Boundary agreements will be a hot topic for conveyancers and insurers, particularly if the case of White v Alder heads to the Supreme Court. The 2025 Court of Appeal decision was a reminder that boundary demarcation agreements define the legal boundary and are not simply an understanding between neighbours. The Court of Appeal held that a boundary agreement can bind a future buyer, a decade later, despite the fact the buyer was unaware of the agreement. Insurers will consider the scope of existing policies and the potential for new products to deal with the risk of unknown boundary agreements.

Lender policy claims are expected to rise as fixed-rate mortgage deals arranged before late 2021 begin to expire en masse by 2026. Borrowers moving to higher interest rates may struggle with repayments, leading to increased arrears and repossessions. This will likely drive more claims against lender policies, once title defects or valuation issues are revealed. Insurers should prepare for elevated notification volumes.

The Bankside Yards decision will recalibrate the right to light insurance market, shifting focus to negotiation damages. Courts are unlikely to grant injunctions for moderate interference, especially where developers act transparently and the project serves public or economic interest. Right to light insurance will continue to underpin urban regeneration but the current market will also demand caution. Astute neighbours will negotiate a share of anticipated profits. Developers can expect more rigorous oversight from insurers during the agreed conduct phase and there will be a particular focus on the need to demonstrate good conduct.  We expect the market to settle over the next year.

We anticipate a notable increase in legal claims arising from breaches of covenant related to Houses in Multiple Occupation (HMOs). The trend is already emerging, particularly in the social housing sector, and is likely to accelerate if the government proceeds with plans to expand the use of HMOs to accommodate asylum seekers, avoiding the controversy of long term hotel stays. This expansion may conflict with restrictive covenants, especially in residential areas, prompting enforcement action by residential neighbours and landlords. Legal indemnity insurance will assist HMO providers to navigate the cost and risks of claims, albeit we expect to see some restrictions in the cover that may be on offer.

The Planning and Infrastructure Bill has the potential to alter significantly the judicial review process for infrastructure and planning decisions. The Bill aims to accelerate major infrastructure projects by curbing delays and legal costs. Environmental campaigners who fear that the Bill weakens vital checks on projects at protected sites will mobilise and look for opportunities to use judicial review tactically and symbolically. As the Bill progresses, we expect increased advocacy and litigation from campaigners committed to preserving environmental protections and ensuring robust oversight of planning decisions. Legal indemnity insurers can expect an uptick in enquiries for judicial review cover as developers face risks arising from the storms created by these reforms.