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News

Chancellor Rachel Reeves promised to reintroduce mandatory housing targets and review Greenbelt boundaries, amongst other plans to “get Britain building again”. On 30 July, Deputy Prime Minister and Housing Secretary Angela Rayner announced the reintroduction of mandatory housing targets and an increase to 370,000 new homes per annum. On the same day, the government published its consultation on proposed changes to the National Planning Policy Framework (NPPF).

The government has launched the New Towns Taskforce to bring to fruition the vision of new communities of at least 10,000 new homes each. The new towns will be governed by a ‘New Towns Code’ – a set of rules to make sure new towns are well-connected, well-designed, sustainable and attractive places where people want to live. They will help meet housing need by targeting rates of 40% affordable housing with a focus on genuinely affordable social rented homes.

The government has launched the New Homes Accelerator initiative. It’s a collaboration between the government, Homes England, the Greater London Authority, local authorities, developers and other key stakeholders. It aims to unblock and accelerate the delivery of housing developments that have become delayed, or are not progressing as quickly as they could.

The Department for Levelling Up, Housing & Communities has been renamed as the Ministry of Housing, Communities & Local Government (MHCLG), removing what the new government described as a “slogan” from the previous administration.

MHCLG has announced that the Renters’ Rights Bill has been introduced to Parliament. It will ban section 21 ‘no-fault’ evictions for new and existing tenancies, and landlords will be required to provide a valid cause for terminating a tenancy early. The Bill also extends Awaab’s Law, a Decent Homes Standard, to the private rented sector for the first time. It prohibits landlords and letting agents from forcing tenants to bid for their properties, allows once yearly rental increases at the market rate, abolishes blanket bans on tenants with children or those receiving benefits, and creates a Private Rented Sector Database. MHCLG has also published guidance, which says fixed-term assured tenancies will be removed, making all tenancies periodic.

Redrow research shows a third of families have no outdoor play areas or nature spaces within safe walking distance of where they live. It’s causing parents and grandparents to be concerned about the impact on children’s mental health and independence.

A Pocket Living report, ‘Get SMEs Building Again’, outlines a 10-point plan for the SME housebuilding sector. It’s been endorsed by various major developers and trade bodies. Amongst other proposals, it suggests implementing a quota of allocations for local SMEs in local plans, to ensure they continue to play a role in the housing market. It also recommends that Homes England should launch an initiative offering platform-level equity investment to SMEs, using a custom set of standards to assess cost factors and risk profiles for these developers.

3D printing technology has been around for some time, but it could be the next big thing in construction. New research shows that the 3D printing in construction market is expected to grow at a CAGR of 90.1% during the forecast period of 2024 to 2032, propelled by technological advancements, cost efficiency, and sustainability. Precedence Research predicts that the 3D printing construction market will grow to $519.49 billion by 2032. In real estate development, it’s being used for everything from pre-planning design and modelling to robotic arms and even ground-up concrete foundation and layer construction. In Lancashire, Building For Humanity is already constructing what’s set to be the biggest 3D-printed housing development in Europe.

The Leasehold and Freehold Reform Act 2024 (LFRA) has been a long time coming. This Walker Morris briefing highlights the ‘need to know’ for all those concerned with residential development, investment and management.

In related news, Annington Properties has launched legal proceedings against the housing secretary, challenging provisions within the LFRA that create a new mechanism for the calculation of compensation on leasehold enfranchisement. Annington claims that those provisions could give rise to a lessee acquiring the freehold and intermediate leasehold interests for a very low valuation that does not reflect market value. One to watch.

Barratts have entered a joint venture with Homes England and Lloyds Banking Group to create MADE Partnership. MADE will act as master developer for multiple large scale, residential-led developments from 1,000 to more than 10,000 homes along with a variety of community facilities and employment uses. Potential development opportunities will include large brownfield developments, as well as new garden village style communities.

According to Property Week, Lambert Smith Hampton has reported that almost 13m sq ft of office space (equivalent to around 20,000 2-bed flats) across the South East has been earmarked for residential conversion. The ‘flight to quality’ and sustainability drivers are leaving aging office stock increasingly redundant.

Lloyds Bank has confirmed that it will start converting its disused office sites into social housing from next month. Launching with a decommissioned data and office space in West Yorkshire, Lloyds has said it will sell the site to a local housing group with the agreement that 80 new homes will then be rented at about half the usual rate. The banking group is also making a new £200 million financing commitment to support local providers who provide housing for those who need it most, focusing on people experiencing homelessness or individuals with special needs.

The NHBC Foundation has published ‘The UK’s progress towards a Passivhaus standard in new homes’. The report considers the cultural shift needed to construct homes to this standard, and what the end user needs to know about living in a low energy home. With homeowners’ increased awareness of environmental concerns and energy price increases, the benefits of a Passivhaus standard are potentially more important than ever.

In Peabody Trust v National House-Building Council [2024] EWHC 2063 (TCC), the court rejected NHBC’s argument that a claim under its ‘Buildmark Choice’ policies was time-barred. The claim was for additional costs of completing a housing project, resulting from a contractor’s insolvency. NHBC contended that the claimant’s cause of action had accrued as soon as the contractor became insolvent, meaning that the claimant hadn’t raised its claim within the applicable six-year limitation period. However, the court disagreed, finding that the insured risk was not the contractor’s insolvency itself, but the later incurrence of the additional costs caused by the insolvency. In an attempt to improve/streamline residential conveyancing, National Trading Standards updated its guidance on what ‘material information’ should be made available by a prospective seller on the listing of a property for sale. The Law Society then updated Form TA6 (which can be used to provide ‘material information’ to estate agents) and its guidance about how the Consumer Protection Regulations 2008 apply to residential conveyancing. Controversially, new Form TA6 and that guidance appear to suggest that sellers and their lawyers have a duty to disclose a wider range of information (including both latent and patent defects including physical ones), which creates a tension with the long-embedded principle ‘caveat emptor’ (buyer beware). It’s currently unclear how this tension will be resolved. One to watch.

Planning

Walker Morris has published Planning for the future, a look at the key planning related sections of the Labour manifesto and what we can expect in the next few years under the Labour Party.

The government has published its consultation on proposed changes to the National Planning Policy Framework (NPPF). The wide-ranging consultation covers (non-exhaustively) a new, strategic approach to green belt release, changes to housing need calculations and to the approach to affordable housing tenure mix, a new model of universal strategic planning and new emphases on sustainable development and infrastructure.

The government’s consultation on proposed changes to the NPPF includes the 50% affordable homes reform. In a blog published on 28 August, Philip Barnes, Group Land Director at Barratt Developments, warned that the affordable housing policy would deter developers from building on green belt land and said that Barratt has pulled three in-flight planning applications “because the spectre of 50% renders the scheme unviable”.

A recent Scottish case (Miller Homes Mossend appeal) highlighted Scotland’s housing crisis and suggests there’s unlikely to be any immediate solution to the shortage of available housing land. Following that, and Scotland’s May 2024 declaration of a housing emergency, Scotland’s Chief Planner has published a letter which looks to provide further clarification on application of National Planning Framework 4 (NPF), including Policy 16 ‘Quality Homes’.

On 30 July 2024, Matthew Pennycook wrote to the Chief Executive of PINS, Paul Morrison to reverse a 2015 instruction to PINS to act “pragmatically” during local plan examinations to allow deficient plans to be “fixed”.

In Vistry Homes Ltd and Fairfax Acquisitions Ltd [2024] EWHC 2088, the High Court considered how weight should be attributed to material considerations such as economic benefit, BNG and the status of land as PDL in the green belt.

BNG, nature, and climate impact

The UK government has published guidance on how to appeal to the Secretary of State if the Local Planning Authority refuse or fail to determine the biodiversity gain plan.

On 21 May 2024, the Department for Environment, Food & Rural Affairs (DEFRA) published guidance for developers who need to buy statutory biodiversity credits to comply with their biodiversity net gain (BNG) obligations.

The Planning Advisory Service (PAS) has published model clauses for local planning authorities to consider adopting in their decision notices, to ensure compliance with information requirements, under Article 35 of the Town and Country Planning (Development Management Procedure) (England) Order 2015, concerning the BNG condition. The PAS has also published model forms of section 106 agreement that can be used to secure BNG in relation to Habitat Banks, On site contributions, and Off site contributions.

The government has updated its guide to the types of development that will be exempt from BNG requirements.

New planning minister Matthew Pennycock has granted permission for a solar farm and battery storage scheme on green belt land after finding that the benefits, including a 136% BNG, outweighed other harms.

The Court of Appeal has confirmed the landmark High Court judgment in C G Fry v Secretary of State for Levelling Up, stating that government rules aiming to mitigate the impact of nutrient pollution on protected waterways do apply to the final discharge of planning conditions as well as earlier consenting stages.

The Times (22 July 2024) has reported that the new Labour government will change nutrient neutrality rules via the forthcoming Planning and Infrastructure Bill. It said the government will propose that developers will be allowed to begin work and agree to environmental mitigation measures during construction, rather than beforehand, and that new homes will only be occupied once the mitigations were in place. The plans should speed up development without compromising the environment.

The Future Homes Hub has launched Homes for Nature. It’s a voluntary scheme, coming to effect in September 2024 for new planning applications, under which housebuilders commit to installing bird-nesting boxes or bricks and hedgehog highways, along with other measures and annual reporting, to track progress and support nature-led, sustainable developments. 21 major housebuilders have already signed up.

The Supreme Court’s decision in Manchester Ship Canal v United Utilities Water is the latest example of the courts finding flexibility within the law to facilitate environmental protection. Against a backdrop of increased focus on the state of the UK’s waterways, in finding that the canal owner can pursue a private nuisance claim against the statutory undertaker, the Supreme Court’s decision could prompt claims against water companies and investment in improved water infrastructure. The case could potentially have implications for nuisance claims against other statutory undertakers.

Water Morris has written previously on the environmental and commercial concerns associated with water stress. The Future Homes Hub has recently published its report, ‘Water Ready: A report to inform HM Government’s roadmap for water efficient new homes‘ which set out a timeline for changes in Building Regulations in 2025, 2030 and 2035, to deliver a significant improvement in the water efficiency of new homes. Understanding the direction of travel on water efficiency will be increasingly important for developers and the supply chain, to aid planning and gearing up for achieving higher standards at scale.

On 9 July 2024, the First Minister of Wales announced that the legislative priorities of the Welsh Parliament for the current term to 2026 would include an Environmental Principles and Biodiversity Bill to establish a statutory environmental governance body for Wales and introduce legal targets to protect and restore biodiversity.

Consumer Scotland has launched an investigation into consumer protections in the green home heating market. See below (Under ‘Commercial/general’ for the outcome of the Competition and Markets Authority’s investigation into heating and hot water products company, Worcester Bosch.)

Five more projects have been awarded over £57 million from the Government’s Green Heat Network Fund. These projects, integral to comprehensive urban renewal plans, will provide sustainable, low carbon heat to 17,000 new homes, commercial spaces, and public buildings, contributing to vibrant, future-proofed communities. (See Walker Morris’ briefing on heat networks.)

Building Safety

The Court of Appeal has dismissed an appeal, brought by Redrow, against the Secretary of State’s decision to award approx. £30m Building Safety Fund to pay for remedial works at two high rise developments in Birmingham, which Redrow, the developer, would be required to reimburse.

The Welsh Government has published the Building Safety Act 2022 Handbook for Wales Design and Construction Phase, which confirms that the Building Safety Act 2022 (BSA) will be implemented in phases in Wales.

The Construction Leadership Council has published Delivering the golden thread: Guidance for dutyholders and accountable persons. It’s aimed at helping all those with duties relating to the design, construction, operation and management of higher-risk buildings to understand their respective duties and responsibilities and the benefits of having a systematic approach to information for their building.

The Royal Institution of Chartered Surveyors has updated its BSA FAQs.

Retirement living

Do you operate in the retirement or care living sector? If so, this industry outlook may be of interest.

An independent review of the Care Quality Commission (CQC) has identified significant failings which are rendering it “not fit for purpose”. The government has committed to take immediate steps to restore public confidence in the effectiveness of health and social care regulation, including by increasing the level of oversight of CQC, ahead of a full report which will be published in the autumn.

Proposals for a new inspection regime legislation in Wales have been published for consultation. Among the draft regulations are requirements for providers to display inspection ratings and a system for appealing ratings. The consultation closes on 14 October.

From 2 March 2025, all new care homes will need to install sprinklers, irrespective of height.

Columbia University has recently conducted research which seems to prove that 70 really is the new 60. At the same time, The Times (11 July 2024) has reported that the later living is grappling with finding appropriate language to describe its homes and homeowners or tenants: “The word resident sounds like a care-home inmate; seniors is too American; pensioners too pejorative and retirees, distinctly passé. Now [the industry is] throwing out the word “retirement” in a bid to distinguish modern, independent-living schemes from the nursing and care sector.”

My Home Life England (part of City St George’s, University of London) has conducted one of the largest ever qualitative research studies on older people’s experiences of living in residential care.

Care home providers are invited to give their views on a new CQC handbook.

Bupa has launched a GP subscription service offering online and in-person appointments.

Skills for Care has published Workforce Strategy for Adult Social Care in England, July 2024.

The Royal College of Nursing has demanded an urgent investigation into exploitative repayment clauses which are reportedly being used by rogue employers to trap and extort money from migrant care workers.

Updates for GCs and in-house legal

Corporate/corporate reporting

The Task Force on Nature-related Financial Disclosures announced a 30% increase in adopters of their corporate reporting recommendations since January and released a suite of sector guidance, including recommended sector-specific disclosure metrics, to support reporting by companies and financial institutions. New sector guidance covers aquaculture, biotechnology and pharmaceuticals, chemicals, electric utilities and power generators, food and agriculture, forestry and paper, metals and mining, as well as oil and gas. The TNFD has also published guidance to help banks, re/insurance companies, asset managers and owners, and development finance institutions apply its recommended disclosures.

The International Sustainability Standards Board ISSB has published its feedback statement for 2024 on the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. The plans aim to support the application of disclosure requirements under IFRS S2, Climate-related disclosures, and decrease fragmentation of information in the market.

The government has published a policy paper on the framework and terms of reference for the development of UK Sustainability Reporting Standards, and an update on the government’s wider work programme to develop a Sustainability Disclosure Requirements regime in the UK.

The deadline for the EU Commission to publish certain reporting standards under the EU Corporate Sustainability Reporting Directive (CSRD) has been delayed from 30 June 2024 to 30 June 2026. The CSRD, which came into force in January 2023, sets out disclosures for companies to include in their annual report in relation to sustainability matters. Even though the UK is not part of the EU, the CSRD will impact some UK incorporated companies.

The Department for Business & Trade is consulting on exempting medium-sized companies from preparing a strategic report as part of their annual report and accounts. The consultation also seeks views on increasing the maximum number of employees that a company can have in order to be ‘medium-sized’ from not more than 250 to not more than 500 employees. It also gives details of other steps planned to streamline non-financial reporting.

Commercial/general

The Terrorism Protection of Premises Bill (AKA Martyn’s Law) is expected to become law in 2024. Proposed in the wake of the Manchester Arena bombing, it aims to strengthen security measures in public venues across the UK. As well as concert halls, stadiums, and other crowded spaces, the implications of Martyn’s Law will extend to other publicly accessible venues and events, including hospitals, large care homes, shops, leisure, education and transport facilities, and more.

Guidance on the UK’s new failure to prevent fraud offence is set to be published in the next three months, meaning the offence could become law by April 2025.

The European Commission has published an FAQ document on the EU Corporate Sustainability Due Diligence Directive which entered into force on 25 July 2024. The Directive sets out a corporate due diligence duty for large companies to identify and address adverse human rights impacts, environmental impacts in their own operations, their subsidiaries and in their activity chains, and an obligation for large companies to adopt a transition plan for climate change mitigation.

Billed as the world’s first comprehensive legal framework on AI, the landmark European Union AI Act has now been finalised. See Walker Morris’ briefing.

The new Labour government plans to create a new ‘Regulatory Innovation Office’, bringing together existing functions across government, and to introduce binding regulation on companies developing the most powerful AI models.

A Senior Associate in Walker Morris’ Regulatory & Compliance team recently shared their insights on the growing trend of AI claims in advertising in this recent BBC article on ‘AI washing’

On 16 July, the Competition and Markets Authority (CMA) published its final advice for businesses marketing green heating and insulation products. In August, the CMA closed its ‘greenwashing’ investigation into heating and hot water products company Worcester Bosch (WB) in August, following WB’s giving of some fairly significant undertakings in relation to its marketing of its boilers. But greenwashing isn’t just an issue for the heating products industry – it’s a concern for businesses in all sectors. This investigation, and those in other companies/industries, concluded with businesses formally committing to ensuring that green claims are lawful in future without the CMA having to prosecute. When relevant provisions of the Digital Markets, Competition and Consumers Act 2024 come into force (possibly late 2024/2025), the CMA will additionally be able to directly fine businesses up to 10% of their global turnover for breaches of consumer protection law. See Walker Morris knowhow on greenwashing and our recent article on the wider ‘washing’ phenomenon for legal and practical advice.

The Department for Business and Trade (DBT) is consulting on de-regulating the Commercial Agents Regulations, with a view to simplifying the legislative framework, reducing court time spent interpreting the regulations, and enabling businesses to contract more freely.

DBT has published the Assimilated EU Law Parliamentary Report for January 2024 to June 2024. It highlights progress to date and future plans on revoking and reforming assimilated law.

People

Before the outcome of the general election, Walker Morris’ Employment experts set out what a Labour victory might mean for employers.

On 26 October 2024, a new obligation will come into force for employers to proactively take reasonable steps to prevent sexual harassment of their workers. Historic policies in employee handbooks won’t suffice. See Walker Morris’ briefing for information and advice.

The Supreme Court has unanimously allowed the employees’ appeal in the high profile Tesco ‘fire and re-hire’ case.

An Employment Rights Bill will be introduced to Parliament in October 2024. Key aspects include making parental leave, sick pay and protection from unfair dismissal available from day 1 for all workers; strengthening protections for new mothers; strengthening Statutory Sick Pay by removing the lower earnings limit; banning exploitative zero-hour contracts and fire and re-hire/fire and replace practices; and establishing a new Single Enforcement Body. See our recent article for more details and suggested preparatory actions.

The International Chamber of Commerce published the first part of a report series looking at the role of emotion, culture and behavioural tendencies and their impact on B2B relationships.

Research (Digital Noise Impact Report) from employee experience platform, Unily, shows that nearly half of all employees are distracted at least once every 30 minutes, and almost a third report being distracted at least once every 15 minutes by a workplace notification. That means employees working 8-hour days could be experiencing over 160 distractions from their workplace digital tools each week. It’s impacting both employee wellbeing and productivity.

The Home Office published updated guidance for employers on right to work checks.

In Orwin v East Riding of Yorkshire Council, an employee had been dismissed for refusing to remove an email signature using preferred pronouns that was intentionally provocative. The claimant’s views, including that sex is biologically immutable and binary, were protected under the Equality Act 2010. However, the email signature (“XYchromosomeGuy/AdultHumanMale”) was a deliberately provocative act to mock the idea of gender self-identification, rather than an expression of the claimant’s gender identity. The dismissal was in response to an inappropriate manifestation of the claimant’s beliefs, rather than because he held gender critical beliefs. It was therefore not discriminatory.

The Equality and Human Rights Commission (EHRC) has published updated guidance for those placing or publishing advertisements, to help them make sure adverts are lawful and don’t discriminate.

The Workers Union launched a major new 4-day working week trial with the hope of influencing the new government. The trial will start in November and the findings will be presented to the government next summer.

After becoming the first retailer to publish a socio-economic pay gap report, the Co-op is calling on government and businesses to take collective action to tackle inequality as it campaigns for changes to the Equality Act.