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“Publish and Be Transparent” – The new contractual control regime and what it means for local authorities.

The Government’s transparency reforms for land agreements are now beginning to take concrete form through the draft Provision of Information (Contractual Control) (Registered Land) Regulations 2026 (“the Regulations”). These Regulations will introduce significant new disclosure obligations affecting a range of land agreements in England and Wales.

The Regulations give practical effect to Part 11 of the Levelling-up and Regeneration Act 2023 (“LURA 2023”), which aims to improve the transparency of who owns and controls land.

For local authorities, the reforms are particularly important. Whether acting as landowners disposing of sites, partners in regeneration schemes or planning authorities overseeing delivery, Council’s will need to understand how this regime affects both existing practices and future transactions. 

A shift towards transparency 

Historically, agreements such as option agreements, conditional contacts, pre-emption rights and similar arrangements have operated with limited public visibility. While land interest might be protected at HM Land Registry through notices or restriction, the underlying commercial terms remained undisclosed.

The Regulations implement a decisive shift. From April 2027, parties benefitting from contractual rights to control land will be required to disclose prescribed information to HM Land registry, which will then be made publicly available.

What are ‘Contractual Rights’?

At the core of the regime is the concept of a ‘contractual right’. This is a right that gives a party (usually the grantee) power to control how land is used, developed or disposed of. 

This concept captures agreements widely used across the development sector including options, contractual rights under conditional contracts, pre-emption rights and similar arrangements. 

The Regulations apply where these rights relate to registered land, typically involving freehold interests or leasehold interests with more than 15 years remaining. For instance, a developer holding an option over a local authority-owned site, exercisable upon the grant of planning permission, would fall within scope.

Exclusions

Not all arrangements are caught. The Regulations carve out several important exclusions, including: 

  • Short-term leases (less than 15 years);
  • Unregistered land rights;
  • Contracts will a period of less than 18 months;
  • Rights in s106 agreements relating exclusively to the provision of infrastructure or services in connection with the grant of planning permission;
  • Rights contained in contracts in relation to national security or defence purposes; and
  • Security arrangements (such as mortgages or charges).

Timing and Transitional Arrangements

While the Regulations are expected to come into force on April 2027, the practical reach begins much earlier. Two key periods should be noted:

  • Transitional period (expected first half of 2026 and 5 April 2027) – contractual control rights granted after the Regulations are made, but before they come into force will still fall within the regime and will need to be disclosed.
  • From April 2027 onwards information must be generally submitted within 60 days of the relevant event (i.e., the grant of contractual rights, assignments or variations of any contractual right).

As such, agreements currently under negotiation, particularly those linked to regeneration or land disposals may already fall within scope. Early consideration of the compliance obligations in this regime are therefore essential.

Who do the Regulations apply to?

The Regulations are not limited by the identity of the parties, but by the nature of the right and purpose for which it is held for, where contractual control rights are granted for the purposes of an undertaking (i.e., business or commercial activity) over registered land.

For example, where a local authority grants an option or conditional contract over its land, the developer (as grantee) will be subject to the reporting obligation. In contrast, where a local authority itself benefits from such right (for instance, as part of regeneration scheme), it may be the party responsible for compliance. 

As such, local authorities are within the intended audience of the regime, both as users and beneficiaries of the resulting transparency. 

What information needs to be disclosed?

The agreement conferring the rights will not itself need to be disclosed to HM Land Registry. Instead, the Regulations require the disclosure of prescribed information sufficient to identify:

  1. the type of right granted;
  2. the parties;
  3. the land affected; and
  4. the duration of the right, details of any conditions and the initial period of control.

Enforcement and consequences of non-compliance

The Regulations provide two enforcement mechanisms:

  1. Registration gatekeeping – HM Land Registry will be entitled to refuse to register or update a notice or restriction if it is not satisfied that the disclosure requirements have been met. For developers and by extension, local authority counterparties, this is a critical issue given that HMLR registration provides adequate protection in relation to a party’s interests in the land.
  2. Criminal Liability – Failure to comply with the Regulations or knowingly or recklessly providing false or misleading information will be a criminal offence under LURA. While enforcement is likely to focus on serious or deliberate breaches, this introduces a new level of risk that local authorities must be aware of when structuring and documenting transactions.

Conclusion

The introduction of the contractual control regime marks a significant cultural and legal shift towards transparency in land dealings.

Although the primary reporting obligation will often sit with developers or other beneficiaries, local authorities remain a central audience to the regime, both as landowners and as partners in regeneration developments. To mitigate risk, local authorities should act now to ensure robust monitoring of compliance obligations and be prepared for more scrutiny in respect of land dealings.

Whilst the Regulations are not yet in force, the Government’s message is clear, publish, be transparent, and be prepared.

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Tags

local government, local authorities, control regime, regeneration