Living Horizon Scanner – September 2026

Industry news

Earlier in 2026, the UK government intimated plans for a state-owned housing developer. Since Andy Burnham’s appointment, the industry has seen proposals focusing on greater use of combined authorities, local authorities, and devolved housing institutions; reliance on Homes England and the National Housing Bank to acquire land, finance development, and support large-scale housing and regeneration projects; and public funding programmes (including the government’s £39 billion social and affordable housing programme) intended to drive substantial new housing delivery outside London. More on all of these in our ‘Housing’ section below. Whether a state-owned housing developer is likely, remains ‘one to watch’.

Our Construction & Engineering partner Carly Thorpe has been analysing the Construction Purchasing Managers’ Index. See her latest insights on Subdued housebuilding activity persists amid affordability crunch and Confidence despite housing headwinds.

For information and advice on successfully navigating supply chain disruption in the construction sector, see our recent article.

Construction Enquirer has reported that Berkeley Group has called for urgent stamp duty reform in the upcoming Budget, to kick-start housing transactions and unlock stalled development.

The Government’s Commercial Payments Bill has taken another step forward following amendments proposed by the House of Lords Drafting Committee. The Bill is designed to address late payment issues across UK supply chains. It includes proposals to ban cash retentions, to introduce a 60-day payment cap and mandatory interest on late payments, and to expand the powers of the Small Business Commissioner. This news bulletin provides further information.

Also on the Commercial Payments Bill, this article, first published by LexisNexis, looks in more detail at how the Bill proposes to implement the ban on retentions, and the issues and implications that it raises for parties to construction contracts.

The new UK consumer protection enforcement regime has attracted significant attention in the online retail space and digital markets. But the new regime is equally applicable in the housebuilding context. In this article, our competition specialists explain what housebuilders need to know.

A multi-billion pound competition claim has been brought against several UK housebuilders following an investigation into anti-competitive behaviour. As the Competition and Markets Authority didn’t reach an infringement decision on the conclusion of its investigation, the claimant class representative in these proceedings will have to establish that there was an infringement for the claim to succeed. Arguments would then turn on any loss home buyers may have suffered as a result. Any housebuilders affected or concerned by the claim should contact Sarah Ward, Partner in our Competition team. Sarah has specialist expertise and experience in acting within the living sector.

The government is establishing a new register for documents that create contractual controls over land. It’s aimed at conditional contracts, option agreements and other similar arrangements under which someone who is not the registered proprietor controls what happens with the land. See our briefing for further information and advice. In related news, the government has updated its guidance on the proposed Register of Contractual Control Agreements to specify what’s required for each registration.

In the June 2026 edition of our Living Horizon Scanner we reported that PJ Livesey had published Unlocking Heritage for Housing; Historic England had unveiled its Heritage Investment Prospectus, detailing sites with the potential to deliver housing; and Pick Everard had argued that hitting on the right long-term business model puts the short-term challenges of regenerating culture and heritage sites into perspective. We were right to anticipate that heritage housing could be ‘one to watch’. In a report examining the state of the UK’s built heritage, the Culture, Media and Sport Committee has now called on the government to adopt a ‘reuse first’ approach to unlock up to 670,000 new homes. The report suggests that almost half of the government’s 1.5 million new homes target could be delivered through the reuse of vacant or underused historic buildings.

The Land, Planning and Development Federation, working with Savills, has published new research examining the pressures facing England’s SME housebuilders and the implications for future housing delivery.

New research by Savills, sponsored by the LPDF, Barratt Redrow and Richborough, examines how greater use of Discount Market Sale, including First Homes, could help unlock stalled housing sites.

We’ve periodically noted increasing tension around water stress. The BBC has reported that Housing Secretary Steve Reed has pledged that new homes will not be built without a plan to provide water supplies. See our ‘Nature/climate impact/sustainability’ section for more on water issues.

With ambitious government housing targets creating significant opportunities for residential developers, the path to delivery is becoming increasingly complex. Political uncertainty and a rapidly evolving regulatory landscape mean challenges can emerge at every stage of a project. In this environment, adopting a more integrated, lifecycle approach is critical to understanding how legal and regulatory requirements apply in practice and anticipating risk early. With this in mind, we recently brought together clients and our living sector specialists at our dedicated Residential Developers Training Day. To find out more about the event and future opportunities, click here: Anticipating challenges before they arise in residential development.

Construction News has reported that research from April and June 2026 revealed that 3 in 4 housing sector building bosses fail to act consistently towards dangerous silica dust on sites. Failings include inconsistent use of project silica exposure plans or regular inspection of safe working practices, and a lack of awareness of the UK workplace exposure limit for respirable crystalline silica (a fine dust released when bricks and concrete are cut or sanded on site). Silica dust exposure is linked to cardiovascular disease, autoimmune disease and cancer. Contact our Regulatory & Compliance specialists for advice or assistance.

The Construction Leadership Council has published its Mental Health Joint Code of Practice – a framework to help foster better mental health in construction.

The government is considering potential reforms to make Land Remediation Relief more accessible, better targeted, and more closely aligned with the practical realities of brownfield development.

The Home Builders Federation (HBF) is calling for a government-backed approach to speed up local authorities’ adoption of roads. Its new research, ‘Slow lane to adoption‘, finds that some councils are taking up to 12 years to take responsibility for new roads.

Two recent court cases are likely to be of interest to landowners/developers:

“The Court of Appeal’s decision in Thomas v Nicholas is the latest chapter in the developing story of liability in respect of neighbouring land. The case highlights that nuisance and negligence can be additional or alternative arguments. Anyone carrying out activities which could impact neighbouring land should note this important judgment.” – Louise Norbury-Hall, Director, Dispute Resolution

“The Supreme Court’s decision in McCafferty means landowners and businesses facing protest or other trespass activity will have to consider and formulate their response more carefully than ever before. The judgment effectively narrows the circumstances in which trespass can be prosecuted via public nuisance. It’s essential reading for landowners and businesses occupying industrial estates, logistics hubs, manufacturing sites, energy facilities and other private developments including retail and office parks. In this article, we explain the legal and practical implications.”  – Nick McQueen, Partner, Commercial Dispute Resolution

And Grossart v Ames from the Upper Tribunal (Lands Chamber) is potentially a useful decision for landowners/developers seeking to modify or release covenants restricting development. The UT allowed discharge of a restrictive covenant on the basis it should be deemed obsolete (ground (a) of section 84 (1) of the Law of Property Act 1925) because its original purpose had been fulfilled. The restriction was originally intended to preserve opportunities for future development by retaining control of the access road and services, but development of the retained land had been completed in the interim.

The Home Office has published a draft Code of Practice on Preventing Illegal Working, providing further details on how the upcoming expansion of the right to work regime beyond direct employees will operate. The new Code is expected to come into force on 1 October 2026. The changes are significant and will affect businesses across the living sector that engage contractors, casual workers, agency workers, outsourced labour, platform workers and other non-traditional workforces, regardless of whether they consider themselves to be the individual’s employer. See our recent article for further information.

Housing

The government has called on councils to accelerate the delivery of new council homes, alongside the new Social and Affordable Homes Programme (SAHP). The letter confirms the first SAHP allocations and additional government support to strengthen housebuilding capacity. Landlords that missed out on strategic partnership status in the first wave of SAHP allocations can apply for funding through the continuous market engagement (CME) route. Speaking to the Housing Community Summit, Matthew Pennycook sought to reassure housing associations they will retain a major role in provision once the government’s council house building programme begins.

The UK government is consulting on reforms that could change how social housing development is structured and financed. HMRC and HM Treasury are considering views on a proposed new zero rate of VAT for the sale of bare land intended for the construction of social housing.

An official review has found the Help to Buy scheme represented “very high value for money”, strengthening calls from housebuilders and some Labour figures for a potential revival of the scheme.

The Regulator of Social Housing (RSH) has published ‘More and Better Social Homes‘. The paper aims to open a conversation about how economic regulation could help the social housing sector deliver more and better social homes, and changes that could be made to regulation of governance, financial viability, and value for money.

Also in RSH news, the new Tenant Satisfaction Measure (TSM) for electrical safety checks is now in effect, adding to existing building safety requirements concerning gas, fire, asbestos, water and lifts. Social housing landlords in England with 1,000 or more homes are now required to publish electrical safety checks TSM covering the 2026/27 reporting year. Social housing landlords in England with less than 1,000 homes will be required to publish for their reporting years ending 31 March 2027 onwards.

The Ministry of Housing, Communities and Local Government (MHCLG) has announced that, from 22 June 2026, councils in England can issue fines of up to £7,000 to landlords who fail to remedy serious hazards in privately rented homes. This is under new powers brought into force by the Renters’ Rights Act 2025 (Commencement No 3) Regulations 2026.

The Mayor of London has announced a £400,000 Renters’ Rights Enforcement Fund to support the implementation of the Renters’ Rights Act 2025 (RRA 2025). Most of the funding will be awarded over a three-year period with the aim of helping tenants understand and exercise their rights and seek support when landlords do not comply with legal requirements. The remaining funding will be used to train borough enforcement officers on new powers to support enforcement of the new legislation.

In related news, the government has announced the next phase of RRA 2025 implementation, confirming that the Phase 2 Private Rented Sector Database will begin rolling out across England from 15 December 2026. It’s also published draft regulations to come into force on 15 December 2026 and establish the legal framework for registration requirements, fees, information sharing, and ongoing compliance. The government has also published landlord guidance.

The second phase of Awaab’s Law will come into force on 30 November 2026. It will extend legal duties on social housing landlords to address seven additional hazard categories, including electrical hazards, falls, fire and explosions, excess cold and heat, structural collapse and falling elements, and domestic hygiene. Hazards posing an immediate danger must be investigated and made safe within 24 hours; and serious but non-immediate hazards must be investigated within 10 working days. Landlords are required to give tenants, within 3 working days, a written summary of their investigation, findings and action they’ll take, and to complete urgent safety work within 5 working days of the investigation, and to begin longer-term repairs within 12 weeks. See this explanatory memorandum. The third and final phase is due to be introduced in 2027 and will extend requirements to all remaining hazards in the Housing Health and Safety Rating System, except overcrowding.

The Court of Appeal has established a new test for determining what constitutes a “building” under the tenants’ right of first refusal provisions in Part 1 of the Landlord and Tenant Act 1987. The decision will affect landlords and investors dealing with residential developments comprising multiple blocks. As well as informing the structure of future disposals, the case may entitle tenants to exercise rights to acquire interests in circumstances where the earlier, now-overruled case law test had been relied on by a landlord prior to the sale of its interest – potentially even to the extent that such transactions could be unwound. Cases will turn on their own facts, but if you have any concerns, please contact our residential block management specialists.

For more block management case law and insights, see our Block Management Update, June 2026.

Planning

The new NPPF 2026, HDT results and the government’s response to the NPPF were published on 17 August 2026.

An explanation of the changes is set out in the Minister of State’s letter. See our recent article for more information: National Planning Policy Framework 2026: Our ‘at a glance’ insights – Walker Morris

The government has completed its guidance on how local authorities should prepare their next local plans under the new, revised procedure introduced by the Levelling up and Regeneration Act 2023. The government is pressing all local authorities to swiftly prepare new local plans that accommodate the allocations needed to reach the government’s target of building 300,000 new houses a year.

Limits on the number of legal challenges allowed against major infrastructure projects could be extended to housing schemes under government plans put out to consultation over the summer.

MHCLG is consulting, until 20 October, on the following standardised section 106 templates for medium sites:

1. Bilateral agreement comprising standard clauses template and Schedules for Financial Contributions and the Council’s Covenants.
2. Unilateral Undertaking comprising standard clauses template and a Schedule for Financial Contributions.
3. Affordable Housing Schedule for Full Planning Permissions, including a discretionary cascade mechanism.
4. Affordable Housing Schedule for Outline Planning Permissions.

Also in section 106 news, MHCLG has published guidance to support engagement on section 106 affordable housing delivery in England. The guidance is designed to support stronger collaboration between developers, councils and housing associations from an early stage of the planning process.

A reminder that the National Scheme of Delegation of Planning Functions will come into force across England on 31 October 2026, directing which types of planning decisions should be taken by planning officers and which could be referred to committee.

Click here to find out how we recently helped our longstanding client, Hargreaves Land, promote an unallocated parcel of safeguarded greenfield land in South Yorkshire, and to watch our video, ‘How to run a successful planning appeal, with Steve McBurney’.

The UK government and local planning authorities in Barnet, Dorset, and Camden are working with Google DeepMind to develop and trial an AI-powered prototype that acts as a highly skilled assistant for planning officers. The tool handles data extraction and case analysis with the aim of halving the time it takes to process householder planning applications.

MHCLG has published the response to its consultation on planning application fees. Draft regulations will come into force on 8 December 2026 and apply to planning applications made on or after that date. Key proposed changes include: a new national default fee schedule; a streamlined fee structure; an annual uplift for fees arising from mixed-use outline planning applications comprising more than one category of development; and increased fees for a variety of applications, certificates and monitoring.

MHCLG is consulting, until 5 October 2026, on the implementation of provisions in the English Devolution and Community Empowerment Act 2026 for: mayoral powers in relation to planning applications of potential strategic importance; Mayoral Development Orders; and Mayoral Community Infrastructure Levy for mayors outside London.

MHCLG has published notices under section 62A of the Town and Country Planning Act 1990 designating nine LPAs (Cherwell District Council, Dacorum Borough Council, Epping Forest District Council, Hertsmere Borough Council, Malvern Hills District Council, Rossendale Borough Council, South Tyneside Council, Staffordshire Moorlands District Council and Wychavon District Council) for the quality of their decision making on applications for planning permission for major development. The designations took effect at 9:00am on 15 June 2026 and will remain in force until revoked.

The government has published updated Compulsory Purchase Process: Guidance. Although not changing underlying legal principles, it signals a more flexible approach for promoters progressing complex projects and provides for the recent arrival of conditional compulsory purchase orders. The aim is to reduce delays, avoid the need for re-determination, and support more timely project delivery.

In Lochailort Kentford Ltd v West Suffolk Council, the High Court has granted permission for judicial review, but dismissed a statutory review claim under section 113 of the Planning and Compulsory Purchase Act 2004 challenging West Suffolk Council’s decision to adopt the West Suffolk Local Plan. The claimant sought to quash the Local Plan after the Council declined to allocate the promoted site for residential development, whilst subsequently including part of it in the Council’s Brownfield Land Register. The court held that inclusion in the Register wasn’t a mandatory relevant consideration for the Inspectors or Council, as it wasn’t inconsistent with the Council’s position that other sites were more suitable and achievable for residential development. The Council’s reasoning wasn’t undermined by the Register inclusion, as only part of the Promoted Site was included in the Register. The Council’s approach was to allocate only sites where the whole site was suitable. The Court rejected grounds alleging failure to consider material considerations, irrationality, and failure to explain inconsistent positions.

Nature/climate impact/sustainability

The Department for Environment, Food and Rural Affairs (Defra) has confirmed new biodiversity net gain (BNG) exemptions, including for small sites, temporary permissions and development enhancing parks and playing fields. Revised off-site rules and brownfield provisions are intended to support growth in the biodiversity unit market and a new digital service is also intended to simplify the BNG process. Further changes, including: exemptions for development whose primary objective is to conserve or enhance biodiversity and development that enhances parks, playing fields and public gardens; changes to the statutory biodiversity metric; and a potential targeted exemption for certain residential brownfield development, should follow in due course.

For developers and housebuilders, water availability is becoming an increasingly important consideration. Recent Environment Agency (EA) drought data show that many river flow sites across England are reporting exceptionally low levels. As noted above, the BBC has reported that Housing Secretary Steve Reed has pledged that new homes will not be built without a plan to provide water supplies. Research from Water UK shows three-quarters of the government’s 1.5 million-home target could be at risk due to water shortages. The body says current water supplies can only support around 420,000 additional homes without increasing the risk of shortages. In this post, Construction & Engineering Partner, Carly Thorpe explores what this could mean for housing delivery and future developments. On water issues more widely, see our article: Water stress: Environmental and commercial concerns.

The EA and Natural England have launched two analytical tools to help organisations identify where environmental, socio-economic and health pressures overlap in communities across England. The tools are intended to provide a consistent evidence base to support planning decisions, prioritise resources and inform more coordinated responses to environmental, social and health challenges.

Homes England has published its Nature Positive Plan to show how the body will contribute to government nature recovery action.

We’ve reported in earlier editions of the Living Horizon Scanner on an emergent trend towards the legal recognition, and therefore enhanced protection of rivers and other sites. Continuing that trend, the House of Lords has pushed through a proposed Nature’s Rights Bill that would recognise ecosystems and species as legal subjects. The aim is to transform how construction and engineering projects are planned and consented, placing nature at the centre of UK law by establishing a legal duty of care on public bodies and businesses to the natural environment. Granting rights to rivers and other natural resources could have 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. Whilst this is a Private Members Bill, it represents escalation of an issue that has been gathering pace over at least the last year or two, and one that could have a significant impact on development. It’s one to watch.

The UK Green Building Council has published a Whole Life Carbon Framework to help the built environment sector reduce and manage carbon emissions across the life cycle of buildings and support net zero aligned projects. For advice on sustainability across the sector, see Sustainability in the built environment, From corporate climate ambition to implementation and Climate transition planning where are we now.

Building Safety

The government has amended the Building Safety Levy (England) Regulations 2025 ahead of the levy coming into force on 1 October 2026. The levy will apply to most new residential developments in England, subject to a range of exemptions including affordable housing, care homes and smaller schemes. A key change relates to the previously developed land (PDL) discount. The definition of PDL has been expanded to include hardstanding areas such as car parks and service yards. This should make it easier for developers to assess eligibility for the 50% levy discount and reduce inconsistencies between planning and building control processes. See our recent article for what residential developers need to know.

Walker Morris’s Real Estate Litigation team has successfully secured a landmark remediation contribution order (RCO) – this time in relation to Hallings Wharf Studios, Channelsea Road, London. The decision marks a significant development in understanding how Tribunals will approach RCOs under the Building Safety Act 2022 (BSA). And, notably, this is the first RCO obtained by the Secretary of State. For further information and a link to the judgment, see here.

MHCLG has announced an extension of the existing cladding safety scheme to buildings under 11 metres with serious fire safety risks, shifting remediation prioritisation from building height to risk level. MHCLG has updated its cladding safety scheme guidance to include information on funding for buildings under 11 metres. An 8-week application window – with applications to be made by responsible entities or their representatives – opened on 17 August 2026.

MHCLG has also announced plans for a new single construction regulator, simplification of the Building Safety Regulator’s Building Assessment Certificate process and a new consultation on emergency works.

The Building Safety Regulator (BSR) has announced it will move to a more intelligence-led, risk-based model for Building Safety Certificates. It will focus attention on organisations responsible for multiple higher-risk buildings, improving guidance, and providing greater support to smaller resident-managed organisations and applicants with refused or ongoing applications. The change follows longer-than-expected processing times and a high rate of application refusals, but the BSR has stressed the revised approach doesn’t reduce safety obligations.

The Almacantar Centre Point case was a surprising decision covered in this earlier Walker Morris briefing. In the case, the Upper Tribunal held that the protection against service charges for unsafe cladding remediation in paragraph 8 of Schedule 8  of the BSA applies regardless of when the cladding was installed, and isn’t limited to “relevant defects” as defined in section 120(2)  (which includes reference to the defects occurring in the 30-year period prior to section 120 coming into force). The judgment suggests that, when it comes to unsafe cladding, the BSA can reach back for more than 30 years. Along with the very wide approach to what constitutes a cladding system, this case gives the BSA a very broad reach indeed. The Court of Appeal is now due to hear this important appeal on 15 October. It’s certainly one to watch. Walker Morris will monitor and report on developments.

In Mulalley & Co Ltd v Sto Ltd, the High Court has dismissed the defendant German companies’ applications to set aside service out of the jurisdiction in three related claims, valued at approximately £90 million, concerning defective cladding on 18 high-rise buildings. The claimant developers are seeking to recover costs of remedial works funded by way of the government’s Building Safety Fund, bringing claims under the Civil Liability (Contribution) Act 1978. The case will consider the extent to which a cladding manufacturer should bear responsibility for remediation costs. It will be one to watch.

The Construction Leadership Council published new guidance in June 2026 addressing the Fire and Emergency File, the Building Regulations Compliance Statement, and an update to Guidance Note 01 for Higher-Risk Building applications.

The government is considering consistency, competence and accountability across the building‑safety system. It consulted, over the summer, on a new Building Professions Strategy. A separate consultation, expected later in 2026, should inform a new regulatory framework for built‑environment professions, trades and occupations, particularly those involved in high‑risk or safety‑critical roles. A full strategy is anticipated for spring 2027.

A2Dominion South Ltd v BDW Trading Ltd confirms the meaning of ‘relevant building’ under section 117 of the Building Safety Act 2022 (BSA). The definition was important, in the case, for establishing the scope of an RCO in relation to flats in different sections of a mixed-use development. See here for the full judgment.

The judgment in Essendi Hotels v London Property Company, handed down in June 2026 features novel arguments relating to the cladding and fire safety issues of a commercially leased high-rise hotel. Finding for the tenant, the court held that standard commercial lease covenants imposed liability akin to that under the BSA, in respect of cat 3 ACM cladding panels. It’s an example of the court extending building safety/cladding liability beyond strictly residential property.

The Welsh Government has published a collection of guidance on building control requirements for higher-risk buildings in Wales. A reminder that the new building safety regime in Wales came into force on 1 July 2026. See our recent briefing for what you need to know.

We’ve reported previously that the London Trocadero v Picturehouse Cinemas case would be ‘one to watch’. Picturehouse claimed that Criterion (the owner/landlord of the London Trocadero) arranged for its insurers to charge enhanced commission on insurance, which it passed on to the tenant and then recovered via ‘insurance rent’. Picturehouse claimed that can’t be justified and should be claimed back. Picturehouse also argued that fire sprinklers in the building were turned off in 2015 because of building safety renovation works. That led to the insurer ramping up the premiums and increasing the excess to more than £1m. It claimed that tenants shouldn’t be obliged to pay insurance increases caused by fire safety issues. The High Court decided that the landlord wasn’t entitled to recover insurance rent corresponding to the commission it received from insurers, but it was entitled to insurance rent covering significant policy excesses imposed due to the fire safety issues. The case was due to be heard by the Court of Appeal in June 2026, but the appeal has been vacated following a settlement between the parties, and the High Court’s decision stands.

In Durkan Estates v Wallace Estates, the High Court judge has ruled on an application for reverse summary judgment that a developer’s claim challenging the lawfulness of a termination notice served under a BSA remediation agreement has a real prospect of success and must go to trial. The judgment is a reminder that established principles of law still apply within the BSA context, and the BSA statutory regime doesn’t alter fundamental common law principles such as the proper working of contractual machinery (such as repudiation, which was at issue in this case).

Retirement/care living

According to a new NIC MAP report, a shortage of retirement living housing in the US is set to intensify. As the oldest members of the baby boomer generation turn 80, demand is rising faster than new communities — a gap that could cost more than $1 trillion to address by 2050. In the UK, Knight Frank has reported (August 2026) that subdued development and growing demand are exacerbating the requirement for additional high-quality affordable seniors housing, and Savills has found (July 2026) that, after two decades of static supply, the retirement/care living sector is entering a demand-led growth phase, with a need for 139,000 additional beds over the next decade.

The National Commission into the Regulation of AI in Healthcare has published its recommendations for a dedicated regulatory framework. Reflecting growing acknowledgement that AI in care requires sector‑specific governance addressing safety, bias and trust, the government’s response is expected soon.

Also on AI in care and retirement living, see our recent article on a key issue currently facing the sector – the AI gender gap: Closing the AI gender gap in retirement and healthcare.