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The Government, under the Levelling‑Up and Regeneration Act 2023, has powers to require registration of certain contractual controls. Updated draft regulations, issued on 9 March 2026, supersede those from January 2024 and are accompanied by revised guidance.
For commercial lenders, these proposals enhance transparency and introduce fresh diligence risks.
What are they?
Contractual controls are agreements enabling a developer or promoter to influence the development or disposal of land without owning it.
Typical examples include
- Options
- Conditional contracts
- Pre-emption rights
- Certain promotion agreements.
These arrangements are widely used to secure future interests in land or manage development opportunities.
Why is this required?
The regulations are designed to clarify land control, allowing local authorities, communities and market participants to understand land assembly for development.
They apply to registered freehold and leasehold titles with at least 15 years unexpired in England and Wales.
Certain exemptions apply, such as
- National security or defence agreements
- Security arrangements (like legal charges and debentures)
- Controls for non-development purposes (e.g. farming)
- Agreements lasting less than 18 months
- Specific section 106 rights.
While security arrangements are excluded, other contractual agreements linked to funding structures may still fall under the regime, which is particularly relevant for lenders.
How will it be achieved?
Registration will occur via a digital Land Registry service with submission by regulated conveyancers. The service is set to launch on 6 April 2027, with further guidance anticipated nearer the time.
The beneficiary of the contractual control must apply, providing details such as party names and registration numbers, type and duration of right, affected title numbers, location, and (where the grantor is an individual) their date and place of birth.
Rights created after the regulations take effect but before 6 April 2027 must be registered by 5 October 2027.
Rights granted from 6 April 2027 onwards must be registered within 60 days, and any assignments, variations or terminations must be updated within the same timeframe.
From April 2028, Land Registry datasets will be published monthly, including individual names but omitting dates and places of birth.
Failure to comply may prevent registration of notices or restrictions and could result in criminal liability for businesses or individuals.
Impact on developers and landowners
Developers will encounter greater administrative and compliance obligations. Lenders are likely to require evidence of registration for due diligence, potentially making it a funding condition. Publicising land assembly strategies could bring reputational or negotiating sensitivities for borrowers.
Landowners may find transparency unwelcome, especially where agreements have previously been confidential, such as in estate or succession planning. Disclosure could affect family dynamics or complicate planning where discretion was previously possible.
In summary, the move towards increased openness demands that developers, landowners and lenders adapt to a landscape where previously private arrangements are now subject to public scrutiny.
Key considerations for lenders
- Determine early if contractual controls impact proposed security
- Decide whether registration evidence should be a condition precedent or a post-completion obligation
- Include the new disclosure requirements in borrower due diligence and documentation negotiations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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