Our May 2025 summary of the latest developments in Property law and practice is as follows:

The Government has published a white paper reaffirming its commitment to commonhold as the default form of tenure for new residential developments. Although the Commonhold and Leasehold Reform Act 2002 introduced the system, commonhold uptake was negligible due to rigidity in its framework and disincentives for developers. The new proposals aim to address these shortcomings.

The upcoming Leasehold and Commonhold Reform Bill, expected later in 2025, will provide more details. Reforms are anticipated to include more flexible rules for mixed-use developments, updated governance for commonhold associations, and enhanced enforcement mechanisms. Until a robust system is in place, leasehold will not be banned, but future developments will increasingly be shaped around commonhold.

The Welsh Government is consulting on a new building control regime for higher-risk buildings, with the consultation open until 25 May 2025. The proposals include requirements for dutyholders, ‘golden thread’ documentation, gateway controls for construction stages, and mandatory reporting of safety issues.

Beyond high-risk buildings, general changes to building regulations are proposed, such as requiring applications with full plans before commencing non-high-risk work and automatic lapsing of approvals after three years without commencement.

Updated guidance from Companies House clarifies how companies can be restored to the register under Part 31 of the Companies Act 2006. This can be critical where property is vested in a dissolved entity and needs recovery. Essentially, Restoration may proceed either by court order or administratively through the Registrar, depending on the circumstances.

The Annual Tax on Enveloped Dwellings chargeable amounts have been increased for the period 1 April 2025 to 31 March 2026. For example, interests valued between £500,000 and £1 million will now attract a charge of £4,450, with the top tier (over £20 million) rising to £292,350.

HM Land Registry has been asked by The Minister of State for Housing and Planning, Matthew Pennycook, to prioritise greater transparency of land ownership and to prepare digital systems to record contractual control agreements (such as options or promotion agreements) ahead of a public launch of a new “Data Collection System” in 2026. Progress is also expected on registering the 11% of currently unregistered land in England and Wales.