The implementation of the Employment Rights Act 2025 sees employment law entering a period of significant change.  The Act seeks to reshape the relationship between employers and their workforce, with its primary purpose being to strengthen statutory rights, modernise the legislative framework and improve job security. For employers, this will impact the way in which they deal with and respond to workplace issues on a day to day basis.

The wide-reaching changes are being introduced gradually, with some provisions having already come into force and others scheduled for a phased implementation throughout 2026 and 2027.

It is particularly important for employers to understand how these changes will affect their organisation and to seek relevant legal advice as early as possible.

This article considers some of the key changes and gives some practical tips as to what  employers should be doing to prepare.

What has changed so far?

As of 6 April 2026, the first phase of reforms is already in force.

Statutory Sick Pay

The Lower Earnings Limit and the three day waiting period for Statutory Sick Pay has been removed.

Eligible employees, regardless of their earnings, now qualify for Statutory Sick Pay from the first qualifying day of sickness, rather than having to wait until the fourth day.

Employers will need to do more than simply update the sickness policy. Payroll systems, absence management processes and employee communication records will all need to be reviewed and updated. Specifically, employers should consider whether there are any particular teams, roles or working practices where short-term absence is more common. This could present an opportunity to address underlying reasons of absence and think about whether greater flexibility or earlier support could be provided to help prevent longer periods of absence.

Paternity and Parental Leave

Whereas, previously, employees generally had to satisfy a period of qualifying service, paternity leave and unpaid parental leave are now “day one” rights.

Employers should ensure their family leave policies, HR systems and standard correspondence reflect the change. Line managers should also be familiar with the new entitlement, so that requests for leave are handled consistently and lawfully.

Collective Redundancy Protective Awards

The maximum period used to calculate the protective award for a failure to comply with collective redundancy consultation requirements has been doubled.

The change increases the potentially significant financial consequences for employers that fail to comply with collective consultation obligations.

Employers should, therefore, ensure their redundancy policies and procedures are up to date, robust and correctly implemented, with appropriate records kept throughout the consultation process.

Whistleblowing and Sexual Harassment

Sexual harassment disclosures are now standalone protected disclosures under whistleblowing law, giving employees safeguards against detriment and unfair dismissal.

This runs parallel to the existing legal framework governing sexual harassment in the workplace and the statutory duty on employers to take reasonable steps to prevent sexual harassment.

Whistleblowing, grievance and harassment procedures should, therefore, operate effectively together to ensure that complaints and concerns are identified, escalated and handled appropriately.

The overlap between sexual harassment and whistleblowing claims could also result in more complex pleadings and disclosure during litigation. Employers will need to consider whether their existing procedures adequately identify and manage the potential for complaints to engage more than one area of employment law.

The Fair Work Agency

The Fair Work Agency is a new executive agency that consolidates several existing state enforcement functions (such as holiday pay, statutory sick pay and national minimum wage). Its purpose is to move away from a fragmented system and, instead, introduce a more accessible and consistent framework for employment rights protection.

For employers, this promises a better-resourced and more proactive enforcement structure than what previously existed. However, the change also brings an increased risk of enforcement action. Employers should, therefore, be thinking not only about whether their compliance systems are up to date, but also whether they can demonstrate compliance.

The ability to show what and when steps were taken and who was responsible may become increasingly important where an employer’s compliance is challenged, although employers should not wait for an investigation to find gaps in their compliance procedures.

What are the changes expected in October 2026?

Further important reforms are due to take effect from October 2026.

Employment Tribunal Time Limits

The time limit for bringing most Employment Tribunal claims will increase from three to six months, bringing a significant change to the litigation landscape.

The extension encourages increased access to justice whilst offering employees and employers more time to resolve disputes internally or through the conciliation process before a claim is issued.

However, longer claim periods may also mean that disputes remain live for longer periods of time, which could contribute to delays in resolving matters. As time goes on, this poses a risk to the preservation of evidence and the accuracy of witness’ recollections.

For that reason, early evidence gathering and preserving relevant documents will be more important than ever. Employers should consider whether their existing document retention processes are sufficiently robust.

Sexual Harassment:

Employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees in the course of employment. The legislation also extends to harassment involving third parties such as customers, suppliers, contractors and visitors.

Employer obligations will extend beyond merely having a harassment policy in place. They should be able to demonstrate the practical steps they have taken to identify and reduce the risk of sexual harassment including monitoring workplace culture, appropriate training and acting on concerns when they arise. Employers should also consider the risks arising from interactions with third parties and whether their existing reporting and escalation procedures are sufficiently robust.

Trade Union Reform

Several trade union reforms took effect during 2026, with further provisions due to be implemented in October this year. These include new requirements to inform workers of their right to join a trade union, strengthened trade union rights of access and changes affecting trade union recognition and derecognition processes.

Employers with recognised trade unions, or those operating in sectors where trade union recognition is likely, should consider whether the changes have practical implications for their business. Managers should also understand how to appropriately deal with trade union representatives and requests for recognition or access.

What will change in 2027?

Unfair Dismissal

Perhaps the most commercially significant reform for many employers is the reduction in the qualifying period for ordinary unfair dismissal. From 1 January 2027, the two-year qualifying period will be reduced to six months’ continuous service. This represents a major shift in the protection afforded to employees in the early stages of employment.

Importantly, the change will not only affect employees recruited after 1 January 2027.  Employees who reach six months’ continuous service by that date (i.e. those employed from July 2026) may also be protected.

The statutory compensation cap (currently £123,543) for ordinary unfair dismissal claims will also be removed, with compensation being assessed by reference to actual financial loss, subject to the usual rules on mitigation, causation and contributory fault. This may increase the value of some unfair dismissal claims, particularly where the claimant is a high earner, and should be factored into employers’ assessment of litigation and settlement risk.

The reduction in the qualifying period also makes effective probation and early performance management more important. Employers should ensure they keep a clear record of expectations, feedback and support provided especially in circumstances where an employee may not be meeting the required standards. Managers will need to be appropriately trained to identify and address issues at an early stage.

Employers should, therefore, take sufficient steps in reviewing performance management procedures, disciplinary procedures and dismissal processes and make sure that managers have the training and support to apply them.

Any decision to dismiss should be properly documented and supported by a clear evidential record.

Zero-hours contracts and atypical work

The Act will implement new rights for workers engaged on zero-hours contracts and other arrangements where there is no guarantee of work, offering greater predictability and protection over working patterns.

The precise operation of these rights will depend in part upon secondary legislation and the applicable regulations. Employers who use zero-hours contracts or other forms of casual or atypical working should monitor the implementation timetable and consider whether their current rostering and contractual arrangements remain workable under the new rules.

Preparing for Change

The impact of the Employment Rights Act 2025 cannot be determined by merely the wording of a well-drafted policy; having a policy in place does not guarantee compliance. Rather, the greater challenge for employers will be to show they are correctly implementing those policies when dealing with issues in the workplace.

Employers should get ahead of the changes and not wait for a difficult situation to expose a gap in their processes. This means reviewing policies, making sure those policies work in practice, giving managers the training and confidence to apply them and, importantly, ensuring the organisation could evidence its approach if a dispute or enforcement action arises.

The implementation timetable also means this is an ongoing compliance exercise rather than a one-off review. With further changes still to come, employers should continue to monitor developments, review their practices and understand where the greatest risks lie.

The question to ask, therefore, in not simply “is my business prepared for the changes?”, but “will the business’ approach stand up when tested?”

Contact

If you would like to discuss any of the issues raised in this article, or need general advice about Employment related matters, please do not hesitate to contact our Employment Department on 020 7625 6003 or Raj Dhokia (Head of Commercial & Employment) by email at r.dhokia@fgdlaw.co.uk

On 1 May 2026, one of the biggest reforms of residential lettings in a generation came into force. Section 21 was abolished, assured shorthold tenancies have been replaced with periodic tenancies, and the Government introduced a new framework designed to give tenants greater security while preserving landlords’ legitimate rights to recover possession where justified.

The objective is difficult to argue with. Few would suggest that responsible tenants should live with the constant uncertainty of a “no-fault” eviction.

The issues and effects of this legislation are discussed in this article.

Four months on, the emerging issue is not whether landlords still have grounds for possession, but whether those rights can be exercised efficiently within a far more technical regime and an already overburdened Court system. For landlords, the Renters Rights Act has not removed litigation, if anything, it has made procedure more important than ever.

The end of Section 21

For years, Section 21 provided a relatively predictable route to recovering possession at the end of an assured shorthold tenancy. That route has now gone.

Today, the majority of private residential tenancies are assured periodic tenancies, meaning landlords must rely upon one or more statutory grounds under the amended Housing Act 1988. Those grounds include selling the property, moving in themselves, serious rent arrears, anti-social behaviour and several other mandatory or discretionary circumstances.

This is a significant shift. Possession is no longer about waiting for a tenancy to expire, it is about demonstrating that a statutory ground exists and proving it in accordance with the legislation.

In residential litigation, a landlord can have an entirely legitimate reason for recovering a property and still lose valuable time and costs through a procedural mistake.

Has Section 8 simply replaced Section 21?

Many landlords understandably assume that Section 8 has become a straightforward substitute for Section 21.

In reality, the possession process is considerably more nuanced. The Renters Rights Act has expanded and amended numerous possession grounds, introduced new eligibility requirements and altered notice periods depending upon the ground relied upon. Some grounds cannot be used during the early months of a tenancy, while others require landlords to satisfy specific conditions before proceedings are even issued.

In practical terms, the quality of preparation has become just as important as the merits of the claim.

We are already seeing situations where landlords delay serving notice, rely on the wrong ground, or overlook documentary requirements that could have been addressed at the outset. Those errors are often avoidable and considerably less expensive to prevent than to rectify after proceedings have begun.

Rent arrears, an expensive problem

Perhaps the least appreciated change concerns rent arrears. The mandatory rent arrears ground now generally requires at least 13 weeks or three months rent arrears (depending on whether rent is payable weekly or payable monthly) both when notice is served and at the possession hearing, subject to the statutory provisions.

For landlords, this creates an obvious commercial problem.

A property generating £2,000 per month will need to accumulate £6,000 in unpaid rent before this mandatory ground is available. Add legal costs, mortgage payments, insurance and service charges, and the financial exposure can become substantial long before possession is obtained.

The conclusion is not that landlords should immediately litigate. Quite the opposite. Early legal advice frequently identifies the strongest possession strategy, preserves evidence and avoids procedural delays that ultimately increase the overall loss.

Landlords should also be aware that there are two discretionary grounds available where the tenant is in any arrears or has been persistently in arrears during the tenancy. Both only require 4 weeks notice as opposed to the three months needed for the mandatory ground. The fact this is ‘discretionary’ means it is up to the Court to decide whether to grant possession.

The role of the Courts

The legislation changed possession law. It did not increase the capacity of the County Court.

Recent reporting describes waiting rooms filled with possession cases, judges managing multiple matters in a single sitting and, in parts of London, landlords are reportedly facing lengthy waits for enforcement appointments with County Court bailiffs.

Importantly, this affects everyone involved.

Tenants remain in prolonged uncertainty while waiting for claims to conclude. Landlords continue to absorb financial losses despite having statutory grounds for possession. Local authorities frequently advise tenants not to leave until bailiffs enforce an order, creating further pressure on an already congested system.

The result is an uncomfortable reality, a defective possession claim is no longer merely inconvenient, it can delay recovery of a property by several months.

Periodic tenancies have changed investment planning

The abolition of fixed-term assured shorthold tenancies has received less attention than Section 21, but its commercial consequences may prove equally significant.

Without fixed contractual end dates, landlords must now plan property sales, refinancing, redevelopment and family occupation considerably further in advance. Possession strategy has become part of wider portfolio management rather than a decision taken shortly before a tenancy expires.

This is particularly relevant for smaller landlords.

Many are not institutional investors; they are individuals with one or two properties who may be selling because of retirement, changing financial circumstances or rising borrowing costs. Industry commentators have observed that residential letting is becoming less of a passive investment and increasingly a highly regulated commercial activity requiring careful legal compliance.

Outdated tenancy documentation

Another risk receives remarkably little attention.

Many landlords continue to use tenancy agreements drafted before May 2026. Whilst many remain legally effective, provisions dealing with fixed terms, possession expectations and certain contractual mechanisms no longer reflect the current statutory framework.

An outdated agreement will not necessarily invalidate a tenancy. However, ambiguous drafting has a habit of becoming expensive once proceedings are contested.

A comprehensive review of tenancy documentation is often one of the most cost-effective forms of risk management available to residential landlords.

What should landlords do differently?

The Renters’ Rights Act does not prevent landlords from recovering possession. It requires them to do so differently.

Legal advice should be considered before serving notice where the intention is to:

1. recover possession in order to sell a property;
2. rely upon rent arrears or repeated arrears;
3. move a landlord or family member into the property;
4. pursue possession following anti-social behaviour;
5. review tenancy agreements drafted before May 2026; or
6. respond to disputes concerning rent increases.

In our experience, the strongest possession claims are those that are prepared most carefully.

A changed landscape

The debate surrounding the Renters’ Rights Act has often been presented as a choice between landlords and tenants. In reality, that is an oversimplification.

Good landlords still need effective legal mechanisms to recover their properties. Good tenants deserve stability and protection from arbitrary eviction. The challenge is ensuring that both objectives operate within a court system capable of delivering timely justice.

What has become evident since May 2026 is that residential possession law has entered a more technical era. Success increasingly depends upon statutory compliance, evidence and procedure rather than assumption or precedent.

For landlords, the concern is no longer whether there is a route to possession, it is whether that route has been navigated correctly.

Contact

If you would like to discuss any of the issues raised in this article, or need advice relating to the issues discussed, please do not hesitate to contact our or Property Department on 020 7625 6003 or by email at info@fgdlaw.co.uk

Pre-nuptial agreements are often associated with divorce. However, for many families, they raise a broader question: how should inherited wealth, family businesses and other significant assets be protected when a couple marries?

Under the current law in England and Wales, pre-nuptial agreements can carry significant weight, but they are not automatically binding. The Government’s recent consultation on introducing legally binding “qualifying nuptial agreements” could therefore be important not only for separating couples, but also for families undertaking longer-term succession planning.

The Current Legal Position:

When deciding financial arrangements on divorce, the court has a wide discretion. This means the court looks at the circumstances of the family as a whole, including each person’s needs, income, housing position, resources and the welfare of any children, rather than simply applying the terms of a pre-nuptial agreement automatically.

The Supreme Court’s decision in Radmacher v Granatino marked an important shift. It confirmed that the court should generally give effect to a nuptial agreement where both parties entered into it freely, understood what they were agreeing to, and had the information needed to make a decision. However, the agreement will not be followed if doing so would lead to an unfair outcome.

This is why uncertainty remains under the current law. A couple may have taken adequate steps to record what should happen to inherited assets, family business interests or pre-marital wealth, but neither party can be completely certain that the agreement will be applied in full if the marriage later breaks down. For families trying to plan ahead, that lack of certainty can make it harder to decide when and how assets should be passed on.

The Proposed Reform:

The Government’s June 2026 consultation, A Fairer End to Relationships, proposes the introduction of “qualifying nuptial agreements”. These would allow couples to make binding financial arrangements in advance of a divorce or dissolution, provided certain safeguards are met.

Under the proposed framework, a qualifying nuptial agreement would be legally binding if it met the required safeguards. In practical terms, this means couples could decide in advance how certain assets should be treated if the marriage later ended, rather than leaving the issue to be determined entirely at that point. The court would still retain important protections, including the ability to ensure that financial needs are met and that any children are properly provided for.

Building on earlier Law Commission recommendations, a qualifying agreement would need to satisfy several requirements, including:

• being entered into freely, without undue influence or misrepresentation;
• being executed as a deed;
• being signed at least 28 days before the ceremony;
• both parties providing material financial disclosure; and
• each party receiving independent legal advice.

In short, the reforms would not make every pre-nuptial agreement absolute. Instead, they aim to balance personal autonomy with fairness and safeguards.

Why This Matters for Family Wealth:

The significance of the proposed reforms extends beyond divorce.

For families with trusts, business interests or inherited assets, marriage often forms part of a much wider succession planning strategy. Pre-nuptial agreements are already used to protect family assets, however their effect cannot be guaranteed because the court retains discretion to depart from them where fairness requires it. Whilst the Law Commission’s proposal similarly cannot guarantee that every pre-nuptial agreement will be upheld, it does provide greater certainty by setting out the requirements couples are required to satisfy in order to make a qualifying pre-nuptial agreement. Consequently, families would be better placed to identify, in advance, how inherited wealth, family business interests and significant gifts are to be treated if a relationship later breaks down.

This is particularly important where wealth is intended to pass down through generations. For example, parents may want to give their children money to buy a home, or a family business may be preparing for the next generation to take over. A binding agreement could make clear that those assets are intended to remain family assets, rather than becoming matrimonial and subject to a wider dispute on divorce. This can further reduce the risk of expensive litigation and provide families with more confidence when making long-term plans.

Additionally, the procedural safeguards may assist with the planning process by encouraging transparency and informed decision-making. Whilst many pre-nuptial agreements already follow these steps, mandated financial disclosure and independent legal advice help ensure that both parties understand the agreement and its implications.

Implications for Succession Planning:

Succession planning is not just about what happens on death. It can also involve gradually transferring responsibility for a family business, making gifts to children, or placing assets into trust for future generations. The reforms may be especially useful for succession planning as they may provide more certainty when passing assets on during a person’s lifetime to the next generation.

At the moment, families may hesitate before passing assets down during their lifetime because of the risk that assets transferred to the next generation could later be drawn into divorce proceedings. A qualifying nuptial agreement may help manage that risk in a better way by holding parties to the terms of any pre-nuptial agreement. This could make succession planning more practical and less reactive. Rather than waiting until a later stage, families may feel able to put plans in place at the right time.

However, a nuptial agreement should not be viewed in isolation. Effective wealth protection may also involve trusts, wills and wider estate planning. The agreement should sit within that broader framework, rather than operate as a standalone solution.

For many, the benefit is therefore not simply asset protection. It is the ability to plan with a clearer understanding of the likely outcome if a marriage breaks down. Clearer rules may reduce disputes, help couples have clear conversations before marriage, and allow families to make sensible decisions about passing wealth on without leaving everything to uncertainty later.

Looking ahead:

The consultation closed on 14 August 2026 and the proposals may change before any legislation is introduced. Nevertheless, the direction of travel suggests greater willingness to give couples more control over how their financial affairs are addressed if a relationship breaks down.

For families engaged in succession planning, the reforms may offer greater certainty. However, arrangements should be reviewed as circumstances change.

The proposals may broaden the role of pre-nuptial agreements beyond divorce planning, positioning them as a more significant part of long-term wealth and succession planning.

Contact:

If you would like to discuss any of the issues raised in this article, or need advice about family matters or wealth planning, please do not hesitate to contact our Family & Private Wealth Department on 020 7625 6003 or Priya Dhokia (Head of Family & Private Wealth) by email at p.dhokia@fgdlaw.co.uk

Property Solicitor (5–7+ PQE) 

Freedman Green Dhokia Solicitors is expanding its Property team and we are looking for an experienced Property Solicitor to join our growing practice.

This is an excellent opportunity for a talented and ambitious solicitor with 5–7+ years’ post-qualification experience who is confident managing a varied caseload and handling transactions independently from start to finish.

The successful candidate will have strong technical knowledge and experience across a broad range of property matters, with the ability to manage their own files, provide high-quality client advice, and work collaboratively as part of a specialist team.

The role will involve:

• Managing a diverse caseload of residential and/or commercial property transactions independently;
• Handling matters from initial instruction through to completion;
• Providing clear, practical and commercially focused advice to clients;
• Building and maintaining strong client relationships;
• Working closely with colleagues across the firm to deliver an excellent client service.

 About you:

• A qualified Solicitor with 5–7+ years’ PQE in Property;
• Able to manage transactions independently with minimal supervision;
• Strong organisational skills and attention to detail;
• Excellent communication and client management skills;
• A proactive approach with the ability to contribute to the continued growth of the team.

At Freedman Green Dhokia Solicitors, we pride ourselves on delivering a high-quality, personal service to our clients while fostering a supportive and collaborative working environment. This is an exciting time to join the firm as we continue to grow our Property Department.

If you are looking for the next step in your career within a forward-thinking firm where your experience and contribution will be valued, we would welcome your application.

To apply, please send your CV and Covering Letter to info@fgdlaw.co.uk

A recent tribunal ruling confirms that homeowners may still claim Principal Private Residence (PPR) Relief even in high-value property transactions-provided they can demonstrate genuine occupancy.

PPR Relief is a tax exemption that applies when you sell your main residence. It ensures that homeowners are not taxed on any gain made from the sale of their primary home.

Background

A recent win for a London couple in a £3.32 million dispute with HM Revenue and Customs (HMRC) offers important guidance for property owners concerned about Capital Gains Tax (CGT) on the sale of residential property.

The couple had sold a Chelsea mansion for £27.2 million making them a substantial profit and claimed PPR relief to avoid Capital Gains Tax. HMRC challenged the claim, alleging the property had not been used as their primary residence and instead the couple’s other property in Holland Park had been their main residence. They were of the view that the couple purchased, redeveloped and sold the property for the purpose of making a gain. The First-tier Tribunal rejected HMRC’s argument and ruled in the couple’s favour, accepting that they had genuinely occupied the home as their main residence-even if only for a relatively short period.

This was evidenced through the couple hosting thanksgiving, New Year’s Eve and Chinese New Year parties at the property in Chelsea. Furthermore, the couple’s decision to transport 2000 bottles of premium wine from their Holland Park residence to the Chelsea mansion further convinced the Judge that the property was being personalised and not just a ‘venture in the nature of trade’.

Key Takeaways

The case highlights that:

• Genuine residence matters more than duration. Even short-term occupation may qualify for PPR Relief if it can be shown to be a person’s main residence at the time.

• Evidence is crucial to defending claims. The tribunal placed weight on documentation and witness testimony confirming the couple’s intention to live at the property as their main home. This suggests courts are open to fact-specific arguments, rather than simply assuming tax avoidance.

• HMRC is actively challenging PPR claims. Especially in high-value cases, HMRC is scrutinising property transactions and demanding detailed proof, in an effort to maximise the amount of Capital Gains Tax HMRC are receiving. Taxpayers must be prepared to substantiate their claims with comprehensive documentation and, if necessary, witness testimony.

Contact

If you would like to discuss any of the issues raised in this article, or need advice about Capital Gains Tax or Estate planning, please do not hesitate to contact our Private Wealth Department or Property Department on 020 7625 6003 or Priya Dhokia (Head of Family & Private Wealth) by email at p.dhokia@fgdlaw.co.uk

A recent ruling by France’s highest court, the Cour de Cassation, has significant implications for international clients who reside or have assets in France. The court has clarified the law under which a Will written in a language not understood by the testator, the person making the Will, can be considered valid under French law.

Background

There are several types of Wills in France:

1. A ‘le testament olographe’ which is a Will written by the testator themselves;
2. A ‘le testament authentique’ which is a Will drawn up by a notary at the request of the testator; and
3. A ‘le testament international’ which is a form of Will that may be accepted in many countries.

Case Summary

The case involved an Italian woman who, in 2002, drafted a Will in French, a language she did not understand. The Will was received by a notary in the presence of two witnesses and with the assistance of a non-sworn interpreter. When the woman died in 2015, her remaining close family consisted of three daughters and a grandson, whose mother, the fourth daughter, had died. The grandson was not included in the Will and therefore decided to take the matter to court to contest that the Will did not express the true wishes of his grandmother. He argued that his grandmother did not understand French, and that the absence of a sworn interpreter undermined the validity of the Will.

The Lyon Court of Appeal upheld the Will, classifying it as a valid international Will under the Washington Convention of 1973. However, upon further appeal, the Cour de Cassation ruled that, at the time the Will was made, French law did not permit the use of interpreters for testament international and if the testator did not understand French, they could not validly execute a testament authentique, even with an interpreter. This meant the Will was deemed invalid and the rules of intestacy would apply.

Key Takeaways

The ruling confirmed that for Wills drawn up after 18 February 2015, which is when updated legal provisions were made, French law allows the use of a court-appointed interpreter when drafting a Will with a notaire. This allows non-French-speaking individuals to create valid French Wills provided certain conditions are met. The interpreter must be officially recognised and appointed by the court. Using an unqualified interpreter can render the Will invalid. If your Will was drafted before 18 February 2015 and involves language considerations, you should assess its validity following this ruling.

Contact:

If you would like to discuss any of the issues raised in this article, or need advice about international Wills, please do not hesitate to contact our Private Wealth Department on 020 7625 6003 or Priya Dhokia (Head of Family & Private Wealth) by email at p.dhokia@fgdlaw.co.uk

For most people, buying a property is likely to be the single most important investment that you will make during your lifetime. It needs to be protected.

The scale of fraud committed in the UK rose to £2.3bn in 2023, with illicit activities relating to the sale, purchase or mortgage of properties accounting for 71% of all fraud. In fact, the UK Land Registry has received over double the number of fraud claims that they have prevented.

These damming statistics show that fraudsters are becoming increasingly convincing and more successful in their attempts to deprive homeowners of their property.

The ever-increasing refinement of technology means that these scams can be unpredictable and occur in a variety of ways. This article will delve into the main types of property fraud and shed some light on how you can protect your investment from potential threats.

Title Fraud

Title fraud occurs when a scammer gathers sufficient information about a property owner allowing them to steal their identity. Using this information, they then are able to sell the property and make off with the funds or may even apply for loans by using the property as collateral.

Those most at risk from being the victims of title fraud are the people who own properties that are currently vacant such as holiday homes which are uninhabited for a majority of the year, or properties that are unregistered.

Vacant properties are a haven for fraudsters as the chance of a homeowner discovering any illicit activity is severely reduced due to the property not being their main residence. Recent targets have been the elderly who may have gone into a care home, leaving their home vacant.

How can you protect yourself?

There are multiple ways a prudent homeowner can protect themselves against title fraud. If your property is unregistered, then contact a solicitor who will begin the registration process and ensure that your name is on the title deeds thus legally registering you as the owner of the property.

If your property is already registered, then you can download an official copy of the Register of Title at a cost of only £3 from the Land Registry. The Register will state who the true owner of the property is and will inform you if there are any mistakes or incorrect information regarding your property. If there are mistakes, then you must contact the Land Registry so that they may rectify the issue.

All homeowners are actively being encouraged to sign up with the Land Registry Property Alert Service which will alert you immediately if there are any official searches or applications submitted against your property. If you receive an alert that you have no knowledge of or did not authorise, then you can immediately address this to prevent any fraud from occurring.

While the above protections are a good start, the most secure method to protect your property is to place a restriction on the Register of Title. A restriction blocks the Land Registry from registering a sale or mortgage of your property without the certified consent of a solicitor, such consent can only be provided on your behalf. The fee for registering a restriction is £40 and must be done via post. A small price to pay for extra safeguards on your home.

Cyber Fraud

Cyber Fraud differs from title fraud as here, the wrongdoer impersonates the conveyancer dealing with the property rather than the homeowner. Fraudsters are utilising the fast-growing technology at their disposal to create fake emails, letters and websites that seem perfectly legitimate and look as professional as the real deal.

The authenticity of these fraudulent documents can convince unsuspecting buyers to part with their money thinking that they are purchasing a new home only for the funds to disappear and never be seen again. Fraudsters may create a false conveyancing firm, or they may intercept email communications between a genuine conveyancer and buyer and request that the buyer transfer the purchase funds directly to a new bank account.

How can you protect yourself?

At the beginning of the property transaction, it is essential that you speak to your solicitor in person or on the phone. At that point it would be pragmatic to confirm each other’s bank details. At a later date, if you receive instructions from your solicitor that they have changed their details, this may be a fraudulent attempt by a wrongdoer to exploit payment from you. If this occurs, contact your solicitor using the phone number you have previously used to communicate. Ensure you speak to the same person you normally deal with and confirm if they really have changed their details.

Any time you are required to transfer sums to the solicitor, always call and double or even triple check. The risk of fraud is high so solicitors are understanding of the lengths one may go to protect themselves. A quick phone call to confirm is a small step to take to mitigate potential fraud.

Another method of protection is to set strong unique passwords for your email account to make it much safer. This should be coupled with two-factor authentication, thus guaranteeing the best possible security.

Lender Fraud

Lender fraud entails the impersonation of a mortgage lender, such as a bank or building society. Fraudsters will offer a homeowner the opportunity to renegotiate mortgage terms that are more favourable to the buyer. In return the false lender will demand an upfront payment that is lower than the amount still to be paid on the mortgage, enticing owners to comply thinking that they are getting a great deal. Consequently, the false lender vanishes with the payment and the terms of the mortgage stay as is. All documents and correspondence from the fraudster will look and feel completely legitimate, giving homeowners a false sense of security. Those who are in financial distress are most at risk of being targeted and suffering this type of property fraud.

How can you protect yourself?

The majority of lenders are companies, and all will be registered with the Registrar of Companies. If you receive communications from someone claiming to be a lender, check the Registrar to verify their authenticity. There is a link on the Registrar that will take you to the lender’s legitimate website. From there, you can find their customer support contact phone number and speak to someone to confirm if the communication your received were genuine, or the work of a scammer.

Lastly, remember that the most important form of protection is for you to always remain vigilant. If something seems suspicious, it is worth taking the time to verify it. If you are offered something that seems too good to be true, take action to confirm the source of the offer. Potential threats can arise from all angles and fraudsters are always innovating their methods of attack. Your property will often be your most valuable and treasured asset. Ensure that it receives the protection and attention that it deserves.

Contacts:

If you would like to discuss any of the issues raised in this article, or need general advice about property related matters, please do not hesitate to contact our Property Department  on 020 7625 6003 or Gary Green (Head of Property) by email at g.green@fgdlaw.co.uk

The widespread availability of mobile phones has undeniably changed the way in which we communicate.

With mobile phones at our fingertips, communication has become instant and increasingly reactive. Likewise, social media platforms now enable us to easily share a substantial portion of our day with a wide audience.

Naturally, there is concern that our use of technology results in a permanent, and often public, record of our lives.

Parties are increasingly producing evidence obtained from mobile phones to use against their spouses in court proceedings. Social media platforms are being scoured for relevant posts to either prove or disprove a position. Meanwhile, instant messaging apps are being used to lure parties into an agreement or statement, which they can later be held to.

The usage of mobile phones and social media can also be a source of hostility for the parties involved.

This has placed more of a spotlight on the use of mobile phones in divorce proceedings. Our Family team examines these issues in more detail below:

It is all about the evidence

Evidence gathered from mobile phones and social media is often used during the financial remedy proceedings on divorce. Whilst there is no requirement for spouses to settle their finances upon divorce, it is recommended that parties do so. This is to avoid any future claims which may arise from postponing a financial settlement.

In financial remedy applications, parties are required to provide a full and frank disclosure of their financial resources so the court can determine the appropriate financial provision. However, any division of wealth will be based on the assets which have been disclosed and much is dependent upon the parties to be truthful about the extent of their finances. Consequently, parties are frequently using social media to prove, or disprove, their spouse’s financial position, particularly where there are allegations of non-disclosed assets and lavish spending.

When making a decision, the court, along with other factors, will also look at the standard of living enjoyed during the marriage. Therefore, social media posts evidencing expensive clothing, restaurants and holidays are likely to be significant in any analysis.

These considerations maintain relevance where there are children of the marriage. When determining the appropriate child arrangements order, the court will similarly consider prior standard of living, financial needs and the income, financial and property assets of both parents. The same evidence may be relevant.

Furthermore, in cases where there are high income levels, the court has jurisdiction to order periodical payments which “top up” any child support payments already being received via the Child Maintenance Service or the Child Support Agency. To qualify for this order, the paying partner must earn more than £3,000 per week for the Child Support Agency, or a net income of £104,000 per annum in cases concerning the Child Maintenance Service. It is therefore important to demonstrate that spending exceeds this criteria and, where there has not been a full and frank disclosure, social media and other communications disproving the disclosure may help.

 Mobile Phones and Well-being

Divorce is a significant event in anyone’s life. Well-being and mental health throughout the process is paramount. Unfortunately, the prevalence of mobile phones can cause parties great difficulties, particularly if you have been the victim of abuse.

It is no wonder, therefore, that social media can cause difficulties post-marriage in the same way that it can be a catalyst for arguments during. Viewing daily updates of your spouse’s life on social media may create unhappy emotions of resentment, anger or jealousy, whilst the ease of digital messaging services can spark unkind communications. It can also encourage people from outside the marriage to offer unwelcome opinions, affecting your self-esteem and hindering a fresh start. It can be understandably hard to escape this.

 Using Mobile Phones Responsibly

Mobile phones can be both a hinderance and a help in divorce proceedings. It is therefore important to use your phone, and social media contained within it, responsibly and cautiously throughout the separation process.

Useful tips:

• Limiting Usage – This can help you heal from the separation, allowing for time apart and a cleaner break. It may also be suitable to take a short break from posting frequently on social media sites, if you previously did so. This can protect you from general hostility and disagreements.
• Avoid Negative Posts or Conversations – Remember, there is permanence to digital communications. It may harm your case or hurt your spouse.
• Privacy Settings – Ensure your accounts are well protected if your spouse had access to them previously.
• Seek Legal Advice – We can offer you advice on navigating social media and communication on your device, helping you focus on your future post-separation.

If you would like to discuss any of the issues raised in this article, or need advice about a divorce or civil partnership separation, please do not hesitate to contact our Family & Private Wealth Department on 020 7625 6003 or Priya Dhokia (Head of Family & Private Wealth) by email at p.dhokia@fgdlaw.co.uk.

The Old Law on CGT Relief

The time for reform on Capital Gains Tax (CGT) relief for divorcing spouses and separating civil partners is long overdue. The previous law allowed couples to dispose of assets on a “no gain or no loss” basis. However, this was only available in relation to any disposals in the remainder of the tax year in which the separation happens. This has left many couples in a race against time to dispose of their assets before the tax year is up in order to benefit from CGT relief. An often near impossible task for many couples who find themselves in lengthily financial settlement negotiations when ending their marriage or civil partnership. Even in the most amicable negotiations parties are reliant on information and documentation from third parties, this often causes further delays to the negotiation process. In addition, couples were ultimately reliant upon the Courts to finalise their financial Consent or Remedy Orders and consequently do not have much control over the timeline.

The New CGT Rules

On 06 April 2023 new legislation was introduced which has changed the CGT rules for divorcing spouses and separating civil partners.  Couples can now benefit from the following changes to CGT rules.

• “No gain, no loss” CGT relief for up to three years from the end of the tax year in which they separated when disposing of assets.
• Transfers between parties which are part of a formal divorce or dissolution of a civil partnership agreement will attract “no gain, no loss” CGT relief for an unlimited time.
• The partner who retains an interest in the former matrimonial home may claim Principle Private Residence Relief upon the sale of the property.
• Lastly, individuals who have transferred their interest in the former matrimonial home to their ex-spouse or civil partner and are entitled to receive a percentage of the proceeds when that home is eventually sold will benefit from being able to apply the same tax treatment on the receipt of those proceeds that applied when they transferred their original interest in the home to their ex-spouse or civil partner.

The Impact of these Changes

These changes to legislation provide a fairer way for spouses and civil partners to distribute and dispose of their assets upon separation. Individuals will now have the time to fully consider their financial positions without having to rush into decisions to avoid high CGT liabilities, particularly in situations where parties have complicated financial affairs. In addition, we can only hope that this outcome will relieve some of the pressures that many individuals may experience at the time of divorce or dissolution.

Contacts:

If you would like to discuss any of the issues raised in this article, or need advice about a divorce or civil partnership dissolution, please do not hesitate to contact our Family Department on 020 7625 6003 or Priya Dhokia (Head of Family & Private Wealth) by email at p.dhokia@fgdlaw.co.uk

Priya Dhokia, Head of Family & Private Wealth at Freedman Green Dhokia provides advice and insight to Law Society members on how to recruit and retain talent so firms have the right people on board.

Priya sits on The Law Society’s Small Firms Advisory Committee. She regularly uses her knowledge and expertise to deliver support for the sector.

You can read the full article here:

Recruiting and retaining talent: how to attract the right people | The Law Society