Over the last year, the government has published a significant volume of strategy and consultation documents, as well as a raft of policy and tax announcements. Collectively, the impact will be huge across the property and construction sectors.
We hope this hub provides a helpful overview, along with links to official sources and our expert commentary and research.
Legislation & Regulatory Update
September 2025
Spending Review 2025
Infrastructure
Index
Planning
Click to read section below
Housing
Commercial
Rural Land
Get in touch
The National Planning Policy Framework (NPPF)
Click to read more
07917 233498
Sophie Davidson
Associate, Research
Email
Planning
The National Planning Policy Framework (NPPF)
Main points:
The previous advisory housing targets are now mandatory for local authorities. A new standard methodology for calculating housing need has been introduced.
The revisions introduced the term ‘grey belt’, which is a new category for lower-quality or previously developed land within the Green Belt that can be prioritised for development. New developments on grey belt land are subject to ‘golden rules’, which require them to provide essential infrastructure and a high proportion of affordable housing.
It places a greater onus on local authorities to maintain up-to-date local plans, with the government threatening direct intervention if they fail to do so.
Planning practice guidance (PPG), which provides practical advice on how to apply the policies set out in the NPPF, has also undergone revisions. Notably, the PPG entitled ‘Green Belt’ was updated in February 2025 and sets out the recommended technical methodology to assess land to understand whether land can constitute ‘grey belt’.
Implications: The new ‘grey belt’ category could increase opportunities for developers
and, coupled with the return of mandatory housing targets, help accelerate the rate of housebuilding.
Overview: The NPPF is a key document that sets out the UK government's planning policies for England. While not a law itself, it must be considered by local planning authorities when they create their own local plans and determine planning applications.
Key dates: First published in March 2012, but since undergone several revisions. The latest significant update took place in December 2024.
Carter Jonas Comments
Document
Link
Dan Francis
Head of Research
020 7518 3301
Email
020 7518 3301
Email
Planning and Infrastructure Bill
English Devolution and Community Empowerment Bill
Speeding Up Build Out
Biodiversity Net Gain (BNG)
UK Infrastructure: A 10 Year Strategy
Clean Power 2030 Action Plan
Landfill Tax Reform
Railways Bill
Water Sector Reforms
Click to read more
Renters’ Rights Bill
The Leasehold and Freehold Reform Act
New Towns
Minimum Energy Efficiency Standards (MEES)
Click to read more
The UK’s Modern Industrial Strategy
National Security Strategy 2025
Minimum Energy Efficiency Standards (MEES)
Proposal to ban Upwards Only Rent Reviews
Click to read more
Agricultural Property Relief (APR) and Business Property Relief (BPR) from Inheritance Tax
Land Use Framework
Click to read more
Main points:
It confirmed the next steps for several significant transport schemes, with £15.6bn of investment pledged between 2027 and 2031 for projects in English city regions outside London. It also increased funding to improve motorways and local roads. That said, the budget for the Department for Transport was cut by an average of 5.0% annually in real terms.
Defence spending will rise to 2.6% of GDP by 2027, with significant investments in areas like nuclear warheads, laser weapons, autonomous systems, and munitions.
The budget for the Department for Science, Innovation & Technology increased by an average of 7.4% in real terms from 2025 to 2029.
A new 10-year Affordable Homes Programme is set to receive £39bn from 2026.
Implications: The plan signals government commitment to infrastructure investment, and increased spending on defence and technology, which has the potential to boost demand for industrial space, laboratories, and data centres. However, the success hinges on overcoming challenges associated with the planning system and labour market, and the ability to attract to private investment.
Carter Jonas Comments
Document
Link
Overview: The Chancellor of the Exchequer announced planned spending totals for all UK government departments. It covered financial years 2026/27 to 2028/29 for day-to-day spending, extending to 2029/30 for capital investment.
Key dates: Published in June 2025
Spending Review 2025
Planning and Infrastructure Bill
Main points:
It includes measures to speed up decisions on nationally significant infrastructure projects (NSIPs), including streamlined consultation requirements, ensuring National Policy Statements are kept up to date, and reducing opportunities for judicial review.
It introduces a new system for strategic planning, placing a duty on local authorities to create ‘Spatial Development Strategies’ to ensure a joined-up approach to meeting housing and infrastructure needs across wider areas.
It proposes a new system where developers can pay into a ‘Nature Restoration Fund’ to compensate for the environmental impact of development.
Reforms to the compulsory purchase process are included to make it easier and faster for local authorities and development corporations to acquire land for new homes and infrastructure.
Implications: Transforming the UK into a ‘clean energy superpower’, delivering major transport infrastructure, and accelerating the rate of housebuilding are all core elements of the government’s agenda. However, moving major schemes through the planning process is a key bottleneck to delivery. Importantly, the Bill aims to accelerate delivery through increased certainty and improved decision-making in the planning system.
Carter Jonas Comments
Document
Link
Overview: This Bill aims to streamline the planning process and fast-track the delivery of new homes and large-scale infrastructure.
Key dates: Introduced to the House of Commons in March 2025 and currently going through Parliament.
Planning
English Devolution and Community Empowerment Bill
Main points:
The Bill introduces a new tier of ‘strategic authorities’ to cover the whole of England.
Mayors of strategic authorities will receive unprecedented powers in areas such as transport and local infrastructure, skills and employment support, housing and strategic planning, and economic development.
Implications: The UK has an extremely centralised decision-making structure, and a power shift to local leaders provides an opportunity for more strategic and targeted investment. Additionally, the proposed amalgamation of local authorities into fewer, larger strategic authorities offers the opportunity for better spatial planning across larger geographies, albeit at the possible expense of less local accountability. A potential drawback is its implementation could delay decision making in the short term.
Document
Link
Overview: The Bill creates a new, standardised framework for devolution across England, replacing the previous ad-hoc system of individual deals.
Key dates: Introduced to Parliament in July 2025, it is expected to become law in late 2025 or 2026.
Planning
Speeding Up Build Out
Main points:
For residential developments of 50 homes or more, a build-out statement will be required.
Local authorities will be given a new power to decline planning applications from developers with a history of failing to deliver developments at a ‘reasonable rate’.
It is considering a ‘delayed homes penalty’.
Implications: These new accountability measures could represent a move away from a commercial model where developers build at a pace that suits market absorption rates. As the private sector is fundamental in addressing the housing shortage, the threat of penalties must be balanced with adequate incentives to build.
Document
Link
Overview: A policy initiative designed to address the slow pace of construction on large housing developments that already have planning permission.
Key dates: Policy paper published in May 2025. A consultation was open from May until July 2025.
Planning
Biodiversity Net Gain (BNG)
Main points:
You can find more details on how BNG works in practice on our Natural Capital Exchange site https://www.carterjonas.co.uk/natural-capital/exchange/biodiversity, or by navigating to our most recent research below.
Implications: BNG creates a new revenue stream for landowners who can create and sell ‘biodiversity units’ to developers. However, it increases costs and complexity for developers, and concerns have been raised over the impact on food production if too much land is taken out of agricultural use.
Document
Link
Overview: Mandatory BNG, introduced by the Environment Act 2021, requires developers to calculate the biodiversity value of a site before and after development. The post-development biodiversity value must be at least 10% higher than the pre-development value.
Key dates: BNG became mandatory for major developments in England in February 2024, and small sites in April 2024. From May to July 2025, Defra ran two consultations on BNG: one on implementation of BNG for minor (1 to 9 dwellings, commercial floor area less than 1,000 sq m or a site area less than 1 hectare), medium (10 to 49 dwellings and up to 1 hectare in size) and brownfield development and another on nationally significant infrastructure projects (NSIPs). Defra is yet to publish responses.
Planning
Our latest research
UK Infrastructure: A 10 Year Strategy
Main points:
The strategy is overseen by the newly established National Infrastructure and Service Transformation Authority (NISTA).
There are three key themes: greater certainty around funding and the future projects pipeline, the importance of attracting private finance, and providing a more joined-up strategic approach.
An ambition to make the UK a ‘clean energy superpower’, with investments in renewable energy, nuclear power, and carbon capture projects.
The live, interactive dashboard lists both publicly and privately funded projects and provides detailed information on project timelines, funding status, and procurement routes.
Implications: The strategy offers much needed direction. Coupled with other recent policy announcements, it has the potential to unlock vital private sector investment.
Document
Link
Overview: Its primary purpose is to provide long-term certainty for public and private investment in infrastructure. It brings together economic infrastructure (such as transport and energy) with social infrastructure (such as hospitals, schools and prisons), and includes maintenance programmes as well as new projects.
Key dates: Published in June 2025, with an interactive dashboard of the major projects pipeline launched in July 2025.
Infrastructure
Carter Jonas Comment
UK Infrastructure Pipeline
Clean Power 2030 Action Plan
Main points:
It focuses on three key areas: grids and connections, planning reforms, and accelerated deployment of clean technologies.
The plan confirms the establishment of Great British Energy, a new state-owned clean energy company, and the creation of the National Energy System Operator (NESO) which will provide expert advice and oversee the delivery of the 2030 goal.
It aims to build roughly twice as much new transmission network infrastructure by 2030 as was built in the previous decade. It includes a major reform of the grid connections process, ending the ‘first-come, first-served’ system. NESO closed the evidence submission window for their all-encompassing grid reform in August 2025.
The plan sets out ambitious targets for the expansion of renewable and nuclear energy. It calls for a significant increase in offshore wind, onshore wind, and solar power capacity by 2030. It also outlines continued support for new nuclear power projects, and technologies like carbon capture and storage (CCUS) and hydrogen power.
Implications: While reforms to grid connections and mechanisms to accelerate the development of renewable energy are essential, there has been concern over the lack of clarity on future electricity market reforms. This could deter much-needed investment.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: The plan aims for ‘clean power’, defined as a system where at least 95% of electricity generation comes from clean sources by 2030. This transition is intended to provide long-term energy security, lower consumer bills, and create new jobs.
Key dates: Published in December 2024
Infrastructure
Water Sector Reforms
Main points:
The main change is the proposed abolition of Ofwat and the merging of its functions with the water responsibilities of the Environment Agency, Natural England, and the Drinking Water Inspectorate. This will create a single water regulator to oversee both the economic and environmental performance of water companies.
New policies aim to hold water company executives and shareholders to account.
The government has committed to developing a comprehensive long-term national water strategy to guide investment, planning and regulation for at least the next 25 years.
Implications: This could increase the pace at which water infrastructure is upgraded or new infrastructure delivered.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: Following significant public concern over sewage pollution and poor corporate performance, the government has announced reforms to the water sector.
Key dates: In July 2025, the government announced a major overhaul of the water sector. A public consultation is expected this autumn, followed by a new Water Reform Bill.
Infrastructure
Landfill Tax Reform
Main points:
The government proposes to increase the lower rate to align with the standard rate by 2030, effectively creating a single rate for all landfilled waste. This would bring the lower rate up to £126.15 per tonne from £4.05 per tonne, an increase of £122.10 per tonne.
The consultation proposes removing certain exemptions and reliefs, such as those for quarries and water discounting.
Implications: A large proportion of waste is currently charged at the lower rate (64% in 2023/24). The proposed changes could therefore lead to considerable market disruption, potentially impact viability, and could mean more schemes being designed to accommodate inert waste on site.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: Landfill Tax is a levy charged on the disposal of waste in landfills. Its purpose is to encourage businesses and individuals to reduce waste and seek more sustainable alternatives. The tax is charged per tonne of waste and has two rates: a standard rate and a lower rate for inert materials.
Key dates: A consultation was launched in April 2025 and closed in July 2025. A response is expected in 2026.
Infrastructure
Railways Bill
Main points:
The establishment of Great British Railways, a new public body to oversee the rail network.
The bill will provide a new statutory role for devolved and local leaders in governing, managing and planning the rail network to better meet regional needs
Implications: The changes have the potential to lead to more efficient and long-term railway infrastructure planning, acting as a single ‘directing mind’ by combining infrastructure and operations. However, the transition is likely to prove complex.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: Following the Passenger Railway Services (Public Ownership) Act 2024, the government is looking to bring forward a more comprehensive Railways Bill.
Key dates: A consultation ran from February to April 2025. The bill is expected to be published later in 2025.
Infrastructure
Renters’ Rights Bill
Main points:
For more information, refer to the Carter Jonas links below.
Implications: While mainly beneficial for tenants, it could have serious unintended consequences for available stock in the UK’s private rented sector. Alongside other changes, these new regulations may not only discourage landlords from entering the sector in the first place, but may also push those who do own properties to sell up.
Document
Link
Carter Jonas Comment
Key Changes
Overview: This landmark legislation aims to fundamentally reform the private rented sector in England. It replaces the previous government's Renters (Reform) Bill and is designed to provide greater security and stability for tenants while balancing the rights and responsibilities of landlords.
Key dates: It has been progressing through Parliament with Royal Assent expected in autumn 2025.
Housing
The Leasehold and Freehold Reform Act
Main points:
It streamlines the process for leaseholders to extend their lease or buy their freehold, and to take over the management of their building.
The standard lease extension term for both houses and flats is being increased to 990 years, and ground rent capped. These have not yet come into force.
A ban on the sale of new leasehold houses is not yet in effect.
Implications: The changes are anticipated to make buying and selling leasehold properties more attractive. However, with many details still outstanding, the impact is uncertain.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: This legislation for England and Wales was designed to improve the rights of residential leaseholders.
Key dates: Received Royal Assent in 2024. Implementation is being phased through secondary legislation, with key reforms expected in late 2025 and 2026.
Housing
Commonhold Reform
Main points:
While the Leasehold and Freehold Reform Act 2024 reforms the existing leasehold system, the new legislation is expected to replace it entirely for new flats.
The new model, known as commonhold, allows flat owners to own their property outright and collectively manage their building, removing the need for a third-party freeholder.
Implications: Commonhold properties are expected to be more attractive to buyers, which could lead to an increase in values. Developers will lose the long-term income streams from ground rents and lease extensions and so will need to adapt their business models.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: The Commonhold and Leasehold Reform Act 2002 first introduced the commonhold model in England and Wales, but it failed to be widely adopted. This planned legislation is a central part of the plan to phase out the leasehold system.
Key dates: The Commonhold White Paper was published in March 2025. A draft bill is expected later in 2025.
Housing
Minimum Energy Efficiency Standards (MEES)
Main points:
Since April 2020, landlords have no longer been able to let (or continue to let) properties covered by the MEES regulations if they have an EPC rating below E, unless they have a valid exemption in place.
A 2024-2025 consultation gathered views on the framework for EPCs for both domestic and non-domestic properties, including a proposal to add new metrics to EPCs. A separate consultation in 2025 proposed to raise the requirement to the equivalent of Energy Performance Certificate (EPC) C by 2030. The government has confirmed that it will move forward with a revised EPC framework, but it yet to publish its response to the second consultation.
The 2026 consultation is set to focus on ‘policy design options’.
The government also consulted on a proposal to set MEES for socially rented homes in 2025.
Implications: Compliance with MEES regulations can be a significant financial burden, particularly for owners of older properties. This may lead some landlords to sell their assets, potentially worsening the shortage of rental homes. However, those who invest in upgrades could benefit from higher rental yields and increased property value, although the return on investment remains uncertain.
Document
Link
Carter Jonas Comment
UK Infrastructure Pipeline
Overview: MEES sets a minimum EPC requirement for residential rental properties in England and Wales.
Key dates: A consultation ran from February to May 2025. A follow-up consultation is set to be opened in 2026.
Housing
New Towns Taskforce
Main points:
For more information, refer to the Carter Jonas link below.
Implications: The Taskforce is a great starting point. However, a programme of building new towns is a highly challenging and long-term proposition. It will need to be combined with a raft of other policy initiatives to meaningfully boost the rate of housebuilding towards the government’s ambitious target. Success hinges on several critical factors, including land assembly, overcoming complex regulatory constraints and ‘nimbyism’, as well as the ability to attract private investment. Choosing the right locations and having the right governance structures in place will be vital.
Document
Link
Carter Jonas Research
UK Infrastructure Pipeline
Overview: The New Towns Taskforce is an independent advisory panel established by the UK government to identify and recommend locations for a new generation of new towns. Their work is part of a broader government strategy to accelerate housebuilding.
Key dates: The New Towns Taskforce was established in September 2024, an interim update was provided in February 2025, and a final report is expected in the autumn.
Housing
The UK’s Modern Industrial Strategy
Main points:
The strategy prioritises eight growth sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
Each of the sectors has its own bespoke, 10-year plan with targeted interventions to attract investment, boost skills, and remove regulatory barriers.
Implications: Incentivising capital flow into these sectors will help generate demand for commercial real estate, particularly in the data centre, life sciences and industrial sectors. It will also be important in helping to boost the UK’s long-term rate of economic growth.
Document
Link
Carter Jonas Research
UK Infrastructure Pipeline
Overview: A 10-year plan to drive economic growth and productivity by focusing on specific high-growth sectors.
Key dates: Published in June 2025.
Commercial
National Security Strategy 2025
Main points:
It commits to spending 5% of the UK’s GDP on national security by 2035.
The strategy is built around three pillars: security at home, strength abroad, and increasing sovereign and asymmetric capabilities, with a strong focus on technology and industrial capacity.
The security at home pillar involves strengthening critical national infrastructure. This includes undersea cables, energy pipelines, transportation and logistics hubs.
Implications: In addition to investment in infrastructure, increased spending in manufacturing defence equipment domestically is likely to drive demand for manufacturing and logistics facilities.
Document
Link
Carter Jonas Research
UK Infrastructure Pipeline
Overview: The strategy identifies the main security challenges the UK faces and sets out a new strategic framework.
Key dates: Published in June 2025.
Commercial
Proposal to ban Upwards Only Rent Reviews
Implications: The government hopes that banning UORRs will help to invigorate the high street by enabling rents to adjust to market conditions during a downturn. However, given the plethora of other challenges facing retailers, it is unlikely to make any significant difference. At the same time, it does present a risk for some commercial property sectors such as prime central London offices, where 10 or 15-year leases are still common for top quality space, and the market is more cyclical. Ultimately, the proposed ban may not make it into law or is likely to be heavily modified during its passage through parliament.
Document
Link
Carter Jonas Comments
UK Infrastructure Pipeline
Overview: The English Devolution and Community Empowerment Bill (discussed separately) includes a proposal to ban Upwards Only Rent Reviews (UORRs) for commercial leases in England and Wales.
Key dates: Implementation is suggested for 2027/2028.
Commercial
Minimum Energy Efficiency Standards (MEES)
Main points:
From 1 April 2018, it became unlawful to grant new leases or renew existing ones for non-domestic properties with an EPC rating of F or G.
From 1 April 2023, the regulations were extended to cover all existing non-domestic leases, making it unlawful to continue letting any F or G rated property, unless a valid exemption is in place.
It is currently expected that the minimum EPC rating will rise to EPC C in 2028 and EPC B in 2030. This originates from a 2021 government consultation, although the timeline has changed slightly from earlier proposals.
A consultation ran from December 2024 to February 2025 to gather views on the framework for EPCs for both domestic and non-domestic properties, including a proposal to add new metrics to EPCs. A response is outstanding.
Implications: Corporate occupier demand is already concentrated on high quality stock with an EPC rating of B or above, driven partly by occupiers planning ahead for compliance, and partly due to an increasing focus on providing high quality space for staff to assist recruitment, retention, creativity and productivity. However, smaller occupiers and start-ups often rely on cheaper space, and they could be left unable to afford accommodation if landlords are forced to remove it from the market.
Document
Link
Carter Jonas Research
UK Infrastructure Pipeline
Overview: MEES sets a minimum EPC requirement for commercial properties in England and Wales.
Key dates: The industry has been expecting a formal response to the previous government's 2021 consultation on the future trajectory of commercial MEES. It has been anticipated in 2025 but has not yet been published.
Commercial
Agricultural Property Relief (APR) and Business Property Relief (BPR) from Inheritance Tax
Implications: The changes will present a significant financial challenge for agricultural businesses who plan to pass on their farms to the next generation. It is likely that land and property will have to be sold, or debt taken on to pay the new inheritance tax charges.
Document
Link
Carter Jonas Comments
Carter Jonas Research
Overview: In the most significant change to these reliefs since the 1990s, the government announced the introduction of a £1 million cap on the amount of property that can receive 100% relief.
Key dates: The government announced reforms at the Autumn Budget 2024. They held a consultation from February to April 2025 and published draft legislation in July 2025 (Finance Bill 2025-26). The new rules are scheduled to come into effect in April 2026.
Rural land
Land Use Framework
Main points:
It aims to provide a strategic, high-level set of principles to guide decision-making on how land is used.
The goal is to balance critical needs like food production, housing, infrastructure development, climate change mitigation, and nature recovery.
Implications: Is it likely to be a source of both opportunity and concern, reconciling often competing priorities for development, the environment, and food production.
Document
Link
Carter Jonas Comments
Carter Jonas Research
Overview: The government has launched a consultation on the first national Land Use Framework for England.
Key dates: A consultation was open from January to April 2025. A response is outstanding.
Rural land
Commonhold Reform
It is important to note that this briefing is not exhaustive. We have selected those policies and announcements that we consider to have the greatest impact.