For landlords 2026 is shaping up to be the most significant year of legislative change since the Housing Act 1988 transformed the private rented sector.
From May the Renters’ Rights Act will fundamentally change how tenancies operate. Alongside this Making Tax Digital begins rolling out, EPC requirements are set to tighten, leasehold reform is progressing and further regulation of agents is on the horizon.
In short compliance is becoming more complex and preparation matters more than ever.
Here’s a clear breakdown of the five key changes every landlord should be aware of and what you should be doing now.
1. Renters’ Rights Act reforms (from 1 May 2026 – England)
This is the headline change and it will affect virtually every private landlord.
From 1 May 2026 the tenancy system as we know it changes overnight.
What happens automatically on 1 May?
All existing and new assured shorthold tenancies (ASTs) will move to periodic tenancies.
Key changes include:
- All ASTs convert to rolling periodic tenancies
- Fixed terms effectively disappear
- Tenants can give two months notice at any time
- Section 21 “no fault” evictions are abolished
- Possession will only be possible using Section 8 grounds
- Rent increases must follow the formal Section 13 process
- Rental bidding will be banned
- Discrimination restrictions increase
- Tenants gain stronger rights around keeping pets
- Local authorities can issue civil penalties up to £7,000 (and up to £40,000 for serious breaches)
These changes apply automatically. There is no transition period.
What landlords must do for existing tenancies
If you already have tenants in place, there are formal compliance steps to complete by 31 May 2026.
You must:
- Serve the official government Information Sheet
- Provide a written statement of terms where no written contract exists
- Follow additional notice requirements for student/HMO tenancies
Failure to comply can result in significant civil penalties.
What this means in practice
Landlords will need to:
- Rethink how they manage possession
- Plan further ahead for tenancy changes
- Keep documentation watertight
- Ensure all processes are compliant
For many landlords professional management will become less optional and more essential.
2. Making Tax Digital for landlords (from 6 April 2026 – UK-wide)
Tax reporting is also changing. From April 2026 landlords earning over £50,000 in combined rental and self employed income must use Making Tax Digital (MTD) for Income Tax.
Instead of one annual return, you’ll need to:
- Keep digital records
- Use approved software
- Submit quarterly updates to HMRC
- File digitally through MTD software
The first quarterly submission deadline will be August 2026. The income threshold drops to £30,000 the following year meaning many more landlords will be included soon after.
How to prepare
Now is the time to:
- Speak with your accountant
- Move away from spreadsheets and paper records
- Use dedicated landlord accounting software
- Separate your rental finances into a dedicated bank account
Getting systems in place early will save stress later.
3. EPC changes and tighter energy standards (expected late 2026)
The government is reviewing how Energy Performance Certificates are measured.
New EPC assessments are expected to include multiple metrics focusing on:
- Insulation and fabric efficiency
- Heating system performance
- Smart energy readiness
- Real-world energy costs
At the same time proposals remain on the table to require:
- EPC C for new tenancies by 2028
- EPC C for all tenancies by 2030
While timelines may shift, the direction is clear: higher energy standards are coming.
Practical advice
If you’re planning upgrades or refurbishments it makes sense to:
- Improve insulation first
- Review heating systems
- Future-proof properties where possible
Delaying improvements may only increase costs later.
4. Leasehold and commonhold reform
The government is progressing plans to overhaul leasehold ownership and promote common hold as the long term alternative.
Although the draft bill has been delayed reforms are expected to:
- Strengthen rights for leaseholders
- Reduce reliance on traditional leasehold structures
- Expand commonhold ownership
- Address ground rents and forfeiture rules
For landlords with leasehold flats or block investments this is one to monitor closely as management and ownership structures may change.
5. Possible regulation of letting agents
With legislation becoming more complex each year the lack of minimum qualifications for letting agents is increasingly under scrutiny.
Proposals include:
- A national Code of Practice
- Minimum standards for agents
- Greater oversight and enforcement
If introduced this would help raise professionalism across the sector something that benefits both landlords and tenants.
Final thoughts
2026 isn’t just another compliance update. It’s a structural shift in how residential property is let, managed and regulated.
The common theme across all of these changes is clear:
- more regulation
- more administration
- higher compliance risk
- less room for error
Landlords who prepare early and take a proactive approach will be in the strongest position.
At Horizon Lets we’re already supporting our landlords through these changes updating processes, systems and documentation to ensure everything remains compliant and stress free.
If you’d like advice on how these reforms affect your portfolio our team is always happy to help.
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