Welcome to our monthly newsletter for property landlords. We hope you find this update useful and relevant. If any of the points below apply to you and you would like to explore them further, please get in touch with your usual Wilson Partners contact.
MTD for Income Tax: nearly there
Making Tax Digital (MTD) for Income Tax will become mandatory for a large number of self assessment taxpayers from 6 April 2026, with further groups being brought into the regime in 2027 and 2028.
If your combined turnover from a sole trade or property business exceeded £50,000 in the 2024/25 tax year, you are likely to be required to comply with MTD for Income Tax from April 2026.
Recent surveys suggest that many landlords do not yet feel confident about what MTD involves or how it will affect them. It is not uncommon for landlords to feel uncertain or concerned about the new reporting requirements.
If that sounds familiar, you are not alone. We can support you with the transition, including helping you move to MTD-compatible software and putting the right processes in place to meet HMRC’s requirements.
Over the past year, we have successfully helped many clients prepare for MTD. If you would like to discuss what this means for you and how to get ready, we would be very happy to help.
Renters Rights Act: tenancy agreements
The Government has published draft Regulations setting out the information that will be required in new tenancy agreements under the Renters Rights Act.
Although the requirements may change before the final Regulations are published in March, the draft provides a strong indication of what tenancy agreements will need to include when the Renters Rights Act comes into force on 1 May 2026.
Under the draft Regulations, tenancy agreements will be required to include details such as:
- The landlord’s name (or names, where there are joint landlords)
- The tenant’s name (or names, where there are joint tenants)
- An address in England or Wales at which notices can be served on the landlord
- The address of the property being let
- The date the tenant is first entitled to possession
- The rent payable and when it is due
- A statement explaining how rent increases must be made under section 13 of the Housing Act 1988
- Details of any bills included in the rent
- Details of any bills payable to the landlord in addition to the rent
- The deposit amount, where applicable
Much of this information will already be familiar and included in most tenancy agreements. However, the draft Regulations also introduce some additional requirements, including:
- A statement confirming that tenants may request a pet and that consent must not be unreasonably withheld
- The minimum notice period required for a tenant to end the tenancy
- A statement confirming the landlord’s duty to ensure the property is fit for human habitation
- A statement outlining repair obligations under the Landlord and Tenant Act 1985
- A statement covering the landlord’s responsibilities under the Electrical Safety Regulations
- Where relevant, a statement covering obligations under the Gas Safety Regulations
The Government has confirmed that landlords will not be required to issue new tenancy agreements for existing tenancies. However, landlords must provide tenants with a notice explaining the changes introduced by the Renters Rights Act by 31 May 2026. The content of this notice is expected to be prescribed in March.
The draft Regulations, titled The Assured Tenancies (Private Rented Sector) (Written Statement of Terms etc and Information Sheet) (England) Regulations 2026, are available to view online.
High expectations for a booming mortgage market
In January, financial information service Moneyfacts published its UK Mortgage Trends Treasury Report, predicting that the positive momentum seen in the mortgage market during 2025 will continue into 2026.
The report shows that, in January 2026, borrowers had access to 7,158 mortgage deals. This is 650 more than a year earlier and the highest number of deals available since October 2007.
Mortgage rates have also continued to improve. Between January 2025 and January 2026, the average two-year fixed rate fell from 5.48% to 4.83%, while the average five-year fixed rate reduced from 5.25% to 4.91%. These changes reflect the multiple Bank of England base rate cuts seen during 2025 and have helped improve affordability.
Rachel Springall, Finance Expert at Moneyfacts, commented:
“Borrowers and lenders will be in a state of optimism, off the back of a positive 12 months for the mortgage market in 2025. Expectations are high for a booming market in 2026.”
First-time buyers also have reason to feel more confident. The report shows that the number of low-deposit mortgage products is at its highest level for almost 18 years, with 489 products available at 95% loan-to-value and 927 at 90% loan-to-value at the start of 2026.
Further details can be found in the Moneyfacts report.
