Property Litigation
Trends and insights 2026
As 2026 approaches, the property sector faces a perfect storm of regulatory change and legal risk. The Renters’ Rights Act ushers in the most significant overhaul of the private rented sector in more than three decades, reshaping landlord obligations and tenant rights. Alongside this, maturing Building Safety Act case law and section 203 protections are already changing how agreements are structured, risks assessed and compliance strategies implemented.
Up to 25% of UK landlords have reported they are considering leaving the sector.
Renters’ Rights Act 2025: a full reset for the PRS
The long-awaited Renters’ Rights Act received Royal Assent on 27 October 2025 and represents the biggest overhaul of the private rented sector (PRS) in over 30 years. With implementation from 1 May 2026, the market is preparing for a world without fixed-term tenancies and tighter compliance.
Key changes under the Renters' Rights Act
- End of section 21 'no-fault' evictions: landlords can no longer evict tenants because an agreed term has ended; instead, they must rely on prescribed grounds and, if necessary, may need to convince a judge that those criteria are met.
- End of fixed-term tenancies: all tenancies will be periodic; tenants can leave on providing two months’ notice.
- Rent controls: rent can only increase once a year with tenants able to challenge the level of increase in a tribunal.
- Higher compliance: the Decent Homes Standard now applies to the PRS. A new PRS database and access to an Ombudsman are due later in 2026.
Impact and early signals
- Landlord exit risk: up to 25% of UK landlords have reported they are considering leaving the sector (NRLA 2025).
- Supply squeeze: rental listings fell 16% year-on-year in 2025 (Zoopla).
- Pre-deadline activity: expect a rush of Section 21 notices before May 2026 and an uplift in disposals of former rental stock.
Rental listings fell 16% year-on-year in 2025 (Zoopla).
Building Safety Act: consequences of 2025 case law
The tragic Hong Kong tower fire in 2025 is a stark reminder of fire-safety risk. While 2025 brought fewer cases than predicted – perhaps because people are choosing to resolve matters via alternative dispute resolution (ADR) – several high-profile decisions have clarified key principles developers and landowners would be ill-advised to ignore.
Key legal developments
- Extended limitation periods: Defective Premises Act claims can now reach back 30 years.
- Eradication of the 'corporate veil': entities 'associated' with developers or landowners can now be targeted via Remediation Contribution Orders.
- Retrospectivity confirmed: leaseholder protections and cost-recovery rules apply to historic defects predating the 2022 Act.
Development rights and section 203: managing rights of light risk
The decision in Cooper & Powell v Ludgate House Ltd [2025] illustrates how section 203 of the Housing and Planning Act 2016 can be deployed when a development serves a genuine public benefit.
Where section 203 applies, objectors cannot obtain an injunction and claimants are limited to statutory compensation – material reassurance for developers and funders concerned about rights of light challenges. However, delays and uncertainty could remain if rights of light claims arise without clear 203 applicability.
Property Disputes
Our property litigation team acts for clients across all of the firm's sectors resulting in a unique client base ranging from high-net-worth individuals and families, to privately-owned businesses, educational and not-for-profit organisations and financial institutions. The team regularly handles complex, valuable and high-profile disputes.
We help our clients to navigate property disputes when they arise, providing high-quality bespoke advice. Our approach helps us to deliver tailored solutions to our clients’ issues and disputes when they arise.