In May, over 16,000 real estate professionals attended this year’s UKREiiF conference. A driving conversation was what is on the horizon for the industry. Key themes included:

  • Delivery – An ongoing challenge, planning delays, rising costs and a skills shortage is slowing the pace from ideas to execution. As the RICS panel commented on the opening day, the message from 2025 was ‘build build build’ – the message now is to ‘deliver’.
  • Investment – The UK is still a core market for investors, but investors are ever more selective and the preference is for resilient income-generating assets.
  • Regeneration – Focussing on regional investment is crucial and the regeneration of high streets, towns and cities is encouraging. Creating mix-used destinations drives growth. Community-led regeneration is a real success story. In the office sector, regeneration continues to be a challenge but also an opportunity for older premises. Landlords are increasingly expected to provide more of a hospitality style service and buildings needs to have an enduring appeal to tenants.
  • Tech – AI inevitability was a thread in many conversations – there is a move from ‘hype’ to how to embed AI in a practical way to enhance efficiencies.
  • Sustainability remains high on the agenda and the conversation has shifted from a ‘nice to have’ to a key focus for awareness of climate risk, the impact on operational costs, and ensuring assets are resilient to the challenges. Incentives to ‘green up’ need to be unlocked, and we’re keeping a close eye on government initiatives as well as the regulations.

Looking ahead, regulatory changes affecting the industry include:

  • The Renters’ Rights Act 2025 – no fault evictions are now banned, and the Act also introduces strengthened statutory grounds for possession and restrictions on rent increases. The reforms are intended to improve tenant security and standardise enforcement across the private rented sector. Landlords with residential and mixed-use properties need to consider the implications, and may face increased compliance costs and enforcement risk.
  • Ban on upwards only rent reviews – The government is proposing a ban on upwards only rent reviews allowing for downward adjustment in a falling market. The proposal has taken the commercial property market by surprise as it appears in devolution legislation (English Devolution and Community Empowerment Bill) which at first glance, is not relevant to real estate. The proposal to ban upwards only rent reviews could protect tenants but might restrict investment and we anticipate negotiation of higher rents at the outset or agreeing stepped or fixed increases from the start of the lease. The proposal represents one of the most significant shifts in commercial leasing practice in decades.

Attending conferences such as UKREiiF allows us to get a good handle on the issues affecting the industry and the challenges our clients may face. If you’d like to discuss your real estate projects, including embedding your sustainability goals, please do get in touch.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further advice.