Welcome to our monthly update for property landlords. We hope you find this useful. If any of the topics are relevant to you or you’d like to discuss them in more detail, please do get in touch.
Making Tax Digital becomes mandatory
Making Tax Digital (MTD) for Income Tax is now live. Many self-employed individuals and landlords with turnover above £50,000 in 2024/25 were brought into the regime from 6 April 2026.
Under MTD, individuals are required to maintain digital records and submit quarterly updates to HMRC using compatible software. This represents a shift towards in-year record keeping, rather than dealing with everything after the year end. For those already within the regime, the first quarterly deadline for 2026/27 is 7 August 2026.
While MTD remains optional for some, the next group will be mandated shortly. If your qualifying income (turnover before expenses) from self-employment and/or property exceeds £30,000 in the 2025/26 tax year, you will be required to comply with MTD from 6 April 2027.
This does not mean paying tax four times a year, but it does mean more regular reporting. With the right preparation, including choosing appropriate software and understanding the requirements, the transition can be managed effectively while giving you greater visibility over your tax position.
If you expect to fall within the regime from April 2027, we would be happy to support you.
EPC reform delayed – but uncertainty remains
Energy efficiency continues to be a key focus, with confirmation that reforms to domestic Energy Performance Certificates have been delayed until the second half of 2027.
While this provides short-term breathing space, it also creates uncertainty for landlords planning future investment. The revised EPC framework is expected to underpin proposed rules requiring most rental properties in England and Wales to achieve a minimum rating of C by 2030.
There are concerns that landlords may delay improvement works until further clarity is provided, which could lead to compressed timelines later. In the meantime, the practical approach is to review existing EPC ratings, prioritise cost-effective improvements, and retain records of any expenditure in case exemptions are required.
Renters’ Rights Act: key actions before 1 May 2026
The Renters’ Rights Act comes into force on 1 May 2026 and represents a significant shift in the private rental sector. The new rules apply to both new and existing tenancies from the outset.
A key change is the removal of Section 21, meaning landlords will no longer be able to end tenancies without a valid statutory reason. All assured shorthold tenancies will transition to assured periodic tenancies, removing fixed terms and increasing tenant security.
Landlords should ensure they understand the new grounds for possession, review eviction processes, and update internal procedures accordingly. The official Renters’ Rights information document must also be provided to tenants by 31 May 2026 to avoid potential penalties.
Now is the time to review tenancy agreements, check compliance processes, and seek advice where needed to ensure a smooth transition.
Rent trends diverge across the UK
Recent data highlights increasing regional variation in rental performance across the UK.
Scotland recorded the strongest month-on-month growth, with average rents increasing by almost 5% in March. Northern Ireland followed with growth of nearly 4%, while Wales remained broadly stable. In contrast, several English regions – including London, the North East and the South West – experienced monthly declines, reflecting affordability pressures and softening demand in certain areas.
The market is widely seen as stabilising rather than declining, with modest improvements in supply and easing tenant demand. For landlords, this reinforces the importance of understanding local market dynamics when setting rents and assessing yields, rather than relying solely on national trends.
Northern Ireland: landlord registration under review
In Northern Ireland, a consultation launched in March could lead to more stringent landlord registration requirements.
The proposals include additional reporting on property standards and increased data sharing between councils and enforcement bodies. The consultation, which closed on 27 April 2026, reflects a broader UK trend towards greater oversight of the private rented sector.
The intention is to improve standards and address non-compliance, rather than increase the burden on landlords who are already meeting their obligations. Landlords with property in Northern Ireland should review the proposals carefully.
Scotland: rental market stabilising
In Scotland, there are signs that the rental market is stabilising following recent policy changes.
Figures from DJ Alexander Ltd show average rents increased by 2.4% annually, broadly in line with inflation and a return to more typical levels. The removal of temporary rent controls in March 2025 appears to have allowed supply and demand to rebalance, particularly in urban areas.
While some regions, including West Lothian and Greater Glasgow, have seen stronger growth, others have remained flat or experienced slight declines. This points to a more stable, but still regionally varied, market environment.
