Over the past decade, disposable incomes across the UK grew by just 2.4 per cent nationally, yet in 11 cities and large towns they rose more than twice as fast. That gap tells you something important: where you live is increasingly deciding how well you live. I’ve been watching this pattern for years, and it keeps coming up in conversations with readers who feel the economic recovery passed their town by. The data from the Cities Outlook 2026 report makes it plain — a handful of places have bucked the trend, translating local growth into real income gains, while many others have seen living standards stall. Understanding what separates those places matters whether you’re buying, renting, or investing.
This isn’t just an economic curiosity. The way we build homes, regulate safety, and plan land use is shifting fast. New rules around building safety, tenancy rights, and environmental targets are reshaping what it means to live in a UK city. If you’re a homeowner, a renter, or someone thinking about where to put down roots, the next few years will bring changes that affect your costs, your rights, and your options. Here’s what you actually need to know.
One of the biggest shifts is in how we think about planning permission and development rules, which are being overhauled to speed up housing delivery while tightening safety standards. If you’re planning any kind of property project, understanding these changes early can save you months of delay. A property lawyer can help you navigate the new requirements before you commit to a purchase or development.
What the new building and tenancy rules mean for you
The most immediate change most people will feel is the end of no-fault evictions. From 1 May 2026, the Renters’ Rights Act 2025 abolishes section 21 evictions and turns all new tenancies into open-ended periodic agreements. That means tenants can leave with two months’ notice, and landlords must use specific grounds — like selling the property or moving in themselves — to regain possession. If you’re a tenant, this gives you much more security. If you’re a landlord, it means you need to understand the new section 8 grounds and keep proper records.
On the building side, the Building Safety Act 2022 has already transformed how higher-risk buildings are designed and approved. The Gateway 2 and Gateway 3 approval stages have caused significant delays and cost increases, especially for purpose-built student accommodation where timing is critical. From 30 September 2026, all new residential buildings over 18 metres must include two separate staircases. And from 1 October 2026, a new Building Safety Levy will apply to most new developments of 10 or more dwellings, calculated per square metre of floorspace. If I were planning a development right now, I’d factor in at least six months of additional timeline risk and budget for the levy as a non-negotiable cost.
Why these changes hit some places harder than others
The Cities Outlook data shows that the gap between prosperous cities and struggling towns is widening. In the 11 cities where incomes grew fastest, the common factor was a strong base of knowledge-based businesses — the kind that drive productivity and pay well. But a strong economy alone isn’t enough. The report makes clear that residents also need to be able to access those opportunities, which means better public transport and locally targeted interventions. If you live in a city where commuting is expensive or unreliable, you’re effectively locked out of the prosperity happening nearby.
Consider a scenario: you live in a town where disposable incomes have barely moved in a decade. A nearby city is booming, but the train fare eats up any wage premium, and the last train home leaves before your shift ends. That’s not a lifestyle choice — it’s a structural barrier. The report argues that places need more funding and flexibility to develop their own solutions, rather than relying on one-size-fits-all national policy. I’d add that if you’re choosing where to live, look at transport links and local employment patterns, not just house prices. A cheap home in a disconnected town can end up costing you more in lost opportunity.
For landlords, the Renters’ Rights Act introduces rent controls of a sort. Landlords can only raise rent once every 12 months, must give two months’ formal notice, and cannot accept offers above the advertised rent. Contractual rent review clauses are no longer valid. Tenants can challenge excessive increases at the First-tier Tribunal, which sets a fair market rate. If you’re a landlord, you need to review your tenancy agreements now and remove any contractual rent review clauses before they become unenforceable. A tenant landlord lawyer can help you update your templates and understand the new possession grounds.
Where people get tripped up by the new rules
The most common mistake I see is assuming the old rules still apply. The pace of change has been relentless, and many landlords and developers are caught off guard. Here are the four biggest traps.
Ignoring the Building Safety Levy timeline
The levy takes effect from 1 October 2026 and applies to most new residential developments of 10 or more dwellings. It’s calculated per square metre of floorspace and varies by location, size, and use. Developers must pay it before completion or occupation. If you’ve got a project in the pipeline that will complete after that date, you need to budget for it now. The regulations are still awaiting parliamentary approval, but the charge is coming. I’d recommend speaking to a real estate lawyer to model the impact on your specific project.
Assuming student accommodation is exempt from everything
The Renters’ Rights Act does exempt purpose-built student accommodation (PBSA) from the new tenancy rules, but only if the provider complies with an approved code — currently the ANUK/Unipol National Code. The exemption comes into force on 27 December 2025 but won’t take effect until further regulations are made, expected in early 2026. Crucially, it does not apply retrospectively. Existing PBSA tenancies for the current academic year will convert to assured periodic tenancies. Providers have one month from commencement to notify students in writing if they need to use a modified possession ground. If you run PBSA, you need to act now, not wait for the regulations.
Overlooking the second staircase requirement
From 30 September 2026, all new residential buildings over 18 metres must include two separate staircases. This isn’t a minor design tweak — it changes floorplans, reduces usable space, and adds significant cost. If you’re in the early design phase of a project that will submit plans after that date, you need to incorporate this now. Retrofitting later will be far more expensive.
Thinking the Land Use Framework doesn’t affect you
England’s first Land Use Framework, published in March 2026, sets out how land will be allocated for housing, nature, and climate targets. It includes a commitment to “making land digital” — sharing environmental datasets and mapping systems publicly. This will make it easier to see what land is available and what constraints apply, but it also means more scrutiny. If you’re buying land for development, check the new digital maps early. They may reveal flood risks, habitat protections, or other constraints that weren’t obvious before.
→ Scroll right to see all columns
| Change | Effective Date | Who It Affects |
|---|---|---|
| Abolition of section 21 evictions | 1 May 2026 | All private tenants and landlords in England |
| Second staircases in buildings over 18m | 30 September 2026 | Developers of new residential buildings |
| Building Safety Levy | 1 October 2026 | Developers of 10+ dwellings in England |
| PBSA exemption from RRA | 27 December 2025 (subject to regulations) | Purpose-built student accommodation providers |
How to adapt your plans for the new landscape
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The changes coming over the next 18 months are substantial, but they’re manageable if you take the right steps now. Here’s what I’d focus on.
Review your tenancy agreements before May 2026
If you’re a landlord, every fixed-term tenancy you sign now will convert to a periodic tenancy when the Renters’ Rights Act takes full effect. Remove any contractual rent review clauses — they’ll become unenforceable. Update your section 8 notice templates to reflect the new grounds. And make sure you understand the two-month notice requirement for rent increases. A tenant landlord lawyer can review your portfolio and flag any agreements that need updating before the deadline.
Budget for the Building Safety Levy now
If you’re developing 10 or more dwellings, the levy is calculated per square metre of floorspace and varies by location and use. You need to model this cost into your financial projections before you submit plans. The regulations are still in draft form, but the government has confirmed the charge will apply from October 2026. Don’t wait for the final figures — use the draft rates to estimate and build in a contingency. A real estate lawyer can help you understand how the levy interacts with other planning obligations.
Check the new digital land maps before buying
The Land Use Framework’s “making land digital” initiative is publishing environmental datasets and mapping systems publicly. Before you buy any land, check these maps for flood risk, habitat protections, and other constraints. The data is more comprehensive than what’s been available before, and it could save you from buying a site that’s effectively undevelopable. If you’re not sure how to interpret the maps, a property lawyer can run the checks for you.
Plan for the second staircase if you’re designing now
If your project will submit plans after September 2026 and the building exceeds 18 metres, you need two staircases. This affects floorplan efficiency, core design, and overall cost. Work with your architect now to integrate it, rather than redesigning later. The delay and cost of a redesign will far outweigh the upfront planning effort.
Understand the emerging land use priorities
The Land Use Framework sets a clear pathway to the 30by30 commitment — protecting 30 per cent of England’s land for nature by 2030. That means some land that might have been available for development will be taken out of play. If you’re looking at sites near protected areas or on greenfield land, expect more scrutiny and potentially longer planning timelines. The framework also emphasises the need to balance housing with nature and climate targets, so developments that include green infrastructure and biodiversity net gain are likely to face fewer objections.
Frequently asked questions
Does the Building Safety Levy apply to conversions, not just new builds? ▾
Can a tenant still be evicted if the landlord wants to sell? ▾
What happens if a PBSA provider doesn’t comply with an approved code? ▾
Are there any exemptions to the second staircase rule? ▾
How do I check the new digital land use maps? ▾
The next 18 months will reshape how we build, rent, and live in UK cities. The places that thrive will be those where residents can access growing job markets, where developers have planned for the new safety and levy requirements, and where landlords have updated their practices for the post-section 21 world. My advice is to start now — review your tenancy agreements, model the levy into your development budgets, and check the new land use maps before you commit to any site. The cost of waiting is higher than the cost of acting early.
If this was useful, you might also want to read The UK’s Commuter Belt Conundrum: Balancing Affordability and Accessibility.
Sources and Further Reading
Decoding the UK Housing Market: What’s Really Driving Prices — A deeper look at the economic forces behind house price movements across different regions.
The Impact of Remote Work on UK Property Preferences — How changing work patterns are reshaping where people want to live and what they’re willing to pay.
Cities Outlook 2026. Centre for Cities, 2026.
The UK Living Sector: What Might We Expect in 2026. Greenberg Traurig LLP, December 2025.
Planning for the Future: England’s First Land Use Framework. DEFRA Environment Blog, March 2026.
