Welcome to our monthly property newsletter.
We hope you find this useful. If anything here raises questions or you’d like to talk things through, please do get in touch.
Making Tax Digital (MTD) for income tax is here!
From 6 April 2026, the regime will apply to self-employed individuals and landlords with business and/or property income (total income, not profits) above £50,000 per annum. It introduces mandatory digital record-keeping and quarterly reporting to HMRC, with the first submission due by 7 August 2026.
The final MTD Regulations were laid before Parliament on 24 March 2026.
If you’re one of the estimated 860,000 individuals entering the regime, it’s important to remember that your 2025/26 tax return still needs to be filed as normal by 31 January 2027. In practice, this means managing both quarterly MTD updates for 2026/27 and your annual return for the previous year at the same time.
We’ve been helping clients prepare for the move to digital record-keeping. If you haven’t yet started planning, now is the time.
Renters Rights Act 2025 – new discrimination rules
The Renters Rights Act introduces new protections against discrimination by landlords and letting agents, particularly where tenants are on benefits or have children.
The rules come into force:
- England: 1 May 2026
- Wales: 1 June 2026
- Scotland: Date to be confirmed
Landlords operating blanket policies against tenants on benefits or with children risk fines from their Local Authority, as well as potential claims under the Equality Act where indirect discrimination can be demonstrated.
Importantly, landlords are still allowed to assess affordability. Where it is clear that a tenant cannot meet rental payments, they can be declined without risk of penalty.
Where multiple applicants are being considered, it is essential to document the reasoning behind tenant selection. As long as decisions are not based on protected characteristics or explicitly linked to benefits or children, landlords should be protected from claims.
We recommend retaining:
- Property adverts
- Application forms
- Notes supporting decision-making
These should be kept for at least six years, in line with the time limit for compensation claims.
Buy-to-let mortgages – outlook for 2026
In our February edition, we highlighted a more optimistic outlook for mortgage rates in 2026, largely driven by Bank of England base rate cuts.
The base rate fell again in February, from 4% to 3.75%, but more recent developments have introduced uncertainty. Ongoing conflict in the Middle East is raising concerns around energy-driven inflation, and on 19 March, the Bank of England held the rate at 3.75%.
As a result, expectations of further cuts this year have softened.
For landlords coming up to remortgage in 2026, this could present challenges. Many fixed deals secured in 2021 were below 2%, and refinancing closer to 5% could significantly increase monthly costs.
According to Moneyfacts, average mortgage rates are now rising. They advise borrowers nearing the end of fixed-term deals to act quickly. Product availability is tightening, and delays could increase monthly repayments by hundreds of pounds.
Renters Rights Act – new information requirements
On 20 March, the Government published the ‘Renters’ Rights Act Information Sheet 2026’.
Landlords and letting agents must provide this document to tenants by 31 May 2026, either in hard copy or electronically, to avoid potential fines.
The document outlines key tenant rights, including:
- Protections against rent increases
- Rights to request pets
- Removal of Section 21 evictions
- Changes to tenancy structures
For:
- New tenancies from 1 May 2026, and
- Existing tenancies without a written agreement
Landlords must also provide a written statement of key tenancy terms and required information by 31 May 2026.
Government confirms seven potential new towns
On 22 March, the Government’s Housing Department announced seven potential sites for new towns in England:
- Tempsford
- Leeds South Bank
- Crews Hill and Chase Park
- Manchester Victoria North
- Thamesmead
- Brabazon and West Innovation Arc
- Milton Keynes
The list has been narrowed down from a larger group, with six locations removed, including a proposed site in Cheshire following local opposition.
These developments could range from entirely new settlements to major expansions and regeneration projects within existing urban areas. They form part of the Government’s broader commitment to deliver 1.5 million new homes in England.
