The Law Commission included ownerless land within its 14th Programme of Law Reform, recognising that the current legal framework is outdated and increasingly problematic in practice. Work on the project formally commenced on 9 March 2026.
Ownerless land (arising through bona vacantia or escheat) can cause significant uncertainty for lenders, leaseholders, developers, neighbouring owners and public authorities. This article explains how land becomes ownerless, what these processes mean, and the potential reforms the Law Commission is exploring.
How does land become ownerless?
Land in England and Wales can become ownerless in several ways:
- When a company is dissolved, any land it owns automatically vests in the Crown as bona vacantia
- In insolvency, a trustee in bankruptcy or liquidator may disclaim the land and when a freehold is disclaimed, it reverts to the Crown through escheat and forms part of the Crown Estate
- Land within the Duchy of Lancaster or Duchy of Cornwall is subject to different rules
In theory, ownerless land simply passes to the Crown. However, while the principle is straightforward, the real world implications are far more complex.
A core issue: when is the Crown liable?
Although ownerless land is vested in the Crown, the Crown Estate is generally not responsible for ownerless land unless it takes an act of possession or control.
The law does not clearly define what amounts to control so the Crown is often reluctant to take any action in respect of such land.
This uncertainty makes it difficult to identify who is responsible for dealing with potentially dangerous ownerless or unmanaged land.
Why ownerless land causes problems
Ownerless land can be difficult to manage because there is no responsible owner to make dangerous or derelict sites safe. Basic tasks such as securing the land, granting utility access or dealing with trespass become complicated, often involving multiple bodies such as the former owner, the Treasury Solicitor and the Crown Estate, sometimes at great expense. Many sites remain unused for years due to costly remediation requirements, existing mortgages and the lack of a clear route for anyone to acquire title. These challenges are made worse by an outdated and complex legal framework that is hard to navigate.
What is the Law Commission reviewing?
The Commission's project spans several key areas, including:
- Modernising the rules on Bona Vacantia and Escheat
The Commission is considering clearer rules on when the Crown is liable and how “acts of control” should be defined in statute. A modern statutory framework could reduce risk and uncertainty and simplify decision‑making.
- Protecting leaseholders
The Commission is examining the rights of leaseholders where a landlord’s title escheats, including whether additional statutory safeguards may be required to ensure continuity and clarity for affected occupiers.
- Vesting Orders and Third‑Party Rights
The Commission is reviewing the powers of parties to obtain vesting orders, the treatment of derivative interests such as charges after disclaimer, and the impact of bona vacantia and escheat on the land registration system, which may lead to clearer and more streamlined processes.
- A possible new managing body
The project includes considering whether some categories of ownerless land should pass to a body other than the Crown.
