F&F LLP UKRE Team, English Property Law & Market Update

The English property landscape continues to shift at pace, shaped by a combination of legislative reform, evolving market sentiment and a renewed focus on consumer protection.

As we move through 2026, buyers, sellers, developers and leaseholders are navigating a sector that feels more regulated, more transparent, and, at times, more demanding than ever.

Our UK Real Estate team has taken stock of the latest developments influencing the market and the legal frameworks underpinning it.

Key Legal Updates:

Leasehold & Freehold Reform Act 2024 – Implementation gathers momentum

The government’s multi‑year rollout of the Leasehold & Freehold Reform Act continues to reshape the leasehold system. While the sector is still adjusting to the practical implications, several early measures are already having a tangible impact:

• Simplified lease extension rights are reducing the procedural burden on leaseholders, making long‑term security more accessible
• Greater transparency around service charges is forcing managing agents and freeholders to justify costs with clearer documentation and earlier disclosure
• Reduced exposure to legal costs is shifting the balance of power, giving leaseholders more confidence to challenge unreasonable demands.

Further phases of implementation are expected throughout the year, and many practitioners anticipate that the cumulative effect will be a more balanced and modernised tenure system. The reforms are also prompting landlords and managing agents to reassess long‑standing practices that may no longer withstand scrutiny.

Building Safety Act – Strengthened protections for leaseholders

The Building Safety Act continues to evolve through case law, with recent judgments reinforcing the principle that leaseholders should not bear the financial burden of historic building‑safety defects. Courts have increasingly supported residents seeking to recover remediation costs from developers, contractors or building owners.

This shift is reshaping the risk landscape for the construction and property‑management sectors. Developers are now more cautious about legacy liabilities, while leaseholders, many of whom have faced years of uncertainty, are gaining clearer routes to redress. The direction of travel is unmistakable: accountability is moving up the chain, away from residents and towards those responsible for the original works.

Rights of Light – A more predictable compensation framework

Rights‑of‑light disputes have long been a source of uncertainty for developers and homeowners alike. Recent High Court decisions have provided welcome clarity on how damages should be assessed when a development infringes neighbouring light rights.

This emerging body of case law is helping to:

• Reduce the unpredictability of negotiations
• Encourage earlier engagement between parties
• Support more realistic valuations of potential liabilities
• For developers, this means fewer surprises late in the planning process. For homeowners, it offers reassurance that their rights are being treated with greater consistency.

Conveyancing & disclosure standards – A shift towards early transparency

The conveyancing sector is undergoing a quiet but significant transformation. New expectations around climate‑risk reporting, material information disclosure, and upfront documentation are changing the rhythm of transactions.

Buyers can now expect:

• More detailed information earlier in the process
• Clearer reporting on flood risk, EPC ratings and environmental considerations
• Fewer late‑stage surprises that derail transactions
• While this front‑loading of information can extend the preparation phase, it ultimately supports more informed decision‑making and reduces fall‑through rates.

Residential market trends

A steady but price‑sensitive market; the UK housing market remains active, though buyers are increasingly discerning. Annual price growth is modest, and regional variation remains a defining feature with North East and North West continuing to show resilience, supported by strong rental demand and comparatively affordable entry points. London is at a stable at a higher price point, with prime areas performing well but mainstream segments showing sensitivity to pricing and condition.

Sellers who price realistically are achieving good levels of interest, while those testing the upper limits of the market are encountering longer listing times and more frequent reductions.

Mortgage rate pressures

With the Bank of England holding the Base Rate at 3.75% in today’s announcement, mortgage rate pressures are set to persist. Even without an increase, the higher‑rate environment has already pushed borrowing costs upward in recent months, influencing affordability and prompting more cautious buyer behaviour. Many households are recalibrating their expectations, either adjusting budgets or widening their property search areas to keep plans on track.

Despite these pressures, well‑presented and fairly priced homes continue to attract competitive interest. The market is not stalling; it is simply becoming more rational. Buyers are scrutinising value more closely, and properties aligned with current pricing realities are still performing strongly.

Outlook

Despite broader economic headwinds, the residential market remains fundamentally resilient. Demand persists for:

• Realistically priced homes
• Energy‑efficient properties, which increasingly command a premium
• Well‑located family housing, particularly near strong schools and transport links
• Legal reforms, while sometimes complex, are ultimately steering the sector towards greater transparency, fairness and consumer protection. For many, this represents a long‑awaited recalibration of the property ecosystem.

How we can help

Our UK Real Estate team is on hand to guide clients through this evolving landscape. Whether you require tailored legal advice, support with leasehold matters, or conveyancing services across England, our dedicated UKRE specialists, Anna Douglass, Alastair Hargreaves, Caren Vidamour and Hannah Damant, are ready to assist.