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Automating a warehouse: key issues for consideration

Demand for automated warehouse solutions is growing as businesses seek greater efficiency, resilience and scalability within their operations. Whether driven by labour costs, increased throughput demands or a need for integrated data insights, automated solutions can deliver significant benefits – but realising these benefits comes with considerable investment and businesses face a blend of technical, commercial, legal and operational challenges when procuring automated systems.

Careful planning at the outset is essential to help ensure smooth procurement and installation of the system and to ensure the system delivers as expected. This article series explores some of the many property, construction, technical and operational considerations which businesses need to explore when embarking on a warehouse automation project.

In this first article, we consider issues which a business should considered at the very early stages of any warehouse automation project. Article two then discusses key pre-contract operational and contractual considerations and article three takes a look at post installation issues, as well as what can go wrong when a warehouse installation project is not carefully managed.

Early stage considerations

Building suitability and physical constraints: can you automate your current building and what do you need to change?

  • Clear height and configuration: automation lends itself to taller buildings of 15-21m. The building’s height, column grids and tolerances need to be considered by the relevant consultant/structural engineer to establish the level of structural alterations required. Extension of eaves height will likely require planning permission and the timescales involved could necessitate a wholesale reconsideration of the current premises and search for a new appropriate shell elsewhere.
  • Floor slab capacity: many automated systems especially those in taller buildings exceed standard warehouse point load assumptions. Uneven slabs can also compromise autonomous vehicle navigation and conveyor alignment. Intrusive investigations need to be carried out prior to any installation to inform whether any slab strengthening and alteration is required.
  • Fire suppression compatibility: high-density automated racking often triggers enhanced sprinkler, smoke extraction or compartmentation requirements.

Power

Can you power the automation with your current supply and are there any alternative sources?

  • Increased power requirement may be hard to procure from the grid in a timely fashion. Installation of roof-top solar combined with onsite battery storage installed either by you or secured from a third party could supplement and potentially replace the current energy source.
  • If there are any adjacent (or within 10km) renewable generators such as a ground mounted solar or wind turbine developments a private wire arrangement could be considered subject to the necessary cable permissions from adjacent owners.
  • Could the heat emitted from the automation equipment be harnessed to heat the building and where significant could it be monetised and heat adjacent buildings?

Third Party Consents

Leasehold Property: will the Landlord consent to your automation?

  • The alterations provisions in the lease need to be reviewed at the outset of the automation project and early landlord engagement is fundamental before you incur significant capex. Is the landlord required not to unreasonably withhold its consent.
  • How long is your lease? Do you need to agree an extension to the term now linked with the lifetime of the equipment being installed?
  • Landlords will also want to understand timescales, third party approvals (planning and building control), structural impacts, fire safety, building insurance variations (noting that any premium increases will be passed on to you) you’re your reinstatement obligations.
  • If additional mezzanine floors are required will the Landlord seek to rentalise these?
  • Permitted hours – if the building will operate for longer are there any permitted hours restrictions in the lease which need amending?
  • Capital allowances – the terms of the licence permitting the installation need to make it clear that the plant and machinery belongs to you along with the capital allowances associated with it which you will seek to account for over the equipment’s lifetime.

Procurement

Procurement of a warehouse automation solution can be very complex. Most projects involve the physical construction of high-tech software and robotics in addition to the purchase and installation of equipment, typically these contracts are based on an industry standard form construction contract, such as the JCT MF1.

However, as warehouse automation projects do not entirely fit the traditional structure of standard form construction contracts, most standard form contracts will need considerable tailoring so to create a hybrid agreement which merges construction, software and engineering elements. At Michelmores, we are familiar with the shortcomings of standard construction (and sale and purchase) contracts in this context and have considerable experience creating tailored agreements which better address the unique risks presented by automation projects.

We strongly recommend giving due thought to (and, where necessary, obtaining legal advice on) the form of agreement to be entered into with a chosen supplier as soon as possible and being upfront about your expectations with them. This can help to reduce delays at a later stage.

In any event, it is critical that the parties consider and agree key commercial principles of the agreement as soon as possible to ensure that key risks are considered, allocated and priced for to avoid subsequent protracted contractual negotiations. We recommend that these key terms are then documented in an agreed set of Heads of Terms. Whilst these Heads of Terms will not being legally binding, the process of discussing and agreeing them will highlight potential mismatches and areas of concern which need to be worked through before a final decision on a provider and solution is made.

Typical issues to consider under Heads of Terms may include:

  • Who is taking the existing site/building risk? Contractors will typically seek to exclude liability for pre‑existing defects, meaning the employer often retains the risk of latent issues in the structure, slab or services, with potential cost and programme consequences if these emerge during installation.
  • What are the guaranteed performance requirements/ levels and what are the consequences should these not meet the requisite thresholds? These can be quite varied in practice ranging from performance liquidated damages, rectification at the cost of the contractor, withholding of payment, through to termination.
  • When might the performance levels dictate that works need to be redone?
  • What kit and parts are being specified and are these readily available in the market from alternative providers? Being beholden to just one contractor for the warehouse to function is high risk but the market offering is limited in this sector.
  • Similarly, what software is involved and embedded in the kit? Is this proprietary to the supplier or licensed by a third party and does this create a potential risk of dependency on the supplier/third party provider for on-going maintenance?
  • What are the testing parameters i.e. when should testing occur, what testing is required and what are the consequences of a failure of all or part of the kit following testing?
  • What insurances might be required in terms of delay and disruption and who is carrying the cost of the premium for this (noting that it is very costly)?
  • How is payment to operate? Typically this is linked to milestones but it is recognised that there is often a huge upfront offsite manufacturing cost which the contractor will want covered through advance payments. Linked to this is how will the client protect itself against such costs and will bonds be required?
  • If the kit is coming from abroad, who is responsible for the transport risk and cost?
  • What are the consequences for delay in supplying and installing the kit?
  • Is a liability cap agreed and if so at what level and what carve-outs apply?
  • Who will ongoing maintenance be undertaken by if not the supply and installation contractor as typically the right to deduct performance damages is conditional on the same contractor maintaining it?
  • If the supply and installation contractor is also undertaking on-going support and maintenance have terms been agreed regarding on-going support and maintenance?
  • What form of support and maintenance contract is envisaged and what are the timings around this? Ideally key terms should be agreed in advance with a view to the support and maintenance contract being entered into at the same time as the main supply contract. Leaving this until a later date often opens the door to risk and uncertainty.

Michelmores’ Commercial, Construction and Real Estate teams have extensive experience advising organisations implementing warehouse automation systems. We support clients throughout the procurement and installation process. Please get in touch if you would like to find out more.

Shortlist announced for Michelmores’ prestigious Property Awards 2026

The shortlist for the prestigious Michelmores Property Awards 2026 has been unveiled, showcasing the best property, construction and development projects across the West of England and South West of the UK. The Awards, which celebrate excellence and innovation, bring together professionals from across the region to highlight outstanding achievements in the property sector over the past year.

Now in their 23rd year, the Michelmores Property Awards continue to champion the most sustainable, impactful and creative developments. This year’s shortlist represents a wide range of impressive projects across multiple categories, spanning healthcare, regeneration, education, residential, heritage, leisure and community-led development.

The Awards encompass nine categories, and the judging panel comprises esteemed professionals from across the property industry. The 2026 shortlist includes:

Category 1: Project of the Year (Under £10m)

  • BOWA MEDICAL UK HQ
  • Langage South
  • Tamar Valley Crematorium
  • West Cornwall Hospital

Category 2: Project of the Year (Over £10m)

  • Dartmoor Building
  • Musgrove Park Hospital – Surgical Centre
  • The Brook, Langdon Hospital
  • Welcome Building

Category 3: Regeneration Project of the Year

  • Factory Cooperage at Royal William Yard
  • Gap House
  • Rockfish + Salcombe Brewery
  • Spitfire Hangar, Brabazon
  • The Hub at Foulston Park

Category 4: Education Project of the Year

  • Centre for Law & Social Sciences, Exeter College
  • Sky Primary & Eden Project Nursery
  • The Paddock Cabin, Poole Farm
  • University of Plymouth – PDSE Dental Education Practice

Category 5: Leisure & Tourism Project of the Year

  • Broadmeadow Sports Centre Decarbonisation & Refurbishment Project
  • Rockfish + Salcombe Brewery
  • Shoemakers Museum
  • The Hub at Foulston Park

Category 6: Heritage Project of the Year

  • Factory Cooperage at Royal William Yard
  • Plymouth Tinside Lido
  • Spitfire Hangar, Brabazon
  • West Wall Revive, St Philip & St James, Ilfracombe

Category 7: Residential Project of the Year (36 homes and over)

  • Millstream, The Chocolate Quarter
  • Monument View

Category 8: Residential Project of the Year (35 homes and under)

  • Brampton House
  • Factory Cooperage at Royal William Yard
  • Gap House
  • Weavers Way

Category 9: Building of the Year

  • To be announced on the night

About Michelmores Property Awards

The Michelmores Property Awards present some of the South West’s most prestigious accolades, recognising achievements in property development, construction and regeneration. Now in their 23rd year, the Awards celebrate projects that contribute to the region’s economy and community, with a particular focus on environmental sustainability, innovation and social impact.

The Awards continue to place emphasis on sustainability, innovation and the broader positive impact of projects within their communities. With categories designed to reflect the diversity and quality of development across the West of England and South West, the Awards highlight the growing importance of responsible, future-focused design.

The Awards Dinner and Ceremony will take place at the Sandy Park Conference Centre in Exeter on Thursday 25 June 2026.

For the full shortlist and table bookings, visit the Michelmores Property Awards website.

Special thanks to our panel of judges

Gordon Isgrove (Avison Young), Iestyn John (Bell Cornwell Town Planning Consultants), Nathan McLoughlin (McLoughlin Planning), Claire Pearce (Real Growth Ltd), Ron Persaud (Change Real Estate), Ajay Sharma (KTA Architects), and Thelma Sorensen OBE, Honorary President of South West Women in Construction.

Sponsoring the Awards

The Michelmores Property Awards reach across the West of England and South West’s property, real estate and construction sectors. Sponsorship offers an excellent opportunity to raise your organisation’s profile and be part of a high-profile networking and hospitality event.

Email [email protected] to request a sponsorship brochure and find out more.

Warehouse automation: pre-contract operational considerations

Demand for automated warehouse solutions is growing as businesses seek greater efficiency, resilience and scalability within their operations. Whether driven by labour costs, increased throughput demands or a need for integrated data insights, automated solutions can deliver significant benefits – but realising these benefits comes with considerable investment and businesses face a blend of technical, commercial, legal and operational challenges when procuring automated systems.

Careful planning at the outset is essential to help ensure the system delivers as expected and mitigates the risks of disruption later in the delivery lifecycle. This article (being article two in this Warehouse Automation article series) explores some of the many operational considerations which businesses need to explore prior to contracting with a chosen supplier.

1. Defining technical and performance requirements

A successful automation project begins with clarity between both supplier and customer on what the system must achieve. If performance outcomes are critical to business operations (for example prescribed throughput rates), these should be translated into clear contractual requirements rather than remaining mere assumptions or expectations of the new system.

2. Software architecture and licensing

Automated systems often involve multiple layers of software – from embedded machine-level code to system-wide platforms and potentially AI-driven optimisation tools. Some of this software may be supplied by a third party and any business acquiring automated systems should ensure it has clarity surrounding the software elements which make up the system, as well as of the ownership position and any licensing terms attached to each software element. The purchase contract will need to clearly reflect this position, as well as any licensing and/or assignment arrangements and the associated costs. Businesses should also consider whether it is necessary to have software continuity protections in place, such as an escrow arrangement or an on-site code repository. Such arrangements need to be agreed with the supplier (and any third party licensor) at the outset to avoid subsequent delays.

3. Data handling and systems integration

Automated systems typically collect and process large volumes of data. Understanding the data landscape early is essential and businesses should give thought to any system integration requirements, together with related cybersecurity and data protection considerations – particularly where a supplier has access to this data when providing ongoing maintenance and support.

4. Ongoing support and maintenance

Once a system is delivered, ongoing maintenance and support (whether provided in-house or by the system supplier or a third party) will likely be necessary to ensure the system continues to operate efficiently and in accordance with technical and performance specifications. Having a clear sense of ongoing support and maintenance requirements at an early stage can help to reduce delays further down the line in the contract negotiation process (especially where a customer wishes to obtain support from the system supplier). When evaluating support and maintenance requirements, thought should be given to the following key points:

  • nature of support required (for example, remote (helpline) support, on-site remote or a mixture of the two). This is likely to be shaped by the criticality of relevant warehouse operations to the customer’s business;
  • required support hours;
  • required service levels and fix times;
  • any on-site spare parts inventory requirements; and
  • cost (in particular, what is included in “base” prices and which costs (for example, spare parts, call-out charges and out-of-hours support) will be out-of-scope.

Where a customer wishes to obtain this support from the original supplier, thought should also be given to how support commitments will interact with any equipment warranty provided by the supplier.

5. Training

Smooth and successful adoption of automated systems relies on effective staff training. Again, early planning should identify customer training needs, formats, and cost structures. Consider the business’s initial training needs, as well as the likelihood that follow-up/refresher training may be required.

Michelmores’ Commercial, Construction and Real Estate teams have extensive experience advising organisations implementing warehouse automation systems. We support clients throughout the procurement and installation process. Please get in touch if you would like to find out more.

Commons grazing: implications of the Dartmoor commoners case

The headline from the recent High Court decision in the case of Wild Justice v Dartmoor Commoners Council (“Council“) is that the Council failed in its fundamental duty to assess the proper number of livestock that should be allowed to graze the common land on Dartmoor.

The High Court determined that reliance on anecdotal evidence as to stocking levels was not a legally sufficient basis for performance of such a core statutory function. Wild Justice’s chief complaint was that the common land was overgrazed but under-grazing is equally problematic and the court agreed that the grazing capacity of the commons, viewed wholly and in part, had to be properly assessed in terms of quality and quantity.

Underlying statutes

Dartmoor is a unique landscape and this is perhaps why it is the only commoners association to be governed by its own statute, the Dartmoor Commons Act 1985.There are other statutory commoners organisations created by the Commons Act 2006, such as Brendon Commons on Exmoor and Bodmin Moor. The same statutory duty to assess appropriate grazing levels will apply to those protected landscapes as well.

Wider application for competent authority status

Of wider application though is the confirmation that the Council (along with Brendon and Bodmin) is a competent authority for the purposes of both the Wildlife and Countryside Act 1981 and the Conservation of Habitats and Species Regulations 2017.

This will have implications for the evolution of such protected landscapes in the context of Landscape Recovery and other environmental schemes. In exercising their functions, the statutory commoners councils will have to have regard to the aims of the Wildlife and Countryside Act 1981(“1981 Act“) and the EU Habitats Directive (92/42EEC).

SSSI statutory obligations

In this case, the court found that a failure to issue grazing limitation notices was not unlawful and so the Council had not breached their duties in this regard. However, future decision making will be influenced by the need to comply with the 1981 Act on Sites of Special Scientific Interest (“SSSI“), to:

take reasonable steps, consistent with the proper exercise of the authority’s functions, to further the conservation and enhancement of the flora, fauna or geological or physiographical features by reason of which the site is of special scientific interest; and

have regard to the requirements of the relevant EU habitat and wild bird directives in respect of Special Areas of Conservation (“SAC.“)

Greater pressure on stocking levels

This may result in even greater pressure on stocking levels in such protected landscapes as Landscape Recovery and other catchment scale schemes are rolled out. Many will argue that these safeguards are already in place through the oversight of Natural England but there is now a much more direct means of enforcement, following the court’s confirmation of the statutory duty to properly assess grazing intensity.

Squeeze on commoner’s funding

Judgment was issued in this case in the same week as DEFRA announced that commoners would not be able to claim payments under the Sustainable Farming Initiative or Countryside Stewardship due to the RPA’s computer system being unable to cope with applications across such large land parcels. This will see reduced levels of public funding for some of the most important landscapes, unless Landscape Recovery schemes can help reduce the impact of such cuts in support.

Historically, it has been problematic getting wholesale buy in across an entire common, when it comes to environmental schemes; a combination of an overriding statutory duty and reduced public funding may in the future encourage a more collaborative approach.

Michelmores advises shareholders of 3Keel Group Ltd on sale to Fera Science Ltd

Michelmores has advised the shareholders of 3Keel Group Ltd (3Keel) on the sale of the business to Fera Science Ltd (Fera), a portfolio company of Bridgepoint Group PLC.

The transaction brings together Fera and 3Keel to establish a platform providing end‑to‑end support to organisations operating across the life‑science sector. 3Keel’s experience in strategy development, stakeholder engagement and supporting clients to deliver sustainability programmes will be complemented by Fera’s scientific expertise.

Michelmores acted for the shareholders in relation to all aspects of the transaction process. The deal was led by Managing Associate Chris Smedley from the firm’s Corporate team, alongside Richard Cobb and Gruff Cartwright. Support was provided by Partners Cathy Bryant (Tax), David Thompson (Commercial) and Rachael Lloyd (Employment). The team worked closely with the Grant Thornton team, as corporate finance lead advisers to the shareholder group in relation to the deal.

Commenting on the transaction, Chris Smedley said:

“We were pleased to have been able to advise the shareholders of 3Keel in relation to this exciting transaction for all parties. The sale to Fera represents an important step for the 3Keel business and provides a strong platform to support the next phase of growth for the company with the support and backing from Fera.”

Simon Miller, 3Keel’s Managing Director, commented on behalf of the founder shareholders:

“Michelmores provided clear, constructive advice throughout the process. The team worked closely with us to help deliver a successful outcome in a swift and smooth manner. What an amazing, unflagging, undaunted, hardworking team!”

This transaction is one of a series where Michelmores have been chosen to advise on deals in the sustainability consultancy sector, in part because of demonstrably aligned values and our strategic focus on significance of impact.

Michelmores’ award‑winning Corporate team of 35 specialist lawyers advises clients across the UK, US and beyond on mergers and acquisitions, capital markets, management buyouts, share options, impact investing, energy projects and more. For more information, please visit our website.

Planning in practice

Starting my seat in the Planning & Environment team at Michelmores has been a fascinating opportunity to see how planning law operates at the intersection of law, policy and development on the ground. Planning is a broad and constantly evolving area, and one that plays a critical role in shaping places, communities and the environment. From large-scale housing schemes to infrastructure projects, the team advises on matters that are both legally complex and socially significant.

Planning at Michelmores

One of the aspects that has stood out most during my seat so far is the sheer breadth of work the team covers. The Planning team at Michelmores advises across the full lifecycle of development, supporting landowners, commercial developers, regional house builders, government bodies and planning authorities from site acquisition through to delivery. This includes advising on the interpretation and application of planning policy, supporting planning applications, and navigating the increasingly technical regulatory landscape.

A key area of work is planning agreements, particularly section 106 agreements – legal agreements entered into between a developer and the local planning authority when planning permission is granted to ensure that a development pays for and/or provides things needed to deal with its impact on the local area. During the first half of my seat, I have observed the drafting and negotiation of section 106 obligations, advising on triggers, phasing and enforceability, and liaising with local planning authorities and other stakeholders to progress agreements towards completion. Seeing how planning obligations are used to balance development with infrastructure and community benefits has been a valuable learning experience.

The team also undertakes significant work in relation to biodiversity net gain (BNG), an area that has become central to modern planning practice. I have observed the team advise clients on their BNG obligations, reviewing biodiversity metric calculations and drafting BNG-related provisions in planning agreements. Keeping up to date with the ever-evolving statutory framework and guidance in this area has proven to be a very interesting and topical subject area.

The Planning team also works closely with colleagues across the firm, particularly in Real Estate, Property Litigation and Agriculture. This collaboration reflects the reality that planning issues rarely arise in isolation. Being involved in matters that cut across multiple practice areas has given me insight into how the firm delivers cohesive, commercial advice to clients.

Planning Primer

Attending the most recent Planning Primer at Cheltenham Racecourse was an excellent opportunity to put my planning knowledge and understanding to the test. We hosted Lord Charles Banner KC, a leading planning and environmental silk at Keating Chambers, alongside Tim Goodwin, Director of Bennu Environmental and one of the UK’s leading ecologists. Led by Helen Hutton, a Partner in the firm’s Planning & Environment team, each speaker explored whether planning consent has become quicker and more predictable to obtain in the current climate, offering their respective professional perspectives.

Against the backdrop of wide‑ranging recent planning reforms – many of which represent a positive shift for the development industry – the Planning Primer provided an invaluable platform to explore the impact of changes already being felt across different types of development, as well as to hear informed commentary on the reforms that are imminently expected.

Overall, my planning seat at Michelmores has been interesting and varied, offering exposure to high-quality work from an early stage. For trainees interested in a practice area that combines technical law with real-world impact, planning is an excellent choice.

For more insight on the team’s work, please visit our webpage: Planning Law.

Banning retention payments in construction contracts

Introduction

On 24 March 2026 the UK Government released the findings of a consultation undertaken with UK businesses in relation to late payment issues and what steps can be taken to address these (the Consultation).

Whilst both the Consultation and the proposed legislative changes had cross-sector breadth, there were specific parts focused on the construction industry.

The underlying Late Payments Research published by the Department for Business & Trade in July 2025 states that late payments cost the UK economy almost £11 billion per year. The econometric analysis estimated that over 14,000 businesses close every year as a result of these late payments.

The Government has accordingly committed to introducing new legislation as soon as Parliamentary time allows to tackle late payments. In particular, the Government has proposed, amongst other steps, to:

  • Impose a maximum payment term of 60 days, with limited exemptions, to ensure smaller business are paid promptly;
  • Make commercial contracts contain a right to claim statutory interest at 8% above the Bank of England base rate; and
  • Ban the practice of deducting and withhold retention payments under construction contracts.

Retention payments are commonly used in construction contracts, so much so that many standard form contracts are drafted to account for these deductions (see for example Option x16 in NEC4, and clauses 4.16 to 4.18 in the JCT D&B 2024 edition). The retention withheld typically accounts for 1.5% to 5% of the contract sum. This mechanism has traditionally been used as a means of incentivising the contractor to return to site to remedy any defects identified in the works. This prohibition will therefore mark a significant shake up in how parties have contracted in recent years, and standard form contracts will need to be amended accordingly.

In the addition to applying a prohibition on retention payments, the Government has stated it will give the Small Business Commissioner additional powers to investigate suspected poor payment practices, to adjudicate over payment disputes and issue fines to large companies that persistently make late payments to its suppliers.

Consultation outcomes

The Consultation ran from 31 July 2025 until 23 October 2025, and received 867 responses from a wide range of businesses across the UK of various sizes and within different sectors.

As part of the Consultation, respondents were presented with two proposals in respect of how retention payments should be managed. These were broadly:

  • Option A: prohibit the use of retention clauses in construction contracts; or
  • Option B: allow the use of retention clauses within construction contracts and require any retention sums withheld to be protected.

The Consultation responses demonstrated broad agreement that retention practices contribute to unjustified late, partial, or non‑payment, with a disproportionate impact on small and medium‑sized contractors. The withholding of retention sums was widely seen as undermining cash flow by restricting working capital and limiting the funds available for day‑to‑day operations and investment, increasing financial pressure across the supply chain.

Perhaps unsurprisingly, it appears many tier one contractors have been positive about the proposed amendments. Though housebuilders and developers may be less open to the proposed reforms, often being the parties sitting at the top of the construction payment chain.

Impact

The government has said that whilst they fully intend to introduce legislation prohibiting retention payments, they will “consult further with interested parties on the impact of this measure before taking a final decision on implementation“.

Whilst a ban on retention payments could help secure cash flow for small and medium sized contractors, it is unclear how this measure could impact relationships between employers and contractors, especially where retention payments have often been used as a way to encourage contractors to return to site to rectify snagging and defects. If the proposal goes ahead, it will likely bring other forms of security to the forefront, including, but not limited to:

  • Performance Bonds: this provides the employer with third‑party financial security if the contractor fails to perform, without withholding sums otherwise due under the contract. Though requiring a bond typically increases the contract sum, as the contractor will look to pass on the increased costs associated with procuring the bond; and
  • Parent Company Guarantees (PCGs): This may provide the employer recourse against the contractor’s parent company for non‑performance or insolvency, strengthening contractual security without restricting cash flow. PCGs can increase the contract price indirectly, particularly where additional risk is assumed or where corporate support is not routinely provided.

Paying parties will not freely give up a potential protection without seeking an alternative protection. Contractors are unlikely to provide those alternative protections without increasing prices to reflect the additional cost and risk, although employers are likely to argue that the absence of retention is already adequate compensation. The proposed reforms therefore represent a reallocation of risk through contract pricing and security mechanisms, rather than a removal of risk altogether.

Only time will tell whether a ban on retention payments has the intended impact of helping protect the cashflow of smaller contractors, whether alternative security measures take priority, or both.

Should you require any advice on retention payments, recovering unpaid retention, security measures or the preparation of your construction contracts, do not hesitate to get in contact with Anna Wood, Ashley Pigott or Maria Greener in the Michelmores’ Construction & Engineering team.

Michelmores hires experienced Private Property Partner in London

Michelmores has strengthened its London private wealth offering with the appointment of Lorna du Sautoy in April 2026, who joins the Firm as a partner in its Private Property & Landed Estates team.

With over 15 years’ experience, Lorna advises UK and international high and ultra‑high‑net worth individuals, family offices and trusts on the acquisition and disposal of residential property in prime central London and across the UK. Her work typically involves high‑value luxury properties with complex structuring, cross‑border considerations and a requirement for absolute discretion.

In addition to transactional work, Lorna advises on wider strategic estate management matters, including development potential, refinancing and the resolution of sensitive issues affecting heritage property and rural landholdings. She regularly works alongside private client teams, family offices, private banks, brokers and buying agents to deliver seamless outcomes for internationally mobile and privacy‑conscious clients.

Her recent experience includes acting on the purchase of a £48 million prime central London residential property, advising on the purchase of a £15 million property in Notting Hill with exchange taking place within 24 hours, leading real estate due diligence on a property portfolio valued in excess of £200 million, and acting on the acquisition of a significant mixed‑use country estate for over £35 million.

Commenting on her appointment, Lorna said:

“I am thrilled to be joining Michelmores’ London private wealth team, whose high-calibre offering and deeply client-focused approach strongly aligns with my own. My practice sits at the intersection of complex real estate transactions, long-term stewardship of high-value property assets and the nuanced personal considerations that often accompany them. I look forward to contributing to the continued growth of the practice and building long-term relationships grounded in trust, discretion and practical insight.”

Christian Massey, Partner in Michelmores’ Private Property & Landed Estates team, and head of the Private Wealth team, adds:

“Lorna’s arrival is an important step in the continued growth of our private wealth and property offering in London. She brings exceptional experience advising high and ultra‑high‑net worth clients on complex, high‑value transactions, and her approach aligns closely with the discreet, strategic and highly personal service our clients expect. We are delighted to welcome her to the Firm.”

Read more about Michelmores’ Private Property & Landed Estates team on our website.

Contaminated land: from an agricultural landowner’s perspective

This article was first published in AgriLore Spring 2026. To explore the full edition and related insights, view the publication here.

For many agricultural landowners their land is their legacy. Yet beneath the surface – literally and legally – there can sometimes lie a hidden complexity. Contaminated land, and the regulatory regime that governs it, has become increasingly important for rural landowners to understand.

Contamination issues can affect farmland in many ways including in tenancy arrangements, farming operations, redevelopment plans, liability exposure and even its value.

This article outlines what agricultural landowners and landlords need to know, the risks they face, and how those risks can be managed.

What is contaminated land?

The law defines contaminated land as any land where substances in, on, or under the ground are causing, or there is a significant possibility that they could cause, significant harm to human health or the ecological systems of which they form part or significant pollution of controlled waters. This legal definition effectively recognises that the mere presence of contamination is not itself enough to classify land as contaminated. That classification only arises if there is an identifiable pathway for the contamination to move off the land in a manner that significantly affects people or sensitive environments.

Some contaminants are distinctly agricultural: old sheep – dip pits, fuel stores or pesticide residues. Others reflect the layered history typical of rural holdings – former airfields, landfills, or ex-military sites.

In some cases, contaminants may have migrated from neighbouring industrial land or roads, creating problems for landowners who were not involved in the original pollution.

How are contaminated sites identified?

Under Part IIA of the Environmental Protection Act 1990, local authorities have a statutory duty to identify and secure the remediation of contaminated land in their area.

Local authorities look for what regulators call a “contaminant linkage” – a link connecting a contaminant by a pathway (such as soil or water) to a receptor (such as people or sensitive natural habitats).

If all three are present and the risk is significant, the land may be formally classified as contaminated. The statutory process then moves to considerations of clean up or containment to reduce the risk of a significant impact on the identified receptor.

Throughout this process, regulators are meant to act proportionately and with a view to avoiding unnecessary disruption or alarm – although in practice, even mention of a contamination review can be unsettling for landowners.

Liability

The primary responsibility for remediation falls on those who caused or knowingly permitted the contamination (Class A persons). But where polluters are long gone, insolvent, or impossible to trace – a common occurrence on historically used farmland – the burden can shift to the current owner or occupier (Class B persons). This means a landowner with no hand in the pollution may nevertheless be required to undertake remediation of the contaminated land.

Tenanted farmland adds a further layer of complexity. Contamination arising during a tenancy – fuel spills, waste disposal, chemical misuse, or poor site management – may leave the landlord exposed if the tenant cannot meet remediation costs.

Remediation

Any remediation imposed by the local authority must be reasonable – considering cost, practicability and environmental impact. It will not always mean excavation or major works and authorities cannot require remediation to a standard beyond what is necessary to make the land suitable for its existing use, which is likely to be agricultural. Containment measures such as covering with a low permeability cap to reduce subsurface water flows, fencing to exclude receptors (both people and animals) and imposing land management practices to reduce dust may be required. The efficacy of these measures will need to be assessed with ongoing monitoring.

Practical tips to manage risk

1. Know the land’s history

Understanding the history of the land is fundamental; many issues can be foreseen simply by reviewing old maps, farm records, and planning files. Past use of the land should be understood, for example establishing former farmyards, disused dumps and pipes.

2. Keep good records

Keeping records relating to the land is key to avoid being treated as the default responsible party under liability rules. Documents relating to sales/tenancies, historic remediation or clearance work should clearly set out the responsibilities of all parties involved.

3. Clear drafting

Well-crafted tenancy clauses can ensure that tenants maintain good environmental practices, notify the landlord promptly of spills, and bear responsibility for their actions. Restrictions can be placed on the tenant’s use and management of suspect land, to avoid the mobilisation of pollutant. The restrictions could be a restriction on borrow pits or the need to maintain continuous cover crops.

4. Environmental due diligence

Conducting a baseline environmental survey before granting a tenancy or acquiring new land can prevent decades of uncertainty about when and by whom contamination was introduced. It is also important to ensure tenants understand what activities are allowed on the land, requiring notification of any pollution incidents and the requirements for hazardous substances.

5. Engage early

Where issues arise, early engagement with regulators is important. Local authorities frequently prefer collaborative solutions and are required to postpone formal determination if voluntary remediation is underway. Authorities are required to seek proportionate and reasonable outcomes, particularly where risks are manageable and interventions would be excessive relative to their benefit. It is important to understand the process of moving from land that is ‘contaminated’ to having the land statutorily designated as ‘contaminated land’.

The outcome of such a designation needs to be carefully considered. Authorities are not as keen to designated new areas of contaminated land as you may think, and working with them to achieve an alternative outcome may be preferable.

6. Consider insurance

Taking out insurance can offer good risk mitigation. Specialist environmental liability policies can cover historical contamination, gradual pollution, remediation costs and third-party claims.

Conclusion

Ultimately, the best protection lies in awareness of the land’s history, the regulatory framework, and the contractual relationships that govern how land is used. With thoughtful management, clear documentation and proactive engagement, agricultural landowners can navigate the contaminated land regime with confidence – protecting both their property and the people who depend on it.

The likely effects of the new call-in Direction

From 11 May 2026, local planning authorities (LPAs) will no longer be able to refuse planning permission for large housing schemes (150 or more homes) without first consulting the Secretary of State. The Direction does not change planning policy or who ultimately decides applications, but it does add an important procedural step before refusal.

For housebuilders with applications for medium to large sites this is likely to be a helpful change, but there are some downsides.

What is a call-in?

That planning decisions are political decisions is evidenced by the Secretary of State’s power (under section 77 of the TCPA 1990) to identify any planning application in the system and ‘direct’ that the LPA pass the determination of that application to him. If the application is called in, Steve Reed, the current Secretary of State, will be the person who will grant or refuse planning permission.

What is a call-in Direction?

The new Direction adds to the list of existing call-in Directions. Together, these call-in Directions describe the types of planning applications (and now scenarios) that might be subject to a call-in. Directions already covered applications for development that may conflict with national policies on important matters, or may have significant long-term impact on economic growth, or which could have significant effects beyond their immediate locality.

Prior to this new Direction, the guidance on call-in directions was that the Secretary of State only considered the use of his call-in powers if planning issues of ‘more than local importance’ are involved.

What is covered by the new Direction?

The Direction applies to planning applications that include 150 or more dwellings (houses, flats or a mix) and which have not been determined before 11 May 2026.

What happens when a call-in Direction applies?

If an LPA is minded to refuse your qualifying application, the LPA must first consult the Secretary of State, providing the details of the application and the proposed reason for refusal. This consultation is mandatory and pauses the decision-making process as the LPA cannot issue a refusal during the next 21 days whilst the Secretary of State considers whether he will exercise his powers.

If your application is not called in, presumably the LPA will refuse and you have the right to appeal. The new appeal procedures favour determination by written representations on the application as submitted. This will streamline the appeal process, but with little or no opportunity to improve your application’s prospects.

If your application is called in, an Inspector is appointed to hear the application, and report to the Secretary of State. The Inspector may cause a public inquiry to be held. When reaching his decision the Secretary of State may follow the Inspector’s Report or may not.

What are the potential consequences of a call-in?

In the face of the above options the consequences of a call-in under this new Direction may appear subtle.

A call-in will introduce a minimum 21-day delay in the determination process. If the Direction avoids refusal altogether, the time savings can be significant, but if the call-in is confirmed the determination timeline will be significantly extended whilst the Inspector hears the application and then the Inspector’s report gets to the top of the Secretary of State’s to-do list and he makes the decision.

Although there are no additional application costs for a developer arising from a call-in, there will be the additional costs of resourcing a public inquiry if that is how the Inspector hears the application evidence. Of course, these additional costs would have already been on the horizon if your application was to be refused and you intended to appeal.

In making the Direction, the government may be hoping that LPAs will respond to the additional scrutiny by refusing fewer qualifying applications. We certainly hope so.

There can be a propensity for LPAs to duck making tricky and locally political decisions by allowing (or causing) an inspector or the Secretary of State to make the decision. Also, whereas the appeal of an outright refusal exposes the LPA to a potential adverse costs award, costs awards for unreasonable behaviour on the LPA’s part under a call-in may be harder to justify. Might these factors combine to make LPA’s more likely to be ‘minded to refuse’ your application so as to engineer a call-in? We hope not.

What should housebuilders do?

It remains the case that submitting an application with the best prospects for approval (or fewest reasons for refusal) is the best risk management.

If a call-in Direction is made you will need to swing promptly into action engaging with the Inspectorate on the determination timeline and method and with the appointment of your appeal team.

Is the Direction positive or negative for housebuilders?

Overall, the Direction is positive.

It raises the bar for refusal of large residential schemes, ought to encourage negotiation, and may reduce the number of unnecessary appeals. While it can introduce short-term delay, it modestly but clearly shifts the balance in favour of major housing development.

The Michelmores 5k Charity Run returns for 2026
Enter the Charity Run

 

The Michelmores 5k Charity Run is returning in 2026, welcoming runners, volunteers and supporters back to Exeter’s Quayside for another lively and community-focused event – and marking a special milestone as the Run celebrates its 25th anniversary.

Now firmly established as a highlight in the local calendar, the annual Run brings businesses together to promote wellbeing while raising vital funds for Michelmores’ charity partner.

Over its 25-year history, the Michelmores 5k Charity Run has raised more than £400,000 for charitable causes, supporting organisations that make a meaningful difference.

Participants can take part as part of a team or individually, with businesses encouraged to get involved by entering corporate teams or sponsoring the event. Runners of all abilities are welcome, whether aiming for a personal best or simply enjoying the atmosphere of this landmark anniversary year.

As in previous years, there will be a range of prize categories, including:

  • Biggest team
  • Fastest corporate team (based on the top four fastest runners, mixed-gender)
  • Fastest running club (top two runners)
  • Fastest male and female runners
  • Veteran and youth categories

This year’s event will be hosted by former Exeter Chiefs rugby player, Chris Bentley.

Tim Richards, Managing Partner at Michelmores, comments: “We are delighted that our annual 5k Charity Run is returning in 2026, especially as we celebrate its 25th anniversary. Each year, we bring together our people, clients, families and friends to support an important cause, while also promoting physical and mental wellbeing. The Run is a fantastic example of our culture at Michelmores and the strength of our business community.”

For further details, visit our website.

If your organisation is interested in taking part or sponsoring the 2026 Michelmores 5k Charity Run, please contact the Events team at [email protected].