What business law changes can the UK expect in 2026? - Osborne Clarke

Significant reforms affecting English real estate are expected this year. Among the anticipated changes covered in our Insight: What does 2026 hold for the real estate sector in England?, the following are likely to have a particular impact.

Proposals to ban upwards-only rent reviews in new commercial leases appeared in the English Devolution and Community Empowerment Bill without prior consultation, and are expected to become law later in 2026 or 2027. The ban may drive the market towards fixed rental increases or alternative rent structures or even deter existing tenants from subletting, as it risks creating a mismatch between rents received and payable.

The Law Commission's review of the security of tenure regime is under way, with a second consultation expected shortly, exploring potential reforms to modernise processes for statutory renewals and possession under the Landlord and Tenant Act 1954. Anticipated changes include increasing the minimum lease term for statutory rights to two years and clarification of landlord grounds for opposing renewal.

The Landlord and Tenant (Covenants) Act 1995 is set to be reviewed under the Law Commission's 14th Programme of Reform, with hopes that restrictions on tenants assigning to their guarantors will be addressed. The programme will also consider rights of first refusal under the Landlord and Tenant Act 1987 and the law governing maintenance, repair and upgrading of leased commercial buildings.

From April 2026, business rates will change following revaluation and the introduction of new multipliers, with retail, hospitality and leisure properties receiving a 5p discount while properties valued at £500,000 or more will face a higher multiplier of 2.8p above standard. The government is also seeking views on broader reforms, including moving to a "slice" tax structure, various relief schemes, and the antecedent valuation date gap

Phased implementation of the Renters' Rights Act 2025 will begin from May 2026. This will bring substantial reforms to the private rented sector in England, including the abolition of assured shorthold tenancies and section 21 "no fault" evictions, revised possession grounds, and restrictions on annual rent increases. The rollout of the PRS Landlord database and ombudsman scheme is expected to begin by the end of the year.

Leasehold enfranchisement reforms under the Leasehold and Freehold Reform Act 2024 may gather momentum in 2026, following the High Court's rejection of a legal challenge to proposed changes that could reduce landlord compensation and cost recovery on enfranchisement, as well as the proposed cap on ground rents. Further leasehold reforms are anticipated, including measures to enhance transparency and fairness in estate management and government proposals to reinvigorate commonhold as the default tenure for new flats, with the draft Leasehold and Commonhold Reform Bill awaited.

Housebuilders will also need to familiarise themselves with the new suite of building standards for residential development, including the Future Homes and Buildings Standard which is expected to be published shortly.

Those involved in the construction of higher-risk buildings will continue to monitor how the Building Safety Regulator (BSR) is dealing with applications relating to them. Delays in assessing and approving Gateway 2 applications have caused significant disruption in the industry since the introduction of the higher-risk buildings regime. Though the regulator has acknowledged the problem and has taken steps to improve the process, stakeholders will watch with interest whether the BSR is able to meet its self-imposed deadlines to improve the higher-risk buildings approvals process, such as clearing the legacy Gateway 2 backlog by the end of January 2026.

On 27 January 2026, the BSR is transitioning from the Health and Safety Executive to a new arm's-length public body under the Ministry of Housing, Communities and Local Government. The government also intends to introduce a licensing scheme for principal contractors for higher-risk buildings under the building regulations, which was recommended by the Grenfell Tower Inquiry. It is also considering whether additional licensing requirements for others within the industry is appropriate, and intends to publish a call for evidence on the proposals in spring 2026.

The Welsh government released a series of new regulations at the end of 2025 which will introduce a number of changes to the building control system in Wales on 1 July 2026. These changes include the introduction of dutyholder obligations which apply to all works covered by building regulations and a new regime which will apply to works carried out in relation to higher-risk buildings. These new regimes are similar, though not identical, to their English counterparts (which have been in place since 2023).

Developers will face the new Building Safety Levy from October 2026, imposing significant additional costs for projects in England with residential dwellings or purpose-built student accommodation bedspaces. The Remediation Bill may also be published, imposing a legal duty to remediate defective buildings within fixed timescales, with potential criminal prosecutions for non-compliance. From 30 September 2026, new residential buildings over 18 metres in height will require a minimum of two staircases, impacting building designs, costs and potentially affecting scheme profitability.

The New Year also brings various key building safety cases to the appellate courts including the awaited Court of Appeal decision in Almacanter Centre Point v De Valk and the Supreme Court rulings on Triathlon Homes v Stratford Village and Adriatic Land v Hippersley Point.

Register of contractual controls

The government is expected to proceed with a new public register of contractual controls under Part 11 of the Levelling Up and Regeneration Act 2023. Parties will need to disclose certain agreements that confer control over land, likely including options, pre‑emptions, promotion agreements and conditional contracts. While intended to support planning and development by increasing transparency, the disclosure of commercially sensitive information will be a concern for many developers and landowners, and uncertainty remains over the retrospectivity of these measures.

The government's decision on whether to reform or ban the use of cash retentions in the industry is expected in early 2026. A consultation on the proposals closed in October 2025. It contained two options for reform: an outright ban on the practice of withholding retentions (making retention clauses unlawful); or a requirement for retentions to be protected, either by allocating funds to designated bank accounts or requiring them to be covered by a guarantee. There has been a mixed industry response to the proposals, with no uniform consensus as to which approach should be adopted.

The appeal in Providence Building Services Ltd v Hexagon Housing Association Ltd was heard by the Supreme Court on 10 November 2025, and the judgment is expected in 2026. The case concerned whether, under an amended JCT Design and Building Contract (2016 edition) a contractor may immediately terminate for a repeated employer breach where the original breach had been remedied and no right to terminate had accrued. The interpretation of this issue is relevant across the JCT suite of contracts (and beyond) and could have significant consequences for employers and contractors.

The much-trialled introduction of a new construction products regime is expected to take shape in 2026, with the government confirming that a white paper on construction products reform would be published in spring 2026. From 8 January 2026, the Construction Products (Amendment) Regulations 2025 take effect, cementing the recognition of CE marking alongside UKCA for construction products used in the UK.

The government is sticking with its ambitious targets of significantly expanding clean energy generation, accelerating 150 decisions on major infrastructure projects and delivering 1.5 million new homes in England this Parliament.

The Planning and Infrastructure Act 2025 (PIA) received royal assent shortly before Christmas and will bring significant changes to the system. A flurry of supporting regulations and guidance will be published throughout 2026. Key measures include:

Planned changes to the National Planning Policy Framework (NPPF) are currently under consultation, and are likely to represent the most significant re-writing of planning policy since it was first published in 2012. Plan-making and decision-making policies are to be separated, with decision‑making moving to a more rules‑based approach. Proposals include the introduction of a so-called permanent presumption in favour of suitably located development, and a presumption in favour of granting permission for suitable development around existing rail stations, including within the Green Belt. Further changes would strengthen the policy around renewable and low-carbon energy and mandate that substantial weight is given to the benefits of commercial development which provides growth (including development supporting AI Growth Zones, logistics, and town centres).

A revised Environmental Improvement Plan was published in December 2025, which sets a five-year roadmap intending to improve England's natural environment. This includes the implementation of Biodiversity Net Gain requirements for NSIPs by May 2026, improving the implementation of BNG for minor, medium and brownfield sites, and introducing Environmental Outcome Reports, with timing to be confirmed. Elsewhere there are plans to relax some BNG requirements.

The government is also due to confirm whether it will implement its controversial proposals to pressure developers to speed up the rate at which residential development is built out.

Welsh planning law will be consolidated into a new Act and the first batch of applications will use the Infrastructure Wales Act consenting regime.