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introduction
Welcome to the second edition of Real Insight, our UK real estate update. It's jam-packed with the Renters' Rights Act, real estate debt, W&I insurance, trends in real estate asset management M&As, data centres, thoughts for reform in the senior living sector, and the Building Safety Levy. We also have the latest edition of our energy, infra and real estate markets podcast "Real Assets Roundup".
We hope that you enjoy this edition.
RENTERS' RIGHTS ACT
Landlords Beware: UK Renters' Rights Act Brings Sweeping Reforms
On 27 October 2025, the Renters' Rights Act 2025 was enacted. The Act brings radical changes to the private residential rental sector, but stay calm... Ryan Hill and Richard Adams can explain the key provisions.
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REAL ESTATE DEBT FINANCING
In today's competitive debt market, credit funds are looking at creative ways to provide sponsors with access to higher leverage than is available in the senior loan market. Traditionally active in stretched senior whole loans, supported by back-leverage, credit funds now face greater direct competition from banks, that are deploying capital more aggressively and pushing leverage levels higher. This has compressed the mezzanine tranche, making traditional mezzanine financing less attractive for credit funds. Increased bank activity has also seen sponsors looking to local lenders that often have little appetite for the complexities of senior/mezzanine financing.
As a result, credit funds are focusing on concentrated-NAV facilities. These holdco-style financings, enable sponsors to access additional leverage, secured against portfolios of real estate assets, without disturbing existing asset-level debt. They offer another route for funds to deploy capital at scale. However, these structures introduce unique underwriting and structuring complexities, which we have helped multiple clients navigate.
W&I INSURANCE
The Answer to BSA "Associated Company" Risks?
Building Safety Act issues remain a major factor in UK real estate deals. Katie Lang and John Crowley explore how warranty and indemnity insurance is increasingly being used to tackle the thorny issue of "associated company" risk under the Act when purchasing real estate companies.
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REAL ASSETS ROUNDUP
Tune in to "Real Assets Roundup"—our podcast focused on the trends and opportunities within the real estate, infra and energy markets as part of an extended series of Jones Day Talks®!
Complexities like the war in Ukraine and the push to net zero have created both challenges and investment opportunities in the European energy market. A changing dynamic has affected the long-term viability of this historically stable regulatory environment.
In the latest episode, our resident podcaster Brian Sedlak is joined by Michelle Davies, Vica Irani, and Paul Jones to discuss the future of energy transition in the United Kingdom.
REAL ESTATE ASSET MANAGEMENT M&A
Opportunities in a Changing Market
Real estate asset management M&A continues to gain momentum as sponsors seek to scale their operations, enter new markets, and diversify their revenue streams. The increasing costs associated with investment in new technology, adapting to evolving regulatory requirements, and managing ongoing macro-economic volatility, alongside continued fee pressure has prompted many sponsors to pursue growth through acquisition or, conversely, to divest non-core or underperforming businesses.
At the same time, institutional investors are demonstrating a heightened appetite for platform transactions, including the acquisition or sale of GP stakes and strategic investments in operating platforms. These transactions not only accelerate growth and facilitate expansion for sponsors but can also provide institutional investors with the opportunity to participate in the upside generated by enhanced capital-raising capabilities and access to returns from activities that such investors might not typically pursue directly, such as planning or development gains. This trend is particularly relevant for asset managers positioned between the largest global players and more specialised, niche managers, who may find it challenging to differentiate themselves in the current fundraising environment.
Over the past 18 months, we have supported a number of clients with these kinds of transactions. For example, we supported Madison International Realty in its investment in a UK property development financing platform. We also worked with Invesco Real Estate to set up a logistics platform in Germany. These complex and strategically important deals highlight the increasing significance of M&A in real estate investment management and the growing trend of investing directly in real estate operating platforms.
data centres
Powering the Future: Navigating the New Era of Data Centre Development
Although demand for high-performance data centres is surging, procurement of data centre projects is becoming increasingly complex. We have partnered with FTI Consulting to examine some of the key trends and issues impacting on procurement.
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SENIOR LIVING
Planning for Retirement: Ideas for Reform in the Senior-Living Sector
The United Kingdom's ageing population requires a greater range of high-quality housing options. However, developers and operators of Integrated Retirement Communities face significant challenges. Matt Peel, Alexandra Davies and Will Land offer some thoughts on what could be done to help the sector.
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BUILDING SAFETY LEVY
Safety in Numbers? Understanding the UK's Proposed Building Safety Levy
The UK government proposes to adopt the Building Safety Levy in England in October 2026. Developers and investors will need to understand and be prepared for the requirements of the proposed regulations. Jack Farrar dons his hard hat and guides you through the key aspects.
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