Construction

Written by Sarah O'Callaghan & Brendan Marrinan          

Key developments in 2025

2025 marked a turning point for the property and construction sector, with two major developments reshaping the regulatory and claims landscape. Awaab’s Law, effective from October, raises the bar on landlord accountability in social housing, including setting clear timeframes for making safe emergency hazards, investigating reports of damp and mould, and where a significant risk is identified carrying out works within just seven days of the written report. Landlords must also provide a written summary of findings within 48 hours (and no later than 14 days) and offer suitable alternative accommodation if deadlines cannot be met. The only defence available is “all reasonable endeavours” which will likely be tested in the courts over the next few years. The emphasis for landlords is firmly on reliable systems, clear audit trails and prompt decision making. As the regime is gradually rolled out, it is expected to reach private landlords, widening both the compliance burden and claims exposure. Expect closer scrutiny of older stock and heightened focus on timely remedial action, with regulatory penalties now sitting alongside traditional claims risk.

Separately, the Supreme Court’s judgment in URS Corp Ltd v BDW Trading Ltd provides clarity to developers who step in to remediate dangerous defects, enabling those costs to be recoverable even where no claim has been brought. It also confirmed that section 135 of the Building Safety Act operates retrospectively, bringing historic Defective Premises Act claims back within scope and avoiding “contradictory parallel universes” in which leaseholders could sue, but developers’ onward claims were barred. Finally, developers can both owe and be owed duties under the Defective Premises Act, reflecting how dwellings are typically provided “to the order” of the developer. The upshot is more scope to pursue legacy recovery and contribution actions, and a premium on contemporaneous records, clear rationale for remedial decisions and timely notifications on multi-party projects.

What to look out for in 2026

In 2026, the Building Safety Regulator will transition into an independent executive non departmental public body, with statutory responsibilities moving from the HSE on 27 January. The re-established regulator will operate in its own right, with a board and specialist committees covering building control, industry competence and residents’ views, bringing greater accountability and a clearer focus on delivery. This marks the first step towards a single construction regulator as envisaged post Grenfell.

Operational changes aim to unlock stalled progress at Gateway 2 for higher risk residential schemes. We expect earlier technical dialogue, a priority pathway for well-prepared projects and clearer guidance, backed by extra capacity and funding. The regulator is investing in digital processes and more consistent assessments of organisational competence, moving away from a purely project by project view. Leadership has been refreshed and targets have been set to reduce backlogs during the transition, when HSE support will remain in place through 2026. Consultation on a licensing model for principal contractors on higher risk buildings is anticipated in autumn 2026, and momentum on remediation continues with statutory deadlines in train. The practical takeaway is straightforward: submit complete, high quality applications, evidence organisational capability and competence, and maintain strong internal controls to avoid delays, manage costs and reduce regulatory exposure as the regime beds in.