Partners Mark Fletcher and Pauline Lam have contributed an article to Solicitors Journal which explores how litigation under the Building Safety Act 2022 is reshaping investor risk and extending liability in the UK real estate market.
The article analyses the far-reaching impact of the Building Safety Act 2022 (BSA), particularly how it departs from established legal norms by introducing retrospective and retroactive changes, extending limitation periods, and expanding liability beyond those directly responsible for defects. It focuses on the erosion of the principle of separate legal personality through the concept of “association,” enabling courts and tribunals to impose obligations on related entities, including those not involved in the original development. Drawing on recent case law, the authors highlight how these provisions are being applied in practice, creating significant uncertainty and fairness concerns for investors, developers and corporate groups. The piece ultimately warns that parties may unknowingly acquire liabilities rather than assets, fundamentally altering risk allocation in real estate transactions.
Uncertainty is pervading the industry more widely as parties try to mitigate the effect, or take advantage, of the opportunities and risks that arise.
More generally, the BSA provides a challenging climate for developers, many of whom are reconsidering their business models. This therefore starkly contrasts with the desire to get Britain building.
The full article is available to read on Solicitors Journal.
About Mark and Pauline
Mark Fletcher is a partner in the firm's real estate, planning and construction team, advising on the legal issues that arise on property development, construction and service delivery projects, as well as from the relationships between parties in businesses together. Pauline Lam is a partner in the property litigation team specialising in property dispute resolution with particular experience advising in connection with the Building Safety Act 2022.
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