act, backed by £104 billion in private investment over five years to overhaul water infrastructure and reduce pollution
  • £10.5 billion for flood defences, prioritising nature-based solutions like woodland planting and wetland restoration

Detailed Environment Act target delivery plans accompany the EIP, enhancing clarity around responsibility, measurable outcomes, and progress tracking.

As part of its updated EIP, the UK government announced its first-ever comprehensive plan to manage and reduce the risks from per- and polyfluoroalkyl substances (PFAS), also known as ‘forever chemicals’. In related news, the government has now published its full ‘PFAS Plan’.

PFAS regulation and contaminated land

Those operating within the built environment may have noticed an increasing focus on PFAS pollution in land and water. Regulatory reform is on the horizon. In addition, Wyre Council is conducting the country’s first ever multi-agency PFAS-related contaminated land investigation, with results due to be published in early 2026. Commentators are anticipating that results could prompt a variety of environmental remediation, enforcement and litigation action, as well as PFAS contamination investigations elsewhere. North Yorkshire Council has confirmed that regulatory and groundwater investigations are also ongoing in relation to PFAS pollution in High Bentham. The issue is definitely one to watch.

Natural England has announced that it is preparing 23 environmental delivery plans (EDPs): 16 relating to nutrient pollution (including one relating to the Somerset Levels), and 7 relating to great crested newts (a regularly quoted hindrance to development).

A High Court decision to dismiss a legal challenge against the expansion of Luton airport has clarified aspects of the Finch Supreme Court ruling on Scope 3 downstream GHG emissions. In the Luton airport case, the airport’s position was that the Finch decision doesn’t require assessment of indirect GHG emissions in circumstances where either (a) there is insufficient information on which to make a reasonable assessment, or (b) where it is possible to make a judgment, the effects are not significant. The High Court agreed. The decision will be welcomed for its suggestion that, provided decision-makers properly consider environmental and scientific evidence against appropriate benchmarks, and explain their reasoning, there is a reasonable margin of discretion in how they assess Scope 3 GHG emissions.

Water stress, flood risk and housing development

We’ve reported previously that water issues are increasingly impacting the Living sector. In December 2025, Housebuilder magazine reported the water supply and usage challenges specifically of concern across housebuilding. For further information and advice, see our briefings on environmental and commercial concerns associated with water stress and (related) evolving climate issues impacting nuisance law.

In related news, Gladman Developments recently challenged an Inspector’s dismissal of an appeal for a large housing scheme (up to 644 dwellings), where the sole remaining reason for refusal was non-compliance with flood risk policy. The High Court was clear that even where planning policies are expressed in apparently mandatory terms, they remain material considerations to be weighed. A failure to undertake a Sequential Test therefore shouldn’t automatically mandate refusal and demonstrable flood risk betterment and wider sustainability benefits can significantly influence planning outcomes.

The Green Home Finance Strategic Partnership, a partnership bringing together government, industry and experts to develop recommendations for scaling up the private green home finance market, has published its terms of reference.

To help the build sector counter its contributions to carbon emissions and environmental degradation, the Competence Framework for Sustainability in the Built Environment was approved in October 2025 and is the new British standard for sustainability competence. The standard focuses on establishing core competencies in design, construction, and management to mitigate environmental harm, as well as commercial/reputational drivers to embed sustainability.

‘At a glance’, other ESG issues on the build/living horizon include:

  • The government’s response to EPC reform and MEES consultations is overdue and implementation is expected in late 2026. Anticipated changes include: multi‑metric EPCs; tighter minimum standards for commercial and residential sectors (towards EPC C by 2030); and increased enforcement.
  • A growing focus on green lease clauses and operational performance metrics, with impacts for landlord–tenant cost allocation for upgrades.
  • Heat network regulations come into force 27 January 2026.

Building Safety

The government has published its third and fourth progress reports on the implementation of the Grenfell Tower Inquiry: Phase 2 recommendations. The reports set out further steps taken towards the government’s commitment to act on all 58 recommendations aimed at reforming the building safety and regulatory framework.

On 27 January 2026, the Building Safety Regulator (Establishment of New Body and Transfer of Functions etc) Regulations 2026 came into force and established the Building Safety Regulator (BSR) as a new independent body corporate, taking over the HSE’s building safety functions.

Further reform to the building safety sector is expected following the recent House of Lords Industry and Regulators Committee report. However, with ongoing delays in Gateway Regime approvals, it’s essential that you take steps now to navigate the regime effectively and reduce the impact on your projects. In this article, we share practical advice on how you can minimise risk, and keep your projects moving.

Recent Construction Leadership Council (CLC) guidance, together with rising numbers of BSR information requests and rejections, confirms that you must front-load design detail, supporting evidence and coordination to avoid your projects being delayed. This article outlines the regulator’s expectations, highlights the pitfalls most commonly leading to rejection or delay, and shares our practical advice for making sure Gateway 2 submissions meet the required “sufficient level of detail”.

We’ve reported previously on the Construction Products Reform Green Paper on wide-ranging plans for future regulation of construction products. Proposals include bringing all construction products within the general product safety regime; enhanced regulatory, surveillance and enforcement powers; development of a new single construction regulator; and civil and criminal penalties for manufacturers that engage in misleading practices or neglect their responsibilities regarding product safety. As of February 2026, the government is consulting, until 20 May 2026, on its proposals.

The Scottish Government confirmed that the Scottish Building Safety Levy will take effect on 1 April 2028.

In Edgewater (Stevenage) Ltd v Grey GR Ltd Partnership [2026] UKUT 18 (LC), the UT dismissed appeals against remediation contribution orders (RCOs) made by the FTT requiring payments totalling £13,262,119.08 to Grey GR Limited Partnership, for costs incurred in remedying fire safety defects at Vista Tower in Stevenage. The UT found that ‘building safety risk’ meant any risk, not just intolerable risks. It decided that didn’t mean the definition of building safety risk was unrestrained – a risk would still only be a building safety risk if it satisfied the various requisite conditions.

‘At a glance’, other upcoming building safety developments on the horizon include:

  • The Building Safety Levy comes into effect on 1 October 2026 for major residential developments.
  • The second staircase requirement for buildings over 18m from 30 September 2026.
  • PEEP requirements and person‑centred fire risk assessments effective 6 April 2026.
  • Supreme Court appeals on the retrospective effect of the BSA in Triathlon Homes and Adriatic Land. Court of Appeal decision awaited on service charge/cladding remediation (Centre Point case).
  • Remediation Bill expected in 2026 imposing duties and criminal sanctions for unremediated defects.

Retirement and Care Living Sector

“The UK’s immigration has undergone substantial reforms, many of which impact employers in the retirement/care living sector. In this article, published in Tomorrow’s Care magazine, we explain the changes, and what lies ahead.”

Shabana Muneer, Partner, Employment

International investors continue to show appetite for exposure to the UK care market, reinforcing its position as a key sector for global capital. Christie & Co’s Business Outlook 2026 report shows the care home investment market continues to attract interest, particularly from US-based funds.

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