Unveiling strategies to combat corruption within the real estate industry
The UK government has initiated a consultation aimed at enhancing transparency in land ownership held by trusts, as part of a broader effort to combat illicit finance and corruption associated with opaque ownership structures. This move is one of several reforms under the Economic Crime & Corporate Transparency Act (ECCTA), which targets illicit financial flows and improves corporate and property ownership disclosures.
The consultation, announced by Minister for Enterprise, Markets and Small Business Kevin Hollinrake, emphasizes the importance of greater transparency requirements for trustees and beneficial owners of land held in trusts. It highlights the need for trustees and beneficiaries to be fully aware of forthcoming public access requirements to trust-related property ownership.
Hollinrake, in his statement, reiterated that there is no place for fraud and other illegal activities in society, and the new consultation is a significant step towards making it more difficult for criminals and corrupt individuals to hide ownership behind trusts and complex corporate structures.
The consultation is connected with ongoing legislative efforts such as the Leasehold and Freehold Reform Act 2024 and is expected to integrate with other transparency and regulatory reforms to increase accountability in land ownership across the UK.
While specific details, such as deadlines or exact legislative proposals for trust land ownership transparency, are yet to be fully published, the government's general approach focuses on ensuring ownership transparency, stronger regulation of trustees, and public accessibility to beneficial ownership information.
This consultation is a part of a wider framework of reforms introduced in 2025 to improve leaseholder protections, property management transparency, and strengthen regulations to protect property owners and ensure fairness in UK land markets. It represents a key move "to end feudal leasehold systems" and tackle corruption by shining a light on hidden ownership through trusts and other structures.
The consultation also aims to make the trust information held on the Register of Overseas Entities more transparent. This is a significant development, considering that research since the register was launched in 2022 has found that the true owners of thousands of properties remain unknown. The Register of Overseas Entities has already helped identify absent landlords, and with increased transparency, these identified absent landlords can now be held to account.
In summary, the new UK government consultation aims to increase transparency on land ownership held by trusts, make trust ownership information publicly accessible to prevent misuse, and support the government’s economic crime and corruption prevention strategies. This strengthens the UK’s commitment to transparency and integrity in property ownership and trust governance.
The new UK government consultation, connected with the Leasehold and Freehold Reform Act 2024, emphasizes the need for greater transparency regarding trust-related land ownership and advocates for public access to beneficial ownership information. It is a significant step towards enhancing transparency in housing and finance matters, contributing to the government's wider anti-corruption and anti-money laundering initiatives.
This consultation also aims to boost the transparency of the Register of Overseas Entities, addressing concerns about the unknown ownership of thousands of properties. By increasing transparency and accountability, it will help eradicate illicit activities and strengthen the UK's commitment to integrity in property ownership and trust governance, thereby improving the overall business environment.
