2026 is set to be one of the most significant years for the real estate sector in England and Wales in over a decade. Although some of the most dramatic reforms rumoured pre‑Budget did not materialise, a series of wide‑ranging legislative, regulatory and judicial developments are now confirmed, or expected, over the next 12 months.

Below is a clear overview of the changes property owners, landlords, tenants and lenders need to be aware of.

Residential lettings

The Renters’ Rights Act 2025, which received Royal Assent on 27 October 2025, will begin its phased 10‑year rollout, starting with the most impactful reforms coming into force on 1 May 2026.

From 1 May 2026:

Asts and fixed‑term tenancies abolished
All new and existing Assured shorthold tenancies (ASTs) and fixed term assured tenancies (FTATs) become periodic tenancies, with:

• Rent payable monthly or in periods of under 28 days
• A ban on taking more than one month’s rent upfront
• Rent increases only once every 52 weeks (with Section 13 notice and right to challenge at the First‑tier Tribunal)
• A new statutory right to request a pet, with consent not to be unreasonably refused
• Strengthened landlord information duties with financial and criminal penalties for non‑compliance

Section 21 ‘no‑fault’ evictions abolished
Possession will only be possible using Section 8 grounds, many with extended notice periods, significantly increasing security of tenure for tenants.

Leasehold Reform

Further reforms under the Leasehold and Freehold Reform Act 2024 are expected in 2026, including:

• Government response to its consultation on service charge transparency and litigation costs
• Steps towards capping “permitted insurance payments” passed to leaseholders
• A potential appeal by major freeholders regarding the abolition of marriage value and new enfranchisement valuation rules
• Progress towards making commonhold the default tenure for flats, with a draft Bill expected in early 2026

Residential conveyancing

Following a Government consultation that closed in December 2025, a roadmap for streamlining the residential conveyancing process, aimed at reducing the 1‑in‑4 fall‑through rate, is expected later this year.

Commercial Leases

2026 could see major shifts in business tenancies, including:

• Law Commission proposals to reform the Landlord and Tenant Act 1954 renewal rights
• A Bill that would ban upwards‑only rent reviews, instead allowing rents to move both up and down with the market
• The first full year of implementation of the updated RICS Service Charge Standard (effective December 2025), which will influence day‑to‑day management practices

Residential property management

From 6 April 2026, the Fire Safety (Residential Evacuation Plans) Regulations 2025 take effect, requiring:

• Formal evacuation plans for high‑risk residential buildings
• Identification of residents needing evacuation assistance

Wales is expected to introduce similar provisions in 2026.

Consultations also continue on mandatory qualifications for managing agents and providing freeholders with a right to manage their estates.

Real estate finance

Lenders are already assessing how the reforms may impact risk profiles, particularly:

• Reduced predictability of rental income under the Renters’ Rights Act
• The Building Safety Levy for relevant developments from 1 October 2026
• Practical complications in charging commonhold property interests
• The possibility of declining commercial rents if upwards‑only reviews are abolished
• Data centres potentially shifting into the NSIP regime, meaning financing may fall under infrastructure lending

Cases to watch in 2026

Several high‑profile appeals could reshape building safety, service charges, enfranchisement, easements and right‑to‑manage processes. Judgments are expected throughout the year.

Conclusion

With far‑reaching legislative changes, new safety obligations and a busy appellate timetable, 2026 marks a turning point for real estate law in England and Wales. Early preparation will help owners, landlords, tenants and lenders adapt to the new landscape and avoid unnecessary cost, delay or risk.

Our real estate team advises across all of the areas covered above. If you have questions about how these changes may affect you, we’re here to help, get in touch.