Draft Provision of Information (Contractual Control) (Registered Land) Regulations 2026

Gareth Bacon Excerpts

Wednesday 22nd April 2026 General Committees

[Gareth Bacon (Orpington) (Con)]

I think it is the first time, Ms Vaz, that I have had the pleasure of serving with you in the Chair; I very much look forward to it. I welcome the opportunity to sit opposite the Minister again, and I appreciate the remarks he just made.

As the Minister said, in 2020 the previous Government began the process of looking into policies to provide a more transparent picture of the control of land through the creation of a freely accessible dataset. This came out of the Levelling-up and Regeneration Act 2023, which provided the framework for greater transparency on contractual control agreements in England and Wales such as—as the Minister also pointed out—option agreements used to control the land short of outright ownership.

The process began with a call for evidence, which was followed by an eight-week consultation in which respondents demonstrated broad support for the increased transparency of contractual arrangements, including for key stakeholders such as developers and local authorities. However, respondents also made it clear that they had some reservations regarding unintended consequences in respect of things such as commercial sensitivity and the potential burdens on small and medium-sized businesses. On that latter point, it is vital that the Government fully and meaningfully engage with small and medium-sized businesses in the sector ahead of implementation, to ensure that this statutory instrument leaves no one concerned about additional costs and red tape to a detrimental effect.

The previous Government hosted targeted engagement sessions before and during the consultation period to ensure that those who were going to be impacted by the regulations were fully aware and given adequate opportunity to put forward their thoughts and views on the matter.

Times are, however, a little different now, and there is an important context for this debate. Small and medium-sized businesses such as developers, land promoters and conveyancers face increasingly higher costs and difficult market conditions. Not the least of their concerns is this morning’s data release regarding the inflation rate, which showed an increase to 3.3% in the year to March and forecasts of a potential high in excess of 4% this year—double the rate the Government are aiming for.

For the construction and development industry, the impact on input costs, supply chains, material and, in particular, fuel could be severe. The data release shows that fuel inflation increased by 8.7% month on month—the highest rate since the beginning of Russia’s unjustified invasion of Ukraine.

Even before the data release, the Building Cost Information Service had forecast that building costs will increase by 14% over the next five years to 2031. That will hit SMEs especially hard and make it harder for them to compete as the major house builders dominate the more expensive land acquisitions, which data from the BCIS showed to happen in 2025. In addition to that are rising staffing costs, driven by increases to the minimum wage and employers’ national insurance contributions, and only compounded by the shortage of skilled workers available to the industry.

All that is alongside the regulatory and fiscal environment, which the industry tells us is stifling house building and development. Well-intentioned regulation is performing an important but far from perfect role in balancing the vital priorities of any Government to deliver a sustainable housing stock and ensure that homes are safe. That issue is much larger than the scope of this statutory instrument, but I know the Minister takes it very seriously and I look forward to further parliamentary time being spent on it.

Ultimately, I highlight all this because, for SMEs, this instrument produces new costs that are predicted to be about £4.2 million per annum. When that is added to the higher up-front capital costs, supply chain delays, increased taxation and the regulatory burden, it is vital that this important step to create better market transparency does not become overshadowed by the costs that come with it.

The instrument is right to promote a fairer and more open land market. Indeed, it is right that almost any market must be open to competition to allow SMEs to compete alongside major players. That is the foundation, of course, of any capitalist system, and I welcome regulation that provides more choice for consumers as well as fairness for small and medium-sized businesses. However, how does the Minister plan to ensure that that is exactly the impact of the regulations?

The regulations come with a real risk of unintended consequences. In particular, there are concerns about how the instrument will impact land values, landowners’ and developers’ behaviour, and community engagement. For landowners and developers, it is vital that the Government monitor the market to ensure that the regulations do not encourage the tying up of capital and shrinking of the land stock available for development by encouraging a wholesale shift to outright land purchases to avoid the regulatory requirements introduced by this instrument.

For landowners especially, the Government must work with the sector to ensure that the public visibility of agreements does not foster an environment in which less land is brought forward for development. Without tackling those issues, the Government may only exacerbate the situation we increasingly find ourselves in—a situation in which the land, especially brownfield land, is preponderant, but where the high costs of construction and development preclude the laying of bricks or concrete.

I finish with a simple but essential ask: will the Minister commit to a regular review of the potential trends and ensure that the regulations work as intended? Without that, efforts to build a transparent and competitive market, which are essential to the success of the housing market, could end up being lost in the shadow of prevailing economic downturn, be it global or national.

The previous Government pursued this policy in 2024 to increase competition and transparency, and the potential of the intended consequences is why the Opposition will not divide the Committee today. However, the Minister must ensure that the regulations help to get Britain building and do not hinder British building, and must work with the industry to see that they work as intended.