Real Estate Bulletin - April 2023

Consultation: High Street Rental Auctions

The Government has launched a consultation seeking views on matters that will form part of the High Street Rental Auction policy, introduced in the Levelling Up and Regeneration Bill. The policy will give local authorities a power to require landlords to rent out persistently vacant commercial properties to new tenants.

The consultation notes that:

• this measure will be an addition to a range of tools local authorities might use when attempting to regenerate an area;

• the policy will seek to make town centre tenancies more accessible and affordable for tenants, including small businesses and community groups; and

• the Government does not expect the policy to apply to properties "with proactive landlords unless those landlords are struggling to find a tenant and would benefit from the High Street Rental Auction process and local authority support".

You can read more about the consultation here.

April 2023: Building Safety Update

This month's update looks at:

• further sections of the Building Safety Act 2022 and related secondary legislation that are coming into force, primarily relating to (i) the definitions of "higher risk" building, and (ii) the registration of occupied higher risk buildings; and

• recent indications by the Government that they are looking to focus on manufacturer contributions to the building safety crisis.

You can read more about these developments here.

In addition, the Government has laid draft regulations to implement the first phase of the Responsible Actors Scheme. Eligible developers who do not join and comply with the Scheme conditions will have planning and building control prohibitions imposed on them.

Michael Gove has also issued a press release warning of severe consequences for cladding companies who refuse to remediate.

Powering up Britain

The government has published a series of plans and responses under the banner of 'Powering Up Britain'. Included in the plans are several widely-reported documents, including:

• Powering Up Britain: Energy Security Plan

• Powering Up Britain: Net Zero Growth Plan

• Independent Review of Net Zero: government response

The following points highlighted in the above documents are likely to be of particular interest in the real estate context.

1. In the 'Powering Up Britain: Energy Security Plan' delivery timelines the Government suggests it will respond to a series of consultations on EPCs and MEES by the end of 2023.  This covers the consultation on:

• the proposed minimum EPC rating of C from 2027 and EPC B from 2030 for commercial property; and

• the proposed minimum EPC rating of C from 2025 for domestic property.

The Government will also respond to the consultation on 'Improving home energy performance through lenders' and publish a consultation on improving the energy efficiency of owner-occupied homes in late 2023.

2. The Government notes that the Energy Efficiency Taskforce has been established by the Secretary of State for the Department for Energy Security & Net Zero (DESNZ) "to support a step change in the reduction of energy demand through accelerated delivery of energy efficiency across the economy".  According to the terms of reference, the taskforce will "advise and work with ministers on delivery of the Government's ambition to reduce total UK energy demand by 15% from 2021 levels by 2030, across domestic and commercial buildings and industrial processes. The taskforce will have a particular focus on the role of the private sector and the stimulation of investment". 

The full terms of reference and further details on the Task Force are here. The Taskforce met for the first time in March 2023 and the minutes note there are four working groups:

• private-owned residential buildings;

• commercial buildings;

• social housing and public buildings; and

• industrial processes.

The Government notes in 'Powering Up Britain: The Net Zero Growth Plan' that the Energy Efficiency Taskforce will publish its action plan later this year.

3. The Future Homes Standard (for homes) and Future Buildings Standard (for non-domestic buildings) are designed to ensure that new buildings are built with low-carbon heating and high levels of energy efficiency. The Government intends to publish a full technical consultation for Future Homes Standard and Future Buildings Standard in 2023, to introduce the necessary legislation in 2024 and to implement both from 2025.

4. The Government has committed to begin the consultation process on a minimum energy efficiency standard for the social rental sector within six months of the Social Housing Regulation Bill receiving Royal Assent.

5. The Government has also indicated its intention to publish a solar roadmap by 2024 "setting out a clear step by step deployment trajectory to achieve the fivefold increase, up to 70GW, of solar by 2035 to demonstrate the Government's clear commitment to the sector and provide certainty to investors".

6. A consultation has also very recently closed which covers permitted development rights and solar equipment as well as permitted development rights and EV charging points.

7. The Government intends to publish a roadmap for increasing the use of timber in construction by summer 2023.

8. The Government has also responded to the consultation on what is now known as the Great British Insulation Scheme, which is focused on the delivery of insulation and heating control measures. 

Our tax team have highlighted some the tax elements of note in relation to the Government's response to the Net Zero recommendations here.