Exercising Control

What should I do?

Once developers have digested the Government’s intentions, they need to turn that understanding into an agreed, in-house approach that they will adopt going forward. This can be used in future deals and those currently in negotiation.

The next thing to do is work out how the Government’s intended approach would affect deals done since 6 April 2021. Whilst a detailed audit may not be immediately necessary, having a basic understanding of how many transactions are affected will put developers in a better position when the implementation date for the new regime gets closer. 

What else do I need to know?

The consultation anticipates measures similar to those we have seen with the Economic Crime and Transparency Act 2022. These include requirements to provide additional information, criminal sanctions for non-compliance and an expectation that “professionals” and developers will ensure compliance.

The information that will be collected includes the type of agreement, the names of the parties, the territorial extent and the date on which the agreement will end. The amount and type of information disclosable may change, with the 2023 Act allowing the collection of things such as “details of the terms of a transaction”. 

The intention is for there to be an open database, allowing the public to identify land which is subject to contractual controls and on what basis. 

The consultation closes on 20 March 2024. 

Further reading: Consultation homepage