The private rented sector continues to evolve at pace and 2026 is proving to be one of the most significant years for legislative change that landlords have faced in recent memory.
From the Renter’s Rights Act to Making Tax Digital and tighter energy efficiency requirements there is a lot to keep on top of. As a landlord understanding what has changed, what is coming next and what action you need to take is essential to staying compliant and protecting your investment.
Here’s our guide to the three biggest changes affecting landlords this year:
1. Renter’s Rights Act – The Biggest Shake-Up in Decades
The introduction of the Renter’s Rights Act marks the most significant reform of the private rental sector in a generation.
The first phase came into force on 1st May 2026 and has already changed the way landlords manage tenancies.
Some of the headline changes include:
- The end of fixed term tenancies.
- The abolition of Section 21 “no fault” evictions.
- Restrictions on taking rent in advance.
- Rent increases limited to once per year.
- A ban on rental bidding wars.
- New protections preventing discrimination against applicants with children or those receiving benefits.
Alongside these changes local authorities have been given stronger enforcement powers with financial penalties reaching up to £40,000 for serious breaches.
Additional enforcement measures are also being introduced through updates to the Housing Health and Safety Rating System (HHSRS).
Key Dates for Landlords
14th June 2026 (Wales only)
Landlords in Wales must notify tenants about the new anti discrimination provisions introduced on 1st June. This can be done through a statement of variation or by issuing a new occupation contract.
31st July 2026
If you served a Section 21 or Section 8 notice before 1st May 2026 this is the deadline for starting court proceedings.
31st July 2026
Student HMO landlords planning to use Ground 4A to regain possession for the next academic year must ensure the relevant Section 8 notice is served by this date if they wish to provide two months’ notice rather than four.
Missed a Compliance Deadline?
If you have not yet provided existing tenants with the mandatory information sheet explaining the changes introduced by the Renters’ Rights Act we would strongly recommend doing so immediately.
The original deadline was 31st May 2026, and penalties for non compliance can reach £7,000. Acting quickly may help reduce the risk of enforcement action.
For student landlords if Ground 4A prior notice was not issued by the required deadline you will not be able to rely on this ground to regain possession. In these situations open communication with tenants is often the best approach to understand their plans and agree a suitable move out arrangement.
What Happens Next?
The second phase of the Renter’s Rights Act is expected from late 2026 and will introduce:
- A new Private Rented Sector (PRS) Database.
- A mandatory Landlord Ombudsman scheme.
The PRS database is expected to launch first with a regional rollout planned during autumn. The Government is also working towards fully digitising the court process by April 2027 with the Ombudsman expected to follow in 2028.
2. Making Tax Digital – A New Way of Reporting Rental Income
Making Tax Digital (MTD) for Income Tax is now live for landlords and self-employed individuals earning more than £50,000 per year.
Instead of submitting a single annual tax return landlords must now provide quarterly updates to HMRC throughout the year followed by a final year end declaration.
The new system requires the use of compatible software to record and submit income and expenditure information directly to HMRC.
It’s also important to remember that during your first year under MTD you will still need to complete a traditional Self Assessment tax return for the previous tax year.
Important MTD Deadlines
7th August 2026 – First quarterly submission deadline.
7th November 2026 – Second quarterly submission deadline.
31st January 2027 – Self Assessment deadline for the 2025/26 tax year.
7th February 2027 – Third quarterly submission deadline.
7th May 2027 – Fourth quarterly submission deadline.
April 2027 – MTD expands to landlords earning £30,000 or more annually.
April 2028 – MTD expands further to landlords earning £20,000 or more annually.
What If You Miss a Deadline?
HMRC has introduced a points based penalty system. Each missed submission earns a penalty point. Once four points have been accumulated, a £200 financial penalty is triggered. Additional penalties may also apply for late tax payments with charges linked to the amount owed.
With reporting becoming more frequent maintaining accurate records throughout the year will be more important than ever.
3. EPC Changes and Minimum Energy Efficiency Standards (MEES)
Energy efficiency remains firmly on the Government’s agenda and all landlords should now be preparing for the move to a minimum EPC rating of C.
Under current proposals all privately rented properties must achieve an EPC rating of C or above by 1st October 2030, unless a valid exemption has been registered.
This is expected to affect millions of rental properties across the UK with many landlords needing to budget for significant improvement works.
Current proposals suggest landlords could be expected to invest up to £10,000 per property to meet the new requirements.
A Further Twist: New EPC Calculations
Adding another layer of complexity the Government plans to introduce a new assessment methodology called the Home Energy Model (HEM).
This system will calculate energy performance differently from the current EPC framework, meaning some properties could receive different ratings even if no physical changes have been made.
Key EPC Dates
October 2025 onwards
Qualifying energy efficiency improvements completed after this date can count towards the proposed £10,000 spending cap.
30th September 2029
This is expected to be the final opportunity to obtain an EPC using the current assessment methodology before the Home Energy Model is introduced.
Many industry experts believe achieving a C rating under the new system could become more challenging potentially requiring measures such as solar panels or heat pumps.
1st October 2030
All rental properties must have an EPC rating of C or above or hold a valid exemption to continue being legally let.
What Happens If You Don’t Comply?
If a property does not meet the minimum energy efficiency requirements by the deadline and no exemption applies it may no longer be legally let.
For landlords with older or lower rated properties early planning is likely to save both time and money.
Looking Ahead
While the Renter’s Rights Act, Making Tax Digital and EPC reforms are dominating the headlines they are unlikely to be the last major changes landlords will see.
The Government has also signalled its intention to progress leasehold reform including proposals to ban new leasehold flats and place limits on ground rents. If implemented these changes could fundamentally reshape property ownership across England and Wales.
As legislation continues to evolve staying informed has never been more important. At Horizon Lets we’re helping landlords navigate these changes every day. Whether you need advice on compliance, tenancy management, property improvements or preparing for future legislation our team is here to help you protect your investment and stay ahead of the curve.
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