Real Estate Legal Outlook
Key topics for you to prepare for in 2024
Explore the topics in the publication
Tickets to the real estate circus haven’t been selling out of late; however, 2024 brings a new show and it’s shaping up to be a good one. Investing in real estate has often felt like walking the high wire, and never more so than recently. Prices have felt unstable and costs of building materials (due to supply chain issues and inflation) and borrowing costs (courtesy of rising interest rates) have been spiralling. But – keep your seat in the Big Top – there is positive news.
The real estate sector is currently undergoing a period of transformation as the Government and industry grapples with an embattled global economy against the backdrop of the UK’s drive to decarbonise all sectors of the UK economy to achieve net zero commitments by 2050. Some key themes, opportunities and challenges that developers will need to grapple with throughout 2024 are explored here.
The UK’s commitment to net zero has shown no signs of abating despite the recent change in approach by the Prime Minister on oil and gas licences, with hundreds of new licences to be granted in the UK as part of the Government’s quest to make Britain more energy independent. Industry and business are keenly tuned in to some of the opportunities presented by this path towards green energy.
Change is on the horizon for the leasehold market (in more ways than one) and we’re continuing to witness a stark shift away from the traditional institutional lease on the commercial side. 2023 has seen a great deal of disruption in demand as a result of an uncertain economy. For the commercial leasing market, this has resulted in a continuing trend towards flexibility – meaning shorter lease terms, greater use of break options and “rightsizing” options.
The Building Safety Act 2022 continues to reshape the regulatory framework of the homebuilding industry and in 2023 has introduced several changes that have not only redefined this sector, but extend well beyond, affecting a broad range of property types (providing, of course, that certain key tests are met) – including mixed-use developments, purpose-built student accommodation and build-to-rent projects.