<p>Filter Knowledge</p>

As Autumn kicks in, we look at 6 real estate sub-sectors and consider recent trends in law and practice.

The abolishment of ground rent in residential long leases comes as part of a package of Government reforms designed to curtail unfair practices in the leasehold market, which we explored in our previous briefing. From 1 April 2023,[1] this applies to all new leases granted with a term of more than 21 years in the senior living sector, though will not impact existing ones. The changes, brought about by the Leasehold Reform (Ground Rent) Act 2022 (the Act), have necessitated developers, investors and owners of retirement housing reforming their existing leasehold structures, which have typically relied upon ground rent as a way to recoup the enlarged capital costs of constructing enhanced communal spaces within retirement schemes.

Amid widespread concern about the workings of the housing market in the UK, in February 2023 the Competition and Markets Authority (the "CMA") launched a consumer protection project into the rented housing sector, alongside a separate market study into housebuilding, discussed here.  Whilst acknowledging that some of the problems in the rented housing sector are not within its remit, it has stated its intention to ensure that ineffective competition or unfair business practices do not increase costs, limit choice or reduce quality for tenants. Following an initial 3 month period of engagement, the CMA has published an update report into the rental housing sector which summarises the feedback it has received from a wide variety of stakeholders, and identifies the four areas on which it intends to focus in the next stage of its project.

The Competition and Markets Authority (the "CMA") has powers under the Enterprise Act 2002 to conduct inquiries into the workings of a market. The framework is a two-stage one: a preliminary market study (lasting for 12 months), followed by an in-depth market investigation in cases where the CMA considers there to be reasonable grounds to suspect that a feature (or combination of features) of a market in the UK prevents, restricts or distorts competition.

Travers Smith LLP has advised AshbyCapital (Ashby) on the refinancing of its Morfa and Westside retail parks with a three-year c.£50 million loan provided by existing lender Deutsche Hypo.

Travers Smith LLP has advised Lothbury Investment Management ("Lothbury") on its sale of the Tera 40 industrial estate in Greenford, west London, to Valor Real Estate Partners for around £146m.

Travers Smith has advised Panmure Gordon (UK) Limited (as Sponsor, Joint Financial Adviser and Joint Broker) and Numis Securities Limited (as Joint Financial Adviser and Joint Broker) in relation to the acquisition of The Gyle Shopping Centre in Edinburgh by the UK focused REIT Capital & Regional plc for a total acquisition consideration of £40m.

Our round-up of recent and forthcoming developments in UK law and practice for our international stakeholders.

The Building Safety Act 2022 overhauls the existing health and safety regulations for residential buildings and is intended to give residents more rights, powers and protections. One aspect of this new regime is that owners of higher-risk residential buildings must register them with the Building Safety Regulator by 1 October 2023.

Travers Smith LLP has advised longstanding client Impact Healthcare REIT plc ("Impact") on the £24 million increase and four-year term extension of a revolving credit facility provided by National Westminster Bank plc ("NatWest"), taking NatWest's total commitments under the revolving credit facility to £50 million and the term maturity to June 2028.

After a (relatively) quiet start to 2023 from the perspective of tax developments relating to the real estate sector, the Spring Budget and April's Tax Administration and Maintenance Day (TAAMD) saw the announcement of several important measures and consultations. Several of these relate to real estate funds and stem from the government's ongoing review of the UK fund landscape, such as the publication of a consultation on the possible introduction of a new form of onshore contractual fund.

In this podcast, produced for the Association of Real Estate Funds, Travers Smith Partner Sarah Walker, CMS Partner Marc Armstrong and Travers Smith Senior Associate Kirsty Emery discuss what a landlord might be able to do if one of its tenants stops paying its rent or goes into an insolvency process.

Environmental, social and governance (ESG) considerations have come to the fore of real estate investment strategy during recent years. In the first of our briefings on this topic, we consider three developments in legislation in the "E" space and how those developments present challenges but also opportunities for the care home and senior living sectors to contribute to the overall debate on how to implement "E" objectives within the built environment. 

Environmental, social and governance (ESG) considerations have come to the fore of real estate investment strategy during recent years. In the first of our briefings on this topic, we consider three developments in legislation in the "E" space and how those developments present challenges but also opportunities for the care home and senior living sectors to contribute to the overall debate on how to implement "E" objectives within the built environment. 

At the start of the 2023/24 financial year, we focus on 5 focal points of interest to the real estate sector: regulatory change, updates to real estate taxation, some proposed changes to the planning regime, ongoing reform to construction law and some caselaw reports from real estate disputes.

Our regular round-up of recent and forthcoming developments in law and practice for in-house counsel.

The last few years have seen the development of several new initiatives designed to increase transparency in the real estate sector. 

There are various ways in which a landlord might wish to ensure the alignment of its tenant with social and good governance principles, in line with the landlord's own ESG strategy and wider market requirements.

With inflation at its highest for many years, many businesses are looking again at price indexation clauses.  This briefing explores when they can be useful, which index to use, and whether the best known index - RPI - has a future.  It's the second in our series of briefings on pricing and payment issues in commercial contracts.

The Government issued a consultation in December 2022 about its proposed changes to the NPPF. These represent the first set of changes to the NPPF that the Government intends to make in order to reflect its levelling-up agenda, and will be followed by a wider review once it has implemented its proposals for wider changes to the planning system, including the Levelling-up and Regeneration Bill.